CREDIT FOR IRRIGATION EQUIPMENT IN THE JORDAN VALLEY

The loan-financed equipment will include portable pipes, filters, gauges, couplers, valves fittings and sprinkler heads. The Jordon Valley Association (JVA) will manage and distribute the equipment to 3 selected farm units. The Agricultural Credit Corp (ACC) will execute credit or cash sale agreements with the farmers. Technician and farmer training is included as a project element. The report is based on discussions with AID, JVA and ACC officials. A copy of the administration agreement resulting from these discussion, job description (for proposed U.S. advisors), a brief bibliography and a partial listing of the officials contacted are included in the report. The organizational structure for implementing the sprinkler equipment program seems to be in place and construction of fixed water delivery systems is underway. The author recommends higher agricultural interest rates, noting that the rate currently charged by ACC does not cover its own cost of borrowed capital or its operating expenses. He also recommends consideration of agricultural price supports, improved marketing services and subsidized fertilizer supplies. The requirement calling for a first real estate lien as collateral for seasonal loans should be relaxed. (This has been a major obstacle to the provision of credit to small farmers -- whose lands are insufficient as security.) Increased emphasis upon effective farm production planning and farmer follow-up supervision are among the author"s other recommendations.