Loan org, Leket food bank, partner to offer farmers credit to cope with war effects
Tracks offer 3% fixed interest rate on loans of up to NIS 300,000 over five years, or prime-rated loans of up to NIS 1 million over a decade, plus help with planning, mentorships
Sue Surkes is The Times of Israel's environment reporter
Social lending enterprise Ogen on Sunday launched two new tracks to assist farmers whose work has been impacted by Israel’s ongoing war against Hamas in Gaza.
The Farmers’ Immediate Relief Track, being introduced together with the Leket Israel food rescue organization, is a pilot initially aimed at farmers with immediate cash flow problems in the north and south of the country.
While all farmers have been suffering from labor shortages due to the departure of most foreign farm hands following Hamas’s deadly attack on Israel on October 7, those based in the north and south are facing the biggest challenges.
The Hamas invasion and continuing rocket attacks have destroyed farmland and equipment along the Gaza border in the south. In much of the north, where tens of thousands of citizens have been evacuated, farmers are having to contend with daily attacks from Hezbollah in Lebanon.
This track offers a 3% fixed interest rate on loans of up to NIS 300,000 ($80,550) over five years. It also offers help with creating business plans and the option of mentorship from industry experts.
The Long-Term Agricultural Relief Track targets farmers needing to make substantial capital investments. This offers prime-rated loans of up to NIS 1 million ($268,500) over a decade.
In addition to the farmers’ program, Ogen offers interest-free loans of up to NIS 60,000 ($16,000) to individuals and families experiencing financial hardships as a result of the recent attacks.
Ogen has raised $55 million and distributed $21 million to vulnerable populations, including farmers and reserve soldiers, since October 7, according to the organization, which specializes in credit solutions and financial guidance for low- and middle-income Israelis.
Sagi Balasha, the CEO of Ogen, said the organization “stands in solidarity with Israel’s farmers, recognizing their unwavering dedication amidst ongoing adversity.” He added that the two new tracks “aim to not only alleviate the financial burdens faced by farmers, but also to bolster their capacity to sustainably contribute to our nation’s agricultural resilience and food security.”
Leket Israel – the National Food Bank, rescues surplus cooked food from hotels, corporate cafeterias and IDF army bases and fresh produce from farmers and packing houses and distributes it through a network of nonprofit partners throughout the country. After the war started, it sent busloads of volunteers to help farmers harvest their crops.
Gidi Kroch, the CEO of Leket, said in an announcement about the initiative that “Israeli farmers have been the largest food donors since Leket Israel’s inception over 20 years ago. During their time of need, it is our responsibility to help them and ensure not only the continuation of their livelihood but the continuation of Israeli agriculture overall.”
Kroch added that “despite the lack of government support for these farmers, whose farms and manpower have been significantly impacted by the war, Leket and Ogen’s collaboration will enable Israeli farmers to provide fresh, nutritious produce not only to vulnerable Israelis but to all Israelis nationwide.”
