The implementation of the new State Program for the AIC Development for 2017-2021 created the necessary conditions in Kazakhstan for the establishment of agricultural cooperatives and the further development of agriculture as a whole. This was said by the First Vice Minister of Agriculture Kairat Aituganov during a briefing in the press center of the Government.

Kairat Aituganov reported that in order to fulfill the task set by the Head of State to establish the agrarian sector as a new driver of the country's economy, a number of necessary measures have been taken in the framework of the State Program for the AIC development.

Thus, all 65 types of subsidies were revised, summarizing the results 11 unsuccessful ones have been excluded, for the 40 of them criteria have been changed. As a result, the annual savings will be about 25 billion tenge, and the changed criteria will increase production by an average of 29% without increasing the budget.

The criteria applied in the previous scheme of investment subsidies did not allow small and medium agricultural producers to participate in the program. These "distortions" have been eliminated, this year the coverage of small and medium producers has increased by 2 times.

Along with subsidies, the credit policy of the KazAgro NMH has also been revised. For the first time loans for spring-field work were provided to final borrowers at 6% per annum. For comparison, in previous years, the interest rate was 9-10%. At the same time, lending started a month earlier. Microcredits through the Fund for Financial Support are also provided at 6%, whereas earlier this indicator reached 14%.

In addition, since last year, comprehensive measures have been initiated to involve small and medium farms in agricultural cooperation. Since the beginning of the year, as of August 1, 517 cooperatives have been established with coverage of more than 53.5 thousand personal subsidiary, small, medium farms and family fattening sites.

Self-employed and unemployed citizens created 10 286 family fattening grounds for 110 572 heads of cattle. Seminars on the basics of cooperation were held in all 160 rural areas.

A scheme has been introduced for the purchase of modular milk receiving and slaughtering stations without collateral and an initial contribution for agricultural cooperatives, and a mechanism for guaranteeing loans is provided for cooperative members. As a result of measures taken, 36 thousand tons of milk and 10 thousand tons of meat were harvested.

In addition, diversification of lands under cultivation is underway in the crop production. Areas of demanded crops are increased by 905.5 thousand hectares. Diversification carried out this year will allow to increase production of mixed fodders by 1.2 times, oilseeds - by 1.3 times, domestic sugar - by 1.4 times.