The Kyrgyz Republic : Farm Mechanization and Agricultural Productivity

This policy note reviewed the status of farm machinery in the Kyrgyz Republic. Agricultural productivity, particularly in terms of grain yields, is low because of underinvestment. This note finds that a significant deficit in agricultural machinery is hindering sector productivity. The Kyrgyz Republic has fewer tractors per hectare than any comparable country, with a deficit estimated at 40 percent. The deficit of combine harvesters, estimated at 45 percent, is even more critical. When the age of agricultural machinery is taken into account, the underinvestment becomes even more acute. The reduced domestic production of wheat exacerbates food security concerns. Inadequate access to credit and small farm size are the main factors that constrain farm mechanization. The policy note presents three sets of short- to medium-term policy options to: i) promote the demand for farm machinery, by developing credit lines for agricultural productive assets, leasing, facilitating access to secondhand equipment, and testing/demonstrating the efficiency of farm machinery for small-scale farming; ii) increase the supply of farm machinery, by facilitating the development of mechanical services contracting and improving access to farm machinery import markets, including for second-hand equipment; and iii) remove obstacles to private investment, by avoiding distributions of farm machinery or inputs in-kind, the setting of production targets for specific crops, and ensuring that the private sector is free to fulfill its role.

Bibliographic Details

Main Authors:	Guadagni, Maurizio, Fileccia, Turi
Language:	English en_US
Published:	World Bank, Washington, DC and FAO, Rome 2009-12
Subjects:	ACCESS TO CREDIT, ADVISORY SERVICES, AFFORDABILITY, AGRARIAN REFORM, AGRIBUSINESS, AGRICULTURAL BUSINESS, AGRICULTURAL COOPERATIVES, AGRICULTURAL CREDIT, AGRICULTURAL CROPS, AGRICULTURAL INPUTS, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTS, AGRICULTURAL SECTOR, AGRICULTURAL TRADE, AGRICULTURE ORGANIZATION, AMOUNT OF CREDIT, ANIMALS, AVAILABILITY OF CREDIT, BAKERY PRODUCTS, BANK LOANS, BANK MANAGEMENT, BANKS, BARLEY, BEANS, BERRIES, BORROWING, BUSINESS ACTIVITY, BUSINESS PLAN, CAPITAL INVESTMENT, CAPITAL MARKETS, CASH CROPS, CASH FLOW, CC, CEREAL VARIETIES, CEREALS, CLIMATIC CONDITIONS, COLLATERAL, COLLATERAL REQUIREMENTS, COMMERCIAL BANKS, COMMERCIAL FARMERS, COMMODITY, CONSTANT YIELDS, CONSUMER CREDIT, CONTRACT FARMING, COOPERATIVE CREDIT, COOPERATIVES, COTTON, CREDIT BANK, CREDIT COOPERATIVE, CREDIT COOPERATIVES, CREDIT CRUNCH, CREDIT LINE, CREDIT LINES, CREDIT PORTFOLIO, CREDIT UNION, CREDIT UNIONS, CREDITS, CROP, CROP PROFITABILITY, CROPPING, CROPPING INTENSITY, CROPPING PATTERNS, CROPPING SYSTEMS, CROPS, CULTIVARS, CULTIVATION, DEBT, DEBT REPAYMENT, DEBTS, DEFAULTER, DEFAULTERS, DEFICITS, DEPOSITS, DEVELOPMENT BANK, DRAINAGE, EQUIPMENT, EQUITY INVESTMENTS, FAMILY LABOUR, FAO, FARM ENTERPRISES, FARM IRRIGATION, FARM MACHINERY, FARM PRODUCTIVITY, FARMER, FARMERS, FARMING, FERTILIZER, FERTILIZER USE, FERTILIZERS, FINANCE COMPANIES, FINANCIAL ANALYSIS, FINANCIAL CAPACITY, FINANCIAL COSTS, FINANCIAL CRISIS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENT, FINANCIAL INTERMEDIARY, FINANCIAL RESOURCES, FINANCIAL SAVINGS, FINANCIAL SERVICES, FIXED ASSETS, FLOUR, FODDER CROPS, FOOD PRODUCTS, FOOD SECURITY, FOREIGN CURRENCY, FRUITS, GARDENS, GENETIC RESOURCES, GOVERNMENT FUNDING, GOVERNMENT INTERVENTIONS, GOVERNMENT SUBSIDIES, GRAIN, GRAIN HARVEST, GRAIN PRODUCTION, GRAIN QUALITY, GRAIN RESERVES, GRAIN STORAGE, GRAIN TRADE, GRAIN YIELDS, GRAINS, GROSS DOMESTIC PRODUCT, HARVESTERS, HARVESTING, HARVESTS, HAY, HIGH INTEREST RATES, HOUSEHOLDS, INCOME TAXES, INDEMNITY PAYMENT, INPUT PRICE, INPUT PRICES, INSURANCE, INTEREST PAYMENTS, INTEREST RATE, INTERNAL RATE OF RETURN, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCE, INVESTING, INVESTMENT PLANS, INVESTMENT RESOURCES, LAND REFORM, LEASE AGREEMENT, LEASE AGREEMENTS, LEGUMES, LENDERS, LENDING CONDITIONS, LENDING PORTFOLIO, LIMITED ACCESS, LIMITED ACCESS TO FINANCE, LIQUIDITY, LOAN, LOAN PORTFOLIO, LOAN REPAYMENTS, LOAN SIZES, LOANS TO FARMERS, LONG-TERM FUNDING, LONG-TERM INVESTMENTS, LONG-TERM LENDING, LONG-TERM LOANS, MAIZE, MARKET DEVELOPMENTS, MARKET ECONOMY, MARKET INTEREST RATES, MARKET PRICES, MATURITY, MATURITY PERIODS, MEAT, MELONS, MFI, MFIS, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTION, MICROFINANCE INSTITUTIONS, MORTGAGES, MOVABLE ASSETS, NATIONAL BANK, OIL CROPS, OPERATIONAL COSTS, ORCHARDS, OUTSTANDING LOAN, OUTSTANDING LOANS, PERENNIALS, PLANT PROTECTION, PRICE CHANGES, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRODUCE, PRODUCTION COSTS, PRODUCTION METHODS, PROFITABILITY, PUBLIC FUNDS, RATES OF RETURN, RECYCLING, REPAYMENT, REPAYMENT PERIOD, REPAYMENT PERIODS, REPAYMENT RATES, REPOSSESSION, RETURNS, REVOLVING FUNDS, RISK AVERSION, RURAL FINANCIAL INSTITUTIONS, SAVINGS, SEED, SEED INDUSTRY, SEED TREATMENT, SEEDBED PREPARATION, SEEDING MACHINES, SEEDS, SMALL FARM, SMALL FARMERS, SMALL FARMS, SOIL FERTILITY, SOIL TYPES, SOWING, SOYBEAN, SPRING, SPRING WHEAT, STATE SUPPORT, SUNFLOWER, TAX, TAX BURDEN, TAX CODE, TAX EXEMPTION, TAX EXEMPTIONS, TAX INCENTIVES, TAX LEGISLATION, TAX RATES, TECHNICAL ASSISTANCE, TILLAGE, TOMATOES, TRADE BALANCE, TRADING, TRADITIONAL LOANS, TRANCHE, TRANCHES, TRANSACTION, TRANSACTION COSTS, VEGETABLES, VILLAGE, WHEAT, WINTER WHEAT, WORKING CAPITAL, YIELD INCREASE,
Online Access:	http://documents.worldbank.org/curated/en/2009/12/11954724/kyrgyz-republic-farm-mechanization-agricultural-productivity https://hdl.handle.net/10986/19476
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