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Uzbekistan is set to establish an Agricultural Payments Agency aimed at consolidating 75 existing subsidies

The Agency will integrate 75 subsidy programs into a unified system aimed at reducing administrative bureaucracy. Beginning in 2026, voluntary insurance for cotton, grain, and fruit crop yields will be launched, with 50% of insurance premiums subsidized by the state budget.

Why is this important

The agricultural sector is 20% of GDP, 467 trillion in production, 3.5 million workers, and a third of exports are key sectors. 75 subsidies from various agencies — bureaucracy, red tape for farmers. The Agency will simplify access to state support. Insurance of the harvest with 50% coverage — protection from risks (drought, pests, hail). Mentorship is the increase in the yield of low-yielding crops.

What happened

  • The Payments Agency will combine 75 subsidies into a single platform;
  • From 2026, crop insurance with 50% premium coverage;
  • Mentorship: >60 c/ha teach <30 c/ha, remuneration 5 million;
  • Dual education of agronomists — internships, scholarships;
  • Fitotron, greenhouses for breeding — time reduction by 2.5 times.

Payments Agency

  • The goal is to combine 75 types of subsidies from various agencies (Ministry of Agriculture, Ministry of Finance, local khokimiyats) into a single platform.
  • Why: reduce bureaucracy, red tape — farmers will receive subsidies faster, more transparently.
  • 75 subsidies: for fertilizers, seeds, machinery, irrigation, export, processing, etc.

Harvest insurance

  • Starting from 2026: voluntary insurance of cotton, grain, fruit, and leguminous crops.
  • Coverage: 50% of the insurance premium from the budget — the farmer pays 50%, the state — 50%.
  • Protection: from drought, pests, hail, diseases — compensation for crop losses.

Mentorship

  • Experienced farmers: yield >60 c/ha (centners per hectare) will become mentors for low-yielding farmers (<30 c/ha).
  • Retraining: mentors will take courses at the Advanced Training Institute and receive certificates.
  • Reward: 5 million soums to the mentor if the pupil reaches 50 centners per hectare.
  • Purpose: to increase the yield of low-yielding (30% of farmers <30 c/ha) to 50 c/ha.

Dual education of agronomists

  • Mechanism: graduates of the Agrarian University and universities will undergo a two-year internship in leading clusters and farms.
  • Scholarships: to students during internships.
  • Incentive payments: to specialists who have trained students.
  • Purpose: training practically oriented agronomists.

Cotton selection

  • Fitotron and greenhouses: construction at the Genomics Center, Cotton Research Institute for local variety selection.
  • Result: the time to develop a new variety will be reduced by 2.5 times (from 10-12 years to 4-5 years), and the need for imported seeds will disappear.

Other measures

  • Film-based technology: increasing the scale of cotton cultivation under film — increasing yields, protecting against frost.
  • Agrodrons: expanding their use for spraying, field monitoring, and training specialists.
  • AI and digitalization: introducing artificial intelligence to predict yields, diseases, training personnel with foreign companies.

Agricultural sector

  • 20% of GDP: a key sector of the economy.
  • 467 trillion production: per year.
  • 3.5 million workers: employment.
  • One-third of exports: fresh, processed agricultural goods (cotton, fruits, vegetables).

Yield problem

  • 30% of farmers: yield <30 c/ha — low productivity due to backward technology, weak agronomy, lack of knowledge.
  • Objective: to grow up to 50 centners per hectare through mentorship, training, and advanced technologies.

Context

  • 75 subsidies: various agencies create bureaucracy, red tape — farmers waste time collecting documents, waiting. The agency will simplify access.
  • Harvest insurance: protection from risks (drought, pests, hail) — compensation in case of harvest loss, income stability.
  • Mentorship: 30% of farmers < 30 c/ha — low yields hinder the industry. Experienced farmers (>60 c/ha) train, with a reward of 5 million soums for growth up to 50 c/ha.
  • Dual education: university graduates are often not ready for practical training — internships in clusters will improve their qualifications.
  • Cotton breeding: local varieties are adapted to the climate, resistant to diseases. Fitotron, greenhouses will reduce the time by 2.5 times, reduce dependence on imports.

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