Agriculture in Israel is practiced throughout the country from the Arava Valley in the South, where average annual rainfall is less than 40 mm, to the Upper Galilee in the North, where annual rainfall exceeds 700 mm. Less than half the cultivated area used for field crops is irrigated. Much of the output is exponed, primarily to Europe, but some to the United States and Japan. In nonirrigated dry-farming areas, the main crops grown are wheat for grain and silage and several secondary crops, including sunflower, watermelons and hay legumes. Animal production is predominantly intensive dairying (mainly cows, but also sheep and goats), poultry production, and aquaculture, all of which use large quantities of imported feed grains. Beef production is largely from dairy bullocks, but includes an important rangeland beef sector. Problems that face Israeli agriculture in general and dryland agriculture in particular are primarily economic, including low prices for many traditional dryland crops, a small local market, and increasing input costs. The changing socioeconomic scene, reflected by decreasing employment in agriculture, has added to the problems of proper land use. There is an urgent need for more appropriate production systems and associated innovative research and development. This includes management for higher output/input ratios, conservation and enhancement of genetic resources, crop diversification, integration of crop and livestock production, and alternative land use options such as agroforestry, recreation, ecological refuges, and landscape enhancement. These challenges are common to most countries in the Middle East, and offer opportunities for regional and international collaboration to improve the sustainability of agriculture in the region.