Bylaw No. 57 of 2023 to compensate farmers affected by agricultural risks issued pursuant to Paragraph (C) of Article 4 of the Agricultural Risk Management Fund Law No. 5 of 2009.

These Regulations consisting of 13 articles aim to compensate farmers who are non-subscribers in the fund. The system also seeks to address the Kingdom’s vulnerability to climate change and emergence of natural hazards, primarily torrential rains and winds that affect crops more than frost risk. In particular they establish at article 3 that (i) the compensation requested is limited to the injured party; (ii) it is not permissible to compensate the victim for damage caused by agricultural risks on the farm more than once during the agricultural season. The required conditions for the affected farmers' loan request to be accepted are dealt with in Article 4. Under article 5 a Compensation Committee is formed in the Fund, headed by the Secretary-General of the Ministry and with membership of officials who are experts in the field of agriculture, animal breeding and plant cultivation. The main functions of the Committee are listes in article 6 as follows (i) review the reports presented by the inspection committees established under the provisions of this system, and endorse the accompanying reports and statements; (ii) evaluate compensation appeals and objections from individuals impacted by agricultural risks, forwarding recommendations to the Fund’s Affairs Management Committee for appropriate decision-making; (iii) propose compensation rates for affected parties based on the cost and revenue guidelines sanctioned by the Fund Management Committee. The Minister forms a committee in the relevant Agriculture Directorate called the Damage Investigation Committee with the main task of inspecting and report about the affected farms.
The Regulations also provide that (i) compensation does not include non-productive fixed assets, such as artesian wells, buildings, construction, water ponds, pumps, machinery, equipment, and agricultural supplies; (ii) the injured person will not be compensated if the percentage of damage is 25% or less; (iii) the injured party loses his right to compensation if he does not comply with the instructions issued by the ministry and government agencies aiming to avoiding risks; (iv) There is no compensation for drought unless it is officially declared by the ministry according to the Agricultural Law and it is limited to the damages listed in article 9; (v) the compensation, in the event of the death of the affected person, shall be paid to his legal heirs.