At the dawn of Israeli statehood, the development of agriculture became a priority, which was based not only on purely economic considerations, but also on political and religious ideology. There was a broad consensus within Zionism that agriculture should be given precedence. Agriculture was considered as a quasi-source of life and a means of restoring both mental and physical strength. Remuneration for working the land was of great value to Zionist organizations. Working in agriculture – farming – was viewed as the primary means of realizing the ultimate Zionist ideals: the return of the nation to its land and the redemption of the ancestral soil. Because of this, the Jewish Agency accorded high priority to agriculture prior to the establishment of the state, and this priority was maintained even after the state was founded. Agriculture was considered a desirable means of achieving various ideological and social values, as well as several national goals – ranging from defense and security to the dispersal of the population across different parts of the country. This prioritization of agriculture led to significant investments, with very little regard for economic considerations.
In the State of Israel, two central bodies are responsible for agriculture: the Settlement Department of the Jewish Agency settles new immigrants and oversees the process of acquiring new status, while the Ministry of Agriculture is responsible for the systematic planning of agriculture. Following the founding of the state, ideology and politics in Israel merged to create a system in which scarce factors of production – such as land and water – cannot be traded on a free market to ensure efficiency. Water intended for agricultural use is allocated based on historically established quotas rather than current usage patterns. Israel's agricultural sector possesses a lobby group with significant political power. This influence cannot be explained merely by the number of farmers; rather, it stems largely from ideological convictions. Consequently, the production inputs utilized by farmers are heavily subsidized. The agricultural policy system is dominated by representatives of the sector itself rather than by the government. This system is far removed from an allocation mechanism based on free-market principles.
Israeli agriculture is centrally planned and regulated. Planning is achieved through close cooperation with settlement movements. Planners determine in detail what is to be produced and in what quantities. Since 1957, production and marketing committees have operated as joint bodies comprising both the government and producers. These committees cover all sectors of agricultural production. These committees were tasked with planning agricultural production and allocating production quotas and subsidies. From 1959, when the Water Law (5719-1959) came into effect, the State Water Commissioner was granted broad powers, including the responsibility for allocating water quotas. Private farmers lost a significant degree of autonomy; even those who owned the land and means of production were legally prohibited from selling their own produce.
The official history of agriculture in Israel primarily highlights the movements behind communal settlements, which established intensively cultivated mixed-farming operations on national or state-owned land. In other words, the main focus is on agriculture developed by socialist movements – specifically, kibbutzim and moshavim.
The State of Israel and the Jewish people demonstrate a remarkable aptitude for embracing challenges – such as water scarcity – and transforming them into assets; in this instance, they have achieved leadership in fields like desert agriculture, drip irrigation, and desalination. Soil salinity and water scarcity posed challenges for Israeli agriculture. However, these difficulties were largely overcome thanks to agricultural and technological innovations achieved in Israel's kibbutzim and universities. Government-funded research institutions were responsible for devising and developing these new agricultural methods. Israel’s agricultural sector has been characterized by a keen interest in learning and adaptation, as well as by exceptional ingenuity and resilience.
