AMMAN —
Famers will soon be able to apply for interest-free loans, each for a maximum
of JD4,000, the
Agricultural Credit Corporation (ACC) said.
اضافة اعلان
ACC Director-General Mohammad Dojan told
Jordan
News that farmers can apply for the loans by submitting applications to his
agency.
According to
ACC’s website, the loans are classified as operational for vegetable farmers to
assist them in projects that empower rural women, unemployed youth, and for
livestock breeders to purchase fodder.
Dojan said the move is in line with the requirements
of the National Plan for Sustainable Agriculture 2022-2025, and the ACC’s
commitment to implementing a number of initiatives that will help develop the
agricultural and rural sectors.
Part of the commitment is granting “direct loans to
priority and important agricultural activities, especially in light of global
and regional climate changes, energy prices, and the expected impact on
agricultural produce and food security stocks, and an increase in
unemployment,” he said.
Mahmoud Al Oran, secretary-general of the Jordanian
Farmers’ Union said he backs steps that would help the agricultural sector,
particularly small farmers.
Meanwhile, he questioned if ACC will oblige
borrowers to produce new guarantees, “as the request for new guarantees will
create a difficulty for farmers and would thus contradict the facilities
offered by the ACC”.
Oran also said that loans of JD4,000 were
insufficient in light of the rising cost of production, such as fertilizers and
fodder, which doubled recently.
In light of
the present-day costs, he maintained, “this amount is modest and may not be
feasible for some farmers”.
Regarding other loans, Oran believes that ACC should
reduce interest rates and guarantees in order “for the loan to achieve its purpose”.
At the same time, given the weather conditions, which affected the agricultural
sector, both plant and livestock production, ACC should exempt farmers from
loan interests for a period of two years, he added.
Adnan Al Khaddam, head of the
Jordan Valley Farmers Union, said that while the ACC loan is a positive step, the amount must be
raised and more facilities offered, “as the majority of farmers are already
borrowers and are constantly burdened by mortgages and guarantees in exchange
for these loans”.
Khaddam pointed out that the current food crisis is
global, and that “the need for a strong agricultural sector is extremely
important today, so it would be useful for the government to provide an amount
as a grant to farmers so that they can recover’’ difficulties they faced in the
past two years.
Farmer Mutasem Abu Qamar told
Jordan News that the interest-free loan is a ‘’good gesture’’ the amount is insufficient.
‘’The JD4,000 cap in the world of agriculture is a
very limited amount that wouldn’t solve our problems,’’ he insisted.
Farmers in Jordan “need approximately JD10,000 to
advance at least one step”, he added.
Farmer Karam Habashneh said that the loan will
enable him to improve his production “slightly” and compensate for some of the
losses he suffered as a result of high production costs and low crop prices.
However, he said
the amount was little for large production farmers.
“Food security is the
most important goal the government must strive for, and this will not be
achieved unless the agricultural sector is adequately supported”, he concluded.
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