I represented the Ministry of Agriculture in all the contacts and negotiations that preceded the conclusion of the compensation agreement. I signed this agreement on behalf of the Ministry of Agriculture.
The compensation agreement was signed in order to compensate potato growers for the cancellation of their crop quotas. After negotiations with the growers' representatives, the compensation rate of NIS 1,700 per dunam of quotas was determined. I would like to emphasize that at every stage of the negotiations, and even at the time of signing the agreement, it was clear to me and to the other parties who took part in this process that this was a matter of compensation to the growers for the very cancellation of their growth quotas and not for any other reason. This was done with the tomato crops earlier when their growing quotas were canceled, and the same was done with the carrot and onion crops in the compensation agreement itself. There was no doubt in anyone's heart that the crop quotas are an asset of the growers, the cancellation of which requires compensation.
The reason why the compensation to potato growers was postponed until 1998, while the compensation was given to carrot and onion growers immediately, stemmed from the immediate exposure of the economy to the entry of carrot and onion crops according to the autonomy agreements. On the other hand, the economy's exposure to potato crops was gradually done until 1998 (when all restrictions on imports were removed), which made it possible to postpone the cancellation of quotas on this crop and at the same time to postpone the compensation that was due.
....................
I was told that according to the state's representatives, the compensation to potato growers according to the agreement was given to them for the exposure to imports from the autonomy and not for the cancellation of the quotas. This claim is incorrect. The cancellation of quotas was part of a general trend toward liberalization (which was also at the discretion of the Ministry of Finance) in the field of vegetable crops, and would have happened even if it had not been for the autonomy agreements. The expected imports from the autonomy were a catalyst for this trend, but the compensation was given due to the cancellation and not due to the expected imports.