This year, for the first time, up to 580 billion tenge will be allocated for sowing lending, of which 400 billion will be commercial borrowed capital, on which a preferential rate of 5% will apply. The Ministry of Agriculture reported this.
“We need to provide funding for the widest possible range of agricultural producers, with an emphasis on small and medium-sized farms. As the Prime Minister instructed, now the akimats, together with the Agrarian Credit Corporation, need to carry out a targeted development of the list of farms in need of financing,” said the head of the department, Aidarbek Saparov, at a meeting at the Ministry of Agriculture.
The new mechanism allows the farmer to get a loan at 5%, and the loan period is 12 months. To solve the problem of the shortage of collateral, a mechanism for guaranteeing farmers’ loans is being implemented in the Agrarian Credit Corporation through the instruments of the Damu Fund, which will provide a guarantee in the amount of 85% of the loan amount. The remaining collateral will be provided by the agricultural producer himself.
After the loan is approved by the ACC, agricultural producers will need to provide documents to the Damu fund. The list of documents will be posted on the websites of the Agrarian Credit Corporation and the Damu Fund.
Aidarbek Saparov also recalled the president’s instructions to increase the volume of fertilizer application to 1.5 million tons, which corresponds to the recommended norm for sown areas in Kazakhstan. This work needs to be accelerated.
The spread of locusts is also named among the risks this year - a peak is expected. In addition, abnormally high temperatures are predicted, which could lead to drought.
“We need to focus on drought forecasts. Both immediate measures and long-term strategies for adaptation to climate change are needed. If necessary, it is necessary to ensure a transition to drought-resistant varieties, changes in crop rotation and other measures,” the minister said.