Amman, 5 August 2025 – The Ministry of Agriculture and the United Nations Development Programme (UNDP) in Jordan today marked the introduction of Jordan’s new Agricultural Risk Mitigation Fund Law, a pivotal reform aimed at enhancing the resilience of the country’s agricultural sector against climate-induced shocks and natural disasters.

The law, issued by Prime Ministry Decision No. (20) of 2025, restructures the Agricultural Risk Management Fund to serve as a more inclusive and responsive financial safety net for farmers. It forms part of Jordan’s broader national efforts to ensure food security, support rural livelihoods, and promote climate-smart agricultural investment.

Previously limited to frost-related damage, the Fund will now cover a wider range of agricultural risks. Under the new provisions, farmers enrolled in the Fund will receive higher levels of compensation, while non-enrolled smallholder farmers, who currently contribute more than 70 percent of Jordan’s agricultural output, will be eligible for compensation of up to 25 percent of verified losses, up from the previous 10 percent threshold.

Specialized technical committees will be established to ensure swift, transparent damage assessments and payouts. The Fund is aligned with national strategies for climate adaptation, food security, and combating desertification.

“Jordan’s adoption of the Agricultural Risk Mitigation Fund Law is an important step toward institutionalizing risk-sharing mechanisms that protect rural livelihoods and enhance national resilience,” said Majida Alassaf, UNDP Deputy Resident Representative in Jordan. “UNDP is proud to support this milestone through its Inclusive Insurance and Risk Financing Facility, which enables countries to design innovative risk management tools that strengthen economic and climate resilience.”

The new law is supported through UNDP’s Inclusive Insurance and Risk Financing Facility (IRFF)—a flagship initiative of the UNDP Sustainable Finance Hub delivered in strategic partnership with the Government of Germany and the Insurance Development Forum (IDF). IRFF is at the forefront of efforts to integrate insurance and risk finance into development planning and public policy frameworks. It works with governments and private sector actors across 33 countries to strengthen national risk financing systems and expand access to insurance for underserved communities.

In Jordan, UNDP’s Inclusive Insurance and Risk Financing Project support has focused on enabling legal and institutional reforms, building technical capacity, and helping establish a more inclusive insurance environment. Globally, the Facility is also driving the development of a new generation of insurance products tailored to the needs of underserved markets, including smallholder farmers, women, and informal workers. In 2024 alone, IRFF helped deliver innovative parametric and indemnity-based insurance products across multiple sectors, supported actuarial training for over 450 public officials, and launched regional knowledge exchanges to integrate risk finance in public systems.

Attending on behalf of the Minister of Agriculture Eng. Khaled Hneifat, HE the Secretary General of the Ministry of Agriculture, Eng. Mohammad Al-Hiyari emphasized the law’s significance in strengthening the governance of agricultural risk mitigation and supporting smallholder farmers with fair, transparent, and predictable compensation systems. “This reform is a cornerstone of our national vision to protect food production and rural development from growing climate risks,” he noted.

The Agricultural Risk Mitigation Fund is expected to build confidence among farmers and investors alike, while contributing to Jordan’s commitments under the National Adaptation Plan and other sustainable development frameworks.

Notes to Editors

About UNDP
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with a broad network of partners in 170 countries, we help nations build integrated, lasting solutions for people and planet.

Follow @UndpJordan.