Agricultural investments abroad and local measures to preserve water resources are essential for building Kingdom's reserves and maintaining food security, according to an official source at the Ministry of Agriculture. He said the government is in the process of extending loans to companies investing in food security projects outside the country especially after the recent crisis which affected the prices of barley, rice and wheat. He said the government has so far extended SR8 billion in financial aid to stabilize the price of barley. Investments are currently being made in Latin American countries such as Brazil and Uruguay. The government has also established a company for agricultural investment with capital of SR3 billion to enter into investment partnerships with the private sector. He said water is a crucial factor when considering whether to plant crops in the Kingdom. The government has decided to reduce wheat purchases from local farmers by 12.5 percent yearly because these crops consume lots of water. He said the government is concentrating on building food reserves to avoid any market upheavals. He said there are four million hectares of agricultural land in the Kingdom, of which only 900,000 hectares are utilized. The government's agricultural land grants are also not being used in a satisfactory manner. He urged investors in the agricultural sector to pay attention to preserving the country's water resources for future generations. __
