The Prime Minister of Kazakhstan

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State to increase support for farmers by 7.5 times in 2017

14 April 2017, 18:00

Vice Prime Minister of Kazakhstan – Minister of Agriculture Askar Myrzakhmetov reported about this at the regular meeting of the Council for Agrarian Policy.

At the meeting, three important topics were considered on the agenda: new subsidy rules, changes in legislation and activities of the center for the transfer and commercialization of agricultural technologies.

The Ministry made changes and additions to 8 Rules for Subsidizing the AIC in order to implement the State Program for the Development of the AIC. 11 types of ineffective subsidies were excluded, and 39 types of subsidies were amended.

The changes are aimed at increasing the number of recipients of state support by 7.5 times. The feedlot will be increased by 3 times. For example, the purchase of pedigree cattle will be 150 thousand tenge per head. In the previous rules, subsidies for pedigree and custom livestock took place on an equal footing. The next change affected the cost recovery of agricultural cooperatives. The state reimburses 20 thousand tenge per head of cattle sold by the cooperative. Also for 1 liter of milk for processing - 10 tenge, for 1 head of small cattle - 1500 tenge. In addition, expenses for the purchase of feed for 20 thousand tenge per ton are subsidized. However, it does not mean that farmers who have not been integrated into cooperatives will be left out. Farms with more than 30 cattle will receive 15 tenge per liter of milk from the state. The maintenance of more than 400 cattle, a liter of milk is subsidized for 25 tenge.

Another innovation in subsidizing is the automation of granting subsidies. This will reduce the time for consideration of applications by an average of 2.5 times (from 18 to 7 days). In addition, it reduces the risks of corruption when granting subsidies.

You can also add tribal goat breeding to the new species.

The fishing industry has also innovations. In the framework of the State Program for the Development of the AIC, commodity fish farming will be subsidized, in particular the acquisition of fish embryos, appropriate equipment.

It is worth noting that the spectrum of investment subsidies has been significantly expanded. That is, from the current year, agricultural cooperatives are refunded 50% of the cost of purchasing the necessary equipment. These subsidies did not exist before.

Vice Prime Minister spoke about this in more detail at the meeting of the Council.

According to the Head of the department, such support is due to the fact that the Head of State has set specific tasks for the establishment of the agro-industrial complex as the new driver of the country's economy.

The second issue on the agenda is equally important. During the adoption of the new program, changes in the legislation were made. A significant number of normative legal acts have also been optimized. The draft law provides for the introduction of amendments and additions to 11 Codes and 25 Laws of the Republic of Kazakhstan.

The main changes concern the memorandum between Ministry of Agriculture and local executive body on the issue of diversification of the sowing area structure, improvement of legislation in the field of seed production, improvement of phytosanitary legislation, improvement of legislation in the field of forestry and wildlife.

In the field of veterinary medicine, procedures were examined for the purchase of ear tags, their delivery to the regions, competitive documentation. Now, it is planned to transfer these functions to local executive bodies, which will speed up the procedures for the barking of rural livestock.

In addition, during the meeting, the activities of the Center for Transfer and Commercialization of Agricultural Technologies were presented. The center defined operator to transfer advanced foreign technologies and attract foreign investments to the agro-industrial complex of the Republic of Kazakhstan.

For reference:

The main goal of the Council on Agrarian Policy is to promote the creation of a competitive agro-industrial complex that ensures food security, and also contributes to the increase in the level of employment of the rural population.

The council included representatives of state bodies, branch unions, research institutes, business, agricultural cooperatives and non-governmental organizations.