Agricultural subsidy and insurance systems to be improved
Uzbekistan
President Shavkat Mirziyoyev reviewed proposals to improve subsidy and insurance systems in the agricultural sector.
In recent years, the scope of state support for agriculture has expanded, and subsidy allocation processes are being gradually digitized. This year, the number of subsidy categories and specific types in the sector has reached 29 and 91, respectively, with 2.7 trillion soums allocated for these purposes. For several areas, applications are now generated proactively, and payment processing times have been significantly reduced.
During the presentation, it was noted that subsidies should not merely compensate for costs but also be linked to the achievement of specific results. A proposal was made to transition—in stages, starting next year—from a "fund allocation" model to a "performance-based subsidy" model.
Under the new system, key criteria will include crop yields, water and energy savings, and output volume per unit of input. Data will be retrieved automatically—without human intervention—from the information systems of relevant government agencies and organizations. An electronic profile will be created for each subsidy recipient, and results will be monitored in real time.
Initially, this mechanism will be piloted in the adoption of water-saving technologies. Water consumption, crop yields, and water-use efficiency will be evaluated for two to three years following the subsidy grant. Failure to meet established targets will trigger a subsidy repayment mechanism. This approach aims to ensure the targeted and efficient use of state funds.
Particular attention was also paid during the presentation to improving the agricultural insurance system. Currently, many processes have been digitized through the "Agrosafe" information system—ranging from the submission of electronic applications and the execution of contracts and policies to monitoring, expert assessment, and the payment of insurance claims.
Plans are in place to expand insurance coverage to include saplings and trees in orchards and vineyards, imported livestock, and risks associated with accidental incidents. Furthermore, new insurance products will be introduced for livestock farming and the cultivation of melons, potatoes, and onions.
The goal for 2027 is to provide insurance coverage to 45,000 agricultural enterprises, raise the insurance coverage rate for agricultural produce to 60 percent, train 500 independent experts, and fully digitize insurance services.
Under this new approach, priority will be given to risk prevention alongside compensation for damages. It has been proposed to allocate 3–5 percent of insurance premiums to a special fund and use these resources for livestock vaccination, preventive care, and veterinary services; biosecurity measures in cotton and grain farming; and the installation of natural disaster protection systems in orchards and vineyards.
The Head of State emphasized that subsidy and insurance systems must, above all, be simple and convenient for farmers, and that state funds should be directed toward achieving tangible results. Instructions were issued to minimize the human factor, ensure process transparency, guarantee fair assessment of insurance claims, and ensure prompt payment of compensation.
Officials have been instructed to finalize the proposals and submit drafts of the relevant legal acts.
During the presentation, it was noted that subsidies should not merely compensate for costs but also be linked to the achievement of specific results. A proposal was made to transition—in stages, starting next year—from a "fund allocation" model to a "performance-based subsidy" model.
Under the new system, key criteria will include crop yields, water and energy savings, and output volume per unit of input. Data will be retrieved automatically—without human intervention—from the information systems of relevant government agencies and organizations. An electronic profile will be created for each subsidy recipient, and results will be monitored in real time.
Initially, this mechanism will be piloted in the adoption of water-saving technologies. Water consumption, crop yields, and water-use efficiency will be evaluated for two to three years following the subsidy grant. Failure to meet established targets will trigger a subsidy repayment mechanism. This approach aims to ensure the targeted and efficient use of state funds.
Particular attention was also paid during the presentation to improving the agricultural insurance system. Currently, many processes have been digitized through the "Agrosafe" information system—ranging from the submission of electronic applications and the execution of contracts and policies to monitoring, expert assessment, and the payment of insurance claims.
Plans are in place to expand insurance coverage to include saplings and trees in orchards and vineyards, imported livestock, and risks associated with accidental incidents. Furthermore, new insurance products will be introduced for livestock farming and the cultivation of melons, potatoes, and onions.
The goal for 2027 is to provide insurance coverage to 45,000 agricultural enterprises, raise the insurance coverage rate for agricultural produce to 60 percent, train 500 independent experts, and fully digitize insurance services.
Under this new approach, priority will be given to risk prevention alongside compensation for damages. It has been proposed to allocate 3–5 percent of insurance premiums to a special fund and use these resources for livestock vaccination, preventive care, and veterinary services; biosecurity measures in cotton and grain farming; and the installation of natural disaster protection systems in orchards and vineyards.
The Head of State emphasized that subsidy and insurance systems must, above all, be simple and convenient for farmers, and that state funds should be directed toward achieving tangible results. Instructions were issued to minimize the human factor, ensure process transparency, guarantee fair assessment of insurance claims, and ensure prompt payment of compensation.
Officials have been instructed to finalize the proposals and submit drafts of the relevant legal acts.
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