The Ministry of Agriculture is reviewing the approach to subsidizing agricultural producers. Not everyone will be able to obtain the necessary funds after the new reform.

Minister of Agriculture Asylzhan Mamytbekov announced his intention to reform the subsidizing of agricultural producers. He noted that among the main goals of the reform is deprivation in funding of so-called «Asphalt farmers». This category can include urban businessmen, who work in agriculture on a residual basis, without investing their own funds in the business development (equipment purchasing, modernization and so on.), but using plant and equipment leased from agricultural enterprises and farmers.

What caused to the reform necessity and what results could be expected

Activities of the so-called "Asphalt farmers" became adversely affected on the outcome of agricultural products. With ever-increasing subsidies, agricultural production has declined regularly. A striking example of this is the plant-growing. For example, in 2014 for the needs of manufacturers of grain crops were allocated 8 600 000 000 tenge against to 7 000 000 000 in 2011. And with investments growing by almost 20%, there was no any increase in returns, but conversely – the volume of grain production fell significantly: 477 billion in 2014 against to 709 billion tenge in 2011.

As a result of the reform it is planned to achieve the following:

• Review the policy pursued in relation to agricultural producers and introduce a differentiated approach to their subsidizing. 

• Identify really strong agricultural enterprises (farmers) who invest their own and of state funds to the development and modernization of agrarian and industrial complex (AIC).

• To improve the impact of the subjects operating in this field.

• To deprive "asphalt farmers" sources of public funds that are being spent inefficiently.

Agriculture Committee of National Chamber of Entrepreneurs (NCE) and Farmers' Associations supported reform. As noted Ablay Myrzakhmetov, who is presiding over the board of NCE "Atameken", during this discussions, AIC representatives agreed that a differentiated approach to subsidizing of agricultural producers will be effective and will increase the impact, and contribute to improving the indicators of modernization.