Agriculture corporation registers surge in loans to farmers

AMMAN — The Agricultural Credit Corporation (ACC) registered an 80 per cent increase in the volume of loans to farmers during the first quarter of this year, compared to the same period in 2016, an official said on Wednesday.

During the first three months of 2017, the corporation granted farmers JD18 million, compared to JD10 million last year, ACC Director General Mohammad Hiyari said.

Hiyari attributed the increase to a growing interest in livestock farming and agricultural projects, following a government decision early this year to shoulder the interest rate for loans financing irrigated, protected and seasonal cultivations, as well as animal feed projects.

Official figures indicated that a total of 3,600 farmers benefited from ACC’s loans since the start of the year, with 1,500 of them benefiting from the zero-interest loans offered under the Cabinet decision announced in January.

“During the past year, the corporation financed loans worth JD42 million, from which it has collected JD39 million,” Hiyari told The Jordan Times.

The corporation aims for an even larger financing plan for this year, according to Hiyari.

“The collection of loans granted to farmers as well as an account with the Central Bank are the corporation’s two financing sources,” he explained.

Hiyari underscored that, with the rising interest in agricultural loans, the corporation has been opening new branches across the country almost every year.

The ACC opened a new branch in the Northern Badia in Mafraq Governorate last year, following a surge in loans applications by farmers seeking to finance their agricultural projects.

“This year, we will open a second branch in Madaba Governorate, in Thiban District, to ease the pressure on Madaba’s only branch,” Hiyari said, noting that agricultural activities in Madaba are increasing.