Madaba, Sept. 28 (Petra) -- The Agricultural Credit Corporation’s Madaba branch is continuing to provide financing to farmers, with increasing attention to specialized and smart agricultural activities and projects that improve the efficiency of water and energy use.

The branch’s lending programmes cover agricultural and livestock activities, small rural enterprises, and financing schemes aimed at improving production and encouraging the adoption of modern technologies.

Branch Director Mohammad Al-Qarara told Petra that the branch has an annual lending allocation of about JD2.5 million. The funds are used to support agricultural and livestock activities, production inputs, and small rural projects, in addition to specialized financing programmes.

Last year, the branch extended loans worth JD2.4 million to 403 borrowers under its various lending programmes. Since the beginning of this year, it has provided about JD2.1 million in loans to 380 borrowers, compared with an annual target of JD2.5 million.

The corporation finances a wide range of activities, including irrigation and drainage projects, tree planting, vegetable and fodder cultivation, grain production, livestock and poultry farming, beekeeping, fish farming, and other projects related to agricultural and livestock production.

Al-Qarara said the corporation is also looking to expand financing into specialized and smart agricultural activities and modern production methods that can reduce water consumption and production costs. The approach is in line with agricultural sector modernization efforts and the priorities of the Economic Modernisation Vision.

He said the corporation’s lending policy also takes into account the sustainability of agricultural activities amid limited rainfall. During the previous season, lower rainfall increased demand for financing to purchase animal feed. A total of 112 borrowers received feed loans worth about JD424,000, helping farmers deal with the effects of the dry season.

The branch also finances rural household projects that can provide additional income and develop small-scale agricultural activities into income-generating businesses. Financing provided to rural families this year has reached about JD170,000, while loans under poverty and unemployment programmes amounted to around JD210,000.

Al-Qarara said this work forms part of the corporation’s development role, which includes financing small and medium-sized enterprises, family businesses, rural projects, and activities that increase productivity and create employment opportunities.

He added that the Madaba branch is ready to finance projects under the "Ardi" water-saving initiative, which supports farmers seeking to adopt modern and smart irrigation technologies, with financing of up to JD30,000.

The corporation also provides loans of up to JD15,000 for solar energy projects to help farmers reduce energy costs, particularly those related to irrigation and agricultural operations.

Regarding loan guarantees, Al-Qarara said the arrangements adopted by the corporation are intended to protect its financial resources and enable it to continue providing agricultural financing. He noted that the corporation signed an agreement this year with the Jordan Loan Guarantee Corporation to facilitate financing for borrowers who have difficulty providing traditional guarantees, including personal guarantees or real estate collateral. Borrowers began using the service during the current year.

On loan collection, Al-Qarara said the process is important for maintaining the lending cycle and ensuring that financing continues to reach farmers.

The Madaba branch collected about JD2.6 million last year, achieving a collection rate of 93 percent. Collections so far this year have reached around JD1.7 million, representing 71 percent of the target.

//Petra//WH