Assessment of the effectiveness of state aid to agricultural producers

Saule Spatayeva, Laura Alikulova, Zina Shaukerova, Dina Aikupesheva, Aigul Akhmetova

2025

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DOI 10.48077/scihor6.2025.165
Data confidence 70 medium
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Abstract

The purpose of this study was to identify the key factors influencing the effectiveness of state support for agricultural producers in Kazakhstan, as well as to assess its influence on the development of the agro-industrial complex. The study employed methods of systematic analysis and comparative assessment, which helped to identify the specific features of state support for agricultural producers, determine its impact on the economic development of the agro-industrial complex, and the validity of the allocation of budget resources. The analysis found that the total amount of budget funds allocated to support agriculture in Kazakhstan increased from KZT 300 bn in 2015 to KZT 750 bn in 2024, with the share of subsidies growing from KZT 150 bn to KZT 410 bn. However, most of the funding goes to large agricultural holdings, while small and medium-sized farms face challenges accessing financial and material resources. The analysis revealed that state aid positively influences agricultural productivity growth. For example, grain yields increased from 1.12 t/ha in 2015 to 1.63 t/ha in 2024, while milk production increased from 4.8 mn t to 6.7 mn t. However, the availability of subsidies does not always lead to increased profitability. For example, despite the expansion of preferential lending from KZT 100 bn to KZT 280 bn, small farmers still face excessive costs and challenges in obtaining financial resources. The pace of digitalisation in the agro-industrial complex continues to be insufficient: the introduction of precision farming is limited by a lack of infrastructure and specialists. The experience of the EU, the US, and Australia, where state support stimulates innovative solutions, suggests the need to expand technological modernisation programmes. As a result, the study concluded that subsidies need to be redistributed in favour of small and medium-sized farms, control over the targeted use of funds must be strengthened, and digital technologies must be actively introduced to improve the efficiency of the agricultural sector