Implementation of President’s instructions: New system of subsidizing agro-industrial complex to be integrated with all major state databases

At the government session chaired by the Prime Minister Alikhan Smailov, measures to fulfill the instructions of the President Kassym-Jomart Tokayev given at an expanded meeting of the Government on Feb. 8, 2022, were considered. Minister of Agriculture Yerbol Karashukeyev reported on the implementation of instructions in the agro-industrial complex of the country.

In pursuance of the instructions of the Head of State, announced at the expanded meeting of the Government on Feb. 8, 2022, the Ministry of Agriculture will take a number of systemic measures.

On behalf of the Head of State, proposals have been prepared to adjust the system of state support for the industry, which will be aimed primarily at simplifying its mechanisms and optimizing directions, ensuring equal accessibility for all entities, regardless of the size and form of management. A rule is also being introduced, according to which recipients of subsidies will without fail accept counter obligations to achieve specific indicative indicators.

“The proposals are currently being considered by the established working group to improve the efficiency of state support for the agro-industrial complex, which includes representatives of industry associations and unions, agribusiness, science, interested state and local executive bodies, as well as deputies of the Senate and Majilis of the Parliament of the Republic of Kazakhstan. At present, four meetings of the working group have taken place,” Karashukeyev said.

As a result of the working group sessions, a large number of proposals and comments on the new system of subsidizing the agro-industrial complex were received from regions, industry unions and associations, members of the working group, which are systematized and, if justified, will be taken into account when finalizing the subsidy system.

As the minister noted, following the results of the working groups in March In 2022, the final package of changes to improve the subsidy system is planned to be submitted to the Government for consideration.

One of the main innovations of the new subsidy system will be its digitization. Currently, the development of a unified state information system for subsidizing is being completed. Its main functionality will be the automatic formation of a register of recipients of subsidies, verification of their compliance with the category of agricultural producers according to NCEA, registration of counter obligations of recipients of subsidies, and assessment of the degree of their fulfillment, the order of receipt of subsidies and the waiting list for unsatisfied applications.

“Unlike the Koldau system, the new system will be free for farmers and integrated with all major government databases. All actions of the system will be automated, which will minimize corruption risks in the distribution and issuance of subsidies. Currently, we are launching its testing in a pilot mode in the Akmola region,” the minister informed.

In order to carry out the spring field work of the current year in a timely and high-quality manner, the ministry is taking all necessary measures. An Operational Headquarters has been set up in the ministry to coordinate work on conducting spring sowing in the regions.

According to Karashukeyev, 70 billion tenge was allocated for preferential lending to agricultural producers through the Ken Dala program, and 80 billion tenge was allocated through the forward purchase program of the Food Corporation, which is 2 times higher than last year. Applications for these programs have already begun.

“Last year's drought, as well as a sharp rise in prices for spare parts, fuels and lubricants, mineral fertilizers and pesticides create serious difficulties for the timely preparation and quality of the upcoming spring sowing. In this regard, in order to support farmers, we ask you to consider the possibility of increasing the budget loan for spring field work by an additional 70 billion tenge upon clarification of the republican budget,” the minister informed.

At the same time, issues are being resolved to provide agricultural producers with cheaper diesel fuel. Fuel and lubricants in the amount of 400 thousand tons were allocated for spring field work at a price 15% lower than the market price. An agreement was reached with domestic producers of mineral fertilizers to fully meet the needs of farmers.

“70 billion tenge is provided for subsidizing the purchase of seeds, fertilizers and pesticides in 2022. In general, according to the regions, in 2022 it is planned to plant crops on an area of ​​22.9 million hectares, which is 13.5 thousand hectares more than in 2021. Preparations for spring field work are going on as planned,” the Minister of Agriculture said.

In order to resolve the issue of providing the population with pasture lands, the Ministry is taking measures on a permanent basis to return unused lands to state ownership.

“From Jan. 1, 2021, space monitoring of the use of agricultural land has been introduced everywhere. According to preliminary results of space monitoring, 22.4 million hectares of agricultural land were identified throughout the country, including 1.1 million hectares of arable land and 21.3 million hectares of pastures, of which 3.2 million hectares were returned to state ownership, of which 3 million hectares of pastures and 223 thousand hectares of arable land,” Karashukeyev informed.

In addition, amendments to the land legislation were adopted in terms of reducing the stages of inspections and the timing of the withdrawal of unused agricultural land (from 2 years to 1 year) and automating the process of non-contact control using the cosmic monitoring method.

Also, in order to create an economic compulsion to voluntarily abandon unused agricultural land by negligent land users, the Tax Code provides for a multiple increase in the tax rate from 10 to 20 times for unused agricultural land.

It is worth noting that the issue of providing livestock with pastures is also planned to be resolved through the cooperation of household plots and the provision of land to such cooperatives from reserve lands and reserve land fund.

“At present, we have developed and submitted to the Mazhilis of the Parliament of the Republic of Kazakhstan a draft law ‘On personal subsidiary plots’, where all these points are reflected,” Karashukeyev noted.

In order to determine the maximum size of agricultural land plots, a special working group is being created at the level of the Government of the Republic of Kazakhstan with the participation of state bodies, experts and scientific institutions.

The maximum size of agricultural land in the context of districts, regions is proposed to be approved after the development of Plans for the land and economic structure of administrative-territorial units for agricultural land and land of other categories, taking into account land zoning and the adoption of joint decisions by representative and executive bodies. In general, the limit (maximum) size of agricultural land plots will be approved before May 1, 2022.

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