Israeli Agriculture—Innovation and Advancement

Israel’s agriculture is a success story, reflecting a continuous struggle to overcome unfavorable local conditions. Facing the prospect of food shortages, after its establishment in 1948, the country pursued an aggressive strategy of agricultural development. It almost tripled the lands zoned for agriculture and dramatically increased production, notwithstanding the saline soil, arid or semi-arid climate, scant fresh water supply and inexperience amongst many new immigrant farmers. Much of Israel’s agricultural success can be attributed to technological R&D and myriad innovations that revolutionised the way farmers cultivate, irrigate and protect crops from pests, producing steadily higher revenues for farmers. The country invested heavily in developing new sources of water, promoting wastewater irrigation and fostering close co-operation between farmers. This chapter elaborates on Israel’s key technological advances, incentive structures and institutional innovations. Perhaps, the most distinguishing feature of Israel’s agricultural production is the dominant role played by cooperative communities. After seventy years, three-fourths of the country’s total crop area is still overseen by kibbutzim and moshavim, farming collaboratives. During the mid-1980s, Israel undertook substantial economic policy reforms that also resulted in profound structural changes in the agricultural sector such as a decrease in the number of farms, expansion of farm size, diversification of cropping patterns towards high-value fruits and vegetables, as well as thriving, private enterprises serving agriculture. Together, these policies contribute to improved integration of the agro-food sector with global markets, even though the country no longer produces sufficient calories to feed its rapidly growing population. The chapter tells the story of how Israel grew increasingly technologically sophisticated, with ever efficient utilisation of resources and adoption of precision agricultural methods, while spawning an innovative and profitable agrotech ecosystem.