Government amends Water Law to cut price for farmers

Agriculture Ministry, kibbutz and moshav movements, farmers’ federation, welcome move, which emphasizes speeding up the transition to using treated wastewater

Sue Surkes is The Times of Israel's environment reporter

Irrigating fields near the Gaza border in southern Israel, December 19, 2024. (Moshe Shai/FLASH90)
Irrigating fields near the Gaza border in southern Israel, December 19, 2024. (Moshe Shai/FLASH90)

The Knesset okayed a pair of measures aimed at lowering water prices for farmers, which growers claim contribute to the country’s high cost of living.

The amendment to the Water Act will update how water tariffs for agriculture are determined — a move long awaited by farmers who say agricultural water rates are the highest in the OECD, affecting their ability to compete. The government also approved a new memorandum of understanding with farmers regarding water prices.

The changes passed Tuesday were spearheaded by National Unity MK Alon Schuster, a former local leader from the Gaza periphery, where much of the country’s produce is grown.

The moves will include lowering the costs of treated wastewater and brackish water within three years, and the cost of freshwater for farming over five years in localities where there is no infrastructure for transporting treated water and no other options.

The amendment also includes a NIS 3.5 billion ($946 million) plan to upgrade the infrastructure for treated wastewater within ten years. This will include building a pipeline to bring treated wastewater from the central plain and Jerusalem to the Negev in southern Israel.

The Western Negev produces 70 percent of the country’s fresh vegetables, 20% of its fruit and 6.5% of its dairy.

Agriculture Minister Avi Dichter welcomed the amendment’s passing, saying it would help advance the ministry’s food security vision and the government-approved strategic plan to increase agricultural production by a third in the coming decade.

Agriculture Minister Avi Dichter attends a Knesset Economy Committee meeting on March 26, 2025. (Yonatan Sindel/Flash90)

The Israel Farmers’ Federation said in a briefing document that the changes brought by the amended act would lower agricultural prices long-term, strengthen local production, improve planning and economic ability for farmers, and shore up the country’s food security.

The amendment and the document of understanding also aim to promote wider use of treated wastewater via financial incentives. The more a farmer uses treated wastewater, the cheaper the water becomes.

Amit Yifrach, chairman of the Israel Farmers’ Federation and Secretary-General of the Moshav Movement, and Uri Dorman, the Israel Farmers’ Federation Secretary-General, said in a joint statement: “This is great news for farmers and agriculture… Israeli farmers are an economic and national force, and the Israeli government must continue to reduce the cost of production, including labor and capital, and to enable agriculture to increase output and productivity and grow.”

Lior Simcha, Secretary-General of the Kibbutz Movement, said the changes were important for farmers and the Israeli consumer. Water price increases over recent years were among the significant factors in the cost of living.

“Inputs in Israel are the highest in the OECD. In Europe, water costs just one cent per cubic meter,” Simcha said.

He added: “I hope this law is a sign of things to come – maintaining food security, strengthening Israeli agriculture and an uncompromising fight against the cost of living.”

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