New farmer compensation system to be a price stabiliser for consumers — JFU 

AMMAN — The newly endorsed compensation system for farmers affected by agricultural risks is a necessary step to enhance food security and promote the sustainability of the agricultural sector, according to General Manager of the Jordanian Farmers Union (JFU) Mahmoud Oran. 

In an interview with The Jordan Times on Monday, Oran explained that this system aligns with amendments to the Agricultural Risk Management Fund Law No. 5 of 2009, which take into consideration climate-related risks that are impacting the Kingdom. 

Enhancing the resilience of the agricultural sector to the impacts of climate change requires reviewing the legislation governing it, he said.

The agricultural risk fund, originally established in 2009, was initially only intended to compensate farmers from frost-related damages, according to Oran. 

However, the articles of the system endorsed by the Cabinet on Sunday stipulate that farmers are entitled to compensation for all agricultural risks related to climate change, which aside from frost, include rising temperatures, drought, floods and storms as well as pests and diseases, among others, he said. 

An “obvious example” of how this step will reflect on the Kingdom’s food security, according to Oran, is when crop damages result in a decreased quantity of fruits and vegetables supplied to central wholesale markets, which results in increased prices for consumers. 

Compensating farmers directly through the fund will alleviate the impact of damages and reduce incurred losses, which will increase farmers’ resilience and keep market prices under control, he said. 

Farmers contribute to the fund through the payment of a monthly or seasonal sum. Those who don’t contribute will also receive compensation for damages, but at a lesser rate, according to Oran. 

“The union will continue to advocate for the idea that farmers should not pay anything at all to benefit from the fund, as they’re already burdened by various fees and taxes in addition to drowning in debts,” he said. 

So far, the Greater Amman Municipality (GAM) is the only official body that will be allocating financial resources for the fund, he added. 

Funds will be allocated from the revenue of the Fruits and Vegetables Central Wholesale Market, which is equal to approximately JD16 million annually, Oran explained. 

The JFU believes that any government bodies that impose fees and taxes on farmers throughout the production process should also contribute to the fund, Oran added. These institutions include the Ministry of Labour, the Ministry of Industry, Trade and Supply, the Ministry of Water and Irrigation and the Ministry of Energy and Mineral Resources.