03 february 2020
5 min
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Agricultural Machinery Fleet in Kazakhstan

Agricultural Machinery Fleet in Kazakhstan

At the end of last year, the Ministry of Agriculture announced the following figures: depreciation of the agricultural machinery park in Kazakhstan is 76%, most of it has been operating for about 15 years, while on average it should serve 10-12 years. The renewal rate also leaves much to be desired. According to standards 6 to 10 % of agricultural machinery should be renewed annually, while in reality this indicator in our country barely reaches 3 %. This is certainly not enough. Thus, the Kazakh government has set a goal to bring the renewal rate to the desired 6-7%, only then in 10 years the republic will be able to fully renew the majority of agricultural machinery. What is the situation today? Well, it is discouraging. For instance, tractors are renewed by 1.2 percent, combines - 2.8 percent, harvesters - 1.6 percent, and sowing machines do not reach even one percent. Today Kazakhstan agrarians have almost 153 thousand tractors in service, and only 15 percent of them have been in service for no more than 10 years. At that, 85 per cent have served their term and are subject to write-off. A little more than 41 thousand combines work in the fields of the Republic. Only 32 percent of them have not yet served their ten-year term, and 68 percent of domestic harvesters are ready to be sent for scrap. The situation is no better for forage harvesting equipment as well. Its number in the country is almost 67 thousand, but only 11% can be called new, and the rest is long overdue for recycling. However, the most unfortunate situation concerns the soil tillage equipment. There are over 381,000 of them in Kazakhstan. And only 2% of it is new, while 84% is only good for write-off. At the same time, most of the entire fleet of domestic agricultural machinery is concentrated in the main grain-sowing regions of the republic - Akmola, North-Kazakhstan and Kostanay regions. Agricultural Machinery Fleet in Kazakhstan

At the end of last year, the Ministry of Agriculture announced the following figures: depreciation of the agricultural machinery park in Kazakhstan is 76%, most of it has been operating for about 15 years, while on average it should serve 10-12 years. The renewal rate also leaves much to be desired. According to standards 6 to 10 % of agricultural machinery should be renewed annually, while in reality this indicator in our country barely reaches 3 %. This is certainly not enough. Thus, the Kazakh government has set a goal to bring the renewal rate to the desired 6-7%, only then in 10 years the republic will be able to fully renew the majority of agricultural machinery. What is the situation today? Well, it is discouraging. For instance, tractors are renewed by 1.2 percent, combines - 2.8 percent, harvesters - 1.6 percent, and sowing machines do not reach even one percent. Today Kazakhstan agrarians have almost 153 thousand tractors in service, and only 15 percent of them have been in service for no more than 10 years. At that, 85 per cent have served their term and are subject to write-off. A little more than 41 thousand combines work in the fields of the Republic. Only 32 percent of them have not yet served their ten-year term, and 68 percent of domestic harvesters are ready to be sent for scrap. The situation is no better for forage harvesting equipment as well. Its number in the country is almost 67 thousand, but only 11% can be called new, and the rest is long overdue for recycling. However, the most unfortunate situation concerns the soil tillage equipment. There are over 381,000 of them in Kazakhstan. And only 2% of it is new, while 84% is only good for write-off. At the same time, most of the entire fleet of domestic agricultural machinery is concentrated in the main grain-sowing regions of the republic - Akmola, North-Kazakhstan and Kostanay regions.

Leasing will help us

What does the state offer? Leasing. The state has been implementing mechanisms of subsidizing investment and interest rates on leasing of agricultural machinery for many years. Today, the relevant department is implementing a program to subsidize interest rates, which now allows for a reduction of interest rates from 4 to 6% per annum. As a result of this program, the number of applications has increased by almost one and a half times. Moreover, the country has adopted more than one law to develop the agro-industrial complex and leasing in general. Namely, the Law "On state regulation of agro-industrial complex and rural areas", "On financial leasing" and the Code of the Republic of Kazakhstan "On customs affairs in the Republic of Kazakhstan". All this allows Kazakhstan farmers to conduct all leasing procedures quickly and efficiently. In some cases, due to budget programs, supporting domestic agrarians, reimbursement of part of expenses for payment of the interest rate on loans and leasing by the borrower is provided. JSC KazAgroFinance is responsible for leasing in the agricultural sector of Kazakhstan. It accounts for up to 90%. For almost twenty years of the company's activity, Kazakh farmers were able to get almost 50 thousand units of various agricultural machinery and today they work on an area of almost 10 million hectares. The total sum is over 600 billion tenge.

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Photo by 24.kz

In 2019, the local farmers received 5,893 units of various equipment through leasing. These figures are higher by 72% than in the year before last. Specifically, the company "KazAgroFinance" provided farmers 540 combines, 1 713 tractors on preferential terms, in addition, they received 416 sowers, 143 sowing complexes and 3 081 units of other equipment. All this cost 99 billion tenge. If previously, up to 70 percent of the allocated funds for these purposes, mainly went to the purchase of expensive, foreign agricultural machinery, this year the situation has changed. Joint assembly production has been established in Kazakhstan, but it is not operating at full capacity. At the same time, the assembly of tractors and combines accounts for up to 93% of the total domestic assembly production of agricultural machinery, and the mounting equipment - 7%. Of course, domestic manufacturers will not be able to meet all the demand, but the task was completed. Thus, from January to October 2019, 754 tractors, 457 harvesters and 354 grain harvesters were produced in the country. Moreover, last summer during the working visit of the Prime Minister of Kazakhstan Askar Mamin to Moscow, an agreement was reached with the Russian side on the assembly of K-744 harvesters in our country, in Kostanay harvesters are already being assembled. At the same time, 25% subsidy is provided for domestic agricultural equipment, and in some regions, farmers can count on 10% more from the local akimat as well.