Applications Open for Forward Financing of Spring Sowing

JSC "NC "Prodcorporation" has announced the start of applications for agricultural producers under the forward purchase program for crop production. In 2025, approximately 30 billion tenge will be allocated for spring fieldwork.
One of the key innovations of the program is an increase in the credit limit for oilseed crop production. Additionally, for the first time, farmers will be able to submit applications and necessary documents electronically. During the initial stage, regional representatives of the corporation will assist farmers in processing digital applications. In the future, a fully developed digital ecosystem will be introduced, allowing agricultural producers from any location in Kazakhstan to submit applications remotely using an electronic digital signature. This approach will reduce the time required to review applications, enhance transparency, and ensure access to financing, which is particularly important for small farms in remote areas.

Program Participation Requirements
Farmers and agricultural enterprises that have been engaged in agricultural production for at least two years are eligible for financing. At the time of application, farms must not have overdue or extended obligations under any programs of the corporation.
To participate in the program, farmers must confirm the availability of seed material or provide documents proving its purchase in the following quantities:
• Wheat, barley – at least 110 kg/ha
• Sunflower – at least 17 kg/ha
• Flax seeds (oilseed) – at least 50 kg/ha
• Rapeseed – at least 12 kg/ha

Financial support for farmers will be provided in the form of an advance payment, including VAT. In 2025, the payments will be as follows:
• Soft and hard wheat – 50,000 tenge/ton
• Barley – 40,000 tenge/ton
• Sunflower – 80,000 tenge/ton
• Flax seeds (oilseed) and rapeseed – 90,000 tenge/ton

Financial Guarantees and Payment Procedures
Funds under forward contracts will be issued after the provision of a guarantee. The guarantor may be a social entrepreneurship corporation, JSC "Entrepreneurship Development Fund "Damu," a second-tier bank, or collateral in the form of movable or immovable property.
After harvesting and delivering the produce to the corporation's fund, farmers will be able to receive an additional payment for the grain. The amount will depend on market prices, which are traditionally set by the national grain operator in the fall. The cost of grain and oilseeds purchased under forward contracts will be calculated considering the farmers’ free use of borrowed funds.

Delivery Deadlines and Application Approval
The program establishes the following deadlines for fulfilling supply obligations:
• Wheat, barley, buckwheat, flax seeds (oilseed), rapeseed – until November 1, 2025
• Sunflower, flax seeds (oilseed), rapeseed – until November 15, 2025
To ensure a fair distribution of funding, all applications submitted for participation in the forward purchase program for 2025 will be reviewed and approved by the Coordination Councils under regional akimats.
With the introduction of new submission and review procedures, farmers will have more convenient and transparent financing conditions. The digitization of the process will accelerate interaction between farmers and the corporation.

🔑 Key Takeaways:
🔹 30 billion tenge allocated for spring fieldwork in 2025.
🔹 For the first time, applications can be submitted online, with all documents processed digitally.
🔹 Farmers can receive advance payments of up to 90,000 tenge/ton and additional compensation after the harvest.