27.02.2026, 05:46

The Procedure for Subsidizing the Agro-Industrial Complex and the Mechanism for Repaying Debt to Farmers Explained

Investment projects enable farmers to recover part of their expenses within established limits

Issues related to subsidizing the agro-industrial complex, including payment procedures and accumulated debt to agricultural producers, are активно discussed in the media and social networks. In this regard, it has been clarified that any agricultural producer has the right to apply for state support provided that the established rules are met.

To receive investment subsidies, farmers must invest in the development of their operations. For example, when constructing a dairy farm, a producer may reimburse up to 25% of the incurred costs, within the established project cost limits.

The development of subsidy policy falls under the competence of the Ministry of Agriculture, while the direct allocation of funds is carried out by local executive bodies — akimats. Applications are submitted and processed by regional agricultural departments through a digital system, ensuring automation and transparency of procedures.

Subsidies are financed from regional budgets approved by maslikhats. Since 2023, funds allocated for subsidization have been included in general transfers from the republican budget to the regions.

Applications are reviewed and funds are disbursed in order of priority as financing becomes available. Debt arises when the demand for subsidies exceeds the budgeted resources. Arrears from previous years are repaid annually from the current budget as well as through additional allocations. Since the beginning of the year, regions have been repaying debts across all areas of support.

As part of systemic measures, interest rate subsidies on loans for spring field and harvesting work, as well as for working capital replenishment, have been abolished. This mechanism has been replaced with direct subsidization — farmers now receive loans at preferential rates immediately, which prevents the formation of new debt under this support category. Similar systemic measures are being implemented in other subsidy areas.

Read also

Global Food Price Index Rose by 1.5% in September Wheat prices increased by 6.3% over the month, while corn rose by 5.6%, reaching their highest levels in several years 84.5 Tonnes of Contaminated Products Denied Entry into Kazakhstan A quarantine pest was detected in batches of safflower seeds, flax seeds and barley during phytosanitary inspections at the Taskala and Shagan checkpoints Kazakhstan Intends to Increase Agricultural Exports to Mongolia Trade in agricultural products between the two countries increased by 32% in 2025 and by another 11% in the first seven months of 2026 Kazakhstan Increases Its Pedigree Livestock Population KZT 80 billion has been allocated for the implementation of the Comprehensive Livestock Development Plan for 2026–2030 Grain Union of Kazakhstan Does Not Expect Wheat Prices to Decline This year’s wheat harvest is expected at 15.2 million tonnes, compared with 19.3 million tonnes a year earlier SovEcon Cuts Russian Wheat Export Forecast by 4.7 Million Tonnes SovEcon expects normal operations at Russia’s Azov-Black Sea ports to resume no earlier than 2027 Kazakhstan to Begin Accepting Applications Under the “Ken Dala 2” Program on October 1 KZT 200 billion at an annual interest rate of 5% has been allocated to prepare for the 2027 spring fieldwork and harvesting season Kazakhstan Fulfills Feed Preparation Plan by 103.5% Farms also have 5.6 million tonnes of feed remaining from last winter