The Agricultural Investment Administration is responsible for implementing the Ministry of Agriculture’s policy of supporting the agricultural sector, in accordance with the planning principles that are approved by the Ministry’s directorship each year. The support of the agricultural sector is carried out through assistance and implementation of the Law for the Encouragement of Capital Investment in Agriculture, 1980. The Law provides two types of benefits:
1. Investment bonuses.
2. Tax benefits:
a. Accelerated depreciation.
b. Decreased income tax for companies and individuals on fruits from authorized factories.
In addition, The Agricultural Investment Administration authorizes administrative bonuses for subjects of preference which are considered important by the Ministry’s directorship for the advancement of the different agriculture industries.
The Law’s main objectives
Improving Israel’s balance of payments, through:
· Encouraging export and clear import substitutes.
· Efficiently utilizing the agricultural sector’s natural
· Promoting the agricultural sector as a pioneering element,
of both security and social assets.
The Administration publicizes the Ministry’s policy annually, in the framework of its development program. The development program includes the subjects that the Ministry will support in that budget year, bonus rates according to areas of preference, and procedures and criteria for plan approval applications and investment bonus payment.
The Administration handles plan approval applications of farmers and entrepreneurs, in the framework of the Law and in an administrative budget track.
The Administration has 7 members: three representatives of the Ministry of Agriculture, including the Administration’s chairman who’s appointed by the cabinet; two representatives of the Ministry of Finance, one representative of the Settlement Division and one representative of the Ministry of Industry, Trade and Labor. The members are appointed by their respective ministers.
The Administration employs around 11 workers and is additionally assisted by external consultants. It is assisted by 16 engineers in different areas such as: construction, air conditioning, electricity, climate control, water, etc. In addition, the Administration’s economical inspections are conducted by external firms, as well as external accountancy services that review invoices that are submitted by entrepreneurs. The Administration provides relevant professional guidance to workers in the Ministry’s directorship and the different districts.
Main roles of the Administration
- Granting investment approvals according to the Ministry’s planning principles and the State’s budget.
- Approving investment cost calculations.
- Determining benefit conditions.
- Determining application submittal arrangements and dates.
The Agricultural Investment Administration maintains constant contact with all the Ministry’s units and with different Government Ministries. It maintains continuous working relations with production councils, farmer organizations, and the agricultural committees of regional councils.
The Agricultural Investment Administration conducts its work in accordance with the procedures of ISO 9001 – 2000 version.
In 1999, the administration became the first public body to be accredited by the quality standards firm - I.C.Q.