VZCZCXYZ0001
RR RUEHWEB

DE RUEHAM #3121/01 3220646
ZNR UUUUU ZZH
R 170646Z NOV 08
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 3833
INFO RUEHAD/AMEMBASSY ABU DHABI 1253
RUEHGB/AMEMBASSY BAGHDAD 6105
RUEHEG/AMEMBASSY CAIRO 3830
RUEHDM/AMEMBASSY DAMASCUS 4009
RUEHRH/AMEMBASSY RIYADH 2049
RUEHTV/AMEMBASSY TEL AVIV 1395
RUEHJM/AMCONSUL JERUSALEM 5228
RUEHRC/USDA FAS WASHDC

UNCLAS AMMAN 003121 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/TTP/ABT AND NEA/ELA 
FAS FOR OFFICE OF TRADE PROGRAMS 
FAS FOR OFFICE OF GLOBAL ANALYSIS 
FAS FOR GRAIN & FEED DIVISION 
CAIRO FOR FAS AGMINCOUNS PKURZ 
 
E.O. 12958: N/A 
TAGS: EAGR ETRD TBIO JO
SUBJECT: KING DECLARES 2009 THE YEAR OF AGRICULTURE:  WATER USE AND 
OUTPUT TO BE KEY ELEMENTS OF STRATEGY 
 
REFS:  A) AMMAN 2177 
            B) AMMAN 816 
      B) AMMAN 815 
  D) AMMAN 51 
  D) 07 AMMAN 4622 
  E) 07 AMMAN 3661 
 
¶1.  (U)  King Abdullah announced during an early October field visit 
to the rural Al Arda area that 2009 would be "The Year of 
Agriculture."  Prime Minister Nader Al-Dahabi reiterated the message 
during a mid-October meeting with Ministry of Agriculture (MOA) 
officials.  The plan, still in development, would modernize Jordan's 
agricultural sector, increase output, and improve living standards 
for Jordan's rural, agricultural families.  Agricultural Minister 
Muzahim Muhaisin announced his Ministry would encourage more 
greenhouse farming, crop rotation, and water efficiency, the latter 
to be financed through the Agricultural Credit Corporation (ACC). 
Others in the field call for improved transportation networks for 
the distribution of agricultural products, planting of 
drought-resistant crops, better management of the post-harvest 
process, and use of biotechnology, specifically genetically-modified 
seeds. 
 
Overview of Jordan's Agricultural Sector 
---------------------------------------- 
 
¶2.  (U)  A comprehensive agricultural plan is long overdue.  Jordan, 
the fourth most water-poor country in the world, receives on average 
less than two inches of rain per year over much of its desert region 
known as the Badia.  Ten percent of the country, highlands and the 
Jordan Valley, the country's bread basket, averages eight to 18 
inches of rain annually.  Nevertheless, the agricultural sector is 
plagued by inefficiency as well as arid conditions, steadily 
diminishing acreage available for cultivation (2.3 million hectares 
in 2006 out of a total area of 9.6 million hectares) due to real 
estate development, and desertification.  Many economists blame 
agriculture, which consumes 65-75% of Jordan's limited water 
resources, yet represents only 2.8% of GDP, for the country's water 
deficit (a 2008 demand of 1.428 billion cubic meters (MCM) with an 
available supply of only 966 MCM).  In contrast, pro-agriculture 
experts argue the sector sustains other economic activities which 
contribute 30% of GDP and create employment opportunities.  All 
agree, however, that limited resources, tribal domination of the 
agricultural sector and a tenuous relationship between tribes and 
the government, make agriculture a sensitive subject necessitating a 
careful, inclusive approach. 
 
A History of Hard Times for Agriculture 
--------------------------------------- 
 
¶3.  (U)  The King's designation follows a particularly  difficult 
period for the agriculture sector.  The combination of the global 
hike in commodity prices and an early frost followed by a summer 
drought led to high consumer prices for fewer goods in 2008.  The 
annual yield average for wheat was 25 thousand tons, but despite GOJ 
incentives to farmers, including purchasing their harvests at rates 
30% higher than international market price, weather conditions made 
it impossible for wheat and barley seedlings to reach the necessary 
development stage.  As a result, the amount of wheat delivered to 
government silos was less than 500 tons, of which only 175 tons was 
suitable for sowing.  The GOJ, which purchases and resells all wheat 
and barley in the country, subsequently increased procurement, 
buying in mid-October from Syria 1,000 tons of wheat for sowing, 
although some agronomists question the viability of Syrian wheat in 
Jordan's dry climate.  With falling wheat prices, Jordan has also 
seized the opportunity to rebuild its strategic reserves to a 
ten-month supply. 
 
¶4.  (SBU)  In addition, MOA has begun the process of planting 3,000 
hectares of wheat in the south under  supplemental irrigation.  To 
support the initiative, although the aquifer is already stressed, 
additional wells have been drilled near the city of Ma'an and water 
has been pumped for early irrigation.  MOA has also distributed 
seeds to farmers for sowing and is offering an advance subsidy of JD 
50 ($70) for each planted hectare of wheat (ref A).  Nevertheless, 
Mohamed Faweer, MOA Director of Plant Production, criticized the 
Ministry's larger plan to plant 50,000 hectares of cereals as 
 
impractical, projecting that only 25,000 hectares could be grown 
this season.  Barley, already in short supply this season, will be 
in greater demand as the expected crop ratio is 70% wheat and 30% 
barley. 
 
Water and Fuel Present Challenges for Farming Too 
--------------------------------------------- ---- 
 
¶5.  (U)  In designating 2009 the "The Year of Agriculture," the GOJ 
will be forced to confront a number of environmental and cultural 
challenges.  Minister Muhaisin called water the most limiting factor 
for agriculture development and encouraged use of not only fresh, 
but also grey and treated water.  Water scarcity, however, is not 
the only problem.  There are also no incentives for responsible 
irrigation.  Farmers pay less than the real cost of water and one 
told EmbOff, "Why would I be efficient for an almost free 
commodity?"  Mohamed Awamleh, a farmer and former chairman of the 
Agricultural Food Marketing Association for Near East and North 
Africa (AFMANENA), believes increased use of modern technology and 
expanding drip irrigation would cut up to 70% of water consumption, 
a program he argues that could be covered by including 
infrastructure expenses in farmers' water tariffs spread out over a 
five-year period.  Mahmoud Al Duwairi, a prominent wheat expert, 
university professor, Food and Agriculture Organization (FAO) 
employee, and former Agriculture Minister, contends small-scale 
backyard farming and the creation of food self-sufficient rural 
communities would result in 100,000 extra tons of rain-fed wheat per 
year.  Both Awamleh and Duwairi also believe their methods would 
lessen the fuel costs associated with farming from running water 
pumps, and plowing/harvesting, to transporting crops for delivery. 
 
¶6.  (SBU)  Comment:  Despite the sector's numerous problems, many 
Jordanians consider Jordan an agricultural country and there is an 
emotional and historical commitment to farming.  Competition over 
land, scarce water, and the involvement of influential families and 
tribes in farming, however, make agricultural issues sensitive and 
the sector difficult to reform.  The King's focus on farming 
presents an opportunity to address openly what many discuss behind 
closed doors. Producers, traders, and many MOA officials genuinely 
support change, but there will be no progress if water use is not a 
serious part of the discussion. 
 
Visit Amman's Classified Website at 
http://www.state.sgov.gov/p/nea/amman 
 
Beecroft