State of Palestine Ministry of Agriculture National Priority Interventions in the Agricultural Sector (2013-2015) 1 Agriculture is an essential component of the Palestinian national, cultural, social and economic fabric, and is considered a symbol of steadfastness, resistance and attachment to the land threatened by confiscation and settlement activity. Also it is a refuge and a source of income and food in times of crisis. Being productive, the agricultural sector is one of the main components of the Palestinian economy due to its contribution to the GDP by (5.6%), and to employment rate by (11.2%), in addition to its contribution to the national commodity exports rate by (12.2%). Of the 292,000 workers employed in agriculture, about 94 per cent are non-paid, family members (PMA, et. al., 2012). The sector supplies roughly 15 per cent of Palestinian exports, with olives, olive oil, vegetables and cut flowers being the primary exports. Moreover, agriculture has a main contribution to food security, the income which is not calculated in the statistics, the protection of water and environmental rights, not to mention the fact that agriculture is a tributary to other economic sectors. Cultivable agricultural land in the West Bank and Gaza is estimated at 1,925 km2 (31 per cent of the total area). 91 per cent of the arable land is in the West Bank and the remainder is in the Gaza Strip. Due to limited access to water resources, irrigated agriculture represents 14 per cent of arable land, of which 56 per cent is in the West Bank. Rain-fed areas account for 86 per cent of cultivated land, of which 97 per cent is in the West Bank. Ground water represents the main source of irrigation in Gaza (PNA MoA, 2010). Currently operating at perhaps one quarter of its potential, agriculture acts as a strong shockabsorber for rural families, especially in times of crises. Recognizing its potential contribution to laying a strong economic foundation for future development, not to mention that it is a source of food, income and employment, especially during times of crises, the PA articulated a goal to build a sustainable, internationally competitive agriculture sector (Shared Vision, 2011-2013). However, the mounting difficulties facing the PA since 1999 have prevented it from providing adequate support to the sector as recurrent emergencies, economic and humanitarian crises claimed much of its attention and resources. Consequently, agriculture accounted for 1 per cent of donor support and PA budget allocation in recent years (UNCTAD, 2012). The Israeli occupation, with its arbitrary measures, is considered one of the main obstacles that limit the development of agriculture in Palestine. Those measures include the devastating 2 invasion of the Gaza Strip 2008/2009 and the ongoing barbarian siege which led to the destruction and hindrance of all aspects of life. The largest damage has been done to the agricultural sector as the value of the direct losses was more than $ 270 million. Moreover, the establishment of the apartheid wall has destroyed 75 thousand dunams of agricultural land and isolated more than 700 thousand dunams, including more than 150 thousand dunams of fertile agricultural land. The direct agricultural losses resulting from the occupation measures in the West Bank has amounted to about $ 140 million. The fact that the Occupation controls more than 62%, the area classified as “C”, of the West Bank, which includes most of the land and natural resources, constitutes the most important obstacle to the development of the agricultural sector. Furthermore, the land confiscated by the Israeli occupation for the purposes of settlement and bypass roads is estimated at around 220 thousand dunams, and more than 85% of the rangeland is still controlled by the occupation, in addition to the continued control of more than 80% of the Palestinian water rights, as noted by the World Bank report issued in 2009. In case the Palestinians obtain their water rights, the percentage of the agricultural sector’s contribution to the GDP may increase by about 10%, which would create 110 thousand jobs through increasing the irrigated area. The agricultural sector still suffers from a chronic weakness in the supply of internal and external funding, with the current and capital expenditures allocated to the agricultural sector in the PNA budget for the years 2011 and 2012 being less than 1%. It must be noted here that the National Development Plan 2011-2013 has allocated 7% of the total plan budget for the expenses of development in the agricultural sector. However, only a very small part of this percentage was granted by the donors, which prevented the implementation of a large part of the agricultural interventions and targeted activities contained in the plan. Therefore, There has not been a significant progress in agriculture in terms of raising agriculture's contribution to GDP, increasing agricultural exports, expanding the agricultural area, or reducing the importation of foreign agricultural products. The agriculture sector led by MoA with technical support from FAO, has recently conducted a midterm review of the Agriculture Sector Strategy “Shared Vision”, 2011-2013. The mid-term evaluation is envisaged to inform MoA and other stakeholders on the progress achieved in the roll out of the “Shared Vision” over the past 1.5 years, and indentify necessary adjustments 3 needed to ensure relevance and effectiveness of current and planned interventions, and enhance donor coordination in light of the changing context of the agriculture sector. Linked to the general findings of the midterm review, MoA has identified the below priority interventions to be focused on over the next three years. The estimated cost required for these interventions and activities amounts to about ($ 361 million): First: development of natural resources efficiently and sustainably, which includes: 1. Reclamation and rehabilitation of approximately 45 thousand dunams at an estimated cost of about (24 million dollars), especially in area "C", drilling and rehabilitation of 4500 rainwater harvesting cisterns at a cost of approximately (18 million dollars), cleaving and rehabilitation of 900 km of agricultural roads at an estimated cost about ($ 13.5 million), and construction of 1.5 million square meters of retaining walls at an estimated cost ($ 6 million). This would provide more than 3 thousand permanent jobs in the agricultural sector, in addition to 1.08 million days of temporary work. 2. Improvement of water supply and demand management (providing 30 million cubic meters) through: Rehabilitation of agricultural springs and groundwater wells at an estimated cost of about (7.4 million dollars), which would provide about (9.7 million cubic meters), water harvesting through the construction of small and medium dams, ponds and cisterns at an estimated cost of around (22.9 million dollars), which would provide approximately (7.2 million dollars), using unconventional water, especially treated sewage water in agriculture at an estimated cost of about (19.74 million dollars), in addition to enhancing the efficiency of the distribution systems and upgrading the irrigation systems at an estimated cost of about (5 million dollars), which would provide about (13.1 million cubic meters) and, therefore, would increase the irrigated area by 50000 dunams and provide about 10000 permanent jobs in the agricultural sector. 4 3. National Green Palestine Programme which includes: Planting about 2.25 million pastoral and forestry seedlings ( to be produced at the nurseries of the Ministry of Agriculture) at a cost of ($4.7 million), as well as planting about 4.05 million fruit-bearing trees ( to be supplied by private nurseries) at an estimated cost of around ($ 10.8 million). This, in turn, will lead to the cultivation of about 135 thousand dunams and the creation of about 8.6 thousand permanent jobs in the agricultural sector. Second: strengthening the capacity of Palestinian agricultural products to compete in the domestic and foreign markets, which includes: 1. The establishment of a National Agricultural Marketing Company ($ 30 million). 2. Preparation and application of quality standards and specifications and raising the awareness of the farmers and exporters of the quality standards and market demands ($ 6 million). 3. Promoting export crops, that are alternative for imports ($ 15 million) 4. Contributing effectively to boycott settlement products Third: development of agricultural lending as well as insurance and risk prevention services, which includes: 1. Establishment of agricultural lending and financing organization / bank to enable farmers and rural women to access agricultural lending services, at an estimated cost ($ 40 million). 2. Set up an agricultural insurance and risk prevention fund to support and protect farmers, and 3. strengthen their steadfastness, at an cost ($ 30 million). Providing legal and financial support to farmers affected by the Occupation, at an estimated cost ($ 20 million). 4. estimated Establishment of agricultural insurance company. 5 Fourth: improving the plant, animal, and fishery sub-sectors’ productivity, which includes: Supporting and developing research, extension, plant protection, veterinary and animal health services and agriculture marketing at an estimated cost ($ 22.1 million dollars), improving the productivity of olives at an estimated cost ($ 25 million dollars), improving the productivity of small ruminants by about ($ 20 million dollars), developing the bee sector at an estimated cost ($ 6.5 million dollars), and developing the fishery and aquaculture sector at an estimated cost ($ 11.2 million dollars). Fifth: development of institutional building and capacity, which includes: Improving the efficiency and effectiveness of agricultural sector institutions and the completion and upgrading of the agricultural laws and regulations, at an estimated cost ($ 3 million). The implementation of the above-mentioned interventions and targeted activities will bring about a real developmental leap in the agricultural sector, which will reflect positively on the economic development in Palestine, according to the following sectoral and economic indicators: 1. Increasing the contribution of the agricultural sector in GDP by (1.2%). 2. Increasing the agricultural exports by (7%). 3. Reducing the agricultural imports by (7%). 4. Increasing employment opportunities in the agricultural sector by (12%). 5. Increasing the contribution of the agricultural sector in reducing the rate of food insecurity by (3%). 6. Increasing the cultivated land by (7%). 6 Summary of the agricultural interventions and targeted activities for the next three years and their estimated cost Objective First: Development of natural resources efficiently and sustainability Intervention Estimated coast ($ million) 1. Agricultural land development - Reclamation and rehabilitation of 45 thousand dunams 24 - Drilling and rehabilitation of 4500 cisterns 18 - construction and rehabilitation of 900 kilometers of agricultural roads 13.5 - Building of 2.5 million square meters of retaining walls 6 ا 2. Development of water supply and management - Rehabilitation of agricultural springs and wells 7.4 - water harvesting 22.9 - using unconventional water, especially treated sewage water 19.74 - enhancing the efficiency of the distribution systems and upgrading the irrigation systems 5 3. National Green Palestine Program - Planting 2.25 million pastoral and forestry seedlings 4.7 - Planting 4.05 million fruit-bearing seedlings 10.8 7 Objective Intervention Second: Strengthening the capacity of Palestinian agricultural products to compete in the domestic and foreign markets - establishment of National Agricultural Marketing Company Third: Development of agricultural lending, insurance, and risk prevention services Estimated coast ($ million) 30 - Preparation and application of quality standards and specifications 6 - Promoting export crops, alternative for import . Establishment of agricultural lending and financing organization / bank 15 - Setting up an agricultural risk prevention fund 30 - Providing legal and financial support to farmers affected by the Occupation Fourth: improving the plant, - supporting and developing research, animal, and fishery extension, plant protection, veterinary productivity and animal health services and Agriculture Marketing 40 20 22.1 - improving the productivity of olives 25 - improving the productivity of small ruminants 20 6.5 - developing the bee sector - developing the fishery and aquaculture sector Fifth: institutional building and development of services Improving the efficiency and effectiveness of agricultural sector institutions and the completion and upgrading of the agricultural laws and regulations Total Estimated Cost 11.2 3 361 8