Uzbekistan introduces new initiatives to grow high-yield crops on homestead and farm lands — Daryo News

Uzbekistan introduces new initiatives to grow high-yield crops on homestead and farm lands

Over the past 7 years, a total of UZS 2.3 trillion ($177.7mn) in preferential loans and UZS 265bn ($20.5mn) in subsidies have been provided to support homesteaders and peasant farms. This financial backing has significantly contributed to increasing agricultural productivity, and now, new initiatives are set to further elevate the sector by fostering high-yield crop production on homesteads and leased arable lands.

 

On January 30, President Shavkat Mirziyoyev presided over a meeting outlining a comprehensive system for growing profitable crops, emphasizing the need to optimize agricultural land for greater economic benefit. Over 5mn households currently manage more than 500,000 hectares of homestead land, and the government aims to transform these spaces into powerful economic assets that will provide jobs and boost income levels.

The government’s support has helped local farmers enhance their agricultural practices. Modern farming techniques have resulted in a dramatic increase in crop yields, with average production per hectare doubling from 18 tons to 38 tons. Across numerous regions, such as Asaka, Shakhrisabz, and Yangiyul, residents are now harvesting multiple times a year, generating substantial income—up to UZS 20mn ($1,545) per hectare.

To take this progress to the next level, President Mirziyoyev introduced several new initiatives to improve crop production. These include the establishment of a specialized council for peasant farms and homesteads, which will oversee everything from providing seeds and seedlings to facilitating processing and export activities. A new holding company, Uzagrostar, will manage these efforts, with specialized fruit and vegetable growing companies established in 15 driver districts. These companies will receive significant financial support, including UZS 20bn ($1.5mn) each from the state budget and $10mn from banks.

In an effort to modernize the sector, a new system will be implemented to support high-yield crops. A “digital marketplace” will connect farmers with buyers, allowing for smoother transactions between producers, processors, and exporters. Additionally, the government has introduced measures such as preferential loans without collateral, grants for exemplary projects, and subsidies for export-oriented production.

 

To further support the sector, over UZS 5 trillion ($386mn) will be allocated to finance food production on household plots. Investments will include refrigerated warehouses, greenhouses, and processing facilities, which will be made available to farmers with flexible payment plans. Furthermore, incentives will be provided to farmers who efficiently utilize their land, with tax breaks for those who earn over UZS 5mn ($386) per hectare.

The government has also addressed long-standing issues in agricultural land leasing. With 3,300 hectares of land now available for lease under a new procedure, the focus will be on analyzing soil quality and water availability to ensure efficient use of resources. Furthermore, a focus on domestic potato production will help eliminate the reliance on imports, with plans for a national initiative to create high-yielding potato varieties adapted to local conditions.

These initiatives are expected to employ 1.5mn people and continue to improve Uzbekistan’s agricultural landscape. By introducing modern technologies, increasing access to resources, and fostering market connections, the country is making strides toward sustainable agricultural growth and food security.

 

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