Lower House approves Agricultural Risk Mitigation Fund Law to support farmers

AMMAN – The Lower House on Monday approved the Agricultural Risk Mitigation Fund Law for 2024, marking a significant step in addressing agricultural risks and providing crucial support to farmers in Jordan.

During a session chaired by Speaker Ahmad Safadi, lawmakers approved Articles 3 to 14 of the draft law, following the approval of Articles 1 and 2 in a previous session, the Jordan News Agency, Petra, reported. 

One notable amendment to the draft law was made to Paragraph 4 of Article 3. Originally, the law stipulated that farmers not enrolled in the fund would receive compensation for frost damage at 25 per cent of the damage value. The amendment, passed by a majority vote, raised the compensation rate to 50 per cent.

Lawmakers also voted to reinstate Paragraph 6 of Article 3, as proposed by the government. The paragraph, which focuses on organising agricultural insurance programmes in cooperation with local insurance companies, reversed an earlier decision to remove the phrase "in the Kingdom."

The discussions led to the retention of Paragraph (c) in Article 8, which allows the committee overseeing the Fund to organise agricultural insurance programmes with local insurance companies under a specific regulatory framework.

An additional amendment introduced the term "local" after "product" in Article 9, which relates to the 10 per cent fee on products sold in wholesale markets for vegetables and fruits.

MPs emphasised the importance of continued dialogue with the Jordanian Farmers Union to address their concerns and challenges, stressing the need to ensure food security in the Kingdom.

Minister of Political and Parliamentary Affairs Abdul Monem Odat said that the primary objective of the Fund is to promote solidarity and cooperation among registered farmers. 

He also highlighted the need to focus on immediate and long-term goals, noting that the compensation system should cover both crop and livestock sectors but should exclude non-participating smallholders.

Regarding compensation distribution, Odat said that a committee would be formed to develop regulations and plans for identifying agricultural risks and establishing compensation schedules.

Minister of Agriculture Khaled Huneifat noted that the law would stimulate investment in Jordan’s agricultural sector, which has grown by 5.8 per cent. 

He also said that Jordan’s self-sufficiency in red meat has risen to 45 per cent, a significant improvement from 28 per cent in 2021.