At an operational meeting in the Government, held on July 26 this year under the chairmanship of Deputy Prime Minister – Minister of Trade and Integration Serik Zhumangarin, discussed the scale of the situation and possible measures of state support in connection with the abnormal heat and low rainfall in some regions of Kazakhstan.  

Baiterek Holding, Agrarian Credit Corporation JSC and KazAgroFinance JSC will consider the possibility of granting deferred payment of loans to farmers affected by the drought. In addition, for the first time since this year will be allocated additional volumes of diesel fuel at a reduced price for fodder harvesting work.  

According to the data of the Ministry of Agriculture, about 70% of crops of 119 thousand hectares are in good condition, 14.4% or 24.5 thousand hectares are in satisfactory condition. Of all cereals in good condition are 8.3 million hectares, which is 50.2% of all crops, in fair condition are 7.2 million hectares, 43.7%. Oilseeds suffered a little more, in good condition is: 43.6%, or 1.4 million hectares of crops, in satisfactory condition is 47.7%, or 1.5 million hectares. 

"Today the main task is timely preparation for the harvesting campaign and fodder procurement. According to the operational data of akimats, about 8 million tons of hay have already been prepared, which is 32% of the plan. The regions have allocated 11.7 billion tenge to subsidize the cost of fodder expenses in 2023. In addition, according to the results of 2022 in Prodkorporatsiya formed fodder grain fund in the amount of 235.2 thousand tons. If necessary, this grain will be sent as support to livestock and poultry farms at a reduced price. For the first time since this year, additional volumes of diesel fuel will be allocated at a discounted price for fodder harvesting works," Deputy Minister of Agriculture Yerbol Taszhurekov said.

Deputy Minister of Agriculture noted the low level of implementation in the regions of the Roadmap for the development of fodder production for 2022-2025. 

"Akimats do not fully use the available opportunities to expand the share of forage crops in crop rotation, primarily on irrigated lands, to increase the productivity of pastures," he emphasized.   

One of the tools for leveling risks in agriculture, including the consequences of drought, is insurance of crops and farm animals. For this purpose, there are 16 insurance products in crop and livestock farming, for which part of the insurance premium is subsidized. Last year, amendments were made to the Rules for subsidizing insurance premiums, according to which the norm of subsidizing insurance premiums increased from 50% to 80%.

However, farmers, despite the unpredictability of the climate in most areas of Kazakhstan weakly use the insurance tool. This year a total of 258.2 thousand hectares of grain and oilseed crops, 152 thousand orchard trees, 5.4 thousand animals (cattle, cattle breeds, horses), 428.2 thousand birds were insured. The insurance premium amounted to 1.6 billion tenge, of which 1.3 billion tenge was subsidized. Only 2.4 billion tenge of the funds allocated by the republican budget to subsidize insurance premiums in the amount of 5.9 billion tenge was utilized.

The meeting heard the akims of Pavlodar, Akmola, Karaganda and other regions, where the most negative impact of abnormal heat is observed. Heads of regions voiced the situation in their areas and made proposals for its stabilization.

"Very low level of fodder harvesting with the plan for the year at 25 million tons only 8 million tons have been collected. Harvesting of haylage is only 12% of the plan, straw is 4.3%. It is clear that the main harvesting of straw, silage and concentrated fodder will begin in September, but for the rest it is a very low indicator. I instruct to strengthen the pace of fodder harvesting in the regions and constantly monitor fodder prices to prevent unreasonable price increases. In addition, given the possible consequences of drought in some areas, farmers may begin to apply for deferment of loan payments. NUH Baiterek JSC, Agrarian Credit Corporation JSC and Kazagrofinance JSC should be assisted in granting deferment of loan payments to those farmers who really suffered," Serik Zhumangarin emphasized.

#Agriculture #Ministry of Agriculture #Serik Zhumangarin