Norm of undertaking counter obligations to be introduced for recipients of subsidies and preferential loans in the agro-industrial complex — Karashukeyev

Farmers will have to ensure the intended use of the funds received, which will be assessed by specific indicators. This was announced at a meeting of the Government of the Republic of Kazakhstan by the Minister of Agriculture Yerbol Karashukeyev.

“Today, there are no counter obligations for recipients of subsidies. This reduces the responsibility of the farmer for the effectiveness of the use of subsidies. Therefore, for recipients of subsidies and concessional loans, the norm of taking on counter obligations will be introduced. They will have to ensure the intended use of the funds received. This will be assessed through specific indicators,” said the Minister of Agriculture.

For example, not to reduce production volumes for all recipients of subsidies, in animal husbandry — this is an annual increase in the number of livestock by at least 5%, to receive at least 80 offspring per 100 queens. To control the quality of the resulting offspring, a norm will be introduced to selectively determine the paternity of the resulting offspring through DNA analysis.

In crop production, the share of seed crops should be at least 15% of the sown area.

“With investment subsidies, farmers will have to ensure the commissioning of the facility and the achievement of its design capacity within the time frame specified in the business plan of the project. At the same time, the process of monitoring the fulfillment of counter obligations will be automated in the new unified state information system for subsidizing based on digital technologies without human participation,” Karashukeyev concluded.

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