Fewer Farms, Fewer Farmers: The Crisis Threatening Israel's Food Security

Four decades ago, there were about 40,000 agricultural farms in Israel. Today, only about 17,000 remain — a decrease of almost 60%. This is happening precisely now, when the government has set a goal to increase local agricultural production by a third within a decade, while the number of farms continues to shrink, even as Israel's population has more than doubled.

At the same time, the average age of farmers is between 62 and 65. According to data presented in the Knesset, to maintain the current level of activity, a turnover rate of about 3% to 5% of farmers is required each year, meaning about 500 to 700 new farmers. In practice, only about 100 join the industry.

The paradox is intensified by the fact that the shortage of farmers comes precisely at a time when Israeli agriculture is at the forefront of developing agritech technologies. In fact, the more advanced the technology, the harder it is to find the people to operate it. In other words, Israel is not just dealing with a labor shortage. It is dealing with a shortage of the next generation of those who will manage local agriculture. Local production has also barely grown in recent years, despite the population growth, which increases dependence on food imports.

Agriculture is changing rapidly

These data are particularly striking because they come at a time when agriculture is changing rapidly: drones, artificial intelligence, sensors, satellites, cameras, and data analysis have become daily work tools on many farms. Today's farmer is required to understand not only soil and plants. Decisions on when to irrigate, how much to fertilize, and how to identify a disease at an early stage are increasingly made using information systems. Alongside agronomic knowledge, work with software, data, and automated systems is also required.

However, the problem is that the public image of the profession has remained behind. For many young people, agriculture is still perceived as physical labor with tractors and hoes. In practice, it is an industry that is increasingly based on software, automation, control, and data analysis.

The state also understands that this gap is becoming a strategic problem. In recent years, programs have been launched to encourage a young generation of farmers, training tracks, mentoring, and grants, alongside investments in innovation and knowledge-intensive agriculture. Despite this, the rate of entry into the industry is still far from what is required.

"Technology is advancing much faster than the way the public perceives agriculture," says Mark Fishman, CEO of Croptune, which developed a system that allows assessing the nutritional status of a plant using a mobile phone camera. "Until a few years ago, a farmer would send samples to a lab and wait days or weeks for an answer. Today, he can photograph a leaf, get a snapshot of the situation within minutes, and decide if fertilization is needed at all."

According to him, this is an example of a much broader change: "When people think about agriculture, they still imagine a tractor. In practice, a farmer today works with information. He deciphers data, uses algorithms, uses drones and control systems. It is a completely different profession from the one most people know."

High precision in every decision

The transition to data-based work is not intended only to improve yields. It was born out of necessity. Climate change, water shortages, rising input prices, and the need to produce more food with fewer resources require higher precision in almost every decision made in the field.

But even if the technology exists, someone still needs to operate it. This is also the point that worries Rotem Barkin, CEO and founder of TOMGROW, a startup that developed a growth medium that replaces soil and allows growing vegetation in complex conditions.

"Alongside practical knowledge and field work, capabilities from the fields of engineering, software, biology, and data analysis are also required today. This connection between manual labor and technology can open the field to a new generation of educated young people who are looking for a profession that has both innovation and meaningful activity."

Barkin gives as an example the development on which the company he founded is based: "Our work started with the development of an innovative growth medium that replaces soil, and today its main application is in indoor vegetation in companies and organizations. The medium allows making the growth process more efficient and controlled, reducing dependence on manual and operational labor, and controlling the conditions and resources the plant receives more precisely.

"Technology does not eliminate the need for agricultural knowledge, but it allows people from new backgrounds to integrate into the field and solve problems that were previously the domain of farmers only. This is one of the ways to make agriculture more relevant for young people - not just as tilling the land, but as a field that combines biology, engineering, and innovation."

Lack of trust in the system

Beyond the outdated image, there are also real barriers to entry. Knesset documents point to difficulty in accessing land, financing, capital investments, professional training, and support. The industry suffers from low profitability, rising operating costs (water, fertilizers, electricity, and labor), and huge initial investment in equipment and infrastructure, which makes the survival of new businesses difficult. In addition, there is constant uncertainty due to climate damage, fluctuations in global market prices, and accelerated opening to imports, which severely harms the income of local farmers. To this is added an acute shortage of labor, complex bureaucracy in obtaining licenses and quotas, and burdensome regulation, alongside the loss of agricultural land in the amount of about 34,000 dunams per year for real estate and construction projects.

Dror Ilana, the economist of the Israel Farmers Federation, points to a worrying figure. The average age of a farmer in Israel is 65. The main reason why young people are not joining the industry is not related to physical difficulty, but to extreme uncertainty and deep distrust in the system and the Ministry of Finance. Many farmers feel that the state has abandoned them, to the point that they themselves advise their children not to enter the field.

The lack of trust stems from a sour relationship in which the Ministry of Finance, according to the Farmers Federation, avoids paying agreed compensation and conducts tough negotiations instead of keeping promises. For example, 750 million shekels intended for compensating farmers remained stuck in the Treasury, and there are quite a few farmers who have not yet received compensation for damages from the 'Iron Swords' war. For a young farmer, the need to invest huge capital in equipment without backing from the state is perceived as economic suicide.

Alongside this, there is uncertainty regarding the professional future due to sudden changes in tariff policy. Trade agreements, such as the one with the USA that abolished tariffs on 51 products (including apples, pears, and almonds), make local growing uneconomical overnight. A farmer who invests in blueberry orchards might discover that a sudden tariff reduction has made his labor worthless. To bring back the young, it is necessary to restore trust with the state and create stability. The key lies in the transition to high-tech agriculture: a combination of artificial intelligence, drones, and robots for harvesting, which will turn young people into technological managers in an innovative and established industry."