RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/JOR/14
1 July 1998
(98-2617)
Working Party on the
Accession of JordanOriginal:  English
ACCESSION OF JORDAN
An Introduction to Jordan's Agriculture
Sector and Agricultural Policies
The Ministry of Industry and Trade of Jordan has submitted the following information
concerning Jordan's agriculture sector and agricultural policies.
_______________
Table of Contents
Page
I. INTRODUCTION 2
II. JORDAN'S ECONOMIC SITUATION 2III. CHARACTERISTICS OF JORDAN'S AGRICULTURAL SECTOR 4
A. MARKETING AGRICULTURAL PRODUCTS 6
B. PRODUCTION PROFILE 7C. TRADE PROFILE 9D. CONSUMPTION PROFILE 9
IV. BROAD OBJECTIVES OF AGRICULTURAL POLICY 11
A. PRODUCER SUPPORT POLICIES 12
1. Institutions providing support 122. Wheat producer support 143. Barley producer support 15
. 4. Lentils and chickpea producer support 16
V. AGRICULTURAL INPUTS POLICY 16
A. WATER POLICY 16
B. CREDIT POLICY 18C. LIVESTOCK FEED SUBSIDY 20
VI. CONSUMER POLICIES 20
VII. AGRICULTURAL TRADE POLICY 23
A. IMPORTS OF AGRICULTURAL PRODUCTS 23
B. EXPORTS OF AGRICULTURAL PRODUCTS 23
C. BILATERAL TRADE AGREEMENTS WITH AGRICULTURE PROVISIONS 24
1. Agenda trade 242. EU-Jordan Partnership Agreement 253. State trade enterprises 26
Annex A STATISTICAL PROFILE OF JORDAN'S ECONOMY AND AGRICULTURAL
SECTOR27
Annex B AGRICULTURAL PRODUCT TRADE UNDER BILATERAL AGREEMENTS 45
Annex C GENERAL SERVICES PROVIDED TO AGRICULTURE 55WT/ACC/JOR/14
Page 2
I. INTRODUCTION
After decades of strong economic growth, the Hashemite Kingdom of Jordan faced an
economic crisis in the late 1980s.  By the mi d-1980s, real income growth had slowed and the
economy actually contracted in 1988. Debt was extremely burdensome at more than 200 per cent of
gross domestic product (GDP), and foreign exchange reserves were at historic lows, covering less
than one month’s import needs. The Government of Jordan (GOJ) took preemptive action by
implementing a long-term structural adjustment process and as a result, many substantial and far-reaching changes in overall economic and sectoral policies have been made. The agriculture sector, a
traditional recipient of subsidies in most countries, was the largest contributor to the government’s
subsidy expenditures and therefore was an early candidate for reform. Since the mid-1990s, the
agricultural sector in the Kingdom has undergone a process of restructuring that is resulting in one of
the least distorted agriculture sectors in the world.
Jordan is now an observer at the World Trade Organization (WTO) and is currently
negotiating its accession to the WTO.  The Agreement on Agriculture negotiated by the members ofthe General Agreement on Trade and Tariffs (GATT) during the Uruguay Round requires a
commitment to continuous liberalization of agricultural trade through reductions in tariff and non-
tariff barriers to trade.  In addition, the agreement also stipulates that member countries must reduce
trade-distorting policies in agriculture such as domestic support programs.  In virtually every way
possible, Jordan’s reforms under its restructuring program have exceeded the requirements of theWTO Agreement on Agriculture.
The pace of reforms in the agriculture sector has been remarkable as will be seen from this
paper. Policies that were in place as recently as the fall of 1997 are no longer valid and so many
documents and descriptions of Jordan’s agricultural sector and its policies are no longer correct.  This
document will correct that situation by presenting the progression of policies in Jordan’s agriculturesector, emphasizing current policies and even further changes already targeted.
In the following sections, a brief perspective on the size of Jordan’s agriculture sector is
presented followed  by a discussion of the major objectives of Jordan’s agricultural policy.  That is
followed by a description of each of the government  programs or expenditures related to agriculture
or specifically directed at agriculture.  Each of these policies is discussed in terms of compliance withWTO guidelines and mandated reforms.  Existing bilateral trade accords with agriculture components
are also identified.  Finally, Jordan’s agriculture-related state trading enterprises are examined for
compliance with WTO regulations.
II. JORDAN’S ECONOMIC SITUATION
Jordan, is classified by the World Bank as a lower middle-income developing country.  The
population in 1997 is estimated at 4.6 million persons.  More than half the population is under the age
of 16 and so the labor force is less than one-quarter of the population.  The population growth rate is
about 3.6 per cent per annum, one of the highest rates in the world.  The high rate of growth in
population was exacerbated in 1990 and 1991 with the return of 300,000 Jordanians from Gulf States
in the aftermath of the Gulf War (see Table 1).WT/ACC/JOR/14
Page 3
Table 1.  Macroeconomic Indicators, 1980-1997
Population
growth rate
(per cent)Real GDP
growth
(per cent)Real GDP
growth per
capita
(per cent)Months of
import coverage
(i)(months)Total debt as a
share of GDP
1980 n/a n/a n/a 4.1 36.8
1981 3.9 10.3 6.2 3.0 38.1
1982 3.9 2.5 -1.3 2.3 40.7
1983 3.9 2.5 -1.3 2.4 45.1
1984 3.9 1.4 -2.4 1.5 49.0
1985 3.9 4.1 0.2 1.3 54.3
1986 3.9 7.0 3.0 1.4 57.9
1987 3.9 2.9 -1.0 1.3 69.2
1988 3.9 -1.8 -5.5 0.3 209.4
1989 3.9 -13.4 -16.6 1.7 189.4
1990 10.3 1.0 -8.5 2.7 203.0
1991 6.7 1.8 -4.6 2.8 187.4
1992 3.9 16.1 11.7 2.1 140.8
1993 3.9 5.6 1.7 4.3 124.5
1994 3.7 8.1 4.3 4.6 119.4
1995 3.7 6.9 3.1 4.8 104.5
1996 3.6 5.2 1.6 3.9 N/a
1997 3.6 5.0 1.4 n/a N/a
Note: n/a denotes not available.
(i)  Computed as foreign exchange reserves divided by the average monthly value of imports.
Source: Calculated from data in Annex A.
At the end of the 1980s, Jordan’s economy was on rocky ground.  After strong growth in the
1970s and even into the early 1980s, economic growth fell to such low rates that real per capita GDP
declined in all but two years between 1981 and 1989.  Jordan’s foreign exchange reserves in terms of
months of import coverage were falling steadily, reaching a critical point in 1989 when only a few
days worth of imports could be paid for with reserves.  At the same time, the government’s total debt
as a share of GDP nearly doubled between 1980 and 1988.
The poor state of Jordan’s economy was due to a number of factors.  First, Jordan had
benefited from the oil boom in the 1970s—not directly but indirectly through provision of labour to
oil producing countries and through development assistance.  As the global oil economy cooled,
Jordan’s exports, which primarily went to neighbouri ng countries, also slowed.  Second, investment in
Jordan’s economy had fallen significantly in nominal and real terms each year between 1982-85.Although investment did rise again later in the 1980s, it remained JD100 million below the peak
investment of 1982.
The critical condition of Jordan’s economy in 1989 led to negotiation with the International
Monetary Fund (IMF) for assistance in restructuring the economy.  A structural adjustment loan was
approved and Jordan began the long process of restructuring.  The government has not waivered in its
commitments to a complete reform of the economy.  It began with a major devaluation of the Dinar in
1989, accompanied by trade liberalization through tariff reductions and removal of import barriers.  In1994 a World Bank loan to restructure the agricultural sector was procured.   In 1995, the general
economic reforms broadened to encompass the financial system, modernization of the regulatory
environment, and privatization.  The restructuring program has been successful.  While real income
growth on a per capita basis declined in 1990-1991, real growth since then has averaged aboutWT/ACC/JOR/14
Page 4
6 per cent per annum, the months of import coverage has returned to the levels of the 1970s, and
government debt has consistently been repaid.
III. CHARACTERISTICS OF JORDAN’S AGRICULTURE SECTOR
Agriculture’s direct contribution to GDP has been around 5 per cent since 1995, about 2-3
points less than its contribution in 1992.  It is estimated, however, that 25-30 per cent of economic
activity depends on agriculture.  In 1997, the average GDP per agricultural holding (roughly
equivalent to a farmer) was estimated at about JD2,700 or, on a per capita basis, around JD4501.  This
is only about one-third of the national average per capita income.
Of Jordan’s total land area of about 8 million hectares, only a small portion is suitable for
producing crops (see Figure 1).  It is currently estimated that there are only 380,000 hectares of land
that may be cultivated ( Ministry of Agriculture) .  Tree crops are planted on about 90,000 hectares,
leaving arable land—land that can be used to produce annual crops—at about 4 per cent of the total
land base. Less than 20 per cent of cultivatable land is irrigated ( Department of Statistics) .  Most
vegetable land is irrigated, one-third of tree crops are produced with the benefit of irrigation, but onlyseven per cent of field crop area is irrigated.  Thus, variation in rainfall from year to year mostly
effects field crops such as wheat, barley, and pulses.
The eastern half of Jordan is desert or pre-desert plains with very little rainfall.  Rainfall is
somewhat higher in the western part of the c ountry—the highlands and the Jordan Valley—but even
then, it is highly erratic. The climate favours year-round production of horticultural products and so,where irrigation water is available, vegetables and annual fruits are the primary crops.
                                                     
1  Average farm income is computed as agriculture GDP ( Central Bank of Jordan) divided by the number
of holdings as reported in preliminary reports of the 1977 Agriculture Census ( Department of Statistics) .  Per
capita income is derived as an estimate of farm population and average size of farm household.
Figure 1.  Land Use in Jordan, Average 1994-96  
Non-
agricultural
86%Rangeland
9%
Cultivatable
4%Other
13%Forests and
woodlands
1%WT/ACC/JOR/14
Page 5
The Jordan Valley and the Ghor of Karak  form the “breadbasket” (actually, the “fruit and
vegetable” basket) of Jordan.  A large share of the land in these two areas is irrigated with watersupplied by the government from dams and other water works.  Land productivity in these two areas
has declined in recent years as a result of declined of intensive farming and continuous irrigation.
Traditional canal irrigation systems are being replaced with water efficient systems and so salinity
problems should decline.  However, intensive use of the land is likely to continue, especially if
Jordan’s horticultural exports expand as expected after admission to the WTO.
In the 1950s, the government developed the original irrigation systems in the Jordan Valley
and then distributed the land to farmers.  Each holding is limited to 30-40 dunum (3-4 hectares) and
cannot be divided into smaller holdings.  However, because of inheritance laws, there can be, and
often are, several owners of a single holding.  The Jordan Valley land law has recently been amended
to permit leasing of land for up to 30 years as compared to the original regulation which limited
leasing to a 10 year time horizon.  This is expected to increase producer incentives to invest and
further develop holdings in the Jordan Valley.
Much of the land in the Badia and western highlands is irrigated from groundwater.  These
regions are very productive as long as rainfall is sufficient each year to replenish groundwater
reserves.  The reliance on rainfall for the continual replenishment of water resources makes long term
sustainable agricultural production risky in these areas.
In 1983, the average farm size was 6.3 hectares; preliminary data from the 1997 Agriculture
Census suggests that the average size has fallen to 4.2 hectares. As shown in Figure 2, Jordan’s farm
sector is composed primarily of farms of less than 30 dunum (3 hectares). The smallest farms are
often found in the highlands where inheritance customs result in smaller and smaller holdings. Larger
farms are located in the dry plains bordering the desert that occupies the eastern two-thirds of the
country.   Neither of these farms—the very smallest or the larger farms—are likely to be highlyprofitable unless sufficient water is available from ground or other sources.
Cash crop farms dominate in the valleys along the western border.  These farms produce
vegetables, citrus fruits, or bananas under irrigation and sell the bulk of their products.  They tend to
be the more profitable than farms in other areas of the country and therefore also tend to be early
adopters in terms of technological advances.  In irrigated areas of the highlands, farmers typically
produce vegetables, fruits, and olives while some farmers are experimentin g with cut flowers and
other non-traditional agricultural products.  Farmers in the irrigated highlands also sell the bulk ofFigure 2.  Size Distribution of Agricultural Holdings, 1997  
<30 dunum
60%
101-500 dunum
6%
>500 dunum
1%31-100 dunum
15%
Landless
18%WT/ACC/JOR/14
Page 6
their output.  In rainfed areas of the highlands (the area between the Jordan Valley and the plains
bordering the desert), farmers typically produce cereals, olives, tobacco, grapes, apples, and nuts.Subsistence farms are usually the smallest holdings and are located in rainfed areas with few
alternative employment opportunities. Most subsistence farmers, produce both livestock and crops.
Livestock producers generate about 30 per cent of the total income from farming.  Preliminary
data from the 1997 Census of Agriculture su ggests there are about 16,300 holdings (farmers)
producing livestock on public or rented land.  Modern broiler and laying farms are usually found onrented land located in or near major cities.
A. MARKETING AGRICULTURAL PRODUCTS
Jordan’s agricultural Marketing system is still in a development stage.  While mechanisms to
get products to Markets or slaughterhouses are well established, storage facilities are limited.  This is
especially true of cold storage and cold transport is costly.  These deficiencies in the Marketing
system are a constraint to Jordan’s greater participation in exporting higher-value agricultural
products.
Most small farmers (without their own or easy access to other financial resources), fund their
operational costs through commission agents or middlemen.  Therefore, at harvest, most farmers are
obliged to sell products to their agents.  The farmer sorts his produce on the basis of size of the fruit or
vegetable and then takes the product to the agent in  central Market.  The agent will combine lots from
many farmers and then sell the products at the Market auction. Buyers in the central Markets includeexporters, processors, and wholesalers.  Agents maintain records of quantities delivered by farmers
and at the end of the harvest season, accounts are settled.  Farmers receive proceeds from the auction
less fees and the cost of any inputs or other services provided by the agents.  If Market prices are very
low due to large supplies of a product, some farmers may take away only enough money to purchase
inputs for the next season.
Small quantities of horticultural products are sold directly off the farm to exporters or, in rare
cases, to commission agents.  Exporters buy in large quantities from contract producers and then
move the goods to exporter workshops.  At the workshops, the products are graded and packaged for
export.  Commission agents that buy at the farmgate take the produce to any of the large central
Markets in major cities around Jordan.  Commission agents charge farmers about 5 per cent of theirMarket proceeds for transport and sales services if they collect the produce from the farm.  They also
charge farmers for their share of the “Market facilities” tax of 4 per cent.
Live animals are Marketed either through traders who buy animals from grazing areas or, in
the case of large livestock holders, at a large central Market specifically for live animals. When
animals are purchased directly from grazing areas, a trader or butcher will select from  among matureanimals and pay the holder on the spot. Traders will buy from several livestock holders and take large
consignments to the live animal central Market.  Buyers in the livestock Market are principally
slaughterhouses who then sell carcasses and cuts to retailers. Slaughterhouses are registered with the
government and have inspection services that grade and certify both the live animal and the carcasses.
Live animals are often imported, inspected for health at the port, and then usually slaughtered at a
licensed slaughter facility.  About 25 per cent of sheep are slaughtered outside of regulated
slaughterhouses in the traditional way—on the farm in rural areas.  This is especially true just duringthe Haj  (Pilgrimage Feast) when families slaughter sheep to distribute to the poor.  About one-third
of annual slaughter occurs at that time of the year.
Crop and livestock producers appear to have little information upon which to base their
production decisions.  Lack of information on variables such as anticipated Marketings, current and
projected Market prices, domestic and foreign demand, and such, puts producers at a disadvantage.Without appropriate Market indicators, production and prices of vegetables fluctuate considerablyWT/ACC/JOR/14
Page 7
from year to year and on a seasonal basis. For example, the price of potatoes between 1994 and 1996
varied by JD100/ton.  Similar problems have been reported in the egg and broiler sector.  Data are notavailable to examine this phenomenon in ruminant Markets but it is likely that the same problem
exists in such Markets simply due to the biological lag in producing animal products.  This pattern is
less evident for tree fruits although again, it is likely that it is a problem for those products as well
because of the biological lag in tree fruit production after the decisions to plant the trees is made.
B. PRODUCTION PROFILE
Tomatoes are by far the largest crop in Jordan, accounting for 30 per cent of the volume of
output.  Other major vegetable and fruit crops are watermelons, potatoes, and olives, and major field
crops are wheat and barley.  These crops account for almost 45 per cent of the land used in
agriculture.
Tomato production has been growing rapidly thus far in the 1990s, rising at 8.4 per cent per
year compared to about 5.5 per cent per year in the 1980s. This growth can be attributed to several
factors.  The first is that Jordan has a natural comparative advantage in producing tomatoes becausethe growing season is long, which permits up to two plantings per year, and agronomic conditions
favor high yields, even with scarce water resources.  The historically low price of water has
encouraged expansion of area planted to this crop.  The rescheduling of water prices to reflect its cost
has lead to the conversion of traditional irrigation systems in the Jordan Valley to drip irrigation.  The
latter has significantly increased the efficiency and effectiveness of irrigation in tomato production,enabling sustained increases in area.  Finally, the popularity of the table tomato in traditional and
international dishes and the establishment of three tomato processing facilities in Jordan have also
contributed to expanded domestic production.
Jordan’s potato production is between 25 and 35 per cent of its tomato production.  Growth in
potato production in Jordan has been fairly consistent since 1980, averaging about 10 per cent peryear.  In the past three years, production rose significantly and the farmgate price of potatoes
plummeted from a high of JD180/ton in 1994 to JD80/ton in 1996.  This extreme variation in prices is
a consequence of factors such as disease, frost, differences in planted varieties, and variations in
planted area.
Watermelon production has expanded rapidly in the western highlands, resulting in an annual
average growth of 13.1 per cent in production.  As  is the case with potatoes, watermelon output is
quite variable because of the dependence on rainfall.  Yields in 1996 averaged about 45 tons per
hectare but were only 25 tons in 1995.  The large increase in production in the past 5 years has put
strong downward pressure on Market prices—farm prices fell by about 40 per cent between 1994 and
1996.  As a result, area planted to watermelons has been declining but if prices rise again, productionis likely to do so.
Jordan, along with many of the Mediterranean nations, produces olives.  Olive trees are very
hardy, well suited to the hilly terrain of the highlands, and can withstand the extreme variation in
rainfall.  However, the trees are quite susceptible to wind and other weather disturbances. While
Jordan may not be the most competitive producer of olives and olive oils, the growing of olives is
steeped in tradition and most Jordanians consider olive oil a national treasure and an essential food.
Jordan produces durum wheat only—no bread wheat is produced.  The domestic wheat is
used for freekeh
2, pasta, and for blending with imported wheat.  Domestic wheat covers only about
15 per cent of the total demand for wheat and wheat products.  Imported wheat is typically hard
                                                     
2 Freekeh is durum that has been picked while still green, slightly roasted, and then crushed after
thorough drying.  There are two grinds available—coarse, which is cooked like rice, and fine, which is used in
soup.WT/ACC/JOR/14
Page 8
winter wheat that is used to produce flat and other leavened breads. Soft wheat flour, used to produce
cake and cookies, is imported by bakeries.
Most wheat producers in Jordan are small subsistence farmers without access to irrigation.
Losses of planted area have ranged from 20-40 per cent in recent years, a testament to the power of
rainfall in Jordan.  Even so, production of wheat has been fairly constant in the past 5 years at around
50,000 tons.  However, that is 30,000 tons less than the levels of the late 1980s.
In addition to subsistence farmers, there are some large commercial wheat farms in the south.
In 1988, the GOJ implemented a dual-purpose program to (I) increase production of cereals and
fodder and (ii) to develop semi-marginal land for irrigated agriculture.  At that time, the government
offered low cost long-term (25-year) leases on large tracts of land in the south to commercial
operations that would build the necessary irrigation facilities on the land.  The commercial operations
signed contracts with the GOJ to produce wheat and fodder.
Barley is produced on small mixed crop-livestock farms.  Barley is valued not only for its
grain but also the straw and stalks that are fed to livestock.  Most production is for consumption onthe farm or for sales to local livestock producers.  Production has ranged from about 30,000-40,000
tons annually in the past five years.
The livestock sector is well balanced given the resources available within the Kingdom.
Broilers, eggs, and beef are generally produced us ing the latest fed-animal production techniques.
Note that there is no swine industry as the population is predominantly Muslim.  Broiler, layer, andfed-beef operations are typically located on the outskirts of major cities so as to have easy access to
consumers.  Broilers are traditionally roasted whole and consumer preferences favor production of
small broilers weighing 1-1.5 kilogram per bird. The chicken fast-food industry has not yet developed
to the point where large birds are preferred.
Between 1985 and 1991, poultry meat production was stagnant at 50-60,000 tons annually.
However, since 1990, output of broilers and other poultry meat has risen by an average of
15.4 per cent annually.  Egg production has followed  a similar pattern and is now growing at
8.5 per cent per year.  Jordan is roughly self-sufficient in eggs and poultry meat.  Most foreign sales
are to neighbouring Arab countries.  Beef and veal production is very limited, supplying only
15 per cent of total demand.
Milk from cows, sheep, and goats and lamb, mutton, and goat meat are generally produced on
the rangeland in the eastern half of the country.  Local goats are very tolerant of the often harsh
conditions of heat, sun, and low quality range fodder.  The Shami goat is a specially bred native
animal that is far less tolerant of grazing conditions and therefore must be stabled.  The breed usually
has multiple births and is a high milk producer.  Milk from the Shami goat is usually consumed influid form as it is lean and not well suited to cheese or yoghurt production.  Milk from Shami goats
can be combined with sheep milk to produce white  cheese, ghee, butter, and jamid (dry yoghurt).
Only limited quantities of fresh milk are Marketed in the country. Locally produced milk is typically
available as sterilized, homogenized boxed milk.
Sheep are small—about 20 kilograms per carcass—a reflection of the consuming population’s
belief that meat from a small animal is superior.  Lamb is typically purchased in butcher shops from
displayed carcasses that are graded relative to the age of the animal at slaughter. Since the animals aregrazed, weight and age are highly correlated and therefore consumers prefer small animals.  Only a
small amount of lamb is purchased pre-packaged.WT/ACC/JOR/14
Page 9
C. TRADE PROFILE
With its limited water resources and geographic characteristics, Jordan is a net food importing
country.  The most important imported commodities are raw foodstuffs and feeds (see Figure 3).
Imports of wheat, the staple food grain, averaged about 500,000 tons in the mid-1990s, costing an
average of US$80 million.  Imports of major feed products, including maize, barley, soybean meal,
and compound feeds, amounted to about 970,000 tons during the same period with an average cost of
US$144 million.  Other major imported agricultural products are sugar, powdered milk, crude palmoil, rice, lamb and mutton, cheese, and beef and veal.  Prepared foodstuffs are also imported but they
account for less than 5 per cent of the total value of food and agricultural imports.
Jordan’s major agricultural exports are hydrogenated oils, live animals (mostly sheep and
goats), tomatoes and products, and other horticultural products (see Figure 4).  Tomatoes and products
account for 9 per cent of the total value of exports. The other horticultural crops account for about
23 per cent of agricultural export revenue.  The fastest growing export products are hydrogenated oils
(mostly from crude palm oil), live sheep, and tomato paste.  The top 12 products account for more
than two-thirds of the value of Jordan’s agricultural exports.
D. CONSUMPTION PROFILEFigure 3.  Agricultural Import Value, Average 1995-97  
Live animals
4%
Food grains
16%
Sugar
7%Fats and oils
14%
Meat, dairy
products, and eggs
13%
Fruits, vegetables
and nuts
10%Beverages and
tobacco
2%
Other agricultural
products
34%
Figure 4.  Agricultural Export Value, Average  
Tomatoes and
products
9%
Other vegetables
16%
Live animals
16%Other agricultural
products
11%Fats and oils
39%
Beverages and
tobacco
2%
Fruits and nuts
7%WT/ACC/JOR/14
Page 10
Staples foods in Jordan are yoghurt, olive oil, and br ead.  Jordan is self-sufficient in yoghurt, poultry,
eggs, vegetables, and fruits and mostly self-sufficient in olives and olive oil.  Jordan does import somevegetables and fruits but primarily for the purpose of diet diversification.  Jordan’s production of red
meat satisfies about one-third of consumer demand.  Similarly, domestic production of staples such as
wheat and pulses covers only 15 per cent of demand.  Jordan does not produce rice and sugar,
importing all of its needs.
The United Nations (FAO) has estimated per capita consumption of major foodstuffs by
deducting net trade from production and allocating use to feed, seed, food, and other non-food uses.Examination of trends in estimated per capita food consumption in Jordan suggests that wheat,
vegetables, yoghurt, and pulses are staples in the diet.  Cereals account for the bulk of food
consumption (see Figures 5a and 5b).  Both cer eal and pulse consumption are trending downwardFigure 5a.  Per Capita Consumption of Staple Foods  
0.020.040.060.080.0100.0120.0140.0160.0180.0
1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995
Kg/person/yearCereals and products
Vegetables (including
olives)
Fruits
Sugar and products
Milk and products
Figure 5b.  Per Capita Consumption of Meats, Eggs, Oils, and Pulses  
0.05.010.015.020.025.030.035.040.045.050.0
1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995
Kg/person/yearEggs and products
Meat, poultry, and
fish
Edible fats and oils
PulsesWT/ACC/JOR/14
Page 11
only slightly, suggesting that even with moderate  income growth, consumers are not yet ready to
replace these staples with other foods. Fruit and vegetable consumption are rising, as is consumptionof animal proteins. However, note that consumption of milk, milk products, meat, poultry, and fish
have not yet recovered to the pre-Gulf War levels.
Jordan’s average caloric availability in the mid-1990s was about 2800 calories per person per
day.  The average is above sedentary minimums but still quite a bit below that of European or North
American countries (for example, the caloric availability in Italy is about 3300 calories per day).  The
bulk of calories consumed by the poorest consumers are derived from sweet tea and bread.  The sugar
provides energy (calories) and the bread fills the stomach
The composition of the average diet in Jordan is quite different from that in western countries.
Jordan’s consumers get about half of their calories from cereals and products and only 12 per cent of
their calories from animal protein (dairy, eggs, meat, poultry, and fish). In contrast, animal proteinaccounts for 22 per cent of the average caloric intake in Italy (see Figure 6).
IV. BROAD OBJECTIVES OF AGRICULTURAL POLICY
Like most countries, Jordan has conflicting interests in terms of its agricultural sector policies.
Because some portion of the population is very poor and therefore vulnerable to high food prices, the
government is very sensitive to the price of food staples. At the same time, in the interest of foodsecurity, it is also important to provide farmers with positive production incentives that maximize
efficient and sustainable production of suitable agricultural products.  In the past, subsidies were
widely used to support the rural sector. However, under Jordan’s agricultural sector restructuring
program, subsidies have been abolished and support is now provided through other, non-Market
distorting means.
In November 1996, the legislature enacted The Agricultural Policy Charter  (the Charter)
which institutionalizes the policy reform undertaken as part of the restructuring program and
establishes long term goals and objectives for the Kingdom’s agricultural sector and agriculturalFigure 6.  Per capita consumption in Jordan and Italy, Average 1993-95  
0.050.0100.0150.0200.0250.0300.0
Cereals and
productsPulses Vegetables
(including
olives)Fruits Milk and
productsEggs Sugar and
productsMeat,
poultry and
fishEdible fats
and oils
Kg/person/year
Jordan
ItalyWT/ACC/JOR/14
Page 12
policies. The Charter is developed on the premise that rural areas in Jordan and the holding of farm
land links current generations to a “homeland and natural and cultural habitat.”  In addition, becauseof the fragility of the environment in much of th e country, rural peoples can play important roles in
protecting the environment and managing natural resources efficiently.  Agricultural policy therefore
aims to promote efficient and sustainable use of rural resources while increasing economic
opportunities in rural areas so that farm incomes ar e more equitably distributed within the sector and
are closer to urban incomes.
The GOJ also faces the absolute necessity of ensuring that the population has access to basic
foodstuffs at stable prices that preserve the living standards of limited opportunity and the lowest-
income groups.  As a result, policies also are directed at increasing Jordan’s food self-sufficiency
through export of high-value agricultural product s and import of lower value goods.  To support a
growing horticultural export economy, the governme nt is promoting production of quality products at
internationally competitive prices.  This is being implemented through provision of more water for
irrigation, an enhanced research and extension program, and expanded Marketing services such asgrading and residue testing using internationally accepted measures of quality assurance.
Another mandate in the Charter is the expansion of private sector participation in the
agricultural sector.  This is being supported in several ways.  The most important means is removal of
the government from the role of both primary buyer and supplier of feed and food grains and pulses.
In addition, economic incentives, such as exclusion of 75 per cent of investment expenditures onagricultural projects from import, tariff and other taxes, are being provided to the private sector to
encourage investment. Overall, the idea is to limit government’s role in agriculture to provision of
institutional support such as extension, research and infrastructure investments.
The transition from a government-dependent or highly subsidized sector to a completely free
Market oriented sector under the agricultural adju stment program is not without costs.  For example,
most livestock holders have reduced, or in some cases liquidated, their holdings in the last 3 years
because the reduction in, and then subsequent elimination of, feed subsidies resulted in non-cost
effective production.  Vegetable farmers have faced significantly higher prices for water, challenging
their competitive export position.  Even so, the government has not slowed its pace of reforms.
A. PRODUCER SUPPORT POLICIES
1. Institutions providing support
GOJ has supported producers through a combination of means including procurement of
domestic production and provision of inputs (seeds for cereals, water, credit, and livestock feed).   In
addition to the Ministry of Agriculture the institutions that have been involved in producer support are
the Ministry of Supply (MOS), the Agricultural Marketing Organization (AMO), the AgriculturalMarketing and Processing Company (AMPCO), the Jordan Cooperatives Corporation (JCC), the
Jordan Valley Authority (JVA), and the Agricultural Credit Corporation (ACC).
The MOS’s primary function has been to implement the general agricultural supply policy for
the Kingdom and to provide the Kingdom’s needs of basic food products as well as ensuring a
strategic reserve of these products. To encourage production of basic foodstuffs and fodder, the
Ministry purchased wheat, lentils, chickpeas, and barley from farmers at prices announced during the
planting season.  The Ministry no longer purchases commodities from farmers but does maintain astrategic food reserve.  As of the end of May 1998, MOS no longer has Ministry status and has
become a directorate within the Ministry of Industry, Supply, and Trade.
The Agricultural Marketing Organization or AMO is a government agency that was formed in
1987 with a mandate to organize and develop agricultural Marketing systems for processed and non-
processed agricultural products.  In practice, beca use of funding limitations, the lead role of the MOSWT/ACC/JOR/14
Page 13
in field crop Marketing and trade, and the strength of the horticultural sector in exporting, the
Organization focuses almost exclusively on horticultural products.  Prior to 1 January 1998, AMOwas responsible for planning monthly and quarterly imports of horticultural products under bilateral
trade agreements with four neighbouring countries.  AMO no longer does this as a result of the
agriculture sector restructuring program that began in 1994.
There are four directorates in AMO.  The role of AMO’s inspection services is to ensure that
Jordanian produce meets standards in the European Union and other export Markets.  The Researchand Information Directorate conducts studies on Marketing, collects Market information, and
maintains databases on local and foreign horticultural production, prices, and trade.  The Post-Harvest
Technology group provides training and otherwise promotes efficient production of horticultural
products in Jordan.  The Export Promotion Directorate supports exporters by publishing directories
and providing import-export contacts, promoting Jordanian produce at trade fairs, and conducting trial
shipments to test Market receptivity, transportation techniques, and other factors associated with
successful Marketing of produce in foreign Markets.   Funding for the Export Promotion Directorate
has generally been provided by foreign countries.
AMPCO is another government entity focusing on horticultural products.  It was formed in
1987, a partnership between the ACC, Jordan Investment Corporation, and the Social Security
Corporation.  Today the GOJ owns 88 per cent of the company but it is scheduled for full
privatization by the end of 1999.  The company was formed to stimulate production of tomato andcitrus fruits for value-added domestic and export Markets. Prior to 1995, AMPCO was given special
rights and privileges with respect to the importation of four primary horticultural crops. AMPCO’s
monopoly power in the import of these crops was removed in 1995.
In the early 1990s, AMPCO was a vehicle for s upport of tomato producers through payment
of guaranteed prices to farmers, regardless of Market conditions.  That practice is no longer followedand AMPCO now competes with two other processing companies for available supplies of processing
tomatoes.  One of the other processing companies—Shafa—is a fully-owned government entity and
the other is fully private.  AMPCO and Shafa do not compete directly for producer output because
their processing facilities are located more than 100 kilometres from one another. Since 1994,
processing tomatoes purchased by AMPCO are priced relative to solid matter content with a higherprice for higher solids.  The other processing companies follow AMPCO’s lead in establishing offer
prices for processing tomatoes.  The maximum price being paid to producers is set relative to
processing costs and international price trends for processing tomatoes.
The JCC focuses on provision of inputs and supplies to farmers at its outlets throughout the
country. Producers who are members of the JCC can purchase inputs at a slight discount relative toMarket prices. The JCC does not participate in any Marketing functions.  Prior to 1989, the JCC made
below-Market interest loans to members.  Many of  those loans remain outstanding today and so the
JCC has offered at various times to forgive some portion of the principal and interest on outstanding
loans.  In 1997, the value of forgiven loans was about JD 32,000. One of the primary functions of the
JCC is to distribute certified seeds to farmers at subsidized prices.  This role will be abolished in
1999.
The Ministry of Water and Irrigation oversees the supply of water to Jordanian citizens,
municipalities, industry, and agriculture.  Within the Ministry, the Jordan Valley Authority (JVA)
provides water to agriculture and oversees development within the Valley to ensure that water
demand does not exceed availability.  JVA water has been supplied to horticultural producers at
below cost until recently.  Producers in other areas of the country do not have access to subsidized
water, relying instead on tube wells or rainfall.WT/ACC/JOR/14
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The Agricultural Credit Corporation or ACC makes soft loans available to farmers and
investors in agribusiness.  The loans fall into one of two classes—either operational or developmental.Operational loans are from 12-24 months in duration while development loans may be made for up to
15 years (although the bulk of long term loans are for 8 years).  ACC functions are explained in more
detail below.
2. Wheat producer support
Prior to the fall of 1997, the MOS announced a minimum and maximum purchase price for
durum wheat before or during the planting season. Announced prices would have had little effect on
subsistence farmers’ planting decisions—instead rainfall expectations are the most important factor.
However, large-scale commercial operations in the south would base their planting decisions on those
prices. After harvest, most farmers with surplus wheat transported the grain to MOS collection centers
located throughout the country.  At the MOS centers, the grain is tested for quality, priced between
the minimum and maximum based on its quality, and the farmer is issued a check.  A very small
proportion of farmers sold wheat to traders at the farmgate who then in turn took it to MOS collectioncenters.
The subsidy to wheat producers under the announced purchase program has varied from
JD 0.05 million to JD 2.5 million since 1990 (see Table 2).  The value of the subsidy varies because
domestic prices are measured against fluctuating world prices for wheat.  For example, in 1996, when
world commodity prices were quite high, wheat producers were actually taxed but then in 1997, asubsidy of about JD2 million was given to producers.
Table 2.  Subsidy to Wheat Producers From the GOJ Announced Price Procurement Program
Average price
paid to producers
(JD/ton)External
reference price
(JD/ton)Value of subsidy
to wheat farmers
(1,000 JD)
1990 145 126 1,621
1991 146 105 2,522
1992 145 124 1,588
1993 147 127 1,127
1994 146 124 1,029
1995 160 159 56
1996 190 208 -762
1997 197 161 2,016
Note:  The average price paid to pr oducers is the price for local durum wheat.  It is compared to a durum-
equivalent external (world) reference price.  The extern al reference price was computed based on the total cost
of imported wheat (delivered to Amman), plus any price discounts from wheat exporters (1995 only), and anestimated durum price premium of 12.5 per cent relative to the price of the most commonly imported wheat.
Sources: Computed from data in Annex A and from data supplied by official request from the Ministry of
Supply, May 1998.
No procurement price was announced during the 1998 planting season for non-seed durum
wheat.  However, as the main harvesting season began, the government did announce that it wouldpurchase wheat from producers at a price ranging between JD 147/ton and JD 160/ton.  This purchase
price is well below that of previous years and reflects international wheat prices.  The GOJ does not
anticipate that any such purchases this year will be subsidized.
The only remaining specific subsidy to wheat producers is the sale of certified seed.  The
MOS purchases seed at announced prices from registered seed producers.  The seeds are then sold tofarmers through the JCC in the next planting season.  The seed discount had been aboutWT/ACC/JOR/14
Page 15
10-15 per cent of the average cost of seeds purchased by MOS.  In 1997, seeds were sold at a price
higher than the procurement price.  However, for the past five years, the JCC has spent aboutJD3(ii)ton for cleaning, fumigating, and other handling costs associated with preparing the seeds for
sale to farmers. These costs generally were not recovered by JCC when selling to farmers.  For
example, in 1997, wheat producers received  a subsidy equivalent to about JD100,000.
In 1998, seeds are being purchased from farmers at JD230/ton.  The sale price for seeds for
the 1998 planting season has not been announced.  In addition, official notifications suggest that seedwill no longer be purchased from farmers after this season at guaranteed prices.
3. Barley producer support
Barley is the major feed grain produced in Jordan.  A very small amount of sorghum is grown
but no corn, other than sweet corn for human consumption, is produced.  As noted above, barley
farmers are generally subsistence farmers with mixed holdings and so they tend to keep the bulk of
their crop for livestock consumption.  For those producers with surplus barley, the MOS bought
offered barley that met minimum quality requirements at prices announced during the planting season.However, in 1997, the government abolished its barley purchasing program.
The subsidy to barley producers has generally been smaller than that to wheat producers for
two reasons: barley production is usually less than wheat and surplus quantities are also smaller.
Between 1990 and 1996, the subsidy ranged from JD1.2 million to a low of JD2,700 (see Table 3).
Table 3. Subsidy to Barley Producers From the GOJ Announced Price Procurement Program
Average price paid to
producers
(JD/ton)External reference price
(JD/ton)Value of subsidy to barley
farmers
(1,000 JD)
1990 104.9 104.9 3
1991 104.7 91.9 508
1992 104.5 86.9 1,213
1993 105.0 83.8 673
1994 104.7 79.5 690
1995 124.2 87.5 1,164
1996 159.2 136.9 650
1997 0.0 115.0 0
Note: Calculations in last column may differ from implied values due to rounding.
Sources: Computed from data in Annex A and from data supplied by official request from the Ministry of
Supply, May 1998.
As is the case with wheat, the Ministry of Supply will maintain strategic reserves of barley to
ensure adequate feed stocks for the livestock sector.  Barley had been sold to farmers and feed mills at
subsidized prices.  In 1996, when international barley prices were especially high, domestic feed
consumers were paying only 70 per cent of the cost of barley.  However, in 1997, consumers who
purchased barley from the MOS paid above acquisition cost.  See the section below on livestock feedsubsidies for more details.
Barley seed is being purchased this year by the MOS.  As is the case with wheat, seed sales in
the past have been subsidized and are likely to be subsidized again this year by the amount of JCC
handling costs.  However, at this time the GOJ does not plan to continue barley seed purchases
beyond this year.WT/ACC/JOR/14
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4. Lentils and chickpea producer support
The policies that had been in place for wheat and barley farmers were also extended to lentil
and chickpea producers.  That is, MOS bought offered quantities of lentils and chickpeas at prices that
were announced during the planting season.  These products were in turn sold to domestic consumers.
If domestic supplies were insufficient to fu lfill demand, MOS would also import lentils and
chickpeas.  The imported and domestically supplied lentils and chickpeas were usually sold to
consumers at above acquisition cost.  Lentil and chickpea seed are still being purchased by the MOSand may be sold at a discount to farmers in the 1998 planting season.
Table 4.  Subsidy to Lentil and Chickpea Producers From the GOJ
Announced Price Procurement Program
Average
price paid to
lentil
producers
(JD/ton)External
reference
price for
lentils
(JD/ton)Value of
lentil
producer
subsidy
(1,000 JD)Average
price paid to
chickpea
producers
(JD/ton)External
reference
price for
chickpeas
(JD/ton)Value of
chickpea
producer
subsidy
(1,000 JD)
1990 266 364 -405 340 383 -15
1991 255 365 -131 333 381 -69
1992 289 444 -440 341 348 -11
1993 301 302 0 350 297 138
1994 (i) 272 0 317 314 5
1995 331 344 -28 (i) 500 0
1996 377 342 69 444 377 165
1997 (ii) 361 0 (ii) 313 0
(i) Farmers did not sell any quantity to MOS.
(ii) MOS stopped buying lentils and chickpeas for consumption purposes in 1997.Sources: Computed from data in Annex A and from data supplied by official request from the Ministry of
Supply, May 1998.
V. AGRICULTURAL INPUTS POLICY
Jordan has a long history of providing farmers with subsidized water, electricity, credit, and
livestock fodder.  In contrast to many countries, fertilizer has not been subsidized directly nor has it
been offered at discount prices for the past decade. As noted previously, the pricing of water in theJordan Valley has been, and continues to be, adjusted gradually to reflect the actual costs of supplying
irrigation water to agriculture. The livestock feed subsidy has been phased out.  The credit subsidy
today remains the largest expenditure by the government.  Each of these subsidies are described in
greater detail below.
A. WATER POLICY
Water is the scarcest agricultural resource in Jordan. The annual per capita renewable fresh
water availability in the Kingdom is about 175 cubic meters per year.  Jordan’s per capitaconsumption of water is far less than the recommended average of 1,000 cubic meters per person per
year required to sustain the health of the population . Even so, the price of water in the Kingdom for
households, industry, and agriculture had been subsidized for decades.
Under current water policy directives, agriculture is the residual claimant of water.  That is,
the highest priority water use is allocation of basic human needs at a minimum of 100 litres per capita.Additional water is then allocated to municipalities, then tourism and industry, and finally agriculture.WT/ACC/JOR/14
Page 17
Agriculture may receive additional water through water reclamation and recycling efforts.  It is
estimated that 58 million cubic meters of recycled water, equivalent to about 8 per cent of totalagricultural water demand, was used in agriculture in 1996.  Long term plans to increase the capacity
for use of recycled water are in place and it is expected that by 2020, the availability of recycled water
to agriculture will reach 237 million cubic meters.
While less than 25 per cent of arable land is irrigated, agriculture consumes about 75 per cent
of all available water.  In 1989, the price of water to agriculture was doubled but even then thesubsidy to agriculture was considerable. As a result, there were few incentives to use irrigation water
efficiently and for that reason, most irrigation water was delivered via open channels.  Not only was
water use inefficient, the low price encouraged production of some water intensive crops in one of the
most water deficit countries of the world.  In 1994 the price was again adjusted, this time more than
doubled and a block tariff was introduced.  This finally begun to increase the efficiency of water
usage.
The ever increasing scarcity of water in Jordan is putting pressure on farmers and households
to use water efficiently.  For example, irrigation efficiency in the Jordan Valley is rising, reaching
70 per cent in 1996 versus 57 per cent in 1994.  A dramatic restructuring of water pricing has helped
to increase this efficiency.  In order to ease transition to Market pricing of water, the rescheduling of
water prices has been spread out over a number of years.  A graduated rate schedule for each of
households, agriculture, and industry was introduced in 1994.  As you can see in Figure 7, the averageprice to agricultural users has risen from about 4 fils per cubic meter in 1989 to 26 fils per cubic meter
last year.  This has resulted in a significant decline in the subsidy to agriculture as shown in Table 5.
Table 5. Value of Water Subsidy to Jordan Valley Agricultural Producers, 1990-97
Average operating
and maintenance
costAverage price paid
by agricultureAverage subsidy to
agricultureTotal subsidy to
agriculture
Fils/CM Fils/CM F ils/CM (1,000 JD)
1990 17.24 3.99 13.26 2,905
1991 21.98 3.82 18.16 3,233
1992 22.04 3.19 18.85 4,007
1993 17.66 13.75 3.91 670
1994 24.53 23.48 1.06 144
1995 22.53 21.91 0.63 78
1996 24.55 24.05 0.50 62
1997 27.27 26.58 0.68 85
Note: CM denotes cubic meters.  Totals may not add to due rounding.
Source: Computed from data in Annex A.
The water price is still being adjusted upward to cover operation and maintenance (O&M)
costs.  The current price of water for agricultural purposes ranges from 8 to 35 fils per cubic meter
(see Table 6).  Average operating and maintenance costs are estimated at 25-28 fils per cubic meter.
In 1993, producers in the Jordan Valley were subsidized in the amount of about JD670,000 but by1997, the subsidy had been virtually eliminated.WT/ACC/JOR/14
Page 18
Table 6.  Prices for Irrigation Water in the Jordan Valley According to the Block Tariff
User class Water consumed per month
(Cubic meters)Water cost 1995-1998
(Fils/CM)
1 0-1000 8
2 1001-2000 12
3 2001-3000 20
4 >3500 35
Note: CM denotes cubic meters.
Source: Jordan Valley Authority.
B. CREDIT POLICY
The agriculture sector benefits from reduced interest loans through the Agricultural Credit
Corporation (ACC).  The ACC is a government co rporation currently funded through the Central
Bank of Jordan.  It does not have deposit authority.  The government has decided to privatize the
ACC, allowing it deposit accounts, withdrawals, and other financial services.  The ACC will be fully
privatized within the next three years.
The ACC provides seasonal and short-term loans for operational purposes (including
livestock fodder) and medium- and long-term loans.  The seasonal and short-term loans, which in1996 amounted to JD8 million or about 39 per cent of the total value of loans, are primarily to finance
production and therefore are considered operational loans.  The longer-term loans are for capital
improvements which are classified five ways: land improvement and development in rainfed areas;
land improvement and development in irrigated areas; livestock development; mechanization, farm,
and agricultural manufacturing; and rural housing and farm buildings.  Rural housing loans are limitedto homes with a maximum area of 150 square meters, must be built within an integrated agricultural
enterprise, and the loans are limited by maximums established by the Board of Directors of the ACC.
In 1996, of the JD13 million in longer-term loans, 40 per cent was for land improvements and
44 per cent for livestock development.Figure 7.  Average Price of Water to Agriculture, 1990-1997  
051015202530
1990 1991 1992 1993 1994 1995 1996 1997
Fils/cubic meterWT/ACC/JOR/14
Page 19
Farmers may obtain credit from the ACC or from  commercial banks.  Loans from the ACC
are at discounted interest rates and free of commissions and fees and so many farmers obtain loansfrom the ACC.  Essentially all long-term loans ar e provided by the ACC because commercial banks
strongly resist making loans with maturity dates beyond three years.  Most loans by commercial banks
to agriculture are made to agribusiness rather than producers. At the end of 1997, agriculture and
agricultural manufacturing sector debt stood at JD181 million with a little more than half that debt
owed to commercial banks.
The cost of ACC loans varies with the amount and the term of the loan.  In 1997, operational
loans to the smallest farmers cost 6.33 per cent per annum while operational loans in excess of
JD50,000 cost 9.85 per cent.  In 1997, the smallest developmental loans cost 6.99 per cent while
borrowers of more than JD50,000 for developmental purposes paid 8.80 per cent.  The weighted
average interest rate charged under each of these types of loans is less than the prevailing Market or
average lending rate for short-term loans from commercial banks by 3.5-5.5 percentage points (see
Figure 8).
The value of the credit subsidy for operational loans is 1997 was about JD350,000 while
borrowers for developmental purposes were financed at a subsidy of JD330,000 (see Table 7).  The
interest rate discount on operational loans is clearly a subsidy to borrowers.  However, the discounted
cost of developmental loans cannot be considered such. As is noted in the WTO Agreement onAgriculture in Part IV, Article 6, paragraph 3:
“[It is agreed that] government measures of assi stance, whether direct or indirect, to encourage
agricultural and rural development are an integral part of the development programmes of
developing countries, [and] invest ment subsidies which are generally available to agriculture in
developing country Members and agricultural input subsidies generally available to low-incomeFigure 8.  Comparison of ACC and Short Term Market Interest Rates  
0 2 4 6 8 10 12 1419931994199519961997
Percent per annumACC
ACC
CommercialWT/ACC/JOR/14
Page 20
or resource-poor producers in developing c ountry Members shall be exempt from domestic
support reduction commitments that would othe rwise be applicable to such measures…”
In its current Agricultural Policy Charter, in the GOJ mandate to the ACC, and in prior policy
directives, the GOJ has consistently recognized the critical importance of low-cost agricultural credit
to the development process.  For example, in Chapter 1, Section 5 of the Charter, it is stated that
“agricultural development will constitute the core of integrated development of Jordan’s rural areas.”
Therefore, the cost of developmental loans to agricultural producers and manufacturers are similar tobasic expenditures on infrastructure that are necessary for further development of the economy.
Table 7.  Value of Below Market Interest Rate Loans by ACC
Average interest  rate
subsidy for seasonal
loans
(points)Average interest  rate
subsidy for
developmental loans
(points)Total value of
interest rate
discount on
operational loansTotal value of interest
rate discount on
developmental loans
(JD)
1990 4.75 n/a 103,447 n/a
1991 3.63 n/a 77,268 n/a
1992 3.83 n/a 138,952 n/a
1993 1.96 n/a 52,905 n/a
1994 3.17 4.04 127,480 573,502
1995 2.91 4.16 192,398 785,328
1996 3.65 4.42 301,385 923,096
1997 5.35 4.22 348,683 331,060
Source: Computed from data in Annex A.
C. LIVESTOCK FEED SUBSIDY
Jordan has supported its livestock sector through the sale of fodder (barley, corn, and wheat
bran) to producers at discounted prices.  The products that had been sold to farmers were obtainedfrom domestic procurement and imports.  In the case of wheat bran, the product was either imported
or the byproduct was returned to the government by flour mills which purchased subsidized wheat.
The sale prices for these products have at times been well below the average cost of procuring the
products from domestic and international sources.  However, a consequence of the restructuring of the
agricultural sector has been virtual elimination of this subsidy (see Table 8).
VI. CONSUMER POLICIES
According to the 1992 household expenditure survey, a typical Jordanian household spends
from 35-45 per cent of their income on food (excluding beverages and tobacco).  Since food requires
such a substantial share of income, the GOJ has had a long history of subsidizing the price of food
staples to ensure that the poorest consumers can afford basic foodstuffs.  In particular, bread, sugar,
rice, and powdered milk have been consistently subsid ized and remain so today for at least part of the
population.
As recently as last year, the Ministry of Supply (MOS) purchased essential foods (wheat, rice,
sugar, and powdered milk) from local and foreign Markets and resold them to private traders who in
turn sold them to retail outlets.  Retailers were permitted to charge a marketing margin of 17 per cent
above their purchase cost from MOS.  To ensure that these prices were not exceeded, the “fixed”
retail prices (i.e., Market determined wholesale prices plus the 17 per cent margin) were publishedevery day in the newspapers.  Locally produced commodities that were priced in this manner included
bread, vegetables, fruits, mineral water, cigarettes, yoghurt, white cheese, tea, eggs, and poultry meat.
In addition, imported goods such as powdered milk, frozen, chilled and canned meat, sugar, and cornWT/ACC/JOR/14
Page 21
and barley were priced in a similar manner. In April 1997, the fixed margin pricing for local fruits and
vegetables was abolished.  Later in the same year, fixed margin prices for eggs, poultry meat, whitecheese, and tea were eliminated.
A coupon system permitting reduced-price purchases of sugar, rice, and powdered milk was
implemented in September 1990. Under that system, a coupon holder purchased the specified items
from retailers for a reduced price and the coupon.  The coupons were then turned into the government
for reimbursement. Each coupon holder was limited to 18 kg per person per year for sugar (1.5kg/month per person) and for rice. The powdered milk allowance was 3 kilograms per person per
year. Beginning in 1995, coupons were given only to  those families that had an average monthly
income of JD500 or less.  This resulted in 200,000 families losing their discounts on essential
foodstuffs.
The fixed margin pricing for essential imported products was maintained until late 1997 when
prices for sugar, rice, and powdered milk were freed.  Today, only two kinds of bread, barley for
fodder, and locally produced cigarettes remain subjec t to a fixed margin retail price.  Even so, the
prices of these goods are significantly higher than in the past.  For example, in August 1996, the price
of the most common type of bread was nearly tripled from 85 fils per kilogram to 220 fils per
kilogram.
A few commodities—fresh cow milk, yoghurt, and imported fresh meat—are subject to
ceiling prices today. Ceiling prices are set by negotiation between MOS and representatives of theprivate sector.  Some of the factors taken into account when setting ceiling prices are the costs of
handling the products, necessary processing, and a reasonable profit to retailers.  The ceiling price
system is very new (it began this year) and, although it is recognized that these ceiling prices may
have to be adjusted periodically, there currently are no regularly scheduled meetings between retailers
and MOS to review and possibly adjust the ceilin g prices. In fact, MOS would like to phase out
ceiling prices but the timeframe for doing so has not been set.
When the fixed bread price was nearly tripled in 1996, the government instituted a direct cash
subsidy program for all consumers to reduce the shock of the price increase.  The system worked well
and so in the last quarter of 1997, a cash subsidy program was initiated to replace the coupon system
for sugar, rice, and powdered milk. In the case of government employees, the cash subsidy is added tomonthly payroll checks.  For non-government employees, bank drafts are issued quarterly.  The bread
subsidy is JD 1.28 per person per month.  Consumers earning less than JD 500 per month are also
entitled to a sugar, rice and powdered milk subsidy of JD 0.720 (US$1.08) per month.
Note that at this time, Jordan is in the very early stages of a completely free consumer Market.
The government is closely monitoring the private sector’s performance in making essential foodsavailable to consumers.   Over the next several y ears the government may maintain a strategic reserve
of essential food items to counter disasters and other uncertainties.  Wheat stocks during this
transition phase are targeted at 3-4 months of consumption and stocks of other essentials such as
fodder, rice, and sugar, are also targeted at about that quantity.WT/ACC/JOR/14
Page 22
Table 8.  Value of Livestock Feed Subsidy, 1990-97
Average unit cost
(JD/ton)Average sale price
(JD/ton)Quantity sold to
livestock producers
(1,000 tons)Value of subsidy to
livestock producers
(1,000 JD)
All feed
1990-- --
458,279 6,920
1991 -- -- 715,039 20,014
1992 -- -- 746,722 7,372
1993 -- -- 986,912 5,963
1994 -- -- 1,112,031 28,016
1995 -- -- 1,057,006 -4,344
1996 -- -- 1,154,261 25,996
1997 -- -- 793,957 -13,956
Barley
1990 105 60 207,303 9,313
1991 92 60 303,792 9,862
1992 90 60 309,321 9,240
1993 84 65 474,587 9,135
1994 80 70 595,267 6,017
1995 89 85 527,538 2,190
1996 137 100 683,136 25,769
1997 115 120 466,376 -2,338
Maize
1990 72 75 175,633 -565
1991 120 75 271,087 12,126
1992 103 106 294,341 -912
1993 102 106 339,629 -1,524
1994 172 106 350,674 23,158
1995 104 114 367,459 -3,829
1996 147 134 308,132 4,027
1997 116 140 194,410 -4,678
Wheat bran
1990 16 40 75,343 -1,828
1991 26 40 140,160 -1,974
1992 33 40 143,060 -957
1993 32 42 172,696 -1,648
1994 38 45 166,090 -1,159
1995 36 53 162,009 -2,705
1996 48 71 162,993 -3,801
1997 38 90 133,171 -6,940
Note:  Calculations in last column may differ from implied values due to rounding.
Source:  Computed from data supplied through official request to MOS, May 1998.
These reforms in consumer subsidization of essential foodstuffs have reduced GOJ subsidy
expenditures significantly.  In 1995 and 1996, the subsidy on bread, sugar, rice, and powdered milkcost the government about JD72.5 million (see Table 9).  In 1997, that figure was cut by more than
half to JD31 million.WT/ACC/JOR/14
Page 23
Table 9. Expenditures on Consumer Food Subsidies, 1990-97  (1,000  JD)
Total major
foodsBread Sugar Rice Powdered
mild
1990 72,000 44,400 16,800 7,200 3,600
1991 40,910 34,700 1,900 10 4,300
1992 53,300 43,300 -1,900 5,300 6,600
1993 51,200 43,300 -2,700 6,700 3,900
1994 47,800 39,500 500 4,800 3,000
1995 70,000 53,700 4,100 7,000 5,200
1996 75,000 49,100 8,800 10,000 7,100
1997 30,900 700 12,700 10,900 6,600
Source: Official request from the Ministry of Finance, May 1998.
VII. AGRICULTURAL TRADE POLICY
A. IMPORTS OF AGRICULTURAL PRODUCTS
Import regulations have changed dramatically in the past several years in Jordan.  The MOS
was the sole importer of essential foodstuffs until 1997 when importing was opened up to the private
sector.  Today, almost any agricultural product ma y be imported into Jordan if prevailing customs
duties and taxes are paid and if the product meets local quality standards.  There are two exceptions to
this general rule: mineral water and fresh milk. Mineral water is currently banned from import
because local mineral water is mined in disadvantaged areas and that activity is considered critical
from a development standpoint.  Fresh milk is banned from import to protect domestic milkproducers.
Import licenses are required for most imported goods and especially for those that originate in
and are being imported from countries that have trade agreements and protocols with Jordan (see the
section on agenda trade for more details on the latter).  Imports of some agricultural goods also
require prior approval from either the Ministry of Agriculture (MOA) or the Ministry of Supply
(MOS). The agricultural products for which prior approval is required from the MOA are live
animals; fresh, chilled and frozen meat; and frozen animal semen.  Prior approval is required to ensure
that the animals and animal products meet local health standards.
The MOS must be contacted for prior approval for import of rice, powder milk, wheat and
wheat derivatives, sugar, barley, corn, and milk for manufacturing purposes. Prior approval isnecessary to ensure that the supply of these essential foods is sufficient in the country. If MOS
determines that insufficient quantities of essential foodstuffs are being imported by the private sector,
MOS may purchase necessary goods in international Markets.   This process is viewed as a temporary
measure to ease transition to private sector supply of all food stuffs.  The GOJ plans to abolish the
prior approval requirement on imported staple foods once the private sector is fully responsive toMarket price signals.
B. EXPORTS OF AGRICULTURAL PRODUCTS
There are no restrictions on exports of agricultural products with the exception of some fruits
and vegetables exported under bilateral trade agreements with Lebanon and Israel.  These “agenda
trade” quantity restrictions are described in more detail below.  In general, exporters must satisfy any
standards or other requirements of the importing country.  For example, to export horticultural
products from Jordan, the typical process is:WT/ACC/JOR/14
Page 24
 (i) The Chamber of Commerce issues a receipt to exporters which includes a certificate of
origin of the product and the quantity, value, and types of products to be exported;
 (ii) The certificate from the Chamber of Commerce is stamped (approved) by AMO;
 (iii) If necessary, an EURI certificate (for EU Market), which shows the final weight and
number of packages being exported is obtained from the Customs Department at either
the airport or border;
 (iv) A health certificate is issued by the Plant Protection Department of the MOA at the
border or airport; and
 (v) The shipment is released for international transport.
C. BILATERAL TRADE AGREEMENTS WITH AGRICULTURE PROVISIONS
1. Agenda trade
Jordan has several bilateral trade agreements with neighbouring countries, including:
• Bahrain
• Egypt
• Iraq
• Israel
• Kuwait
• Lebanon
• Libya
• Morocco
• Oman
• Palestine National Authority (PNA)
• Saudi Arabia
• Sudan
• Syria
• Tunisia
• United Arab Emirates
Five of these agreements have annexes or “agendas” with specific terms for trade in selected
agricultural products.  Within the agendas, the time periods during which specific agricultural
products may be exported to the trading partner or imported from the trading partner with exemption
from customs duties and other fees and taxes is stated.  Most of the commodities listed in the agendas
are horticultural products that are produced in both countries.  The idea behind the agendas is toprovide protection to domestic producers in both countries during peak harvest periods.
The agreements with the Palestine National Authority, Yemen and Oman do not limit the
quantity of trade at any time during the year.  Howe ver, for Lebanon and Israel, exports or imports of
some commodities have been subject to maximum qua ntities (quotas).  Trade between Jordan and its
agenda trade partners during non-specified time periods is permitted with no quantity restrictions butprevailing duties must be paid.
For some commodities, the time period during which tariff free trade is permitted is identified
as “as required.”   This notation means that if domestic supplies are judged sufficient to satisfy Market
demands, imports of the specific commodity may not be exempt from customs duties.  However, if
Market supplies were expected to be low, trade is permitted with the tariff exemption during amutually agreed upon time period.WT/ACC/JOR/14
Page 25
Prior to 1998, all trade in agricultural goods under these agreements was subject to quarterly
plans stipulating the maximum quantity of locally produced commodities that could be imported.However, as of 1 January 1998, the quarterly plan was eliminated but quantitative restrictions within
the domain of the agendas remain.  Agenda trade will be subsumed under the Arab Free Trade
Agreement (AFTA) when that agreement is in full force.
Jordan, along with other Arab League member states, is in the process of negotiating the
specific terms of the AFTA.  The objective of the AFTA is to permit duty-free trade among Arabcountries within 10 years.  Tariffs are to be reduced up to 10 per cent per year on products originating
in member countries.  During that transition period, some agricultural products are likely to warrant
special treatment because of the sensitivity of governments to food security issues.  Jordan
implemented the terms of the agreement (i.e., reduced import tariffs by 10 per cent) on January 1,
1998 but only on a reciprocal basis.  That is, Jordan’s tariff reductions are only available to the other
Arab League member states that also began their tariff reductions.
2. EU-Jordan Partnership Agreement
The EU-Jordan Partnership Agreement is expected to be implemented on 1 January 1999.
Under the agreement, Jordan and the EU will have a maximum of 12 years to reduce current bilateral
tariffs to zero.  The agreement contains specific import procedures and safeguards with respect to
agricultural product trade.  Agricultural products being exported to the EU are categorized in up to
nine classes with distinct tariff reduction, quantity restrictions, and/or restricted time periods for duty-free trade.  The possible configurations for duty-free or reduced duty-trade are:
 (i) Products without a quantity ceiling and exempt from ad valorem tariffs at the end of the
implementation period but only during a specified period;
 (ii) Products with a quantity ceiling and exempt (at the end of the implementation period)
from ad valorem tariffs during the entire year;
 (iii) Products with a quantity ceiling and exempt (at the end of the implementation period)
from ad valorem tariffs but only during a specified period;
 (iv) Products without a quantity ceiling and with a reduction of 40 per cent in ad valorem
tariff rates (at the end of the implementation period) but only during a specified time
period;
 (v) Products without a quantity ceiling and with a 40 per cent reduction in the ad valorem
tariff rate (at the end of the implementation period) during the entire year;
 (vi) Manufactured products with a 2,000 ton ceiling for each good and exempt from
ad valorem tariffs within the quota during the entire year;
 (vii) Tomato concentrates are limited to 3,000 yearly and exempt from ad valorem tariffs with
a 3 per cent annual increase during the first four years of the agreement;
 (viii) For specified products, the EU may impose a quantity restriction if it finds during its
annual review of trade under the agreement that unrestricted imports of one or more
products may cause difficulties in the EU Market; and
 (ix) For products with quantity restrictions, if the quota is exceeded, the tariff rates on the
above quota quantities may be completely or partially reduced from the current MFN
ad valorem tariff rate.WT/ACC/JOR/14
Page 26
The specific commodity trade provisions are outlined in the tables in Annex B.
3. State trading enterprises
WTO member countries define state trading enterprises (STEs) as:
"Governmental and non-governmental enterprises, including Marketing boards, which have
been granted exclusive or special rights or pr ivileges, including statutory or constitutional
powers, in the exercise of which they influen ce through their purchases or sales the level or
direction of imports or exports".
Under this definition, the Agricultural Marketing and Processing Company of Jordan was an
STE prior to 1995.  In addition, the Ministry of Suppl y (MOS) would have to be considered an STE but
only prior to 1998.  In 1997, the MOS relinquished its re maining special rights or privileges in the area
of foreign trade.  For example, as noted above, the private trade is no longer prohibited or in any other
way restricted from importing or exporting agricu ltural products. Therefore, the MOS can longer be
considered an STE.
As noted elsewhere, the Ministry of Supply w ill continue to import commodities as needed for
food security reasons but not with any special privileges or rights. MOS may import goods if it
determines food security stocks are falling to insuffic ient levels. It is the Government’s expectation that
MOS’s role will diminish considerably over time as  the private sector builds storage capacity.  In fact,
the MOS will loose its status as a ministry this year  and will become a directorate within the Ministry of
Industry and Trade.WT/ACC/JOR/14
Page 27ANNEX A
STATISTICAL PROFILE OF JORDAN’S ECONOMY AND AGRICULTURAL SECTOR
Table A1.  Macroeconomic Indicators, 1980-1997
Population
(1,000)Rural
population
share of  total
(i)
(per cent)Real GDP
(Mil
(JD 1985)Real
per capita
GDP
(JD 1,985
person)Real per
capita private
consumption
(JD 1,985
person)GDP  deflator
(1985=100)Cost of
living   index,
all goods
(1985=100)Cost of
living   index,
food
(1985=100)Exchange
rate
(ii)
(1985=100)Foreign
exchange
reserves
(1985=100)
1980 2,233 n/a 1,651 739 583 71 44 47 0.297 1,107
1981 2,319 n/a 1,821 785 610 81 47 51 0.329 1,049
1982 2,409 n/a 1,867 775 664 91 51 53 0.352 848
1983 2,502 n/a 1,914 765 661 96 54 55 0.362 798
1984 2,599 n/a 1,941 747 621 102 56 56 0.384 500
1985 2,700 n/a 2,020 748 665 100 57 57 0.393 399
1986 2,805 n/a 2,162 771 612 100 57 58 0.349 413
1987 2,914 n/a 2,224 763 577 99 57 57 0.338 413
1988 3,027 n/a 2,183 721 518 104 61 60 0.374 110
1989 3,144 n/a 1,890 601 414 126 77 73 0.572 460
1990 3,468 n/a 1,908 550 408 140 89 87 0.662 848
1991 3,701 23.2 1,943 525 375 147 96 97 0.680 825
1992 3,844 23.0 2,255 587 445 155 100 100 0.679 750
1993 3,993 22.9 2,381 596 425 160 103 102 0.692 1,632
1994 4,139 21.1 2,575 622 411 163 107 108 0.698 1,692
1995 4,291 21.7 2,754 642 417 169 110 110 0.700 1,972
1996 4,444 21.7 2,898 652 430 178 117 118 0.708 1,759
1997 4,602 n/a 3,044 661 n/a 184 120 126 0.710 2,200WT/ACC/JOR/14
Page 28
Table A1.  Macroeconomic Indicators, 1980-1997--Continued
GDP at   market
prices
(mil JD)Imports of  goods
and services
(mil JD)Exports of  goods
and services
(mil JD)Domestic
absorption
(mil JD)Public
consumption
(mil JD)Private
consumption
(mil JD)Gross fixed
capital formation
(mil JD)Change in
stocks
(mil JD)
1980 1,180 962 448 1,699 340 930 418 11
1981 1,469 1,393 589 2,260 456 1,141 635 28
1982 1,701 1,556 670 2,587 478 1,458 627 24
1983 1,829 1,453 640 2,642 473 1,579 536 54
1984 1,981 1,519 746 2,754 535 1,648 527 44
1985 2,020 1,503 782 2,742 532 1,795 385 30
1986 2,163 1,200 634 2,729 567 1,718 409 35
1987 2,209 1,320 756 2,773 587 1,670 449 67
1988 2,264 1,520 1,021 2,764 604 1,627 513 19
1989 2,372 1,805 1,360 2,817 619 1,635 554 9
1990 2,668 2,474 1,652 3,491 664 1,977 694 156
1991 2,855 2,363 1,698 3,520 742 2,040 678 61
1992 3,493 2,975 1,820 4,648 791 2,648 1,049 160
1993 3,802 3,152 1,962 4,991 858 2,711 1,304 119
1994 4,201 3,108 2,093 5,215 990 2,774 1,391 60
1995 p 4,655 3,435 2,438 5,651 1,081 3,023 1,480 68
1996 p 5,147 3,839 2,597 6,389 1,194 3,394 1,717 84
1997 e 5,606 n/a n/a n/a n/a n/a n/a n/a
Note:  n/a denotes not available; p denotes preliminary, and e denotes estimate.
(i)  In 1991, the standard for rural was changed from towns of 3,000 or less to 5,000 or less and so a consistent measure of ru ral population is not available
(ii)  Average of the monthly buying rates.
Sources: Statistical Yearbook, 1996 and earlier issues, Department of Statistics; Monthly Statistical Bulletin, Central Bank of  Jordan; International Financial Statistics,
Marchch 1998, CD-ROM, International Monetary Fund.WT/ACC/JOR/14
Page 29Table A2.  Agricultural GDP and Per Capita Income
Agriculture GDP at
Market prices
(mil JD)Agriculture share of
GDP
(per cent)Agriculture GDP
deflator
(1985=100)Real agriculture GDP
at Market prices
(Mil 1985JD)GDP per farmer
holding
(JD/farm)Per capita income on
farms
(JD/person)
1980 83.0 7.0 n/a n/a n/a n/a
1981 79.6 5.4 n/a n/a n/a n/a
1982 92.7 5.4 n/a n/a n/a n/a
1983 109.8 6.0 n/a n/a 1,766 220
1984 97.4 4.9 n/a n/a n/a n/a
1985 98.4 4.9 100.0 98.4 n/a n/a
1986 114.3 5.3 109.1 104.8 n/a n/a
1987 137.8 6.2 111.0 124.2 n/a n/a
1988 134.5 5.9 81.7 164.7 n/a n/a
1989 139.8 5.9 112.4 124.4 n/a n/a
1990 187.8 7.0 115.1 163.1 n/a n/a
1991 213.5 7.5 119.5 178.7 n/a n/a
1992 246.9 7.1 117.8 209.6 n/a n/a
1993 193.3 5.1 125.3 154.3 n/a n/a
1994 197.2 4.7 140.5 140.4 n/a n/a
1995 213.3 4.6 146.1 146.0 n/a n/a
1996 232.9 4.5 154.9 150.4 n/a n/a
1997 250.5 4.5 164.9 151.9 2,716 454
Note: n/a denotes not available.
Sources:  Statistical Yearbook, 1996 and earlier issues, Department of Statistics; Census of Agriculture, 1983, Department of S tatistics; preliminary data from Census of
Agriculture, 1997, Department of Statistics.WT/ACC/JOR/14
Page 30
Table A3.  Exports of Total and Agricultural Goods
Total goods
exports
(JD 1,000)Agriculture
share of  total
goods exports
(per cent)Total
agricultural
exports
(JD 1,000)Total food and
live animals
(JD 1,000)Vegetables
(JD 1,000)Fruits and nuts
(JD 1,000)Other food and
live animals
(JD 1,000)Beverages and
tobacco
(JD 1,000)Animal and
vegetable oils
and fats
(JD 1,000)
1985 255,346 17.9 45,671 43,558 16,628 7,458 19,472 1,937 176
1986 225,650 19.9 44,836 41,932 13,377 8,475 20,080 1,390 1,514
1987 248,773 15.0 37,311 33,837 14,765 5,246 13,826 3,037 437
1988 324,788 9.9 32,130 30,010 15,168 4,400 10,442 1,488 632
1989 534,166 10.1 53,914 48,623 27,914 4,592 16,117 2,845 2,446
1990 612,252 10.6 64,849 59,756 36,790 7,937 15,029 4,450 643
1991 598,627 16.0 95,723 86,041 43,531 10,929 31,581 7,370 2,312
1992 633,755 15.6 98,824 92,033 39,563 10,453 42,017 4,935 1,856
1993 691,282 21.0 145,412 140,033 47,720 21,419 70,894 3,662 1,717
1994 793,919 19.9 157,968 91,200 43,820 21,443 25,937 4,070 62,698
1995 1,004,534 25.1 251,750 99,509 53,821 14,393 31,295 5,232 147,009
1996 1,039,801 22.0 228,606 160,122 65,256 16,792 78,074 4,103 64,381
1997 1,065,977 25.5 271,671 181,373 69,604 21,878 89,891 3,640 86,658
Source: Monthly Statistical Bulletin, Marchch and Aprilil 1998, and earlier issues, Department of Research and Studies, Central Bank of Jord an, Aprilil, 1998.WT/ACC/JOR/14
Page 31Table A4.  Imports of Total and Agricultural Goods
Total
goods
imports
(JD 1,000)Agriculture
share of
total
imports
(per cent)Total
agricultural
imports
(JD 1,000)Total food
and live
animals
(JD 1,000)Live
animals
(JD 1,000)Meat,
dairy
products,
and eggs
(JD 1,000)Wheat,
wheat
flour, and
rice
(JD 1,000)Sugar
(JD 1,000)Fruits,
vegetables
and nuts
(JD 1,000)Other food
and live
animals
(JD 1,000)Beverages
and
tobacco
(JD 1,000)Animal and
vegetable
oils and
fats
(JD 1,000)
1985 1,074,445 17.7 189,972 175,784 8,599 51,091 35,486 3,640 25,361 51,607 4,036 10,152
1986 850,149 21.4 181,657 165,568 2,923 41,336 25,594 8,696 25,367 61,652 6,672 9,417
1987 915,545 18.8 171,736 155,719 3,627 42,818 35,966 9,307 16,506 47,495 7,999 8,018
1988 1,022,469 18.6 190,594 172,909 4,334 45,382 35,987 8,251 17,410 61,545 6,822 10,863
1989 1,230,010 17.4 213,702 197,650 3,575 37,567 25,508 12,036 24,534 94,430 8,855 7,197
1990 1,725,828 25.2 435,569 403,896 21,293 62,486 102,324 54,030 27,027 136,736 9,777 21,896
1991 1,710,463 26.4 450,849 417,668 37,483 89,993 88,713 45,926 33,407 122,146 9,505 23,676
1992 2,214,002 20.9 462,975 416,023 26,061 84,652 75,105 28,819 41,501 159,885 9,324 37,628
1993 2,453,625 19.9 487,451 435,146 27,937 99,660 96,609 33,084 26,123 151,733 9,652 42,653
1994 2,362,583 21.4 506,052 409,673 30,928 73,950 68,221 56,279 28,290 152,005 13,878 82,501
1995 2,590,250 20.2 523,859 419,232 29,846 68,552 62,713 29,684 43,194 185,243 9,930 94,697
1996 3,043,556 25.4 771,600 685,917 26,822 97,462 143,190 58,899 80,176 279,368 12,036 73,647
1997 2,909,150 22.4 652,806 539,521 26,087 82,584 107,957 41,109 69,040 212,744 16,466 96,819
Source: Monthly Statistical Bulletin, Marchch and Aprilil 1998, and earlier issues, Department of Research and Studies, Central Bank of Jord an, Aprilil, 1998.WT/ACC/JOR/14
Page 32
Table A5.  Structure of Jordan’s Farm Sector, Census Years 1983 and 1997
Units 1983 1997
Number of farmers (holdings) (number) 62,162 92,233 p
  Number of landless farmers (number) 4,724 16,273 p
  Number of farms with land (number) 57,438 75,960 p
     Farms with 30 or less dunum (number) 30,765 52,947 p
     Farms with 31-100 dunum (number) 18,271 13,526 p
     Farms with 101-500 dunum (number) 7,557 5,067 p
     Farms with more than 500 dunum (number) 845 614 p
  Total area on farms (hectares) 364,263 278,542 p
     Total area on farms with 30 or less dunum (hectares) 34,039 47,369 p
     Total area on farms with 31-100 dunum (hectares) 92,835 67,371 p
     Total area on farms with 101-500 dunum (hectares) 135,901 89,784 p
     Total area of farms with more than 500 dunum (hectares) 101,488 74,017 p
  Average farm size (hectares) 6.3 3.7 p
     Average area on farms with 30 or less dunum (hectares) 1.1 0.9 p
     Average area on farms with 31-100 dunum (hectares) 5.1 5.0 p
     Average area on farms with 101-500 dunum (hectares) 18.0 17.7 p
     Average area of farms with more than 500 dunum (hectares) 120.1 120.5 p
Farm population (persons) 499,498 552,000 e
Average farm household size (persons) 8.0 6.0 e
Note:  “p” denotes preliminary; “e” denotes estimate by authors.
Sources: Census of Agriculture, 1983, Department of Statistics and preliminary results from working tables for Census of Agricu lture, 1997, Department of Statistics, May
1998.WT/ACC/JOR/14
Page 33Table A6.  Land Use in Jordan, 1980-1996
Total land
area
(1,000 ha)Forestry  and
woodlands
(1,000 ha)Agricultural
land area
(1,000 ha)Agricultural
land as a
share of  total
land
(per cent)Permanent
pasture land
(rangeland)
(1,000 ha)Permanent
crops
(1,000 ha)Arable land
(1,000 ha)Arable  land
as a share of
total land
(per cent)Total
irrigated land
(1,000 ha)Irrigated land
as a share of
crop land
(per cent)
1980 8,921 63 1,127 12.6 790 38 299 3.4 37 11.0
1981 8,921 65 1,127 12.6 790 37 300 3.4 37 11.0
1982 8,921 66 1,130 12.7 790 38 302 3.4 38 11.2
1983 8,921 66 1,138 12.8 791 43 305 3.4 43 12.4
1984 8,921 67 1,142 12.8 791 47 304 3.4 48 13.7
1985 8,921 69 1,145 12.8 791 50 304 3.4 48 13.6
1986 8,921 70 1,153 12.9 791 58 304 3.4 57 15.7
1987 8,921 69 1,156 13.0 791 62 303 3.4 61 16.7
1988 8,921 70 1,165 13.1 791 66 308 3.5 61 16.3
1989 8,921 70 1,182 13.2 791 81 310 3.5 61 15.6
1990 8,921 70 1,191 13.4 791 90 310 3.5 63 15.8
1991 8,921 70 1,193 13.4 791 90 312 3.5 64 15.9
1992 8,921 70 1,196 13.4 791 90 315 3.5 68 16.8
1993 8,921 70 1,196 13.4 791 90 315 3.5 70 17.3
1994 8,921 70 1,196 13.4 791 90 315 3.5 73 18.0
1995 8,921 70 1,201 13.5 791 90 320 3.6 75 18.3
1996 8,921 76 1,201 13.5 711 90 380 3.6 77 18.8
Source: FAOSTAT CD-ROM 1997, Marchch 1998 and FAOSTAT Online, May 1998, Food and Agriculture Organization of the United Nations.WT/ACC/JOR/14
Page 34
Table A7.  Use of Permanent Crop Land in Jordan, 1985-1996
Total permanent crop
land
(hectares)Tree  crops area
(hectares)Irrigated  tree crops
area
(hectares)Proportion  of tree
crop area  irrigated
(per cent)Olive tree area
(hectares)Area of  other tree
crops
(hectares)
1985 50,000 n/a n/a n/a n/a n/a
1986 58,000 49,859 n/a n/a 34,493 15,367
1987 62,000 54,909 n/a n/a 38,145 16,765
1988 66,000 54,091 n/a n/a 36,276 17,815
1989 81,000 54,358 n/a n/a 36,397 17,961
1990 90,000 54,547 n/a n/a 36,457 18,090
1991 90,000 54,914 n/a n/a 36,607 18,307
1992 90,000 57,400 n/a n/a 39,215 18,185
1993 90,000 57,069 n/a n/a 39,547 17,523
1994 90,000 69,593 n/a n/a 53,435 16,158
1995 90,000 70,709 22,843 32.3 54,253 16,455
1996 90,000 71,880 23,599 32.8 54,782 17,098
Note: “n/a” denotes not available.
Sources: FAOSTAT CD-ROM 1997, Food and Agriculture Organization of the United Nations, Marchch 1998 and Annual Agricultural Situ ation, 1996 and earlier issues,
Department of Statistics, The Hashemite Kingdom of Jordan, Julyy1997.WT/ACC/JOR/14
Page 35Table A8.  Use of Arable Crop Land in Jordan, 1985-1996
Total arable
land
(hectares)Cropped
arable land
(hectares)Multiple
cropping
index (i)
(hectares)Total  field
crops planted
area
(hectares)Irrigated field
crops  area
(hectares)Proportion of
field  crop
area irrigated
(per cent)Cereals
planted  area
(ii)
(hectares)Pulses
planted
area  (iii)
(hectares)Fodder  crops
area
(excluding
barley)  (iv)
(hectares)Other field
crops area (v)
(hectares)
1985 304,000 n/a n/a n/a n/a n/a n/a n/a n/a n/a
1986 304,000 137,306 0.45 106,024 n/a n/a 95,488 4,827 2,150 3,558
1987 303,000 177,904 0.59 149,353 n/a n/a 135,940 6,757 2,175 4,481
1988 308,000 168,648 0.55 140,647 n/a n/a 127,382 6,993 1,969 4,303
1989 310,000 125,715 0.41 103,356 n/a n/a 94,194 3,334 3,400 2,428
1990 310,000 157,742 0.51 128,901 n/a n/a 117,417 4,833 2,981 3,670
1991 312,000 160,374 0.51 131,405 n/a n/a 122,399 3,960 2,667 2,379
1992 315,000 169,089 0.54 142,618 n/a n/a 133,646 3,901 1,590 3,482
1993 315,000 207,477 0.66 180,156 n/a n/a 165,319 9,680 1,179 3,978
1994 315,000 149,045 0.47 117,720 n/a n/a 110,097 3,081 1,607 2,935
1995 320,000 192,896 0.60 149,965 11,179 7.5 139,847 3,114 2,180 4,823
1996 320,000 148,345 0.46 121,197 10,611 8.8 110,456 4,749 2,352 3,640
See end of table for notes.
                   Continued—WT/ACC/JOR/14
Page 36
Table A8.  Use of Arable Crop Land in Jordan, 1985-1996—Continued
Total
vegetable
area (vi)
(hectares)Irrigated
vegetable
area
(hectares)Proportion of
vegetable
area irrigated
(per cent)Tomato area
(hectares)Potato area
(hectares)qWatermelon
area
(hectares)Eggplant area
(hectares)qSquash area
(hectares)Dry onion
area
(hectares)Other
vegetables
area
(hectares)
1985 n/a n/a n/a 13,707 1,550 3,801 2,716 3,706 1,091 n/a
1986 31,282 n/a n/a 9,141 1,523 2,595 2,731 3,208 610 14,072
1987 28,551 n/a n/a 6,043 2,358 2,568 2,508 2,220 774 13,527
1988 28,000 n/a n/a 5,703 2,415 3,068 2,170 2,333 1,442 11,761
1989 22,359 n/a n/a 5,352 1,340 2,121 1,432 1,631 810 10,494
1990 28,841 n/a n/a 9,088 2,830 1,965 1,718 1,864 523 12,195
1991 28,969 n/a n/a 8,827 3,451 2,363 1,799 1,352 1,081 10,366
1992 26,471 n/a n/a 9,357 2,067 1,207 2,474 1,547 1,248 8,869
1993 27,322 n/a n/a 8,904 3,440 1,248 1,274 1,475 1,719 9,018
1994 31,324 n/a n/a 11,675 2,633 3,067 1,249 1,650 996 10,708
1995 42,931 39,241 91.4 11,105 5,069 3,844 2,799 2,194 2,279 15,557
1996 27,148 25,854 95.2 7,257 3,695 2,314 1,338 1,316 1,425 9,694
Note: “n/a” denotes not available.
(i) Number of crops harvested per hectare of land (if equal to 1, a single crop is harvested).
(ii)  Cereals includes wheat, barley, and sorghum.(iii)  Pulses includes  lentils and chickpeas.
(iv)  Fodder includes vetch, common vetch, clover trifoil, and alfalfa.(v)  Other crops includes broom millet, tobacco, garlic, and miscellaneous field crops.(vi)  Includes vegetables (including sweet corn), roots and tubers, and melons.
Sources: FAOSTAT CD-ROM 1997, Food and Agriculture Organization of the United Nations, Marchch 1998 and Annual Agricultural Sit uation, 1996 and earlier issues,
Department of Statistics, The Hashemite Kingdom of Jordan, Julyy1997.WT/ACC/JOR/14
Page 37Table A9.  Credit Extended to Agriculture and Agricultural Manufacturing
Total
outstanding
credit to
agriculture and
agricultural
manufacturing
(mil JD)Outstanding
credit to
agriculture
and
agricultural
manufactur-
ing from
licensed
banks
(mil JD)Outstanding
credit to
agriculture and
agricultural
manufactur-
ing from ACC
(mil JD)Total
value of
loans
made by
ACC
(mil JD)Value of
operational
loans made
by ACC
(mil JD)Value of
develop-
mental
loans
made by
ACC
(mil JD)Out-
standing
develop-
mental
credit
relative to
agriculture
GDP
(mil JD)Rainfed land
I & D loans
(mil JD)Irrigated
land I & D
loans
(mil JD)Livestock
develop-
ment loans
(mil JD)Mechani-
zation and
farm and
agricultural
manufactur-
ing loans
(mil JD)Rural
housing and
farm
buildings
loans
(mil JD)
1990 90.3 53.7 36.6 7.431 2.176 5.255 2.8 1.029 1.898 1.196 0.480 0.700
1991 91.4 49.8 41.6 10.647 2.128 8.519 4.0 1.489 2.764 2.749 0.968 0.820
1992 110.0 54.4 56.6 23.240 3.628 19.612 7.9 5.952 4.207 7.159 1.336 1.263
1993 136.4 65.4 71.0 18.694 2.693 16.001 8.3 5.799 4.199 4.130 1.017 1.170
1994 149.5 75.5 74.0 14.272 4.024 10.248 5.2 2.703 1.926 4.080 0.637 1.007
1995 152.8 75.7 77.1 19.415 6.623 12.792 6.0 3.835 1.889 4.422 1.306 1.167
1996 164.4 79.5 84.9 21.142 8.246 12.896 5.5 3.188 1.908 5.644 1.168 0.960
1997 181.3 93.3 88.0 16.831 6.515 10.316 4.1 n/a n/a n/a n/a n/a
Notes: “I & D loans” denotes improvement and development loans.  The outstanding credit includes the value of outstanding loans given by the Jordan Cooperative
Corporation (JCC), estimated at JD9.8 million, JD5.6 million, and JD3.1million in 1993, 1994, and 1995, respectively. The JCC s topped loaning funds to
agricultural producers in 1989 but some loans have not yet been repaid.
Sources: Monthly Statistical Bulletin, Marchch and Aprilil 1998, and earlier issues, Department of Research and Studies, Centra l Bank of Jordan, Aprilil, 1998; Annual
Report, 1996, and preliminary data for the 1997 Annual Report, Agricultural Credit Corporation, The Hashemite Kingdom of Jordan , 1997.WT/ACC/JOR/14
Page 38
Table A10.  Cost of Credit to Agriculture and Agricultural Manufacturing
Average commercial
interest rate for
overdrafts (i)
(per cent)Average commercial
interest rate for loans
and advances (ii)
(per cent)Average commercial
interest rate for
operational loans (iii)
(per cent)Average subsidized
interest rate for
operational loans (iv)
(per cent)Average commercial
interest rate for long
term loans (v)
(per cent)Average subsidized
interest rate for
developmental loans
(vi)
(per cent)
1990 12.52 10.31 11.42 6.66 n/a 6.56
1991 11.73 10.36 11.05 7.41 n/a 6.53
1992 11.42 10.15 10.79 6.96 n/a 6.53
1993 11.11 6.68 8.90 6.93 n/a 6.38
1994 10.94 10.48 10.71 7.54 10.50 6.46
1995 11.39 10.65 11.02 8.12 11.00 6.84
1996 12.41 11.25 11.83 8.18 11.50 7.08
1997 12.99 12.25 12.62 7.27 11.50 7.28
Note: “n/a” means not available.
(i)  Weighted average interest rate at licensed bank s for overdrafts (typical term of up to 12 months).
(ii)  Weighted average interest rate at licensed bank s for loans and advances (typical term of 1-3 years).
(iii)  Simple average of weighted average interest rates for overdrafts and loans and advances.(iv)  Weighted average interest rate on operational loans (12-24 months) from the Agricultural Credit Corporation.(v)  Simple average of long term (8-9 year) loans from the Industrial Development Bank.(vi)  Weighted average interest rate on developmental lo ans (3-10 years) from the Agricultural Credit Corporation.
Sources: Monthly Statistical Bulletin, Marchch and Aprilil 1998, and earlier issues, Department of Research and Studies, Centra l Bank of Jordan, Aprilil, 1998; Agricultural
Credit Corporation, May 1998; and official request from Industrial Development Bank, May 1998.WT/ACC/JOR/14
Page 39Table A11.  Agricultural Water Use and Agricultural Water Costs in the Jordan Valley
Total water
consumed in
Jordan
MCMWater used for
agricultural
purposes in
JordanWater
consumed in
the Jordan
Valley by
agriculture
(1,000cm)Total sales of
water to
agriculture in
the Jordan
Valley
(JD 1,000)Total O&M
costs for
agricultural
water in the
Jordan Valley
(JD 1,000)Average O&M
costs for
agricultural
water in the
Jordan Valley
fils/CMAverage  rate
paid by
agriculture   in
the Jordan
Valley
fils/CMAverage water
subsidy to
agriculture in
the Jordan
Valley
fils/CMTotal water
subsidy to
agriculture
(JD 1,000)
1985 639 501 n/a n/a n/a n/a n/a n/a n/a
1986 619 461 n/a n/a n/a n/a n/a n/a n/a
1987 744 570 n/a n/a n/a n/a n/a n/a n/a
1988 818 614 n/a n/a n/a n/a n/a n/a n/a
1989 830 624 n/a n/a n/a n/a n/a n/a n/a
1990 880 658 219,148 874 3,779 17.24 3.99 13.26 2,905
1991 833 612 177,984 679 3,912 21.98 3.82 18.16 3,233
1992 952 700 212,535 677 4,684 22.04 3.19 18.85 4,007
1993 988 726 171,126 2,353 3,023 17.66 13.75 3.91 670
1994 1,011 726 136,411 3,202 3,346 24.53 23.48 1.06 144
1995 1,000 700 124,662 2,731 2,809 22.53 21.91 0.63 78
1996 n/a n/a 125,355 3,015 3,077 24.55 24.05 0.50 62
1997 n/a n/a 124,700 3,315 3,400 27.27 26.58 0.68 85
Note: “n/a” denotes not available; “e” denotes estimate; “MCM” denotes million cubic meters; “CM” denotes cubic meters; a “fil” is (i)1000th of a Dinar; “O&M”
denotes operating and maintenance.
Sources: Jordan's Water Sector Facts Manual, Royal Scientific Society, Julyy 1995; Jordan Valley Water Authority, May 1998.WT/ACC/JOR/14
Page 40
Table A12.  Supply, Trade, Availability, Price and Value of Production, 1985-1997: Wheat and Wheat Flour
Area planted
(hectares)Area lost to
weather and
other
problems
(per cent)Area
harvested
(hectares)Yield
(kg/ha)Production
(metric tons)Imports (i)
(metric tons)Exports
(metric tons)Availability
(ii)
(metric tons)Average
producer
price (iii)
(JD/ton)Value of
production
(iv)
(JD 1,000)
1985 n/a n/a 94,356 665.9 62,827 389,130 71,374 380,584 n/a n/a
1986 59,436 21.6 46,599 661.9 30,842 284,071 25,418 289,495 n/a n/a
1987 84,319 5.1 79,981 997.8 79,806 580,603 79,492 580,917 n/a n/a
1988 70,177 0.4 69,904 1,126.9 78,773 427,564 11,958 494,378 n/a n/a
1989 56,212 3.8 54,085 1,008.0 54,520 184,492 40,115 198,897 n/a n/a
1990 60,531 5.3 57,306 1,446.1 82,870 667,137 37,560 712,447 144.8 12,003
1991 56,467 8.9 51,443 1,202.2 61,844 569,634 69,907 561,570 146.0 9,030
1992 53,413 3.9 51,340 1,469.3 75,435 537,814 401 612,847 144.9 10,929
1993 67,916 44.7 37,575 1,519.5 57,094 629,935 268 686,761 146.4 8,356
1994 42,454 30.0 29,715 1,576.7 46,852 504,069 492 550,429 145.4 6,810
1995 51,232 20.8 40,555 1,441.4 58,457 699,143 7,108 750,492 160.2 9,362
1996 32,926 13.9 28,349 1,505.4 42,678 667,242 0 709,920 189.8 8,099
1997 n/a n/a n/a n/a 56,660 554,702 0 611,362 180.6 10,234
Note:  “n/a” denotes not available; “e” denotes estimate by Ministry of Agriculture.
(i)  Imports of wheat and wheat flour converted to wheat equivalent assuming a flour milling rate of 78.5%.
(ii) Computed as production plus imports less exports.(iii) Weighted average of: 1) Ministry of Supply weighted average purchase price of wheat from farmers and 2) average farmgate price applied to estimated sales of
wheat to other than the Ministry of Supply.
(iv)  Unofficial estimate computed as average producer price times production.Sources:  Annual Agricultural Statistics, 1996 and earlier issues, Department of Statistics; FAOSTAT Online, May 1998; Agricult ural Prices Survey, 1996 and earlier issues,
Department of Statistics; Ministry of Supply, May 1998.WT/ACC/JOR/14
Page 41Table A13. Supply, Trade, Availability, Price and Value of Production, 1985-1997: Barley
Area planted
(hectares)Area lost to
weather and
other
problems
(per cent)Area
harvested
(hectares)Yield
(kg/dunum)Production
(metric tons)Imports
(metric tons)Exports
(metric tons)Availability
(i)
(metric tons)Average
producer
price  (ii)
(JD/ton)Value of
production  /
(JD 1,000)
1985 n/a n/a 39,920 493 19,681 74,890 0 94,571 n/a n/a
1986 35,760 45.0 19,675 458 9,004 143,542 0 152,546 n/a n/a
1987 51,147 11.6 45,208 731 33,048 114,753 0 147,801 n/a n/a
1988 55,956 0.9 55,430 809 44,850 98,024 0 142,874 n/a n/a
1989 37,344 13.1 32,456 634 20,571 217,667 0 238,238 n/a n/a
1990 55,099 12.8 48,020 883 42,406 209,488 0 251,894 104 4,390
1991 65,525 12.9 57,096 699 39,935 252,921 0 292,856 103 4,123
1992 79,329 12.8 69,172 996 68,878 293,481 0 362,359 104 7,179
1993 97,210 71.9 27,289 1,165 31,798 482,996 0 514,794 104 3,295
1994 66,368 54.4 30,294 903 27,353 471,864 0 499,217 104 2,840
1995 87,940 59.4 35,740 888 31,726 487,930 0 519,656 124 3,931
1996 76,806 65.5 26,461 1,102 29,171 732,908 0 762,079 157 4,587
1997 n/a n/a n/a n/a 42,845 507,929 0 550,774 112 4,790
Note:  “n/a” denotes not available; “e” denotes estimate by Ministry of Agriculture.
(i) Availability is computed as production plus imports less exports.
(ii) Weighted average of: 1) Ministry of Supply weighted average purchase price of barley from farmers and 2) average farmgate price applied to estimated sales of
barley to other than the Ministry of Supply.
(iv)  Unofficial estimate computed as average producer price times production.
Sources:  Annual Agricultural Statistics, 1996 and earlier issues, Department of Statistics; FAOSTAT Online, May 1998; Agricult ural Prices Survey, 1996 and earlier issues,
Department of Statistics; the Ministry of Supply, May 1998.WT/ACC/JOR/14
Page 42
Table A14. Supply, Trade, Availability, Price and Value of Production, 1985-1997: Lentils
Area planted
(hectares)Area lost to
weather or
other
problems
(per cent)Area
harvested
(hectares)Yield
(kg/hectare)Production
(metric tons)Imports
(metric tons)Exports
(metric tons)Availability
(i)
(metric tons)Average
producer
price (ii)
(JD/ton)Value of
production
(iii)
(JD 1,000)
1985 n/a n/a 5,785 702 4,063 585 0 4,648 n/a n/a
1986 3,231 12.4 2,832 618 1,750 1,019 0 2,769 n/a n/a
1987 5,119 0.7 5,083 1,032 5,245 1,589 6 6,828 n/a n/a
1988 5,314 0.0 5,314 1,229 6,529 484 0 7,013 n/a n/a
1989 3,167 0.6 3,149 499 1,572 11,391 611 12,352 n/a n/a
1990 4,301 0.0 4,301 958 4,121 428 780 3,769 227 935
1991 2,475 2.1 2,423 489 1,184 3,541 1 4,724 343 406
1992 3,024 2.8 2,938 966 2,839 4,067 0 6,906 262 744
1993 8,233 0.0 8,233 580 4,771 392 0 5,163 295 1,409
1994 2,423 0.0 2,423 578 1,400 3,230 0 4,630 400 560
1995 2,850 0.1 2,847 752 2,142 3,824 0 5,966 315 674
1996 4,338 0.0 4,338 455 1,973 5,687 1 7,659 360 710
1997 n/a n/a n/a n/a 1,886 4,676 0 6,562 350 660
Note:  “n/a” denotes not available; “e” denotes estimate by Ministry of Agriculture.
(i)  Availability is computed as production plus imports less exports.
(ii) Weighted average of: 1) Ministry of Supply weighted average purchase price of barley from farmers and 2) average farmgate price applied to estimated sales of
barley to other than the Ministry of Supply.
(iv)  Unofficial estimate computed as average producer price times production.
Sources:  Annual Agricultural Statistics, 1996 and earlier issues, Department of Statistics; FAOSTAT Online, May 1998; Agricult ural Prices Survey, 1996 and  earlier
issues, Department of Statistics; Ministry of Supply, May 1998.WT/ACC/JOR/14
Page 43Table A15. Supply, Trade, Availability, Price and Value of Production, 1985-1997: Chickpeas
Area planted
(hectares)Area lost to
weather or
other
problems
(per cent)Area
harvested
(hectares)Yield
(kg/hectare)Production
(metric tons)Imports
(metric tons)Exports
(metric tons)Availability
(i)
(metric tons)Average
producer
price  (ii)
(JD/ton)Value of
production
(iii)
(JD 1,000)
1985 n/a n/a 2,890 550 1,589 10,384 500 11,473 n/a n/a
1986 1,595 27.3 1,160 511 593 9,972 0 10,565 n/a n/a
1987 1,639 3.6 1,580 792 1,251 18,114 0 19,365 n/a n/a
1988 1,679 0.0 1,679 1,074 1,803 7,517 4 9,316 n/a n/a
1989 167 0.0 167 740 124 13,112 450 12,785 n/a n/a
1990 532 0.0 532 644 343 10,849 204 10,988 n/a n/a
1991 1,485 0.0 1,485 976 1,449 17,850 0 19,299 n/a n/a
1992 877 0.0 877 1,932 1,695 13,396 0.5 15,090 317 537
1993 1,448 0.0 1,448 1,805 2,613 14,657 0 17,270 325 849
1994 658 0.0 658 2,480 1,631 13,755 8 15,378 241 393
1995 264 0.0 264 1,856 490 10,482 46 10,926 350 172
1996 3,606 0.0 3,606 680 2,453 24,060 2 26,511 377 926
1997 n/a n/a n/a n/a 1,946 17,444 n/a 19,390 328 638
Note:  “n/a” denotes not available; “e” denotes estimate by Ministry of Agriculture.
(i)  Availability is computed as production plus imports less exports.
(ii) Weighted average of: 1) Ministry of Supply weighted average purchase price of barley from farmers and 2) average farmgate price applied to estimated sales of
barley to other than the Ministry of Supply.
(iv)  Unofficial estimate computed as average producer price times production.
Sources: Annual Agricultural Statistics, 1996 and earlier issues, Department of Statistics; FAOSTAT Online, May 1998; Agricultu ral Prices Survey, 1996 and earlier issues,
Department of Statistics; Ministry of Supply, May 1998.WT/ACC/JOR/14
Page 44
Table A16.  Production, Trade, Availability, and Prices: Maize
Production
(metric tons)Imports
(metric tons)Exports
(metric tons)Availability
(metric tons)Average import  unit
value
(JD/ton)Average sale price to
consumers
(JD/ton)
1985 0 205,396 1,278 204,118 149 n/a
1986 0 233,512 13 233,499 132 n/a
1987 0 182,850 0 182,850 117 n/a
1988 0 270,292 0 270,292 146 n/a
1989 0 319,360 0 319,360 140 n/a
1990 0 221,398 1,705 219,693 72 75
1991 0 197,007 0 197,007 120 75
1992 0 332,828 0 332,828 103 106
1993 0 387,306 0 387,306 102 106
1994 0 245,993 0 245,993 172 106
1995 0 445,834 23 445,811 104 114
1996 0 318,816 0 318,816 147 134
1997 0 n/a 0 n/a n/a 119
Note:  “n/a” denotes not available.
(i)  Availability is computed as production plus imports less exports.
Sources:  Annual Agricultural Statistics, 1996 and earlier issues , Department of Statistics; FAOSTAT Online, May 1998; Ministry  of Supply, May 1998.WT/ACC/JOR/14
Page 45
ANNEX B
AGRICULTURAL PRODUCT TRADE
UNDER BILATERAL AGREEMENTS
Table B1.  Agenda Trade between Jordan and the Palestine National Authority (PNA)
Products originating in
PNA exported to
JordanPeriod during which
customs duties are not
charged by JordanProducts originating in
Jordan exported to
PNAPeriod during which
customs duties are not
charged by PNA
Guavas 1 Septembertember –
end of seasonWatermelon and other
melon15 Aprilil – end of
season
Dates All year Peaches 1 May – end of season
Lemons 15 Aprilil – end of
seasonGarlic 15 Machr – end of
season
Valencia oranges 15 Aprilil – end of
seasonApples All year
Shamouti oranges 1 Marchch – end of
seasonOnions All year (1998)
Grapefruit 15 Januaryuary – end
of seasonPotatoes All year (1998)
Grapes for
manufacturingAll year (1998)    (i) Eggs for hatching All year
Bananas All year (1998) Frozen poultry All year
Green almonds All year Live sheep or fresh
sheep meatAll year
Honey All year Nursery plants All year (1998)
Nursery plants All year (1998) Animal ghee (baladi) All year
Sweet potatoes All year Jamid (dried yoghurt) All year
Fresh fish All year White cheese All year
Prickly pear During season   (ii) Milk, pasteurized or
sterilized All year (1998)
Citrus for industry All year (1998) Wool, raw All year (1998)
Onions All year (1998) Vaccines All year
Potatoes All year (1998)
Onions for planting All year (1998)
(i) ‘All year (1998)’ means that beginning 1 Januaryuary 1998, imports of the specified products are
exempt from tariffs and other fees and taxes all year.  Prior to 1998, imports of these commoditieswere permitted “as required” by the importing country.  The requirement was determined by quarterlyreview of the supply-demand situation.  If AMO judged that additional supplies were needed, imports
exempt from tariffs, fees, and taxes were permitted.
(ii) ‘During season’ means that the importing country will permit imports at no tariff during the harvest
season for the specified commodity.  In this circumstance, the exporting country generally is a highercost producer of the commodity.
Special terms:
Agricultural products originating in Palestine can be stored in the free zone if exported to Jordan
during periods outside of the exemption period. Products stored in the free zone can then enter Jordanexempt of duties during the exemption period.WT/ACC/JOR/14
Page 46
Table B2.  Agenda Trade between Jordan and Oman
Products originating in
Oman exported to
JordanPeriod during which
customs duties are not
charged by JordanProducts originating in
Jordan exported to
OmanPeriod during which
customs duties are not
charged by Oman
Winter squash 1 Novemberember –
30 AprilSquash 1 May – 31 October
Pumpkin 1 January – 30 April Cauliflower 1 April – 31 October
Lemons 1 June – 31 July Eggplant 1 April – 30 September
Dates All year Onion 1 August – 30
November
Omani gum All year Watermelon 1 September – 30
November
Fifai All year Sweet melon 1 September – 31
October
Coconut, green and dry All year Oranges All year
Avocado 1 July – 31 August Apples All year
Grapes All year
Plums All year
Strawberries 1 March – 30
November
Tomatoes 1 May – 30 September
Cucumber 1 May – 31 October
String beans 1 May – 30 November
Carrots 1 May – 30 November
Sweet pepper 1 June – 31 October
Potatoes 1 June – 31 January
Tangerine All year
Cabbage 1 May – 31 October
Lettuce 1 May – 31 NovemberWT/ACC/JOR/14
Page 47
Table B3.  Agenda Trade between Jordan and Lebanon
Products
originating in
Lebanon
exported to
JordanPeriod during which
customs duties are not
charged by JordanProducts
originating
in Jordan
exported to
LebanonMaximum
quantity
imported from
Jordan during
specified periodPeriod during which
customs duties are not
charged by Lebanon
Potatoes 25 August – 25 October Potatoes 20,000 tons 15 February – 15 March
Navel oranges 15 February – 30 April Tomatoes 10,000 tons 1 January – 28 February
Valencia
oranges1 May – 20 August Cucumber None 15 December –
28 February
Shamoutioranges1 March – 30 April Eggplant None 1 December – 31 March
Lemons 1 March – 30 April
Squash None 1 December – 31 January
Grapes 1 October – 1 January Green beans
(cow peas)None 1 December – 31 March
Apples 15 February – 30 April
1 September –31 DecemberWatermelon
s4,000 tons 1 May – 10 June
Caca 15 October – 31 January Sweet melon 1,000 tons 1 May – 10 June
Loquat 10 April – 10 May Onion 1 February – 31 March
Garlic 1 March – 15 April
Maize 1 October – 30 June
Sweet
pepper1 December – 30 March
A’kob 1 January – 30 AprilWT/ACC/JOR/14
Page 48
Table B4.  Proposed Agenda Trade between Jordan and Israel
Products
originating in
Israel exported
to JordanPeriod during which
customs duties are not
charged by JordanProducts originating
in Jordan exported to
IsraelMinimum
quantity imported
from Jordan
during specified
periodPeriod during
which customs
duties are not
charged by Israel
See note below. Fruits and vegetables 50,000 tons As required
Olive oil 900 tons As required
Live sheep 30,000 head As required
White cheese 1,000 tons As required
Jamid (dry yoghurt) 1,000 tons As required
Notes:
• Jordan receives priority as an exporter of any fresh ag ricultural product if Israel Decemberides to import
such a product and if Jordan produces the product.
• If Israel Decemberides to import, Jordan will be exempted from all customs duties.  Note that Jordanian
olive oil, live and slaughtered sheep and goats, white cheese, jamid, and fresh fruits and vegetables areexempt from customs duties for at least the quantities noted above.
• Jordan has the authority to Decemberide which fresh agricultural and processed agricultural products which
will be imported from Israel.  Jordan’s determination will be based on domestic Market needs with theapproval of the Ministry of Agriculture.
• Jordan will not differentiated products originating in Israel from domestic products.
• Israel will work hard to facilitate the PNA-Jordan trade agreement by enabling Jordanian produce to reach
the areas under the control of the PNA and by acceptin g any PNA request for an increase in quota amounts
for products specified in the Jordan-PNA agreement.
• This agreement is not yet in effect for agricultural products, in part because there are unresolved problems.WT/ACC/JOR/14
Page 49
Table B5. Agenda Trade between Jordan and Yemen
Products originating
in Yemen and
imported by JordanPeriod during which
customs duty is not
charged by JordanProducts originating
in Jordan and
exported to YemenPeriod during which
customs duty is not
charged by Yemen
Papaya All year Apples 1 September – 30 October
Mango 1 April – 30 July Oranges and
mandarins1 April – 30 July
Okra 1 December – 31 March Olives (green or
canning)All year
Bananas 1 July – 31 July
Annona 1 April – 30 AugustWT/ACC/JOR/14
Page 50
Table B6. EU-Jordan Partnership Agreement: Agricultural Products from Jordan
Not Subject to a  Quota and Exempt from EU Customs Duties All Year
Products originating in Jordan CN code Reduction amount (i) Special provisions
Peel of citrus fruit or melons 0814 100
Fruits of the genus Capsicum or of the genus
Pimenta, neither crushed or ground, other0904 20 39 100
Bulbs, tubers, tuberous roots, corns, crowns
and rhizomes, dormant0601 10 100 Subject to the provisions of Protocol 1, paragraph 5
Dried leguminous vegetables, other than for
sowing0713 10 90, 0713 20 90,
0713 31 90, 0713 32 90,
0713 33 90, 0713 39 90,
0713 40 90, 0713 05 90,
0713 90 9080 Subject to the provisions of Protocol 1, paragraph 5
Dates 0804 10
Oranges, fresh 0805 10 60 Subject to the provisions of Protocol 1, paragraph 5
Grapefruit 0840 80 Subject to the provisions of Protocol 1, paragraph 5
Fruits of the genus capsicum or pimento,
other0709 60 99 100
Molochia (Jew’s mallow) 0709 90 ex 0709 90 100
Okra 100
Other fruits of the genus capsicum or
pimento0710 80 59 100
(i) Reduction of the customs duty in the 12-year transition period from the current or possible tariff-quota.
Note:  Protocol 1, paragraph 5 states that the EU may fix a reference quantity if, in light of an annual review of trade flows and domestic Market conditions, it finds that
imports of a product threatens to cause difficulties in the EU  Market.   Imports may then be subject to a tariff quota.WT/ACC/JOR/14
Page 51Table B7. EU-Jordan Partnership Agreement: Agricultural Products from Jordan
Exempt from EU Customs Duties All Y ear but Limited by a Tariff Quota
Products originating in Jordan CN code Tariff quota
volumeReduction
amount (i)Special provisions
Preparations of vegetables 2001 except ( 2001 90 50,
2001 90 30, 2001 90 40,
 2001 90 60); 2004 except
( 2004 10 91, 2004 90 10 ); 2005
except ( 2005 60, 2005 20 10,
2005 80 00 )1,000 tons Subject to the provisions of Protocol 1, paragraph 4
Preparations of fruits 2007, 2008 except ( 2008 11 19,
2008 91, 2008 40, 2008 70,2008 92 45, 2008 99 85,
2008 99 91 ) (CHECK); 2009
except  ( 2009 11, 2009 19,
2009 20, 2009 30 )1,000 tons Subject to the provisions of Protocol 1, paragraph 4
Tomato concentrate 2002 90 31, 2002 90 39, 2002 90
91, 2002 90 993,000 tons Subject to the provisions of Protocol 1, paragraph 4; the
tariff quota refers to a dry matter of 28/30%; for its
management the coefficients provided for in Annex V,.1
of regulation 1709 will be used.
White cheese of sheep milk Except 0406 90 33, 0406 90 50 100 tons
Roses, grafted or not 0602 40 100 tons
Cut flowers, fresh 0603 10 100 tons Subject to compliance with the conditions agreed upon
by exchange of letters
Mandarins, fresh 0805 20 1,000 tons 60
Lemons, fresh 0805 30 1,000 tons 40
(i)  Reduction of the customs duty beyond the current or possible tariff-quota.
Note:  Protocol 1, paragraph 4 states that the tariff quotas sha ll be increased in four equal installments by 3% from the date of implementation of the agreement.WT/ACC/JOR/14
Page 52
Table B8.  EU-Jordan Partnership Agreement: Agricultural Products from Jordan Not Subject to a
Quota and Exempt from EU Customs Duties during Specified Periods
Products originating in
JordanCN code Period during which
customs duty is
exemptedReduction
amount (i)Special provisions
Pomegranate Except  0810 90 85 1 August – 30
September
Tomatoes 0702 00 15, 0702 00 50,
Except 0702 00 451 December – 31 March 60 Subject to the provisions of Protocol 1, paragraph 5
Onions and shallots Except 0703 10 1 February – 30 April
Garlic Except 0703 20 00 1 February – 21 March 50 Subject to the provisions of Protocol 1, paragraph 5
Carrots Except 0706 10 00 1 January – 31 March
Cucumbers < 15 cm long 0707 00 10, 0707 00 40 10 November – end
February
Table grapes, fresh 0806 10 29 15 May – 11 July Subject to the provisions of Protocol 1, paragraph 5
Melons weighing less than600 grams0807 19 00 1 November – 31 March Subject to the provisions of Protocol 1, paragraph 5
Watermelons, fresh 0807 12  00? 1 April – 15 June
Green (?) beans Except ( 0708 20 20,
 0708 20 95 )1 November – 30 April 60 Subject to the provisions of Protocol 1, paragraph 5
Aubergines Except  0709 30 00 1 December – 30 April 60 Subject to the provisions of Protocol 1, paragraph 5
Celery Except  0709 40 00 1 January – 31 March
Sweet peppers Except 0709 60 10 15 November – 30 April 40 Subject to the provisions of Protocol 1, paragraph 5
Courgettes 0709 90 71, except
( 0709 90 73, 0709 90 79 )1 December – 15 March 60 Subject to the provisions of Protocol 1, paragraph 5
Parsley Except 0709 90 90 1 November – 30 May
Fennel Except 0709 90 50 1 November – 31 March
(i) Reduction of the customs duty beyond the current or possible tariff-quota.WT/ACC/JOR/14
Page 53Table B9.  EU-Jordan Partnership Agreement: Agricultural Products from Jordan
Not Subject to a Quota and Eligible for Reduced EU Customs Duty All Year
Products originating in
JordanCN code Period during which
customs duty is reducedReduction of the MFN
customs duty (%)Special provisions
Figs 0804 20 20 May – 1 September 40
Mangoes and guavas 0804 50 00 All year 40
Table B10.  EU-Jordan Partnership Agreement: Agricultural Products from Jordan Exempt
 fromCustoms Duty During Specified Periods and Limited by a Tariff Quota
Products originating in
JordanCN code Period during which
customs duty is exemptedTariff quota volume Special provisions
New potatoes Except 0701 90 51 1 January – 31 March 1,000 tons
Cabbage, lettuce 0705 11 05 1 November – 31 March 200 tons
Strawberries 0810 10 05 1 January – end February 100 tons
Asparagus Except 0709 20 00 1 October – 31 March 100 tonsWT/ACC/JOR/14
Page 54
Table B11.  EU-Jordan Partners hip Agreement: Agricultural
Products from EU Subject to Jordan Customs Duties
Products originating in EU CN code Maximum
customs duty
Pure bred breeding live bovine animals 0102 10 10 JD/head
Other live bovine animals 0102 90 10 JD/head
Fresh meat of bovine animals, with bones 0201 20  5%
Fresh meat of bovine animal, boneless 0201 30  5%
Frozen meat of bovine animals, boneless 0202 30  5%
Butter/fats/oil derived from milk; dairy spreads 0405 00  5%
Processed cheese not grated or powdered 0406 30 20%
Potato seed, fresh 0701 10  5%
Peas, dried 0713 10 10%
Broad beans, dried 0713 50  5%
Durum wheat 1001 10 None
Other wheat 1001 90 None
Barley 1003  5%
Maize, other than seed 1005 90  5%
Semi/wholly milled rice 1006 30  5%
Wheat or meslin flour 1101 None
Groats and meal of durum wheat 1103 11 10 15%
Cereal groats, meal and pellets of maize 1103 13 10%
Malt, not roasted 1107 10 10%
Preserved olives 2005 70 40%
Peaches, prepared or preserved 2008 70 40%
Flours, meals and pellets of meat/offal 2301 10  5%
Flours, meals, pellets of fish and aquatic invertebrates 2301 20  5%
Oil cake/residues deriving from soya oil 2304  5%
Preparations of a kind used in animal feeding, other thancat/dog food2309 90 10%WT/ACC/JOR/14
Page 55
ANNEX C
GENERAL SERVICES PROVIDED
TO AGRICULTURE
The GOJ supports the development of agriculture  through provision of basic services to the
sector. There also are several major development projects such as soil conservation, range landdevelopment, income diversification, infrastructure improvements, and tree planting campaigns.
These programs are funded through either international organizations or development agencies in
foreign countries.  The activities funded by the GOJ range from research expenditures, provision of
inspection and veterinary services, funding of promotion activities, domestic food aid, food
stockpiling, and tax exemptions.  Each of these activities is described in more detail below.
AGRICULTURAL RESEARCH
Research is conducted by several institutions specifically associated with agriculture and
also at universities.  Research has, under the agriculture restructuring program, been centralized in the
National Center for Agricultural Research and Technology Transfer (NCARTT). The bulk of research
is centered on crop and livestock development through hybrids, genetic engineering, production
techniques, and such.
Table C1. Expenditures on Agricultural Research, 1994-97  (1,000 JD)
Institution 1994 1995 1996 1997 Average
1994-96
Total Expenditures 1,072 2,549 2,689 n/a 2,122
Universities (3 national universities) 530 689 161 n/a 473
National Center for Agricultural Research andTechnology Transfer495 1,748 2,261 2,529 1,501
High Technology Center 24 90 250 n/a 121
Agricultural Marketing and Processing Company 10 7 17 n/a 11
Agricultural Credit Corporation 1 0 0 n/a 0
Ministry of Agriculture 12 15 15 n/a 14
Source: Data supplied by the concerned institutions.
MARKETING AND PROMOTION EXPENDITURES
The GOJ supports Marketing and promotion of agricultural products through the activities
and mandate of the Agricultural Marketing Organization. During 1994-1996, the average annual
expenditure on these activities was JD395,000.  Most of the activities funded under these programs
fall under provision of advice and promotion relating to horticultural products. For example, some ofthe types of activities AMO attends or supports are: international fairs; excursions to developed
countries to asses Market opportunities; and trial shipments to Gulf, European and East Asian
countries to guide exporters on facilities, Market capacity, grading requirements and such; workshops
on exporting procedures to European countries. No Marketing or promotion services are provided in
such a way that sellers or exporters can reduce thei r selling price or otherwise confer a direct economic
benefit to purchasers.
INSPECTION SERVICES AND SANITARY AND PHYTO-SANITARY REGULATIONS
All agricultural products produced within Jord an and imported into Jordan are inspected for
quality and health standards.  While health standards are well defined, quality standards are not.  Most
quality standards are based on the size of the fruit or vegetable.  As noted elsewhere, livestockWT/ACC/JOR/14
Page 56
products are inspected at government slaughterhouses. Imported products require certificates of origin
and a health certificate stating that the product is clear of diseases, radiation, and not hazardous to
humans or the environment.  Live animals being imported are subject to inspection and, quarantine.
Fruits and vegetables for exports are inspected by AMO by request to ensure that international quality
standards are met and to obtain necessary certification to prove that goods are free of diseases and
residuals.
Jordan’s crop and livestock product standards related to health are internationally
recognized norms.  Jordan is a member of  the Codex Alimenarius Commission, Prior Informed
Consent, International Office of Epizootics, the World Health Organization, and the International
Atomic Energy Agency.
Table C2. Expenditures on Inspection Services for Agriculture, 1994-97 (1,000 JD)
Institution 1994 1995 1996 1997 Average
1994-96
Total Expenditures 1,245 1,255 1,303 n/a 1,268
Ministry of Agriculture 50 60 108 n/a 73
Ministry of Health 90 90 90 n/a 90
Amman Municipality 1,000 1,000 1,000 n/a 1,000
Royal Scientific Society 105 105 105 n/a 105
Source: Data supplied by the concerned institutions.
TRAINING SERVICES
Jordan spends very little on training services, a reflection of its limited budget.  Fortunately,
several international organizations and the development agencies of several countries are active in
providing training and support to staff in various ministries within the Kingdom.  The Ministry of
Agriculture has had several joint projects with international agencies under which some training is
provided, such as USAID, GTZ and JICA.
PEST AND DISEASE CONTROL
Pest and disease control fall under the mandate of the Ministry of Agriculture.  Plant
inspection and disease control activities are typically carried out under extension and advisory
services.  Animal disease control and inspection services are handled by the Veterinary Services Unit
in the Ministry. In 1996, expenditures on disease control in the form of veterinary services rose by
about JD300,000 to combat infectious diseases in sheep, goats and cattle.
Table C3. Expenditures on Pest and Disease Control, 1994-97 (1,000 JD)
Institution 1994 1995 1996 1997 Average
1996-97
Total Expenditures n/a n/a 765 1,086 926
Plant Protection n/a n/a 81 121 101
Veterinary Services n/a n/a 685 965 825
Source:  Data supplied by the concerned institutions.WT/ACC/JOR/14
Page 57
EXTENSION AND ADVISORY SERVICES
The Directorate of Agricultural Extension and Information (AEID) in the Ministry of
Agriculture was funded as entity for the first in 1995.  AEID supports farmers through provision of
services and by transferring information and research results to producers and consumers.  The
activities range from seeking solutions to technical and economic problems facing farmers,
introduction of new technologies, and training farmers and otherwise promoting development of
human capital among producers.  The expenditures on capital equipment and the operating expense in
1997 was JD 355,000.
INFRASTRUCTURAL SERVICES
Agricultural related expenditures on infrastructure fall under three broad categories: building
and maintaining roads that enable farmers to get their products to Markets; provision of water to
agriculture through dams and irrigation works; and rural electricity programs.  In 1997, the bulk of
such expenditures (about JD10 million) was on roads, both major and rural agricultural roads.  GOJexpenditures on water related projects were minor in comparison, reaching only JD2 million.  The
total value of water-related project expenditures is considerably more than that amount with the
balance provided by development agency funds.  Rural electricity expenditures have averaged about
JD5 million per year since 1995.
Table C4.  Infrastructure Expenditures Related to Agriculture, 1994-97 (1,000 JD)
Purpose 1994 1995 1996
199Average
1995-97
Total expenditure 8,587 9,422 6,013 5,951 8,007
Agricultural Roads 173 181 224 193 193
Dams 521 1,021 1,160 901 901
Irrigation Systems 793 1,120 660 858 858
Rural Electricity 7,100 7,100 3,969 4,000 6,056
Source: Data supplied by the concerned institutions.
GOVERNMENT STOCKHOLDING FOR FOOD SECURITY PURPOSES
The GOJ has been the only stockholder of cer eals and other non-perishable goods for decades.
While the government is no longer sole importer and stockholder, at present the private sector has little
capacity for storage.  Therefore, at least during the next several years, the government will lease storage
facilities to the private sector at subsidized rates.  Even then, it is not expected that the private sector will
hold all stocks necessary to maintain food security and therefore the government will hold roughly 4
months of stocks in storage at any given time.  These stocks will be either imported directly or be
purchased from private traders who have imported the products.
TAX POLICY
All agricultural income in Jordan is now and has been since independence exempt from
income taxes. Traditionally, farm income has been exempted from taxes because farmers are typically
disadvantaged relative to other citizens of the Kingdom.  As evidence of this, one has only to comparethe per capita income generated in farming with  the national average income.  In 1997, per capita
farm income is estimated at JD350, less than one-third of the average for the population as a whole.WT/ACC/JOR/14
Page 58
As noted above, 75 per cent of farmers have either no land or small holdings of 3 hectares or
less.  While the net income on small farms varies widely, it is unlikely that the majority of farmers net
more than JD4,000 from farming.  Permissible income exemptions for salaried citizens are JD1,500
for the taxpayer and JD500 for each dependent in the taxpayer’s care.  The average family size in
rural areas is about 6 persons and so an average farmer would be able to exempt up to JD4,000 of
income from taxes.  Thus, the net taxable income for the average small farmer is very close to zero.
There are, of course, farmers that beat the averages and earn considerably more than the
average noted above.  In those cases, the government is foregoing revenue that it could have earned
by taxing farm income. The distribution of income in  farming is not known and so it is very difficult
to judge the value of this foregone tax revenue.  Based on calculations prepared for the WTO, it is
estimated that this implicit subsidy to farmers is not more than JD 15 million or 6 per cent of the gross
domestic product in agriculture.
__________