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The primary agency responsible for implementing
agricultural policy is the Ministry of Agriculture and Water,
which constructs and maintains irrigation and drainage networks,
and 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. During
fiscal 1997, for example, it processed nearly 4,000 loans worth
over 167 million U.S. dollars, a figure that is 28.6 percent
higher than that for the previous year. In addition, SAAB granted
farmers 120.8 million U.S. dollars specifically for the purchase
of agricultural equipment in that year.
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.
By the 1990s it was purchasing annually around 4 million tons
of domestic grain.
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 Fifth Development Plan (1990-94), the government continued
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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