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AGRICULTURE > About Agriculture About AgricultureRural Development Fund is involved in applied research related to various aspects of rural development, including agriculture.
Agriculture plays an important role in country's economy. It comprises 35.3% of the total GDP and occupies 55% of the total labor force (2007). Only about 7% of the total land area is used for crop cultivation, and 85% of the agricultural land is used as pastures for livestock. Because of the geographic and terrains specifics of Kyrgyzstan, animal husbandry remains a significant part of the agricultural economy.
Output of Agriculture, forestry, hunting services by regions
To download the table with informtation about all oblasts in RDF format, please follow the link(216 Kb).
Fifty two percent (52%) of the total labor forces in the Republic work in agriculture sector, and the share of the agriculture is 38.2% of the GDP. More than two thirds of the total population of the country live in rural area, which the main source of household income comes from the agriculture sector; out of that more than 50% live under the poverty line.
Agriculture was one of the first sectors which underwent reforms, starting from early 1990s.
Land reform Kyrgyz land reform program was the most important policy change ensuring first food security and later productivity of the farm economy. Land privatization has started in the mid 90s with the introduction of long term leases and later with the full ownership of land shares in 1999. By 2002, the transfer from state farms and agricultural cooperatives to peasant farmers was largely complete. Almost all arable land (except 25% of land which was left in the state owned and managed by local government Land Redistribution Fund (LRF) was transferred into private ownership.
Irrigation Irrigation is critical to crop production, with over two-thirds of arable land dependent on irrigation systems. Significant donor-supported investments during the latter part of 1990s helped to rehabilitate parts of the aging and poorly maintained infrastructure.
Prices, marketing, trade and taxes Agricultural prices and marketing were largely liberalized in the early 1990s, and budgetary subsidies have fallen over time. The major remaining policy-related distortions relate to tax policy. Most of agricultural farming entities are only lightly taxed. Unified land taxes were introduced in 1997 and are reviewed on an annual basis. Medium and large agri-business and agro-processing enterprises, however are subject to enterprise taxation.
Rural finance A large number of non-bank financial institutions have emerged since 1997. These provide most of the credit to agriculture and their agricultural portfolios continue to expand following the enactment of defining legislation in 1999 and 2002. Many of these non-bank financial institutions are regarded as success stories in the region. Among those is the Kyrgyz Agricultural Finance Corporation (KAFC) which primarily lend to agriculture, however its ability to expand operations depends on ability to access additional capital. Government has played a constructive role in gradually improving the legal framework for private lending, including a Pledge Law that improves the incentives of the lenders to hold real estate and moveable assets as collateral.
RDF Research studies Several studies conducted by the RDF have direct or indirect connection to the agricultural production. Land reform ensures basis for production. Study of institutions and institutional development in rural areas provide better understanding of potentials and bottlenecks in agricultural development. RDF conducted a study on various rural institutions, including the assessment of the Rural Advisory Services, drinking water users's associations.
RDF conducted a rapid survey on public awareness on Avian Influenza. The Kyrgyz Government has been pro-actively working on preparedness for a possible outbreak with the assistance of donors such as the World Bank, UNDP, and WHO. It was the first in Central Asia, and one of the first in the former Soviet Union, to develop and adopt a comprehensive National Action Plan (January, 2006). |
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Rural Development Fund 102-104, Toktogul Street, Office 1 Bishkek, 720040, Kyrgyz Republic Phone: +996 (312) 976 100 Fax: +996 (312) 976 103 E-mail: general@rdf.in.kg |
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