Israel to Subsidize Crop Insurance Up to 80% for Southern Farmers
Translated & summarized from Davar by baba
Israel's Ministry of Agriculture will provide up to NIS 35 million to subsidize crop insurance for the 2026-2027 season, covering up to 80% of costs in southern regions. The initiative aims to protect farmers from weather damage and price fluctuations, ensuring continued land cultivation. Subsidies vary by region, with the highest rates for areas south of the "drought line." This support is seen as vital for maintaining agricultural activity and national food security amidst climate uncertainty.
The story in 5 lines · by baba
- Israel will allocate up to NIS 35 million to subsidize crop insurance for the 2026-2027 season.
- Farmers in areas south of the "drought line" can receive up to an 80% subsidy on insurance costs.
- The program aims to protect farmers from weather damage and price fluctuations in wheat, barley, and oats.
- Recent crop damages amounted to approximately NIS 100 million over the last three growing seasons.
- The subsidies are crucial for maintaining cultivated lands and national food security in Israel.
Israel's Ministry of Agriculture and Food Security has announced a new support plan for crop and natural damage insurance for the 2026-2027 growing season. The state will allocate up to NIS 35 million to subsidize this insurance, covering up to 80% of the cost for farmers in areas south of the "drought line." This initiative aims to provide financial protection to farmers and ensure the continued cultivation of land, particularly in the Negev and rain-dependent regions.
The updated plan builds on previous support models developed in cooperation with the Ministry of Finance, KANAT, and the Crop Growers Organization. It is designed to help growers of wheat, barley, and oats cope with risks such as weather-related crop damage and fluctuations in produce prices. Registration for the upcoming season's insurance has already begun.
The subsidy rate will vary geographically. Farmers south of the "drought line," defined as areas receiving less than 200 millimeters of annual rainfall, can receive up to an 80% subsidy. Those in the Beit She'an Valley will be eligible for up to 65%, and farmers in other parts of the country will receive a 40% subsidy. The total government funding for wheat insurance under this plan is capped at NIS 35 million.
This support is crucial given recent industry losses. In the past three growing seasons, insured crop growers incurred approximately NIS 100 million in damages, with about NIS 80 million paid out in compensation. "If there is no state support, there is no point in sowing," stated Achikam Shelef, agriculture manager at Kibbutz Urim, highlighting the critical role of insurance for farmers in the Negev, where rain-fed agriculture is prevalent.
Dr. Muammar Hajj Yahya, Director of Agricultural Insurance at the Ministry of Agriculture, emphasized that the state's participation in insurance costs aims to reduce the financial risk for farmers, especially in drought-prone areas, providing them with greater certainty. "This allows us to help growers continue to cultivate their fields and produce food in Israel even under uncertain conditions," he said. The program also supports the broader national goal of maintaining cultivated lands and food security infrastructure, particularly in border areas and the Negev, ensuring the continued viability of agriculture despite climate uncertainties and potential extreme weather events like "Super El Niño."