In December 2023, changes were made in Kazakhstan to the Rules for subsidizing investments in the agro-industrial complex regarding the purchase of agricultural machinery, machinery and equipment. In particular, an increased subsidy standard is established for the acquisition by farmers of priority agricultural machinery and equipment (the list of such equipment is determined by the Ministry of Industry). On the contrary, when purchasing imported equipment, support decreases. This was announced by the Minister of Agriculture Aidarbek Saparov, responding to a request from Mazhilis deputies.
According to the minister, in general, the budgets of programs for subsidizing investment costs were increased from 72 billion tenge (in 2022) to 124.4 billion tenge, and subsidizing interest rates on loans and leasing for the purchase of agricultural equipment - from 43.2 billion to 85.2 billion tenge
From 2024, the purchase of priority types of machinery and equipment, including mounted and trailed agricultural machinery, is subsidized at an increased rate of 30%. At the same time, for imported equipment, analogues of which are produced in Kazakhstan, the subsidy standard has been reduced to 15%.
Those types of imported agricultural machinery, analogues of which are not produced in the Republic of Kazakhstan, are subsidized at a rate of 25% with the cost of this equipment being updated.
For specialized equipment for the production and harvesting of sugar beets, potatoes and fruits and vegetables, a subsidy standard of 25% to 50% is provided, regardless of the country of production.
In addition, preferential leasing will be increased.
“This year, measures are being taken to allocate funds from the republican budget for 2024 for further financing of KazAgroFinance JSC in the amount of 100 billion tenge, to finance the lease purchase of agricultural machinery and equipment at a preferential rate for the final borrower of no more than 6%. After carrying out and agreeing on all budget procedures, it is planned to provide financing for preferential leasing of agricultural machinery by the start of mass agricultural work,” said Aidarbek Saparov.
According to the Ministry of Agriculture, today the wear and tear of the machine and tractor fleet in the Republic of Kazakhstan is 76%, which leads to losses in the gross harvest of agricultural crops and additional costs for repairs and fuels and lubricants. At the end of 2023, the level of fleet renewal was 4.5%; on instructions from the president, this figure must be increased to 8-10%.