The Ministry of Agriculture and Rural Development last week grandly notified us of the signing of a cooperation agreement with Russia. Among other things, the agreement focused on development of the Russian dairy industry, irrigation technology, storage and preserving of agricultural produce and cooperation between the Volcani Center/Agricultural Research Organization and the state university of the Russian Ministry of Agriculture. Under the agreement, Israel will set up a wholesale and retail center in Russia, through which it will apply Israeli know-how. The Ministry of Agriculture boasts that the agreement is worth NIS 15 billion to Israel. Minister of Agriculture Uri Ariel said, "Israeli agriculture is among the most advanced in the world, and we are taking steps to leverage this both economically and politically…"
I do not know whether to laugh or cry. While the Israeli government is crowing about Israeli farmers in order to attract foreign investment, so that doors will be opened to them overseas, in Israel they are being trampled. Israel is using agricultural knowledge to promote its diplomatic relations and foreign relations, but its policy in recent years has a price, and in the future, Israel will have nothing to offer the world. The government is implementing a scorched earth policy. Although there is no decrease in agricultural output, farmers' profits are falling, and more and more farmers each year are looking for alternative sources of income. According to the Central Bureau of Statistics, 15,000 people currently earn a living in agriculture, 20% of whom work part-time, compared with 50,000 people in the 1980s. The farmers' average age is 62; young people are not entering the industry. Israel is indeed exporting agricultural know-how all over the world. Agricultural fields here are a giant experimental farm for developing some of the world's best technologies, but Israel supports the fewest farmers in the OECD, and is pushing uncontrolled imports that are in effect aiding thoroughly subsidized Turkish and European farmers. The government's policy is slowly eliminating the small growers, and when there is no renewal of fields, there is a shortage of produce, and the land becomes arid. One painful example is the farmer from Binyamina who recently gave away 500 tons of tomatoes for free, after finding that he was losing money on what he sold because of imports from Turkey. The same farmer, who marketed his produce to Shufersal Ltd. (TASE:SAE), was recently given NIS 150,000 by the chain to continue growing.
The farmers have to wage a campaign aimed at changing the government's outlook, failing which there will be no change in policy concerning them. The struggle should focus on water prices, KANAT (the nature damage fund), research and development, the Ministry of Agriculture Agricultural Investment Administration, and the next generation.
Where water is concerned, there is no shortage; the problem is the price. Water is a public product that can be subsidized. Just as the price of infrastructure is not included in train ticket prices, farmers should not bear the costs of water transportation infrastructure. In addition, the direct support for farmers through KANAT should be increased to 70% of the insurance premiums. Regional R&D essential to further agricultural progress should be supported. Although the Agricultural Investment Administration is one of the growth engines in the sector, we were recently informed that it has no money. Agriculture is already regressing, and without encouragement of capital investments and support for R&D, it will die.
The link between agricultural and rural communities and food security and secure borders is well known. If we do not develop farms and foster the next generation, there will be no agriculture, and all of us will pay a heavy price. In order to illustrate this, we will take a scenario in which agricultural communities near the Gaza Strip are closed down. How much will it cost the state treasury to put the army and the police there to continue guarding the land and public assets there? The prime minister is the responsible adult who is supposed to take care of the national interest, lead a change in outlook, and put Israeli agriculture on a par with defense and education. Until that happens, agriculture will continue to die away. Everyone will pay the price.
Yaron Solomon is the Agricultural Union settlement department director
Published by Globes [online], Israel business news - www.globes-online.com - on November 22, 2016
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