Agricultural Policy Monitoring and Evaluation 2024

17. Kazakhstan

Main findings

Support to agriculture

Support to producers as a percentage of Gross Farm Receipts (GFR) in Kazakhstan has almost halved in a 20-year span, accounting for 4.9% in 2021-23, compared to 8.6% in 2000-02. The share of potentially most-distorting producer transfers fell from an average of 98% in the early 2000s to 49% in 2021-23, with positive (and negative) transfers mostly based on Market Price Support (MPS) and variable input use without constraints. On average, domestic prices were lower than world prices for several agricultural commodities, with negative MPS worth -3.3% of GFR and positive MPS worth 2.2% of GFR. Single Commodity Transfers (SCT) in 2021-23 were negative for rice, sunflower, eggs and maize, while SCTs with the largest positive transfers were for barley, sheep meat, and cotton.

Support based on variable input use and fixed capital formation account for most budgetary transfers to producers. In total, budgetary producer support amounted to 4.9% of GFR in 2021-23.

Support to general services (General Service Support Estimate, GSSE) accounted for 14.4% of total budgetary support to agriculture in 2021-23 and for 1.2% of the value of agricultural production. Spending on inspection and control accounted for 67% and spending on knowledge creation accounted for 17% of GSSE.

Total agricultural support (Total Support Estimate, TSE) declined from 1.7% of Gross Domestic Product (GDP) in the early 2000s to 0.5% in 2021-23.

Key recent policy changes

The Concept for the Development of Agriculture for 2021-2030 was substantially amended in 2023 to add new target indicators. These indicators included those for self-sufficiency (for apples, sausages, cheese and poultry meat), for aligning mineral fertiliser use with scientifically justified levels, for increasing investment and employment, and for increasing the use of water-saving technologies.

The government expanded the dairy preferential financing initiative of the North Kazakhstan region, which had helped to create 100 dairy farms with regional agricultural co-operatives. It allocated KZT 100 billion (USD 219 million) to fund 65 dairy farms across 11 regions in 2023. In 2024, the plan foresees allocating another KZT 100 billion (USD 219 million) to finance 73 projects.

A 6-month import ban on wheat initiated in April 2023 was prolonged to April 2024. The measure aimed to support domestic farmers and to stabilise the price of locally produced wheat, which is facing strong competition from cheaper Russian grain.

In February 2023, the government introduced an export duty on sunflower seeds of 20% but no less than EUR 100 (USD 109) per tonne. The measure is intended to curb price increases in the country.

Assessment and recommendations

• Kazakhstan would benefit from an approach that mainstreams sustainability issues into planning processes for agricultural policy. Assessing new projects and policies based on appropriate environmental indicators will ensure coherence between objectives for food security, sector development, climate change mitigation and environmental management.

• While total support to agriculture is small relative to the economy, most producer support is provided in forms that are potentially most-distorting to agricultural production and trade, and likely to exacerbate pressures on natural resources. Redirecting this support towards needed services for the sector, notably the relatively underfunded agricultural knowledge and innovation system (AKIS) will help promote sustainable productivity growth. Using support to provide incentives to adopt new technologies and take action to conserve and sustainably use natural resources can lead to improved co-ordination between farmers and the AKIS.

• The recipient of support has changed for loans and fertilisers. These are now paid to the input provider (bank or manufacturer) instead of the farmer. With the entry point higher up in the value chain, fewer payments have to be made, with respective administrational savings. However, in these cases, the full subsidy may not be passed on to the farmer. Monitoring systems should be put in place to ensure that farmers are the main beneficiaries.

• Investment programmes to support the creation of new livestock (processing) industries should be based on sound business plans and linked to strong environmental and animal welfare standards. To use them in the most efficient way, concomitant knowledge creation and capacity building should be in place.

• Positive developments in land management have been observed, such as the introduction of digital monitoring of land use. Kazakhstan should clarify its land-use objectives with respect to production, adaptation and conservation. The doubling of taxation on unused land and the commitment to increase labour productivity 2.5 times demonstrates Kazakhstan’s ambition to increase production. Sustainability concerns should be mainstreamed into these plans to ensure long term results.

• Adverse weather conditions, pests and diseases, and price volatility pose challenges for farmers and agribusiness firms, and responding to these can strain government finances. Kazakhstan should enhance the resilience of its agricultural sector by adopting a broader, more integrated approach to risk management, which sees beyond ad-hoc, ex-post emergency responses to local disasters. The approach should ensure that disaster assistance does not impede the development of on-farm strategies and market solutions, such as insurance.

• Increasing the use of water-saving technologies can play an important step towards more sustainable productivity growth. Conditioning support rates for investments in irrigation on the use of water savings technologies is a positive step. However, to be effective, this needs to be accompanied by water management policies and planned against the background of a changing climate. Services for teaching farmers to implement more sustainable practices and to adopt new technologies could also be provided.

• The introduction of a digital system to register and distribute subsidies is an important step towards improving transparency and the accuracy of monitoring.

Development of support to agriculture

Figure 17.1. Kazakhstan: Development of support to agriculture

Table 17.1. Kazakhstan: Estimates of support to agriculture

Million USD

	2000-02	2021-23	2021	2022	2023p
Total value of production (at farm gate)	3 367	19 646	17 614	20 573	20 750
of which: share of MPS commodities (%)	76.60	59.12	59.46	62.07	55.83
Total value of consumption (at farm gate)	2 933	16 872	15 212	18 309	17 096
Producer Support Estimate (PSE)	292	1 025	1 023	601	1 452
Support based on commodity output	272	-126	-236	-784	644
Market price support¹	272	-223	-330	-878	539
Positive market price support	372	468	420	47	938
Negative market price support	-100	-691	-750	-925	-399
Payments based on output	0	97	94	93	105
Payments based on input use	21	1 105	1 235	1 353	727
Based on variable input use	8	277	284	310	236
with input constraints	0	0	0	0	0
Based on fixed capital formation	10	823	945	1 038	486
with input constraints	0	0	0	0	0
Based on on-farm services	2	6	6	6	5
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	24	14	22	36
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	24	14	22	36
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	21	10	10	44
Percentage PSE (%)	8.67	4.89	5.39	2.73	6.70
Producer NPC (coeff.)	1.09	0.99	1.00	0.96	1.02
Producer NAC (coeff.)	1.09	1.05	1.06	1.03	1.07
General Services Support Estimate (GSSE)	67	249	219	256	271
Agricultural knowledge and innovation system	3	34	40	36	27
Inspection and control	29	160	140	141	199
Development and maintenance of infrastructure	28	27	28	23	31
Marketing and promotion	0	8	8	8	9
Cost of public stockholding	5	19	3	48	5
Miscellaneous	1	0	1	0	0
Percentage GSSE (% of TSE)	18.65	18.51	16.93	29.37	14.43
Consumer Support Estimate (CSE)	-316	315	314	786	-154
Transfers to producers from consumers	-291	184	136	757	-340
Other transfers from consumers	-21	-6	0	0	-17
Transfers to consumers from taxpayers	0	74	51	15	156
Excess feed cost	-4	62	126	14	46
Percentage CSE (%)	-10.80	1.88	2.07	4.30	0.91
Consumer NPC (coeff.)	1.12	0.99	0.99	0.96	1.02
Consumer NAC (coeff.)	1.12	0.98	0.98	0.96	1.01
Total Support Estimate (TSE)	359	1 348	1 293	871	1 879
Transfers from consumers	312	-179	-136	-757	357
Transfers from taxpayers	68	1 532	1 429	1 628	1 539
Budget revenues	-21	-6	0	0	-17
Percentage TSE (% of GDP)	1.66	0.59	0.66	0.39	0.74
Total Budgetary Support Estimate (TBSE)	88	1 571	1 622	1 749	1 340
Percentage TBSE (% of GDP)	0.41	0.69	0.82	0.78	0.53
GDP deflator (2000-02 = 100)	100	1 004	914	1 095	..
Exchange rate (national currency per USD)	1.00	447.70	426.03	460.85	456.24

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Kazakhstan are: wheat, rice, maize, barley, sunflower, potatoes, cotton, milk, beef and veal, pig meat, sheep meat, poultry and eggs.

Source: OECD (2024), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

The National Development Plan of the Republic of Kazakhstan (hereafter “the National Plan”), from February 2024, states the medium-term objectives and tasks for the county’s whole economy, including its agri-food sector. The Concept for the Development of Agriculture for 2021-2030 (hereafter “the Concept”) provides the overarching policy frameworks for the development of the agricultural sector.

The National Plan sets out the following six priority directions for its agri-food sector:

• increasing yields

• increasing water use efficiency

• expansion of livestock farming

• increasing added value in agriculture

• supporting export activities

• fostering scientific progress in farming.

The Concept sets out a number of key priority areas including:

• ensuring food security and improving quality of food

• adjusting support mechanisms to focus on competitive products

• industry development based on manufacturing, digitalisation, sustainability and development of human capital

• development and strengthening of phytosanitary and veterinary services

• more efficient land use systems and water use for the production of agricultural products

• growth of incomes and social support systems for the rural population, development of rural infrastructure

• the creation of production and distribution chains.

Kazakhstan applies a range of border and domestic price intervention measures. Border measures are implemented within the Customs Union of the Eurasian Economic Union (EAEU) and include tariff rate quotas (TRQs) and non-tariff measures. TRQs apply to imports of lower-grade beef and of poultry products.

Intervention in domestic markets is twofold. The State Commission for the Modernisation of the Economy undertakes intervention purchases of grains at fixed prices under a forward contract to support domestic producer prices. At the same time, consumption price stabilisation is in place for 29 commodities.

Purchases of mineral fertiliser and high-quality seeds are supported by subsidies per unit of input. Administered prices below market prices apply to diesel fuel sold to agricultural producers for pre-determined volumes during sowing and harvesting periods.

Investment subsidies, together with concessional credit, represent the principal forms of support to agriculture. Concessional credit comes through numerous channels. Several credit agencies provide loans at reduced interest rates mainly under the umbrella of KazAgroFinance. This public financial institution is a subsidiary of the Agrarian Credit Corporation (ACC), which in turn is part of the state company Baiterek Holding. Along with agricultural producers, food processors benefit from concessional credit and leasing of machinery and equipment.

For crops, output payments go to the producers of oilseeds, rice, sugar beet and cotton used for processing. Headage and output payments support the livestock sector. Large commercial livestock producers receive most of these as they account for the largest shares of production and herd size. Other forms of support to livestock are silage and fodder subsidies, support to artificial insemination and to the purchase of young cattle for feedlots.

The current interest rate subsidy applies to loans issued by financial institutions with a nominal interest rate not exceeding 17% per annum. The interest rate subsidy reduces nominal rates by 10% for loans for the purchase of agricultural machinery, equipment and farm animals, purchase of fixed assets and construction; by 7% for working capital; and by 9% for spring field work and harvesting.

There are separate terms for interest rate subsidies for loan agreements concluded under the Economy of Simple Things programme, designed by the Ministry of National Economy to raise domestic production and reduce imports of consumer products such as of food, textiles, and furniture. These loans are targeted towards production and processing of products deemed of strategic importance. The programme is financed by the National Bank and applies to loans with a nominal interest rate not exceeding 15% per annum. For this programme, the interest rate subsidy is transferred through the Damu Entrepreneurship Development Fund and local governments. It reduces the nominal interest rate by 10% for loans for investment purposes, by 9% for loans to replenish working capital and for spring field and harvesting work.

The credit guarantee system guarantees loans from second-tier banks through the Damu Entrepreneurship Development Fund. The terms of the guarantee provide for the issuance of a loan of up to KZT 3 billion (USD 7 million) at a rate of no more than 17% per annum, for a period of up to 10 years. The commission for guaranteeing is 30% of the amount of the guarantee, of which 29.9% is paid by the local executive body and 0.1% is paid by the agricultural producer. The guarantee is provided for investment projects in agriculture and food production. Priority investment areas receive higher guarantee rates.

Individual farms of less than 3 500 ha can pay an alternative Single Land Tax set as a percentage of the cadastral value of land owned or used, which replaces the usual land tax and five other business taxes. Finally, individual farms pay a 10% income tax for physical persons with an income above KZT 150 million (USD 0.3 million).

Kazakhstan is a member of the Treaty on the Eurasian Economic Union (EAEU) established in 2015, together with Armenia, Belarus, Kyrgyzstan and the Russian Federation (hereafter “Russia”). Kazakhstan’s border measures are implemented within the Customs Union of the EAEU and certain national responsibilities in the area of customs regulations are transferred to the EAEU, including SPS and technical regulations.

Kazakhstan is a party to the Paris Agreement on Climate Change. Through its Nationally Determined Contribution (NDC), Kazakhstan set an economy-wide target starting in 2021 to reduce GHG emissions by 15% compared to 1990 by 2030. This target covers all emissions, including from agriculture. Specific targets or reduction plans for the agricultural sector were not defined.

There are no mitigation policies directed at the agricultural sector. There are however cross-compliance requirements linked to some support payments that could help lower GHG emissions from agriculture. For example, some interest rate subsidies provided to livestock producers require rehabilitation of pasture lands.

Innovation for sustainable productivity growth

Kazakhstan is facing a steady decline in land quality, water shortages and outdated equipment. One important pillar of support to increase productivity is in the form of investment subsidies. Together with the United Nations Food and Agriculture Organization (FAO) the Ministry of Agriculture is developing a plan to combat desertification and land degradation.

Although there are no direct indicators for sustainable productivity growth, the Concept includes policy measures aimed at encouraging sustainable increases in productivity. These measures involve educating small and medium-sized farms in the best sustainable practices and technologies, as well as establishing an environmental monitoring system, particularly for livestock greenhouse gas emissions.

An essential part of government support is aimed at irrigation measures. In order to encourage farmers to adopt modern water-saving technologies, the amount of subsidy is conditioned on the type of irrigation method. Subsidy rates for initial investment costs, starting from 50%, will decrease over time for non-water-saving irrigation methods, while rates for water-saving technologies will increase to up to 85%.

Domestic policy developments in 2023-24

The Concept, which has been substantially amended in 2023, now includes additional target indicators, including for self-sufficiency (for apples, sausages, cheese and poultry meat), for aligning mineral fertiliser use with scientifically justified levels, for increasing investment and employment, and for increasing the use of water-saving technologies.

As in previous years, preferential interest rates and capital grants for investments play an important role in supporting Kazakhstan’s agriculture. However, the delivery mechanisms are about to change in 2024. Instead of the subsidies being paid to the farmer, they will be paid to the financial institutions. This will ensure that the farmer benefits directly from lower interest rates and investment grants, rather than having to pay the full financial cost up front and getting reimbursed later on.

The Law on Pasture Use from February 2024 forms the legal basis to withdraw unused and irregularly issued land in order to reduce the deficit of pastures for residents of villages and districts.

The investment initiative of the North Kazakhstan region has helped create 100 dairy farms through preferential financing by regional agricultural co-operatives. The initiative offers a 2.5% annual interest rate, a loan term of up to 10 years, and a maximum loan amount of up to KZT 5 billion (USD 11 million). The loans are intended for new projects or expanding existing ones, including:

• dairy farms with a capacity of at least 400 heads of cattle

• poultry meat production farms with an output of at least 5 000 tonnes of poultry meat per year

• vegetable storage facilities capable of storing at least 1 000 tonnes

• irrigated agriculture projects for potatoes and vegetables, as well as fodder production, utilising modern water-saving technologies like sprinkler and drip irrigation.

For 2023, KZT 100 billion (USD 219 million) was allocated from the national budget to fund 65 dairy farms across 11 regions. In 2024, the plan includes allocating another KZT 100 billion (USD 219 million) to finance 73 projects: 14 dairy farms, 33 irrigation projects, 23 vegetable storage facilities, 2 poultry farms, and 1 meat livestock project.

The reimbursement rate for investment subsidies was increased in 2023 from 25% to 50%. This is intended to help modernise the physical infrastructure of domestic seed producers with modern equipment and to encourage the construction and renovation of seed cleaning complexes and seed preparation lines. An additional KZT 12.7 billion (USD 28.8 million) in subsidies is earmarked for the development of the domestic seed industry in 2024.

From 2024, the mechanism of the fertiliser subsidy will be changed. For domestic fertiliser, the subsidy will be paid to the manufacturer instead of to the farmer and will increase by ten percentage points from 50% to 60%. For imported fertiliser, the subsidy rate remains unchanged at 50% and continues to be paid to the farmer directly.

Trade policy developments in 2023-24

In February 2023, an export duty of 20% but no less than EUR 100 (USD 109) per tonne was imposed on sunflower seeds. The measure is intended to promote domestic production of sunflower oil and to curb price increases in the country.

From April 2023, a 6-month import ban on wheat was implemented. It has since been extended to end in April 2024. The aim is to support domestic farmers and to stabilise the price of locally produced wheat, which is facing strong competition from cheaper Russian grain.

In line with the Eurasian Economic Union (EAEU) agreement, the Eurasian Economic Commission (EEC) sets tariff quotas for certain categories of agricultural products originating from third countries and imported into the EAEU customs territory. For 2024, Kazakhstan’s tariff quotas are set at 21 000 tonnes for beef imports and 140 000 tonnes for poultry meat and by-products.

Policy context

Key economic and agricultural statistics

Kazakhstan has the ninth largest land area in the world and is one of the least densely populated countries. It has the second-highest per-capita availability of arable land in the world. Kazakhstan is also an important exporter of fossil fuels. The country is an upper middle-income economy and the richest country in Central Asia, but its economy remains highly dependent on oil and commodity markets. Its high share of trade in GDP (30%) highlights the strong focus on international markets.

Although the contribution of agriculture to the economy has declined sharply since the early 1990s, agriculture remains an important economic sector, contributing to 5% of GDP and 13% of national employment (Table 17.2). Over 75% (or 214 million ha) of the country’s territory is suitable for agricultural production, but only about half of that is currently under agricultural production. Kazakhstan is one of the top ten grain exporters in the world, exporting to over 70 countries. The country’s major crops are wheat, barley, cotton and rice, with wheat exports a major source of foreign currency. Livestock products, including dairy, leather, meat and wool also comprise an important share of agricultural output.

The farm structure is dualistic: with large-scale and often highly vertically integrated operations dominating the production of the sector, while rural and subsistence-farming households account for the majority of farms. Kazakhstan’s agricultural sector is particularly vulnerable to the effects of climate change, as increasingly frequent hot weather and severe droughts reduce water availability.

Table 17.2. Kazakhstan: Contextual indicators

	Kazakhstan		International comparison
	2000*	2022*	2000*	2022*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	115	605	0.3%	0.4%
Population (million)	15	19	0.4%	0.4%
Land area (thousand km2)	2 700	2 700	3.3%	3.3%
Agricultural area (AA) (thousand ha)	215 393	213 796	7.2%	7.3%
			All countries1
Population density (inhabitants/km2)	6	7	52	64
GDP per capita (USD in PPPs)	7 725	30 810	9 363	25 965
Trade as % of GDP	37.4	29.9	12.3	16.6
Agriculture in the economy			All countries1
Agriculture in GDP (%)	8.1	5.2	2.9	3.8
Agriculture share in employment (%)	36.1	12.9	-	-
Agro-food exports (% of total exports)	2.0	6.6	6.4	8.0
Agro-food imports (% of total imports)	0.7	11.7	5.8	6.9
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	56	61	-	-
Livestock in total agricultural production (%)	44	39	-	-
Share of arable land in AA (%)	14	14	32	34

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organization (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Kazakhstan’s GDP grew by 3.2% in 2022 coming out of the COVID-19 pandemic (Figure 17.4). The pandemic hit the economy more than the crises in 2008 and 2015-16. The recovery in 2022 was also more muted than that following the 2008 crisis, but in line with that of 2015-16. Economic data is not yet available to describe the Kazakh economy following Russia’s full-scale invasion of Ukraine.

Kazakhstan has been a net agro-food importer since the mid-2000s, yet the country remains one of the world’s largest wheat exporters (Figure 17.5). More than 60% of agro-food exports are in primary commodities, the vast majority of which goes to processing by industry. More than 60% of agro-food imports are processed commodities, the bulk of which are for final consumption.

Agricultural output grew very rapidly in Kazakhstan in the decade 2012-21, at an annual average rate of 3.6% (Figure 17.6). Intermediary inputs grew at only 1.2% and agricultural labour force fell with labour moving out of agriculture to other sectors. The strong output growth was only possible because of high productivity gains of 3.6% per year, well above the world average.

The persistent negative average nutrient balances suggest that soil fertility is being eroded which will have a negative impact on yields and output (Table 17.3). Studies indicate that there is a high degree of land degradation in Kazakhstan and that soils are very poor in nitrogen and phosphorus, particularly in the rangelands (Shpedt and Aksenova, 2021[1]; Hu, Han and Zhang, 2020[2]). Agriculture’s share of energy use and agriculture’s share of GHG emissions have both declined and appear to be converging with OECD averages. The share of agriculture in abstracted water has increased slightly and remains much higher than the OECD average.

Table 17.3. Kazakhstan: Productivity and environmental indicators

	Kazakhstan		International comparison
	1991-2000	2012-2021	1991-2000	2012-2021
			World
TFP annual growth rate (%)	1.9%	3.6%	1.7%	1.1%
			OECD average
Environmental indicators	2000*	2022*	2000*	2022*
Nitrogen balance, kg/ha	-14.8	-13.3	32.1	28.2
Phosphorus balance, kg/ha	-2.7	-2.0	3.3	2.3
Agriculture share of total energy use (%)	4.0	2.2	1.7	2.0
Agriculture share of GHG emissions (%)	27.1	12.7	8.7	10.1
Share of irrigated land in AA (%)	0.9	0.6	-	-
Share of agriculture in water abstractions (%)	66.7	62.7	47.0	49.5
Water stress indicator	..	..	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

In the Soviet era, all sectors of Kazakhstan’s economy, including agriculture, were regulated by central planning. Production, the marketing of agricultural inputs and outputs, and processing and distribution of food were controlled by state enterprises. Agriculture was supported by high administered prices and considerable input and output price subsidies, in addition to policies such as cheap energy and transport, which were not agriculture-specific.

Kazakhstan became an independent country in 1991 following the collapse of the Soviet Union. Stabilisation and transition to a market economy were its main economic challenges. During the transition, the agricultural sector was affected by economic shocks, land reform and reduced government support. The main agricultural policies were geared towards decreasing food import-dependency and increasing domestic food production (Baubekova, Tikhonova and Kvasha, 2021[3]).

Agricultural products and inputs became exposed to market forces post-independence in the 1990s. After this early period of market reform, Kazakhstan made little progress in pursuing further trade liberalisation. It was not until its accession to the WTO in 2015 that the country restarted trade liberalisation measures. However, Kazakhstan continues to apply a range of border and domestic price intervention measures such as tariff rate quotas and non-tariff measures. They have also imposed export restrictions in times of global uncertainty or high prices, such as 2008, 2020 and 2022.

The State Programme of Agro Industrial Complex Development for 2017-2021 (hereafter, “the 2021 State Programme”) provided the main agricultural policy framework in Kazakhstan up until the end of 2021. While maintaining the principles of the previous framework (Agribusiness-2020 Programme), the 2021 State Programme put a stronger emphasis on the development of, and support to, individual household plots and small farms, agricultural producer co-operatives and agriculture supporting services and infrastructure. In addition, some input subsidies including on seed, fertiliser and pesticides were increased.

Table 17.4. Kazakhstan: Agricultural policy trends

Period	Broader framework	Changes in agricultural policies
Prior to 1992	Soviet era Closed economy	Government control of the agricultural economy through regional trade controls, input supply controls, and the continuation of soft budget constraints Taxation of the agricultural sector to support the industrial sector Tariffs Low administrated prices on energy and transport
1992-1997	Initial structural reforms towards an open economy	Price liberalisation of agricultural products and inputs Emergence of new policy institutions
1998-2002	Economic crisis Stabilisation measures	Debt rescheduling Limited support to the sector Agrarian Credit Corporation created as main agricultural lender (credit at preferential rates) Restructuring agricultural enterprises
2003-2015	Agriculture as part of economic diversification	Price support Support for import-competing products Tariff protection for meat Taxation of agricultural exports
2015-present	Reforms to trade liberalisation	WTO accession 2015 EAEU membership in 2015 Elimination of payments per hectare for priority crops Promotion of agricultural co-operatives Increase in land tax rates Debt restructuring programme Introduction of investment subsidies Introduction of interest concessions Agricultural insurance reform

Producer support in Kazakhstan tends to vary considerably between years. Levels of support from price interventions have declined over time in favour of budgetary support. The %PSE fluctuated considerably between 1995 and 2020. In some years, negative support provided through depressed market prices for some products offset budgetary allocations and positive support provided through higher domestic prices for others. However, net producer support was positive in most years (Figure 17.7), due to increasing support related to the use of production inputs, in particular credit, over the past ten years. Overall, total budgetary support to agriculture increased relative to the size of the economy and is now about 2.6% of gross farm receipts.

References

[3] Baubekova, A., A. Tikhonova and A. Kvasha (2021), “Evolution of Agricultural Policy in Kazakhstan”, in Kazakhstan’s Developmental Journey, Springer Singapore, https://doi.org/10.1007/978-981-15-6899-2_3.

[2] Hu, Y., Y. Han and Y. Zhang (2020), “Land desertification and its influencing factors in Kazakhstan”, Journal of Arid Environments, Vol. 180, p. 104203, https://doi.org/10.1016/j.jaridenv.2020.104203.

[1] Shpedt, A. and Y. Aksenova (2021), “Modern assessment of soil resources of Kyrgyzstan”, IOP Conference Series: Earth and Environmental Science, Vol. 624/1, p. 012233, https://doi.org/10.1088/1755-1315/624/1/012233.