This year, the food corporation will finance farmers under two schemes: as part of the forward purchase of agricultural products and by providing targeted commodity loans. This was reported in the press service of the Corporation.
This year, the volume of financing for the forward purchase of grain and oilseeds will amount to 20 billion tenge, excluding the amount of the surcharge paid after the delivery of agricultural products.
The amount of advance payment for agricultural products for forward purchase for 2023 will be:
- soft and hard wheat - 70,000 tenge with VAT (62,500 without VAT);
- barley - 50 000 tenge with VAT (44 640 without VAT);
- buckwheat and sunflower - 100,000 tenge with VAT (89,280 tenge without VAT);
- oilseed flax and rapeseed - 90,000 tenge with VAT (80,350 without VAT).
The calculation of the amount of financing at the conclusion of a forward purchase agreement is made from the ratio: one ton of agricultural products to 1.5-2 hectares of acreage, minus the acreage declared when receiving financing under other programs of the Corporation.
The amount of advance payment under the contracts will be paid after the SEC or STB guarantee is provided, and the surcharge will be paid in the autumn period after the delivery of agricultural products.
The deadlines for the fulfillment of obligations under forward purchase agreements are as follows:
- for the supply of soft wheat (Triticum aestivum L.), hard wheat (Triticum durum Desf.), barley, buckwheat, oilseed flax seeds, rapeseed – until November 1, 2023 inclusive;
- for the supply of sunflower – until November 15, 2023 inclusive
In order to ensure a fair distribution of funding, all applications of potential participants in the 2023 Forward Purchase Program will be sent for approval to the Coordinating Councils under the akimats of the regions.
Forward purchase contracts will be concluded with manufacturers who have fulfilled their obligations under the contracts of 2021-2022 and have no debts to the Corporation as of January 1, 2023.
In addition, the Food Corporation will begin issuing a targeted commodity loan, due to which farmers will receive grain from the Corporation for further sale. Farmers should use the proceeds to carry out sowing operations. The issuance of a commodity loan is carried out under the guarantees of the SEC and the STB.
"Commodity credit is provided to agricultural producers at the rate of one ton of agricultural products to 1.5 hectares of acreage, minus the acreage declared when receiving financing under other programs of the Corporation. The terms of repayment of the commodity loan are until November 1, 2023. The amount of commission in kind for the use of a commodity loan will be established by the contract depending on the period of use," the Food Corporation explained.
The volume of the commodity loan will be determined based on the number and volume of applications submitted.
To conclude a forward purchase agreement or obtain a commodity loan, you must submit an application together with supporting documents to the regional representative offices of the Food Corporation.