Table DS:2

DOMESTIC SUPPORT: ISRAEL

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(1) Full title of measure:

Governmental guarantees for small and medium farmers' loans.

(2) Domestic legislation reference:

Various Ministry of Agriculture publications (earliest 04.11.15 most updated 13.03.19).

(3) Detailed description of measure with reference to criteria:

The government of Israel established a fund to cover guarantees for small and medium farmers applying for loans from the SME Loan Fund.

Payment according to the programme is decoupled from the type or volume of production and is based on the business cycle of the loan taker.

The programme conforms to the general criteria of Paragraph 1 of Annex 2 of the Agreement on Agriculture:

a)_    The programme is provided through a publicly funded government programme not involving transfers from consumers; and 

b)_    The programme did not have the effect of providing price support to producers.

In addition, it meets the policy specific criteria of Paragraph 11 of Annex 2 of the Agreement on Agriculture: 

a)_    The eligibility for payment is based on objectively demonstrated structural disadvantage, namely a business cycle of ILS 5 million or less.   

b)_    The payment is not related or based on the type or volume of production.

c)_    The payment is not related or based on prices related to the production.

d)_    The payment is given only as a 1-off governmental guarantee.

e)_    The payment does not mandate or designates the products to be produced.

f)_     The payment is limited to 85% of any unreturned loan.

(4) Cost of measure:

ILS 10 million from 2018 on.

(5) Date of entry into effect:

04/11/2015.

(6) Period of application:

Unlimited.

(7) Products to principally benefit (if any individual product(s)):

Agricultural produce of small and medium scale farmers.

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