The Cabinet approved a plan for the creation of agricultural cooperatives and their state support (document)

Виктор Сизов Economy
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- The Cabinet of Ministers has made a decision to implement measures aimed at creating agricultural cooperatives and providing them with the necessary support. The corresponding decree was signed on March 5, 2026.

This document was developed in accordance with the presidential decree aimed at the development of the agro-industrial complex, supporting the consolidation of small-scale production, modernizing the sector, increasing agricultural production volumes, and ensuring food security.

According to the decree, the authorized representatives of the president in the regions, local state administrations, local self-government bodies, and district agricultural development departments are tasked with creating at least one consolidated pilot agricultural cooperative in each district.

The plan includes the development of business plans for cooperatives taking into account the climatic and geographical characteristics of the regions, providing low-productive pastures for up to 20 years after changing the land use designation, ensuring irrigation water, as well as the construction and restoration of necessary reservoirs, channels, and other hydraulic infrastructure.

In addition, measures for financing cooperatives through state projects, banks, and regional development funds are provided. Simplifying lending conditions, providing guarantees in case of insufficient collateral, as well as implementing a flexible loan repayment schedule and leasing agricultural machinery on preferential terms are also included in the plan.

Funding for cooperatives through international financial organizations is also planned. In particular, this concerns projects such as "Comprehensive Increase of Productivity in the Dairy Sector" for $30 million, "Development of Sustainable Agro-Food Clusters" for $35 million, and "Development of Climate-Resilient Value Chains in Agriculture" for $40 million.

Additionally, the plan includes measures to provide cooperatives with fuel, fertilizers, seeds, and breeding stock, as well as consulting, informational, and advertising services.

Government bodies involved in the implementation of the plan are required to provide reports on its progress every six months. The collected data will be sent to the Presidential Administration.
Plan
NoTasksMeasures/ActionsImplementation PeriodExpected ResultsResponsible ExecutivesFunding Sources
1Creation of consolidated agricultural cooperatives and producer associations producing "one bulk product" at the village level in each district of the republic, assistance in their registrationExpanding opportunities for creating pilot large agricultural cooperativesThroughout 2026Creation of large agricultural associations in each district and production of high-quality agricultural productsAuthorized representatives of the president in the regions, local state administrations, district agricultural development departments, local self-government bodies (by agreement), Ministry of AgricultureCooperatives' own funds, district development funds
2Assistance in developing business plans for consolidated agricultural cooperatives considering the climatic and geographical features of the regionCreation of business plans with technical and economic indicators2026Determining development directions for large cooperatives and forming corresponding plansLocal state administrations, district agricultural development departments, local self-government bodies (by agreement)Cooperatives' own funds
3Providing low-productive pastures for large cooperatives for up to 20 years after changing the land designationEffective use of agricultural land2026-2030Providing land resources for large associations for agricultural productionLocal state administrations, district agricultural development departments, local self-government bodies (by agreement), Land AgencyCooperatives' own funds
4Providing irrigated water for the sown areas of consolidated cooperativesDeveloping irrigation measures for sown areas2026-2030Full provision of large cooperatives with irrigation waterMinistry of Water Resources, district agricultural development departments, local self-government bodies (by agreement)Budget funds and payments for irrigation
5Construction and restoration of hydraulic structures for the rational use of irrigated waterImplementation of construction and restoration works for hydraulic facilities2026-2030Restored irrigation systems, rational use of water resourcesMinistry of Water ResourcesWithin the funds approved by the relevant ministries, cooperatives' own funds
6Creating infrastructure conditions for cooperatives, including providing electricity and leasing unused facilitiesExpanding opportunities for leasing unused facilities2026-2030Improving conditions for the growth of cooperative production, improving infrastructureLocal state administrations, local self-government bodies (by agreement)Cooperatives' own funds
7Financing consolidated producers through state projects and regional development fundsCreating conditions for financing cooperatives2026-2030State loans and benefits for large cooperativesOpen Joint Stock Company "Aiyl Bank" (by agreement), Open Joint Stock Company "Eldik Bank" (by agreement), regional development fundsState funds and subsidies
8Simplifying lending conditions for agricultural cooperatives using business projects and collateralSimplifying requirements for obtaining loans2025-2026Improving conditions for obtaining preferential loansMinistry of Agriculture, Open Joint Stock Company "Aiyl Bank" (by agreement), Open Joint Stock Company "Eldik Bank" (by agreement)Repayable loans
9Including land, real estate, and movable property of cooperatives as collateralProviding collateral for preferential loans2025-2026Conditions for obtaining preferential loansOpen Joint Stock Company "Aiyl Bank" (by agreement), Open Joint Stock Company "Eldik Bank" (by agreement)No budget funds required
10Providing guarantees for producers in case of insufficient collateral for obtaining preferential loansProviding collateral for obtaining preferential loans2026-2030Conditions for obtaining preferential loansOpen Joint Stock Company "Guarantee Fund" (by agreement)Funds from Open Joint Stock Company "Guarantee Fund"
11Flexible loan repayment schedule depending on the seasonality of productionDeveloping a mechanism for a flexible repayment schedule2026-2027Conditions for the development of producersOpen Joint Stock Company "Aiyl Bank" (by agreement), Open Joint Stock Company "Eldik Bank" (by agreement)No budget funds required
12Leasing agricultural machinery on preferential termsCreating conditions for obtaining preferential loans and increasing production2026-2030Improving the material and technical base of cooperativesOpen Joint Stock Company "Aiyl Bank" (by agreement), Open Joint Stock Company "Eldik Bank" (by agreement)Budget funds and funds from lessees
13Financing cooperatives through projects to increase productivity in the dairy sector and agro-food clustersCreating conditions for financing2026-2030Strengthening the material and technical base of cooperativesCenter for Competitiveness in AgribusinessWorld Bank funds
14Financing through the project on sustainable value chains in agricultureCreating conditions for financing cooperatives2026-2030Increasing production volumes and product qualityRegional Development Support ProgramAsian Development Bank funds
15State provision of cooperatives with fuel and fertilizers at reduced pricesCreating conditions for production development2026-2030Providing cooperatives with quality fuel and fertilizersMinistry of Agriculture, State Fund for Material ReservesWithin the funds approved by the ministries
16Providing cooperatives with breeding animal seeds for livestock reproductionCreating necessary conditions for development2026-2030Cooperatives provided with quality seedsMinistry of Agriculture and Food, Research Institute of Animal BreedingWithin the funds approved by the ministries
17Subsidizing cooperatives for the purchase of agricultural crop seedsCreating preferential conditions for purchases2026-2030Providing cooperatives with quality seedsMinistry of Agriculture, Ministry of Finance, Department of Agricultural DevelopmentWithin the funds approved by the ministries
18Consultations for cooperatives on fertilizers and veterinary drugsDisseminating information for the development of cooperatives2026Small producers received complete information on the agricultural sectorDepartments and research institutesNo budget funds required
19Attracting international investments and improving the financial and credit mechanism to support cooperativesCreating conditions for developmentConstantlyImproving financing conditions and production volumesMinistry of Agriculture, authorized representatives of the president in the regions, local state administrations, international organizations (by agreement)No budget funds required
20Information and advertising support for regions in creating large cooperativesDisseminating information for cooperativesConstantlyIncreasing awareness among producersAuthorized representatives of the president in the regions, local state administrations, district agricultural development departments, local self-government bodies (by agreement)No budget funds required
21Monitoring new and existing agricultural cooperatives and the support provided to themAccounting for the number of cooperatives and analyzing their activities2026-2030Creating statistical databases on cooperativesRelevant government bodies, authorized representatives of the president in the regions, local state administrations, district agricultural development departments, local self-government bodies (by agreement)No budget funds required
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