Baiterek Holding helps Kazakhstan’s farmers to succeed

As Zakon.kz reports, Baiterek Holding is taking various measures to support agricultural manufacturers.

Near Nur-Sultan, a specialized exhibition called "Kazakhstan Field Day "Jana Dala / Green Day 2022" is being held. The exhibition showcases up-to-date agricultural technologies, high-performance equipment, and major achievements in cattle and plant breeding. It is also a place where domestic and foreign farmers can meet and exchange their experience and knowledge.

Baiterek National Managing Holding and its subsidiaries – the Agrarian Credit Corporation and KazAgroFinance – take part in the exhibition too.

– We’re consulting visitors about the financial support that we provide to farmers. We have several financial support programs for agribusinesses: micro-crediting, credits for spring field and harvesting works, and so on. Agricultural manufacturers are aware of them all; they are willing to apply for financing. Our financial institutions – KazAgroFinance and the Agrarian Credit Corporation – are aimed at helping our farmers so that they have favorable financing conditions, – said Niyaz Koshkimbayev, Managing Director of Baiterek Holding.

According to him, the Holding’s main task is to fund Kazakhstani farmers.

– Loans have become more affordable for farmers because the government subsidizes the remuneration rate. Most loans are long-term. Moreover, we accept rural property as collateral. Earlier, submitting collateral used to be hard for our farmers. We are willing to take some risks to help farmers, – stated Niyaz Koshkimbayev.

He also noted that more and more farmers apply for loans in recent years. The Holding’s subsidiaries have received 3.5 thousand applications for financing for spring field and harvesting works.

Thanks to the Holding’s help, farmers are able to cultivate more land. Last year 3.3 million hectares were cultivated. In 2022, the amount of land rose to 4.5 million.

– This year, we plan to allocate 140 billion tenge. The budget has provided us with 70 billion tenge for the financing of spring field and harvesting works. Then 70 billion tenge was additionally allocated for these purposes. Thus, the amount of funding has doubled this year. In the second half of the year, we expect farmers to still apply for financial support because they will need money for sowing winter crops and growing early vegetables. There is another innovation. All loans issued in spring must be repaid until March 1 of next year. Earlier, all loans were to be repaid before December 1. Thanks to the extension of the loan term, farmers can sell their crops at a more favorable price without hurrying.

According to Niyaz Koshkimbayev, farmers usually take loans for spring field works and construction of dairy farms, meat feedlots, greenhouses, granaries, vegetable storages, gardens, etc.

– Farmers from all regions are being issued credits. Each regional center has its own branch of the Agrarian Credit Corporation and KazAgroFinance. The Agrarian Credit Corporation is focused on issuing loans to agricultural manufacturers. In the first half of 2022, the corporation allocated 182.5 billion tenge to finance about 7 thousand farmers. By the end of 2022, the corporation plans to allocate 330 billion tenge for financing farmers, – added Niyaz Koshkimbayev.

In general, the corporation issued 57.9 billion tenge worth of loans; 124.6 billion tenge were used to fund financial institutions.

In addition, the Agrarian Credit Corporation provides insurance services in agriculture. The corporation insures crops against damage because of heavy rain or drought. There are also multi-risk programs for the insurance of cattle, horses, and poultry. The cost of insurance for farmers is reduced by subsidizing: 50% of the insurance premium is paid by the state.