Kazakhstan Expands Sunflower Area by 31,000 Hectares


Mar 21, 2023 | Agricultural Markets News

Reading time: 2 minutes

The total Grain sown area in the current year in Kazakhstan will amount to 23.4 million hectares, which is 68.6 thousand hectares more than in 2022. It is planned to increase fodder crops — by 36.5 thousand hectares, and Sunflower — by 30.8 thousand hectares. Prime Minister Alikhan Smailov said in late February that 140 billion tenge ($301 million) would be allocated for preferential financing of sowing and harvesting operations in Kazakhstan this year. It also provides 20 billion tenge for forward purchase and 87 billion tenge through subsidies.

“The state support provided requires the fulfillment of certain conditions on the part of farmers. This is strict compliance with agricultural technologies and timely application of fertilizers and plant protection products. I would like to emphasize that the volume of fertilizer application is only 26% of the scientific need. Even our neighbors have much higher indicators. At the same time, there are 12 fertilizer plants operating in Kazakhstan, and the state subsidizes farmers to purchase such products. Therefore, it is necessary to focus on all these productions, first of all, on the domestic market,” the Head of Government said.

According to him, due to insufficient application of mineral fertilizers to the fields, farmers of the Republic of Kazakhstan annually lack about 10 million tons of high-quality Wheat, almost half of the harvest. These are the experts’ estimates. According to the Minister of Agriculture Yerbol Karashukeyev, last year, for the first time in the previous ten years, fertilization reached 667,000 tons or 26% of the demand. About 704,000 tons of fertilizers are planned for this year; 63% are domestic: ammonium nitrate and ammophos.

In the North Kazakhstan region, the total Grain sown area will be 4.5 million hectares. The structure will be distributed as follows: Grains and legumes – 3.2 million hectares, Oilseeds – 964 thousand hectares, and fodder – 353 thousand hectares. It is reported that the Wheat area will be 2.5 million hectares (2.4 million hectares – in 2022). 488.5 thousand tons of seeds were harvested in the North Kazakhstan region.

Grain Insurance in Kazakhstan

Agrarian Credit Corporation (ACC) announced the start of crop insurance against drought and rains in early March. It is noted that the cost of the insurance contract is reduced by 80% due to state subsidies. In the current season, in addition to Grains- Wheat, barley, oats, corn; oilseeds – sunflower, rapeseed, flax; the list of crops subject to insurance includes buckwheat, millet, Grain sorghum, spring triticale, spring rye, soybeans, and safflower.

ACC recalls that insurance contracts against soil moisture deficiency must be concluded for Grain – until April 1 and oilseed – until April 15. The insurance protection period is covered: according to the soil moisture deficiency index (2 phases) – from June 15 to September 15 and the soil moisture deficiency index (3 phases) – from May 15 to September 14, 2023. Insurance contracts against excess moisture in the soil must be concluded before August 1, 2023. The insurance coverage period for this product is from August 15 to October 14, 2023.

The tariffs for index insurance products have changed this year. So, if a farmer has insured a thousand hectares, then after an insurance contract with a cost rate of 50,000 tenge per hectare, the insurance premium will be 1,750,000 tenge (1,000 hectares * 50,000 tenge * 3.5% insurance rate). Of this amount, 1,400,000 tenge is paid by the state in the form of subsidies (80% of the insurance premium). Upon the occurrence of an insured event, the farmer will receive an insurance payment in the amount of 16,500,000 tenge (1000 ha * 50,000 tenge * 33%), which corresponds to the maximum amount of 33% of the insured value.

Other sources: GRAIN UNION

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