04.02.2026, 11:35

Kostanay Region Leads in Volume of Unpaid Agricultural Subsidies

Agricultural Subsidy Crisis and Solutions for Farmer Debt in Kazakhstan

By the beginning of 2026, the financial situation of Kazakhstan’s agricultural producers has reached a critical point: the total amount of unpaid state subsidies has climbed to KZT 341.3 billion. This issue was officially confirmed by Senator Bekbolat Orynbekov, who noted that the current deficit is a direct consequence of the 2023 reform, under which responsibility for subsidy payments was transferred from the national budget to local budgets. However, regional budgets—especially in key grain-producing areas—have proven unable to bear this burden. Despite promises to fully settle the задолженность at the start of the year, the sector remains in a state of uncertainty.

The most severe situation has been recorded in the Kostanay region. According to the regional Department of Agriculture, outstanding payments to local farmers have reached KZT 83 billion. Particular concern is caused by KZT 23 billion in arrears related to subsidizing interest rates on agricultural machinery leasing. Due to the lack of payments, 570 enterprises cultivating 2.2 million hectares of arable land—nearly half of the region’s total farmland—are forced to service loans at annual rates of 22–25% instead of the preferential 6%. This financial pressure has already led to the first cases of default by leasing companies, posing a direct threat of mass bankruptcies among farmers and destabilization of the country’s entire food market.

To overcome the prolonged crisis, industry experts and business representatives are calling for a radical overhaul of the state support system. The key proposal is the immediate repayment of accumulated debts from the national budget, followed by the abolition of the interest rate subsidy program. In its place, it is proposed to introduce a single fixed interest rate of 12.6% for all contracts—both new and existing. According to analysts, farmers are prepared to service such obligations independently, without state involvement. This approach would make financial planning in the agricultural sector more predictable, relieve regional budgets of an excessive burden, and eliminate the very concept of “waiting lists” in the future.

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