State Aid to Farmers
Various photographs of King Fahd Bin Abdul Aziz
Various photographs of King Fahd Bin Abdul Aziz
Various photographs of King Fahd Bin Abdul Aziz
State Aid to Farmers

Since the agricultural sector makes a major contribution to the diversification of income resources, and in view of the importance of encouraging farmers to continue working the land, the Government has adopted a policy of generous farming subsidies including interest-free loan offers and aid to agricultural investment and production projects. The Government offers aid to the value of 50% of the cost of agricultural machinery and equipment imports, as well as for seeds, fertilizers and fodder. It also contributes to the cost of insecticides and air transport of milch cows from abroad. The Saudi Agricultural Bank and other Governmental trust funds offer interest-free loans in order to finance investments and operations in various agricultural projects. In 2001, the Agricultural Bank provided 8,037 loans, to a total value of SR1.4 billion. The Government also offers free arable land to farmers and agricultural companies; has a subsidy policy for wheat and date prices; and has imposed a customs tax to protect the production of eggs for consumption.