#Agriculture #Subsidies #Greenhouse #Energy #Kazakhstan
The Ministry of Agriculture in Kazakhstan has announced its plans to subsidize the expenses of farmers for electricity and gas used in greenhouses, aiming to prevent further closures of such facilities. The Minister of Agriculture, Erbol Karashukeev, revealed this during a government session in the Majilis.
Over the past three years, while the area of industrial greenhouses has increased by 31.7 hectares, the area of small-scale farm greenhouses has decreased by 62 hectares. This decline can be attributed to rising costs of planting materials, fertilizers, and utility services, coupled with traditionally low profitability of these greenhouse operations.
“To enhance the profitability of closed ground vegetable production by reducing production costs, the ministry is working on implementing per-hectare subsidies for greenhouse farms. We plan to introduce subsidies for electricity and gas expenses during the offseason,” stated Karashukeev.
According to the minister, farmers whose greenhouses comply with the approved national standard for farm greenhouses (ST RK 3834-2023), issued in May 2023, will be eligible for per-hectare subsidies.
Furthermore, in 2024, the Ministry of Agriculture intends to include greenhouses in the state financing program “Ken Dala” by the Agrarian Credit Corporation. This program provides preferential loans for sowing and harvesting operations.
“We will finalize this work in 2023, and from next year, we plan to extend the financing under the ‘Ken Dala’ program to closed ground operations as well. I believe it is only fair to provide access to financing for closed ground facilities,” added the minister.
Currently, the government supports greenhouse farms through investment subsidies, reimbursing 25% of the costs incurred in construction and expansion of greenhouse complexes. Additionally, producers of greenhouse vegetables receive subsidies for mineral fertilizers, seeds, pesticides, and irrigation expenses.
These initiatives by the Ministry of Agriculture aim to alleviate the financial burden on farmers, encourage greenhouse cultivation, and promote sustainable agricultural practices. By subsidizing gas and electricity costs, the government aims to ensure the viability and profitability of greenhouse farming in Kazakhstan, ultimately contributing to the country’s agricultural self-sufficiency and economic growth.
