With Israel's agricultural sector severely impacted by the ongoing war, Ogen, the country's leading social lending organization, this week launched a new initiative to provide financial relief and stability to struggling farmers. The program, part of Ogen's broader Swords of Iron Emergency Relief Fund, introduces two lending tracks aimed at addressing both immediate and long-term needs of Israel's agricultural community.
The ongoing war, ignited by the October 7 Hamas attack, has devastated Israel’s southern agricultural regions, where crucial crops and farming infrastructure were targeted. The resulting destruction has led to labor shortages, transportation disruptions, and significant price hikes in produce, threatening Israel's food security.In response, Ogen's "Farmers’ Immediate Relief Track," in collaboration with Leket Israel, offers medium-sized loans to small-scale farmers facing cash-flow issues. These loans, up to NIS 300,000 with a fixed 3% interest rate over five years, are designed to provide quick financial support.
"Ogen stands in solidarity with Israel's farmers, recognizing their unwavering dedication amidst ongoing adversity," said Sagi Balasha, CEO of Ogen. "Our new loan tracks are tailored to meet the diverse needs of farmers, from immediate cash-flow support to long-term investments."
Leket Israel's CEO, Gidi Kroch, emphasized the importance of supporting farmers who have been essential to the nation's food supply."Israeli farmers have been the largest food donors since Leket Israel’s inception over 20 years ago. During their time of need, it is our responsibility to assist them and ensure the continuation of Israeli agriculture overall," Kroch said.
Additionally, Ogen's "Long-Term Agricultural Relief Track" targets farmers requiring substantial investments to rebuild and enhance their operations. Supported by Hashomer Hahadash and Regrow, this track offers prime-rated loans up to NIS 1 million over a ten-year period. The program, backed by a NIS 30 million fund, aims to ensure farmers can access significant capital along with expert guidance."These initiatives aim to alleviate financial burdens and bolster the agricultural resilience and food security of our nation," Balasha said.
The program's launch is part of Ogen's strategic response to the war's impact on the agricultural sector. The organization has already mobilized $55 million of its $100 million target to support over 250,000 individuals affected by the conflict. Since the establishment of the Swords of Iron Emergency Relief Fund, Ogen has disbursed over $21 million in critical loans, primarily aiding vulnerable communities, including farmers and reserve soldiers.
The war has not only caused direct damage to farmers' land and equipment but has also disrupted the labor force, many of whom are reserve soldiers called to duty. Transportation issues have further compounded these problems, making it difficult to get produce to market, leading to shortages and increased prices.Ogen says these compounded issues underscore the urgent need for the financial support to provide a "vital lifeline" to ensure the continuity and recovery of the agricultural sector.
This article was written in cooperation with Ogen.