The details of government support for contract cultivation/5 million hectares will be implemented in the first phase

According to the economic reporter of Fars News Agency, the Ministry of Agricultural Jihad is launching a new type of cultivation program in the agricultural sector, which is actually a new measure and is believed to bring about a great transformation in the country’s agricultural production.

The result of this work will be increasing the food security factor and increasing agricultural production and improving the market as well as the growth of employment in the agricultural sector.

Contract farming is actually the presence of the investor next to the farmer who provides the needs of the farmer during the cultivation and harvesting period and at the end buys the product from the farmer at the agreed price. If the farmer receives all his inputs on time, which the investor helps by providing liquidity, agricultural production will also increase.

Investors can include from related factories to real people as well as government companies.

Seyyed Javad Sadatinejad, Minister of Agricultural Jihad, emphasized the importance of wheat contract cultivation in the meeting with flour and bread industry activists and said: “In the coming crop year, wheat contract cultivation will be pursued seriously, and in this regard, factories and industries related to We will support flour and bread in the way of wheat contract cultivation.

The Minister of Jihad of Agriculture stated: “We are looking for the wheat required by Sanof and Khabazi to be fully supplied by contract cultivation in the near future.”

Stating that contract farming is one of the most important priorities of the presidency in the agricultural sector, Sadatinejad said: Considering the importance of contract farming, the Ministry of Jihad Agriculture is with all its strength with the activists of the country’s flour and bread industry.

In the end, he pointed out: in the field of financing, commercial banks are obliged to provide financial services to contract agriculture projects due to the central bank’s notification of contract agriculture financing guidelines.

Therefore, the Ministry of Agricultural Jihad pursues contract agriculture with two important measures. First, it empowers flour and bread factories to implement contract agriculture by supporting farmers.

Second, according to the resolution that the Ministry of Jihad obtained from the government, the Central Bank has notified the banks of a policy that in 1401, twenty percent (20%) of the facilities paid to the agricultural sector by banks and credit institutions, in the form of chain financing and Contract agriculture should be paid with the priority of the private sector and the support of knowledge-based and export-oriented productions (with the priority of observing the optimal national-regional cultivation pattern) and without imposing an additional financial burden on banking resources.

According to the contract signed by the Ministry of Agricultural Jihad with the Imam’s Decree Implementation Headquarters, within the next 5 years, 5 million hectares of the country’s agricultural lands will be converted into contract farming with the support of this headquarters.

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