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The primary agency responsible for implementing agricultural
policy is the Ministry of Agriculture, which provides research
and extension assistance to farmers. Another supporting agency
is the Saudi Arabian Agricultural Bank (SAAB), which disburses
subsidies and grants interest-free loans. The Grain Silos and
Flour Mills Organization was established in 1972 to purchase
and store wheat, construct flour mills and produce animal feed
to support the nationwide growth of agriculture.
To encourage private investment in the agricultural sector,
Saudi Arabia has allocated substantial financial resources for
improving roads linking producing areas with consumer markets.
In addition, the land distribution and reclamation program, which
was introduced in 1968, aims at distributing fallow land free
of charge, mostly in small plots, as a means of increasing the
area under cultivation and encouraging crop and livestock production.
The beneficiaries are required to develop a minimum of one quarter
of the land surface within two to five years. Upon compliance,
full ownership of the land is transferred to the farmer.
Under
the Development Plans, the government continues to assist new
farmers in implementing capital-intensive projects with special
emphasis on diversification and greater efficiency.
To raise farm productivity, the government also funds and supports
research projects aimed at producing new food crops to increase
harvest and develop plant strains with greater resistance to
pests. These programs are conducted in cooperation between local
farmers and scientists at agricultural research facilities at
Saudi Arabian universities and colleges.
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