From the ground up: Saving Israel’s agricultural future

By Sagi Balash, CEO of Ogen, and Gidi Kroch, CEO of Leket Israel

Our roots run deep in this land. We have made the desert bloom. We have fed the masses. We have achieved farming feats the founders of Israel could only have dreamt about.

Indeed, Israel has been a leader in agricultural innovation for over seven decades, pioneering practices that have reverberated globally, from drip irrigation to precision agriculture.  This long tradition of excellence in agriculture has not only contributed to the economy but positioned Israel as a true hub of agricultural progress. In 2021, Israeli agriculture brought in NIS 32 billion ($8 billion), accounting for 2.5% of the country’s gross domestic product. However, the current war has brought about what is likely the biggest crisis for farmers in the history of the state of Israel.

Farmers from across the country are facing truly unprecedented challenges, from a shortage of workers to immediate cash flow problems. Some farmers have been unable to harvest produce due to reserve duty obligations and a lack of foreign workers, while the vast majority have not received any government compensation so far whatsoever.

Fields of plenty are turning into wasteland. Many of our greatest natural assets which fed not only our nation, but other nations both near and far, remain inaccessible due to security concerns or a lack of farmhands. The threat on the northern front has forced residents and farmers to abandon their homes and leave their fields untreated and exposed to missile strikes that could destroy the entire crop.  Many of our fruits that once found their way to the furthest corners of the world lie moldy in the ground. Our world-leading vegetables, once abundant, now rot in the fields. Farmers have lost a year’s worth of income, and it could take years to restore some of the land and produce.

The collapse of the agriculture sector is not just a crisis for farmers; it poses a strategic threat to the State of Israel. For many years, food security organizations have relied on farmers to provide for millions of people. With a disruption in the supply chain, regular sources of food security stability are at risk of being compromised. This is a matter of national security, of the Jewish state’s very own food security.

In this time of crisis, Ogen and Leket stand united in response to the current hardships facing Israeli farmers. Together, our organizations have launched the Farmers’ Emergency Relief Fund, a first-of-its-kind initiative aimed at providing critical financial support to those who cultivate our land. This fund offers loans of up to NIS 300,000 at a subsidized 3% interest rate over five years, providing immediate relief to farmers in need.

Through this program, farmers will receive personalized financial guidance and mentoring, ensuring not only immediate relief but also long-term sustainability and growth. Our collaboration combines Leket’s deep knowledge of the agricultural sector with Ogen’s expertise in social loans and mentoring, making us uniquely positioned to address the needs of Israeli farmers during this pivotal time.

October 7 destroyed lives, families and communities. The massacres will be with us for generations to come. And now, with a significant portion of Israel’s agriculture –especially in the Gaza border region in the south and in the evacuated north of the country – essentially turned into a war zone, Israel has to react to save this sector as a matter of urgency.

This is not just about the livelihoods of farmers and their families. Food security, self-sufficiency, and a land that yields the nutrients required to nourish a flourishing nation are the beating heart of the Zionist ideal.

During a time of uncertainty and abandonment, immediate and unquestionable support for farmers is essential to show care and concern for the community. The Israeli farming community has been the largest donors of food to Leket Israel since its inception over 20 years ago. They now need our support in their time of need.

We have a duty to ensure that our lands no longer lie fallow. We must invest in the agricultural sector, so our roots here can grow deeper and bear fruits.  With continued determination and perseverance, Israel’s agricultural legacy can remain a testament to human ingenuity and Israeli resilience.

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Sagi Balasha is the CEO of the Ogen Group, leading five non-profit organizations dedicated to expanding access to affordable credit in Israel. He previously served as the CEO of the Israeli-American Council and co-founded Concert to combat BDS efforts against Israel. He has also held significant roles at Beit Hatfutsot and in Israel’s Ministry of Finance, where he played a crucial role in far-reaching structural reforms.

Gidi Kroch joined Leket Israel as Chief Executive Officer (CEO) in July of 2007, bringing with him a wealth of administrative and hands-on experience after nearly two decades in the hi-tech sector in Israel and in the US. He holds a MBA from England’s University of Derby and is a Lieutenant Commander (res.) in the Israeli Navy, having served as the head of a Fast Attack Missile Boat unit and the celebrated Fast Attack Patrol Boat division. Away from the office Gidi likes to sail, scuba dive, and read.