Uzbekistan to link agricultural subsidies to yields and water savings

Uzbekistan plans to reform its state support system for farmers and gradually shift from cost compensation to so-called performance-based subsidies. From 2027, the level and continuation of support are expected to be linked to specific farm efficiency indicators.

The main criteria will include yields, water and energy savings, and output per unit of resources used. Data will be collected automatically from government information systems, while each subsidy recipient will have an electronic profile allowing results to be monitored online.

The new model will first be tested in water-saving technologies. For two to three years after receiving a subsidy, authorities will assess water use, yields and water-use efficiency. If the required indicators are not met, a mechanism for returning subsidy funds may be applied.

At the same time, the government plans to expand agricultural insurance. In 2027, the target is to cover 45 thsd agricultural enterprises, increase insurance coverage of agricultural production to 60%, and fully digitalize insurance services.

Greater emphasis will also be placed on risk prevention rather than only compensating losses. Part of insurance premiums is proposed to be directed toward vaccination, veterinary and preventive measures, as well as biological protection in cotton and grain production.

Tags: subsidies, Uzbekistan