Government support to Israeli farmers has fallen over recent years but a number of market distorting policies are still in place, according to the first OECD Review of Agricultural Policies in Israel.
More efficient water resource management also remains a critical challenge.
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Israel’s agriculture is unique amongst developed countries in that land and water resources are nearly all state-owned and that agricultural production is dominated by co-operative communities. Since the late 1980s, agriculture in Israel has benefited from: a stable macroeconomic climate; policy reforms; high levels of investment in R&D; a developed education system; high-performing extension services; and accumulated farm management expertise.
Israel is a world leader in agricultural technology, particularly in farming in arid conditions. Israeli agriculture thus relies on an “induced”, rather than “natural”, comparative advantage, one built on knowledge and technological progress.
Index of real agricultural freshwater price, agricultural water use
and crop production: Israel 1986-2008
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This is the first OECD review of Israeli agricultural policies. It assesses Israel's agricultural policy performance over the last two decades, looks at achievements and remaining challenges, and provides a set of recommendations for continuing the reform process.
A special theme of the review is the environmental performance of Israeli agriculture with respect to water resources and pollution, soils, biodiversity, air emission and climate change.
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