Breaking Update
Co-op farms process land of their co-op members
Israel's agriculture sector sees a boost as cooperative farms gain the ability to process land owned by their members, enhancing productivity.
Land Cultivation by Cooperative Agricultural Associations by a Cooperative Agricultural Association of which they are members (hereinafter: “Association of Associations”)
1. For the purpose of this procedure, an Association of Associations is a registered association that unites a number of agricultural associations intended to serve common agricultural purposes and which was founded to serve the common interest of the associations united within it.
2. On 13.7.2016, the Ministers of Agriculture and Finance appointed an inter-ministerial team to examine the streamlining of the use of agricultural land in “Israel Lands,” for the purpose of increasing productivity in the agricultural sector, leveraging economies of scale in agriculture, and optimal use of Israel Lands designated for agricultural uses.
3. The concluding report of the inter-ministerial team from May 2018 recommended encouraging the establishment of regional central associations (hereinafter: “Association of Associations”). According to the team’s recommendations, an Association of Associations will be able to manage the cultivation of agricultural land for the cooperative associations it unites, as well as contract with a member of one of those associations or a corporation under the full control (100% share ownership) of the association, in a scope and timeframe to be defined by the Israel Land Authority and the Ministry of Agriculture, provided that the total scope of agricultural land does not exceed 100,000 dunams.
The permit period will be in accordance with the agricultural activity according to the Ministry’s policy. Contracts between members will only be permitted within the framework of the association of which they are members.
