In the private sector, farmers receive long-term interest-free government loans and low-cost water, fuel, electricity, and duty-free imports of raw materials and machinery.
[1] Major irrigation projects and large-scale mechanization has added previously barren areas to the stock of cultivatable land.
However, if the entire production process were considered, the import of fertilizers, equipment, and labor have made the Kingdom even more dependent on foreign inputs to bring food to the average Saudi household.
Not only has it caused a serious drain on the kingdom's water resources, drawing mainly from non-renewable aquifers, but it has also required the use of massive amounts of chemical fertilizers to boost yields.
In 1992 Saudi agricultural strategy was only sustainable as long as the government maintained a high level of direct and indirect subsidies, a drain on its budget and external accounts.
Nomads played a crucial role in this regard, shipping foods and other goods between the widely dispersed agricultural areas.
Only in the southwest, in the mountains of 'Asir, close to the Yemen border and accounting for three percent of the land area, was rainfall sufficient to support regular crops.
Moving east, in the central and northern parts of the interior, Najd and An Nafud, some groundwater allowed limited farming.
The major oasis centered around Al Hasa enjoys high water tables, natural springs, and relatively good soils, and can even produce rice.
Historically, the limited arable land and the near absence of grassland forced those raising livestock into a nomadic pattern to take advantage of what forage was available.
Bedouin groups contracted to provide protection to the agricultural and market areas they frequented in return for such provisions as dates, cloth, and equipment.
By the early twentieth century, control over land, water rights, and intertribal and intratribal relationships were highly developed and complex.
The establishment of an activist modern state provided incentives for large numbers of Saudi citizens to enter the regular, wage-based, or urban commercial employment.
Introduction of mechanical pumping in certain areas led to a modest level of commercial production, usually in locations close to urban centers.
Nevertheless, regional distribution of agricultural activity remained relatively unchanged, as did the average holding size and patterns of cultivation.
Indirect support involved substantial expenditures on infrastructure, which included electricity supply, irrigation, drainage, secondary road systems and other transportation facilities for distributing and marketing produce.
The beneficiaries were required to develop a minimum of 25 percent of the land within a set period of time (usually two to five years); thereafter, full ownership was transferred.
GSFMO implemented the official procurement program, purchasing locally produced wheat and barley at guaranteed prices for domestic sales and exports.
[9] The kingdom has, however, stepped up fruit and vegetable production, by improving both agricultural techniques and the roads that link farmers with urban consumers.
At Jizan in the country's well-watered southwest, the Al-Hikmah Research Station is producing tropical fruits including pineapples, paw-paws, bananas, mangoes, and guavas.
In 2018, the Saudi Ministry of Environment, Water and Agriculture adopted a new plan that aims at boosting organic farming in the country.
Some commercial feedlots for sheep and cattle had been established as well as a few modern ranches, but by the early 1980s, much of the meat consumed was imported.
Despite the doubling of output, as a result of the rapid rise in chicken consumption, which had become a major staple of the Saudi diet, domestic production constituted less than half of total demand.
Saudi Arabia is suffering from a major depletion of the water in its underground aquifers and a resultant break down and disintegration of its agriculture as a consequence.
[12][13] As a result of the catastrophe, Saudi Arabia has bought agricultural land in the United States,[14][15][16][17] Argentina,[18] Indonesia, Thailand,[19] and Africa.