Preferential financing of Kazakhstan's agriculture sector has surged to 580 bn tenge ($1.2bn), notably exceeding the previous years' total of 180 bn tenge ($380mn), as it was disclosed in a government session chaired by Prime Minister Olzhas Bektenov focusing on measures to boost agricultural production in Kazakhstan.
The session included reports from Minister of Agriculture Aidarbek Saparov and regional akims on their progress in implementing the president’s directive to double gross agricultural output within five years.
The Ministry of Agriculture reported a 3.4% increase in gross agricultural output over the first half of 2024, totaling 1.6 trillion tenge ($3.4bn). The index of physical volume (IPV) for livestock production reached 103.5%, while crop production stood at 103%. The anticipated overall increase of 11.6% is expected in the second half of the year following the harvest.
Prime Minister Bektenov emphasized the importance of adhering to the Roadmap for 2024-2028, which targets a 111% increase in gross agricultural output for the current year. He highlighted the need for continued efforts to reach these goals, noting that significant results from crop production would be evident in the fall.
Sown Area and Crop Diversification
Kazakhstan’s total sown area for 2024 is 23.8 mn hectares. The diversification plan has been successfully implemented, reducing wheat areas by 450.3 thousand hectares while increasing oilseed crops by 608 thousand hectares and sugar beet by 9.4 thousand hectares. Additionally, water-intensive crops like rice and cotton have been reduced by 6.9 thousand hectares and 16 thousand hectares, respectively.
Kyzylorda oblast has shown positive results in implementing the Roadmap, exceeding targets for reducing rice sown areas and adopting water-saving technologies. The region has also met its mineral fertilizer application goals.
Financial Support and Investment
The government has expanded financing channels for farmers, including direct subsidies and loan guarantees. Preferential financing has increased to 580 bn tenge ($1.2 bn), higher than previous years’ 180 bn tenge ($380mn). This financial support enabled farmers to complete necessary agro-technical activities, with the use of elite seeds rising from 7.1% to 9%.
In the first six months of 2024, the agricultural sector attracted 410 bn tenge ($866mn) in investments, with a yearly target of 1.7 trillion tenge ($3.6bn). Prime Minister Bektenov underscored the importance of quality monitoring and control over priority investment projects.
Fertilizers and Pest Control
Farmers applied 1.1 mn tons of fertilizers in the first half of 2024, compared to 679 thousand tons in all of 2023. The Prime Minister stressed the need to increase the annual application of mineral fertilizers to 1.5 mn tons.
Preventive measures against locusts are crucial for the upcoming harvest, with 4.2 bn tenge ($9mn) allocated from the republican budget and an additional 3.9 bn tenge ($8.2mn) from the government reserve. Over 400 units of special equipment were deployed for chemical treatments, effectively preventing a mass locust infestation.
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