Amman, Dec. 29 (Petra) - The Agricultural Credit Corporation (ACC) significantly expanded its lending operations in 2025, increasing loan volumes and beneficiary coverage despite mounting climate-related challenges and rising production costs in the agricultural sector, according to official data released by the institution.

ACC Director General Mohammad Al-Balawneh said the year marked a record period for the corporation in terms of total lending, program diversification and beneficiary reach, underscoring its role as a core financing pillar for national food security.

Institution figures show that lending volumes rose sharply, with loans issued during the third quarter alone reaching approximately 17 million Jordanian dinars, benefiting more than 3,200 farmers. Women accounted for over 64% of total beneficiaries during the period, reflecting a continued focus on rural women as a priority lending group.

Al-Balawneh said total interest-free loans in 2025 exceeded 10 million dinars, reaching 12,885 farmers, primarily in sectors most affected by climate variability and higher input costs, including livestock production. The programs targeted sheep and cattle breeders to offset rising feed prices and drought-related pressures, while also financing water-harvesting projects and resource-efficiency improvements.

ACC lending covered a broad range of activities, including crop and livestock production, food processing, cold storage, packaging, and post-harvest services, aimed at reducing agricultural losses and improving the competitiveness of local produce.

In value-chain development, the corporation increased financing for post-harvest and agro-processing projects, a move officials say has contributed to lowering waste and strengthening market access for small and medium-scale producers.

On partnerships, Al-Balawneh said ACC launched a joint credit initiative with the World Food Program (WFP) to support sustainable agriculture and expand access to innovative financing tools for small-scale farmers, particularly youth and women. The corporation also strengthened cooperation with regional and international agricultural finance institutions.

The director general noted that ACC operates on a self-financing model, a key factor in its financial sustainability. Since its establishment, the corporation has filed roughly 1,500 legal cases against borrowers who failed to meet repayment obligations, with all cases ultimately settled. Currently, 46 cases remain unresolved, while 10 borrowers have recovered previously seized land following negotiated settlements.

In social protection measures, ACC introduced life insurance coverage for borrowers in early 2024. By the end of 2025, approximately 25,000 farmers were insured under the scheme, with 41 cases receiving benefits following borrower deaths. A separate humanitarian assistance account was also established for uninsured cases, funded through investment returns.

Looking ahead, Al-Balawneh said the ACC board approved a 70 million dinar budget for 2026, representing a 10% increase over the previous year, signaling confidence in the institution’s financial performance and expansion plans.

//Petra// AA