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

Сергей Мацера Exclusive
VK X OK WhatsApp Telegram
- The Cabinet of Ministers approved a plan aimed at creating agricultural cooperatives and providing them with financial support. The corresponding order was signed on March 5, 2026.

This document became part of the implementation of the presidential decree aimed at developing the agro-industrial sector, supporting the consolidation of small producers, modernizing the industry, increasing agricultural production volumes, and ensuring food security.

According to the new order, authorized representatives of the president in the regions, local state administrations, and local self-government bodies have been tasked with organizing the creation of at least one large agricultural cooperative in each district.

The plan includes the development of business plans for cooperatives, taking into account the climatic and geographical conditions of each region, providing underproductive pastures for up to 20 years after changing the land use designation, ensuring irrigation water, as well as restoring and constructing reservoirs and other hydraulic structures.

In addition, measures are provided for financing cooperatives through state programs, banks, and regional funds, simplifying lending conditions, as well as the possibility of providing guarantees in case of insufficient collateral. It is also planned to introduce a flexible loan repayment schedule and leasing of agricultural machinery on preferential terms.

The plan includes financing cooperatives through international financial projects. In particular, it concerns the projects "Comprehensive Improvement of Dairy Sector Productivity" for $30 million, "Development of Sustainable Agro-Food Clusters" for $35 million, and "Development of Climate-Resilient Value Chains in Agriculture" for $40 million.

Among other measures, support for cooperatives with fuel, fertilizers, seeds, and breeding stock, as well as consulting, informational, and advertising assistance is provided.

State bodies involved in the implementation of the plan are required to provide reports on its progress every six months. Consolidated information will be sent to the Presidential Administration.

Plan
NoTasksActivities/ActionsImplementation PeriodExpected ResultsResponsible ExecutivesFunding Sources
1Creation of united agricultural cooperatives and associations of small producers producing "one bulk product" at the level of one village in each district, assistance in their registrationExpanding opportunities for forming pilot large agricultural cooperativesThroughout 2026Large agricultural associations established in each district of the republic, quality agricultural products produced in large volumesPresidential Administration in the regions, local state administrations, local self-government bodies (by agreement), Ministry of AgricultureCooperatives' own funds, district development funds
2Assistance in developing business plans for united agricultural cooperatives, considering the geographical and climatic features of the region and financial resourcesCreation of technical and economic indicators for cooperative development2026Directions for cooperative development identified and corresponding action plan formedLocal state administrations, Ministry of Agriculture, local self-government bodies (by agreement)Cooperatives' own funds
3Provision of underproductive pastures to large agricultural cooperatives for agricultural activities for up to 20 yearsEffective use of agricultural land2026-2030Large associations provided with land resources for agricultural productionLocal state administrations, Ministry of Agriculture, local self-government bodies (by agreement), Land AgencyCooperatives' own funds
4Provision of irrigation water to united agricultural cooperativesDevelopment of measures to ensure irrigation of sown areas2026-2030Cooperatives fully provided with irrigation waterWater Resources Agency, Ministry of Agriculture, local self-government bodies (by agreement)Budget funds and payments for irrigation
5Construction and restoration of reservoirs, canals, and other hydraulic structures for rational use of water resourcesCarrying out construction and restoration works on reservoirs2026-2030Irrigation systems restored, water resources used effectivelyWater Resources AgencyWithin the funds allocated for the respective years
6Creation of infrastructure for cooperatives, provision of electricity, and leasing of unused facilitiesExpanding opportunities for effective use of facilities2026-2030Conditions created for cooperative production growth, infrastructure improvedLocal state administrations, local self-government bodies (by agreement)Cooperatives' own funds
7Financing of united producers through state projects and development fundsCreating conditions for cooperatives to obtain financial resources2026-2030Cooperatives provided with state loans and benefitsAiyl Bank (by agreement), Eldik Bank (by agreement), regional development fundsState funds, bank funds, and subsidies
8Simplification of lending conditions for agricultural cooperatives and financing based on business projects without considering the personal obligations of cooperative membersSimplification of lending requirements2025-2026Improved conditions for obtaining preferential loansMinistry of Agriculture, Aiyl Bank (by agreement), Eldik Bank (by agreement)Repayable loans
9Provision of collateral when obtaining preferential loans for land and property of cooperatives in accordance with the lawProviding collateral for obtaining loans2025-2026Conditions created for obtaining preferential loansAiyl Bank (by agreement), Eldik Bank (by agreement)Does not require budget funds
10Provision of guarantees for cooperatives in case of insufficient collateralGuarantee when obtaining preferential loans2026-2030Conditions created for obtaining preferential loansGuarantee Fund (by agreement)Funds from the Guarantee Fund
11Introduction of a flexible loan repayment schedule depending on the seasonality of productionDevelopment of a mechanism for flexible loan repayment2026-2027Conditions created for the development of cooperativesAiyl Bank (by agreement), Eldik Bank (by agreement)Does not require budget funds
12Leasing of agricultural machinery on preferential terms for cooperativesCreating conditions for obtaining preferential loans and increasing production2026-2030Conditions improved, modern agricultural machinery providedAiyl Bank (by agreement), Eldik Bank (by agreement)Budget funds and bank funds
13Financing cooperatives through the project "Comprehensive Improvement of Dairy Sector Productivity"Creating favorable conditions for financing2026-2030Cooperative bases strengthened, production volumes increasedCenter for Competitiveness in AgribusinessWorld Bank funds
14Financing cooperatives through the project "Development of Climate-Resilient Value Chains"Creating conditions for financing2026-2030Increased volumes and quality of productsRegional Development AgencyAsian Development Bank funds
15State provision of cooperatives with fuel and fertilizers at reduced pricesCreating conditions for production development2026-2030Cooperatives provided with quality and cheap fuelMinistry of Agriculture, State Fuel and Material ReserveWithin the funds allocated for the respective years
16Provision of cooperatives with breeding animal seeds for livestock breedingCreating conditions for cooperative development2026-2030Cooperatives provided with quality seedsState Veterinary and Breeding Service, Research Institute of Animal HusbandryWithin the funds allocated for the respective years
17Subsidization of cooperatives for the purchase of agricultural crop seedsCreating favorable conditions for seed procurement2026-2030Cooperatives provided with quality seedsMinistry of Agriculture, Ministry of Finance, Department of Agricultural DevelopmentWithin the funds allocated for the respective years
18Consultations for cooperatives on fertilizers and modern technologiesDissemination of information for cooperative development2026Small producers received necessary informationDepartments and research institutesDoes not require budget funds
19Attracting investments from international donors to support cooperativesCreating conditions for developmentConstantlyImproved financing conditions and production volumesMinistry of Agriculture, Presidential Administration in the regions, international organizationsDoes not require budget funds
20Information support for the creation of large cooperativesDissemination of information for cooperativesConstantlyIncreased awareness among producersPresidential Administration in the regions, local state administrations, Ministry of Agriculture, local self-government bodiesDoes not require budget funds
21Monitoring of created and active agricultural cooperatives and their supportAccounting for the number of cooperatives and monitoring their activities2026-2030Statistical databases on cooperatives createdRelevant state bodies, Presidential Administration in the regions, local state administrations, Ministry of Agriculture, local self-government bodiesDoes not require budget funds
VK X OK WhatsApp Telegram

Read also: