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The mechanism of support of personal part-time farms and agricultural cooperatives

(Information for the briefing MA RK August 3, 2017.)

In accordance with the January Message of the Head of State N.A. Nazarbayev to the people of Kazakhstan, The government and oblast akims were instructed to «within five years to create all conditions for the unification of more than 500,000 households and small farmers in cooperatives».

Work on the creation and financing of agricultural cooperatives was started at the end of last year. To this end The Ministry of Agriculture and the Fund for Financial Support of Agriculture Financial Support Fund of Agriculture developed special financing programs aimed at combining small-scale farms and developing agricultural cooperatives.

In general, it is planned to allocate 41 billion tenge for the financing of rural residents and agricultural cooperatives through the Fund for Financial Support of Agriculture this year.

With the direct participation of the Fund, 386 cooperatives were created (including 165 milk products, 182 meat products, 35 mixed products, 4 other lines). These cooperatives combined 13,000 personal part-time farms.

To date, 147 cooperatives have received financing for the amount of 1.2 billion tenge, 3.5 thousand participants of cooperatives were credited for a total of 10.3 billion tenge.

In general, the amount of financing from the Fund's own funds amounted to 16.6 billion tenge.

In addition, funding is provided for the Program for the Development of Productive Employment and Mass Entrepreneurship. For today within the framework of this program in the form of microcredits the rural population has placed 11 billion tenge.

Thus, the amount of financing of projects for the development of agricultural cooperatives as a whole for the Fund exceeded 26 billion tenge.

Funds are allocated by the Fund through programs «Yntymak», «Bereke», «Igilik», «Yrys». With the help of the Fund's loan funds, for 7 months of this year, 92 milk reception centers, 22 slaughter stations, about 3,000 small feeding grounds for 44,000 heads, 1,200 family dairy commodity farms.

Funding continues. For today the largest sums are mastered in Aktyubinsk, Karaganda, South-Kazakhstan regions.

To facilitate the collateral load, the Ministry of Agriculture approved the mechanism developed by the fund, in which the property taken at the expense of credit funds is accepted as a pledge. This mechanism is used when purchasing modular equipment for milk receiving and slaughtering stations, and from July - when buying milk trucks and refrigerators.

It is necessary to take into account that at the same time the state pays half of the cost of modular equipment / equipment by subsidizing investment costs of the cooperative.