Agricultural Policy Monitoring and Evaluation 2025

18. Kazakhstan

Main findings

Support to agriculture

Support to producers as a percentage of Gross Farm Receipts (GFR) in Kazakhstan averaged 10.8% in 2022-24, up from 8.8% in 2000-2002. The share of potentially most distorting support decreased from 95% in 2000-02 to 52% in 2022-24. Market Price Support (MPS, both positive and negative) and payments based on variable input use without constraints dominate this support. On average, domestic producer prices were 3% higher than border reference prices in 2022-24. Positive MPS was estimated to be worth 5% of GFR on average for estimated commodities, and negative MPS worth -3% of GFR; both positive and negative MPS likely have wider market effects on other commodities due to substitution and trade. Single Commodity Transfers (SCT) in 2022-24 were negative for rice, sunflower, maize, and eggs; SCTs with the largest positive transfers were for barley, beef and veal, sheep meat, milk, and wheat, which may partially be explained by input support through for example breeding stock export restrictions and , subsidies for input manufacturers, and import restrictions.

Support based on variable input use and fixed capital formation account for most budgetary transfers to producers. In total, budgetary producer support amounted to about 8% of GFR in 2022-24.

Support to general services (General Service Support Estimate, GSSE) accounted for less than 2% of the value of agricultural production in 2022-24, almost unchanged compared to 2000-02. Spending on inspection and control accounted for about half, and spending on knowledge creation accounted for about one third of GSSE.

Total agricultural support (Total Support Estimate, TSE) declined from 1.7% of Gross Domestic Product (GDP) in the early 2000s to 1% in 2022-24.

Key recent policy changes

In 2024, funding was increased for state support measures and other incentives including enhancing seed sector development, and technological improvements through digitalisation. These changes are reflected in various policy developments particularly by nearly doubling producer support, primarily through concessional loans. These changes follow amendments to the Concept for the Development of the Agro-Industrial Complex of Kazakhstan (2021–2030) (the Concept) that raised the priority of agricultural processing.

In 2024 under the Concept, Kazakhstan modified funding distribution methods for major support programmes such as the Ken Dala-1, Ken Dala-2 and Damu Fund programmes for financing spring fieldwork and harvesting. Increased subsidised loans and loan guarantees were provided through financial institutions to producers, and input subsidies were provided through input manufacturers. Instead of payments to producers individually, funds for mineral fertilisers, pesticides, agricultural machinery are now directed to domestic input manufacturers. The amendments for budgetary support distribution are intended to enhance transparency and simplify access.

In 2024, many policy developments aim to increase productivity by setting strategic targets, expanding support and tightening support conditions. For example, amendments to the Rules on subsidizing the development of pedigree livestock breeding and the Rules on Subsidizing the Costs of Processing Enterprises for Purchasing Agricultural Products for Deep Processing add subsidy requirements for producers to maintain or increase their gross production value. Additionally, labour productivity was targeted through a large-scale programme for leasing domestically produced agricultural machinery launched in 2024.

Some import and export restrictions were extended in 2024. The short-term ban on specific wheat importation methods was extended for six months in April 2024 with additional restrictions on waterborne transport added. The ban was extended again in August 2024 and ended on 31 December 2024. The export ban on cattle and small ruminants breeding stock was extended in October 2024. A six-month export quota for agricultural livestock to third countries and Eurasian Economic Union (EAEU) member states was introduced in June 2023; the quota was renewed in January 2024 for six months and again in October with slight relaxed restrictions.

Assessment and recommendations

• Recent policy developments increasingly included environmental goals into strategies and plans. To fully embed sustainability, further efforts are needed to align instruments by mainstreaming environmental goals into broader agricultural policies. For example, few policy instruments are implemented to support environmental sustainability through trade, though existing strategies and the EU trade agreement offer a foundation for progress.

• Support has increased for some inputs of environmental concern including fossil fuels and fertilisers. However, continued use of such support should consider heterogeneous farm structures and social and environmental conditions and effects including large negative nutrient balances. Additionally, the government could target input use efficiency by further developing and improving services such as soil testing and training to improve the sustainability of farm practices.

• In 2024, input support distribution methods were modified for support to be distributed through financial institutions and input manufacturers. While this method can improve access and reduce the administrative burden of support on producers, support delivered indirectly through third parties is susceptible to leakage and misappropriation. Therefore, the government should ensure strong controls and regularly monitor and evaluate the support programmes to ensure funds reach producers as intended.

• Additionally, the government should conduct periodic evaluations of the competitiveness of domestic agricultural input manufacturers for inputs such as machinery, equipment, livestock breeding stock and seeds. 2024 modifications to some support programmes include conditions for producers to purchase of domestic inputs, which may reduce competitive pressures on domestic input manufacturers. Therefore, sectoral assessments can help determine the state of the sector and could help assess the effects of the support programmes on innovation, competitiveness and program beneficiaries.

• Kazakhstan has made policy progress in 2024 to support modernisation, particularly in key areas such as advanced irrigation technologies, mapping and digitalisation and the renewal of infrastructure and equipment. Ongoing modernisation efforts could further promote climate change adaptation strategies and be integrated into a sectoral approach for risk management.

• In 2024, some instruments added conditions on support requiring farmers to maintain or increase productivity. However, agriculture systems and yields are dependent on many factors including weather, climate and disease for which producers cannot entirely mitigate the risks. Therefore, productivity conditions on support may be perceived by farmers as risky or uncertain, reducing their participation and the attractiveness of measures. Support requirements could be modified to focus on factors contributing to productivity under the control of farmers, enabling farmers to be better able to meet support conditions; for example, these factors could include maintaining soil quality, and maintaining and improving input use efficiency.

• Kazakhstan made progress at the end of 2024 in reducing the most potentially market distorting measure. While various temporary trade restriction measures were renewed in 2024, the temporary restriction on wheat import methods was allowed to expire on 31 December 2024. This measure likely contributed to the very high MPS estimate and represented one of the most significant market distortions in Kazakhstan in 2024. Future efforts should evaluate other temporary trade measures and ensure their removal when they are no longer needed to shelter producers from large market shocks. Additionally, export and import bans could be replaced with tariffs to improve transparency and better facilitate trade negotiations.

Development of support to agriculture

Table 18.1. Kazakhstan: Estimates of support to agriculture

Million USD

	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	3 367	18 291	20 573	16 607	17 693
of which: share of MPS commodities (%)	76.60	60.79	62.07	60.82	59.49
Total value of consumption (at farm gate)	2 933	16 840	18 305	15 434	16 780
Producer Support Estimate (PSE)	292	2 146	1 007	1 652	3 781
Support based on commodity output	272	493	-754	392	1 839
Market price support¹	272	402	-847	285	1 766
Positive market price support	372	993	47	692	2 239
Negative market price support	-100	-591	-894	-407	-473
Payments based on output	0	91	93	107	73
Payments based on input use	20	1 582	1 729	1 179	1 838
Based on variable input use	8	619	331	313	1 213
with input constraints	0	0	0	0	0
Based on fixed capital formation	10	957	1 392	861	616
with input constraints	0	0	0	0	0
Based on on-farm services	2	6	6	5	8
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	33	22	36	40
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	33	22	36	40
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	39	10	44	64
Percentage PSE (%)	8.67	10.77	4.49	9.19	19.18
Producer NPC (coeff.)	1.09	1.03	0.97	1.02	1.12
Producer NAC (coeff.)	1.09	1.12	1.05	1.10	1.24
General Services Support Estimate (GSSE)	67	356	266	287	516
Agricultural knowledge and innovation system	3	125	36	27	312
Inspection and control	29	179	154	216	166
Development and maintenance of infrastructure	28	22	25	34	7
Marketing and promotion	0	4	3	5	3
Cost of public stockholding	5	27	48	5	28
Miscellaneous	1	0	0	0	0
Percentage GSSE (% of TSE)	18.65	13.84	20.52	13.71	11.94
Consumer Support Estimate (CSE)	-316	-344	769	-248	-1 554
Transfers to producers from consumers	-291	-287	739	-196	-1 405
Other transfers from consumers	-21	-177	0	-252	-278
Transfers to consumers from taxpayers	0	67	21	156	22
Excess feed cost	-4	53	9	43	107
Percentage CSE (%)	-10.80	-2.10	4.20	-1.62	-9.27
Consumer NPC (coeff.)	1.12	1.03	0.96	1.03	1.11
Consumer NAC (coeff.)	1.12	1.02	0.96	1.02	1.10
Total Support Estimate (TSE)	359	2 569	1 294	2 095	4 318
Transfers from consumers	312	464	-739	448	1 683
Transfers from taxpayers	68	2 282	2 033	1 899	2 914
Budget revenues	-21	-177	0	-252	-278
Percentage TSE (% of GDP)	1.66	1.01	0.57	0.80	1.53
Total Budgetary Support Estimate (TBSE)	87	2 168	2 141	1 810	2 552
Percentage TBSE (% of GDP)	0.40	0.85	0.95	0.69	0.91
GDP deflator (2000-02 = 100)	100	1 149	1 095	1 203	..
Exchange rate (national currency per USD)	147.38	462.07	460.85	456.24	469.11

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Kazakhstan are: wheat, rice, maize, barley, sunflower, potatoes, cotton, milk, beef and veal, pig meat, sheep meat, poultry and eggs.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

National strategies and plans

The Concept for the Development of the Agro-Industrial Complex of Kazakhstan (2021–2030) (the Concept) sets key policy objectives including increasing yields, livestock farming, water use efficiency, added value in agriculture, export activities and scientific progress in farming. In 2024, amendments to the Concept elevated the priority of agricultural processing by increasing funding for state support measures and other incentives, enhancing seed sector development, and technological improvements through digitalisation. These amendments are reflected in many policy developments.

The Concept of Transition of the Republic of Kazakhstan to the “Green Economy” sets a framework for achieving environmentally sustainable economic growth. The policy was approved in 2013 and focuses on efficient resource management in water, land and biological resources.

The Comprehensive Plan for the Development of Agricultural Processing (2024–2028) adopted in June 2024, targets increased food production and export of processed agricultural products, and reduced import dependence. Key measures under the plan include ensuring raw material availability through subsidies for processed agricultural products and restrictions on raw material exports; enhancing production profitability by providing concessional loans and subsidising interest rates for capital and working capital financing; improving competitiveness of domestically processed products in the domestic market through protective measures, including import restrictions on finished goods; and expanding export potential by opening new markets for processed agricultural products.

Support measures

The largest component of the PSE is support to input use. Producers indirectly receive input support measures for mineral fertilisers, pesticides, agricultural machinery, and equipment. Manufacturers and financial institutions are subsidised rather than producers individually which is intended to simplify access. Subsidised interest rate loans are distributed through financial institutions. Subsidised diesel fuel quotas for farmers are allocated based on area sown and crop type; the diesel fuel quota allows producers to purchase diesel at a price 15% lower than retail fuel station prices.

Kazakhstan uses various subsidised interest rate programmes. For example, spring fieldwork and harvesting operations is a major target of concessional loans; at least KZT 1.5 trillion (USD 2.99 billion) will be provided in concessional loans for spring fieldwork and harvesting operations, covering the purchase of seeds, fertilisers, pesticides, and fuel. Additionally, KZT 800 billion (USD 1.6 billion) will be allocated to finance investment projects through the “AUL Amnesty” programme which targets rural development. The programme subsidies interest rates for investments in rural areas, small towns, the livestock sector and agricultural cooperatives. Access to financing is supported through the Damu Fund’s loan guarantee mechanism. The fund addresses collateral shortages in agricultural loans, covering up to 85% of the loan amount.

Market price support is the second-largest component of the PSE, with high support to wheat, barley, milk, beef, and sheep meat, and negative support to most other PSE commodities. This is implemented via price stabilisation policies that support both producers and consumers. The State Commission for the Modernisation of the Economy undertakes intervention purchases of grains at fixed prices under a forward contract to support domestic producer prices. At the same time, consumption price stabilisation is in place for 19 socially significant food products. Policies achieve price stabilisation through setting maximum trade mark-ups, setting threshold prices, stabilisation funds and revolving loan schemes to entrepreneurs, and producer subsidies through the agro-industrial complex. In 2024, a gradual phase-out of state price regulations on setting threshold and maximum retail prices was initiated and scheduled to take affect by the end of 2025.

For crops, output payments go to the producers of oilseeds, rice, sugar beet and cotton used for processing. Headage and output payments support the livestock sector. Large commercial livestock producers receive most of these as they account for the largest shares of production and herd size. Other forms of support to livestock are silage and fodder subsidies, support to artificial insemination and to the purchase of young cattle for feedlots.

Individual farms between 500-5 000 ha (maximum size dependent on the farm’s location) can pay an alternative Single Land Tax set as a percentage of the cadastral value of land owned or used, which replaces the usual land tax and five other business taxes. Additionally, individual farms pay a 10% income tax for physical persons with an income above KZT 150 million (USD 0.3 million).

International agreements and trade

Kazakhstan applies a range of border measures to restrict trade. Border measures are implemented within the Customs Union of the Eurasian Economic Union (EAEU) and include tariff rate quotas (TRQs) and non-tariff measures. These measures target commodities such as lower-grade beef and poultry, sunflower seeds, wheat and livestock breeding stock.

Under the Paris Agreement, Kazakhstan adopted its Nationally Determined Contribution (NDC) to reduce greenhouse gas (GHG) emissions. In 2023, the NDC was revised to include climate change adaptation goals for agriculture, water, forestry and disaster risk management. Adaptation measures for the agricultural sector include crop diversification, a gradual shift from water-intensive crops, the adoption of water-saving irrigation technologies, modernisation of irrigation infrastructure, and adjustments based on projected changes in river runoff. Additional strategies involve transitioning to organic farming, improved soil management to enhance carbon retention, adjusting livestock feed to reduce methane emissions, preventing overgrazing, and ensuring sustainable pasture management.

Kazakhstan is a member of the Treaty on the Eurasian Economic Union (EAEU) established in 2015, together with Armenia, Belarus, Kyrgyzstan and the Russian Federation (hereafter “Russia”). Kazakhstan’s border measures are implemented within the Customs Union of the EAEU and certain national responsibilities in the area of customs regulations are transferred to the EAEU, including sanitary and phytosanitary measures and technical regulations.

Policies for trade and sustainability in agro-food markets

Kazakhstan implements domestically-focused trade policies which include environmental targets. In June 2024, the country adopted the Law on the Production and Circulation of Organic Products defining the legal, economic, social and organisational framework for organic production and trade. The law aims to promote the sustainable use of natural resources, support nutrition, and expand organic products market. It replaces the Law on the Production of Organic Products, extending the scope of the legislation to include simple partnerships of organic produces. The new law also includes conditions for transitioning to organic production, and sets requirements for production, labelling and circulation, aligning with international standards through a shared guarantee system. In November 2024, the Rules for the Production and Circulation of Organic Products were approved, outlining specific procedures for the production and trade of organic goods.

In 2023, Kazakhstan approved the Strategy for Achieving Carbon Neutrality of the Republic of Kazakhstan by 2060, detailing economic transformation measures to support sustainable growth and policy co-ordination. The strategy includes agricultural and livestock management practices such as crop diversification, improved irrigation and climate-smart agriculture. It also promotes bioenergy production from agricultural waste, as part of efforts to decarbonise the energy sector. Though not specific to the agricultural sector, the strategy also considers the risks, opportunities and potential impacts for Kazakhstan from actions taken by trade partners. These trade partner actions include implementing carbon border adjustment mechanisms and increasing demand for product and supply chain GHG intensity information. Given Kazakhstan’s focus on fossil fuel and mining expansion, the strategy considers risks to stranded assets of carbon-intensive goods and explores opportunities through green financing and integration into global carbon markets.

Kazakhstan also supports trade and environmental targets through a trade agreement. The Enhanced Partnership and Cooperation Agreement between Kazakhstan and the European Union includes provisions for environmental sustainability. For example, the specific section for agriculture and rural development co-operation promotes modernisation, sustainable agricultural production, and knowledge on sustainable agribusiness practices.

Recent policy developments

Domestic policy developments in 2024-25

Production focused developments

In 2024, Kazakhstan adjusted its agricultural policy to prioritise export expansion, agricultural processing, import reduction, and water saving technologies. These changes are reflected in the 2024 amendments of the Concept of transition of the Republic of Kazakhstan to the “green economy”. The concept sets longer-term targets to increase wheat yield to 2 tonnes per hectare by 2030, 2.3 tonnes by 2040, and 2.5 tonnes by 2050. To support these measures the Action Plan for the Implementation of the Green Economy Concept (2024–2030) was adopted in November 2024.

In 2024, the government approximately doubled the level of support to agricultural producers. Producer support was increased to the maximum permissible level under WTO commitments, in particular focusing on promoting agricultural processing and digitalisation. The increased funds were introduced in the 2024 revision of the Concept for the Development of the Agro-Industrial Complex of Kazakhstan (2021–2030) to support productivity growth in the sector.

As of early 2025, the Ministry of Agriculture is implementing a systematic approach to increasing production volumes and reducing import dependence on key food products. To support these goals, 780 projects worth KZT 2.3 trillion (USD 4.59 billion) are planned for implementation by 2027, for commodities including poultry meat, sausages, cheese and cottage cheese, fish products and sugar. In 2024, KZT 449.1 billion (USD 896 million) was distributed from local budgets to support the sector including through crop production, livestock production, financial instruments, and agricultural processing.

In 2024, the subsidy distribution process for mineral fertilisers, pesticides, agricultural machinery, and equipment was amended to enhance transparency and simplify access. The amendment distributes the funding through domestic input manufacturers and financial institutions rather than producers individually. Concessional loans are distributed through financial institutions.

At least KZT 1.5 trillion (USD 2.99 billion) is budgeted for concessional loans for spring fieldwork and harvesting covering the purchase of seeds, fertilisers, pesticides, and fuel. Concessional leasing for domestically produced agricultural machinery and equipment will increase to KZT 450 billion (USD 898 million) to support an annual renewal rate of 8-10% of agricultural machinery. To address lack of collateral for agricultural loans, the Damu Fund introduced a loan guarantee mechanism that covers up to 85% of loans.

In August 2024, the list of essential food products eligible for forward financing was expanded to include all 19 socially significant food products. A mandatory condition directs 70% of budget funds of Social Entrepreneurial Corporations (SECs) towards financing agricultural producers and processing enterprises, moving away from the majority of funds being allocated to retail chains. Farmers can receive advance funding (a year ahead) covering 70% of the total loan amount. The funding helps ensure the supply of autumn and early vegetables (potatoes, onions, carrots, cabbage), fixing the prices during the off-season.

To support seed and breeding development as outlined by the Concept, Kazakhstan introduced the Comprehensive Plan for the Development of Plant Breeding and Seed Production (2024–2028) in May 2024. The plan aims to establish a structured seed production system, implement a digital seed traceability system and collaborate with global research centres to develop and adapt high-yield foreign crop varieties to local conditions. The plan is designed to improve regulations for plant breeding and seed production, and attract young professionals to the sector.

To help modernise farm machinery, the Ministry launched a large-scale preferential leasing programme in 2024 on top of existing investment subsidy programmes and interest rate subsidies for credit and leasing. The programme, with a budget of KZT 120 billion (USD 239 million), offers leasing for domestically produced agricultural machinery at an annual interest rate of 5% over seven years.

As of 1 January 2025, amendments to subsidy regulations target higher productivity. Under the Rules on subsidising yield improvement and crop quality and the Rules on subsidising the development of pedigree livestock breeding, improvement of productivity and quality of livestock production farmers must at least maintain the gross production value of agricultural goods or services at the level of the previous year to qualify for payments.

Irrigation

The Concept of Transition of the Republic of Kazakhstan to the “Green Economy” sets a framework for achieving environmentally sustainable economic growth. The policy was approved in 2013 and focuses on efficient resource management in water, land and biological resources. In June 2024, amendments and additions were introduced to update and refine priorities, goals, long-term targets and measures. General policy goals with respect to water were amended, and specific and measurable indicators added such as increasing the share of water bodies with good surface water quality to 35% by 2030, 50% by 2040, and 70% by 2050; expanding the area of irrigated land using water-saving technologies to 1.04 million ha by 2030, 1.8 million ha by 2040, and 2.3 million ha by 2050; and improving the treatment of anthropogenic wastewater to 45% by 2030, 65% by 2040, and 100% by 2050.

To support the new irrigation development targets in the Concept, an 80% subsidy on investment costs targets widespread adoption of water-saving irrigation technologies. The subsidy will be 30% co‑financed with local governments. Unlike many input subsidy measures, the measure does not require the equipment to be sourced from Kazakhstan manufacturers. Additionally, the hydrogeological and reclamation service will be strengthened by upgrading its technical and material resources and expanding expand its operational coverage to monitor irrigated lands.

Amended rules for subsidising irrigation services took effect in 2024 to encourage producers to adopt water-saving technologies. The amendments differentiate subsidy rates based on irrigation methods and require farmers to install water metering devices. Farmers using water-saving irrigation technologies receive a reimbursement between 60% to 85% dependent on the water tariff rate, while the subsidy rate for farmers not using water-saving technologies will be gradually reduced to between 30% and 55% by 2026. The new rules also provide for direct reimbursement of irrigation water supply costs to water providers.

Digitalisation

To support digitalisation goals under the Concept, the government is integrating all agricultural information systems into a unified digital platform (e-Agriculture). The platform will streamline access to government services for producers, reducing administrative burdens. It will also automate and digitise subsidy applications and other agricultural services. Additionally, a new information system for crop production traceability will be introduced to improve “farm-to-market” transparency.

As of 2024, 205.47 million ha of agricultural land have been digitised, covering all of the country’s agricultural area. Currently classified maps will be declassified, with full implementation expected by 2025.

Trade policy developments in 2024-25

Kazakhstan uses border measures to restrict trade. Border measures are implemented within the Customs Union of the Eurasian Economic Union (EAEU) and include tariff rate quotas (TRQs) and non-tariff measures. TRQs apply to imports of lower-grade beef and of poultry products. An export duty is also applied on sunflower seed exports. An export ban on cattle and small ruminants breeding stock was implemented in December 2023 and extended in October 2024. Additionally, a 6-month export quota for agricultural livestock to third countries and EAEU member states was introduced in June 2023, and similar restrictions were renewed in January 2024 for six months and slightly relaxed restrictions were again renewed in October 2024.

In 2024, Kazakhstan extended some trade measures which limit the import and/or export of agricultural products including wheat. Kazakhstan implemented a six-month import ban of wheat by road on 10 April 2023. On 25 September 2023, the ban was extended for another six months with additional restrictions on imports by rail with exceptions for licensed grain-receiving enterprises (elevators), grain processing and poultry enterprises. The ban was extended a third time on 11 April 2024 for six months with additional restrictions on waterborne imports added. The ban was extended a final time on 19 August 2024 and expired on 31 December 2024.

Policy context

Key economic and agricultural statistics

Kazakhstan has the ninth largest land area in the world and is one of the least densely populated countries. It has the second-highest per-capita availability of arable land in the world. Kazakhstan is also an important exporter of fossil fuels. The country is an upper middle-income economy and the richest country in Central Asia, but its economy remains highly dependent on oil and commodity markets. Its high share of trade in GDP highlights the strong focus on international markets.

Although the contribution of agriculture to the economy has declined sharply since the early 1990s, agriculture remains an important economic sector, contributing to 4% of GDP. Over 75% (or 214 million ha) of the country’s territory is suitable for agricultural production, but only about half of that is currently under agricultural production. Kazakhstan is one of the top ten grain exporters in the world, exporting to over 70 countries. The country’s major crops are wheat, barley, cotton and rice, with wheat exports a major source of foreign currency. Livestock products, including dairy, leather, meat and wool also comprise an important share of agricultural output.

The farm structure is dualistic: with large-scale and often highly vertically integrated operations dominating the production of the sector, while rural and subsistence-farming households account for the majority of farms. Kazakhstan’s agricultural sector is particularly vulnerable to the effects of climate change, as increasingly frequent hot weather and severe droughts reduce water availability.

Table 18.2. Kazakhstan: Contextual indicators

	Kazakhstan		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	115	783	0.3%	0.5%
Population (million)	16	20	0.4%	0.4%
Land area (thousand km2)	2 700	2 700	3.3%	3.3%
Agricultural area (AA) (thousand ha)	215 393	214 266	7.2%	7.4%
			All countries1
Population density (inhabitants/km2)	6	8	52	64
GDP per capita (USD in PPPs)	7 418	38 515	9 368	29 013
Trade as % of GDP	37.4	26.6	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	8.1	3.9	2.9	3.5
Agriculture share in employment (%)	36.3	12.1	-	-
Agro-food exports (% of total exports)	2.0	6.8	6.4	8.1
Agro-food imports (% of total imports)	0.7	9.7	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	56.0	60.1	-	-
Livestock in total agricultural production (%)	44.0	39.9	-	-
Share of arable land in AA (%)	14.0	13.8	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Kazakhstan’s real GDP increased by 4.8% in 2024. Compared to 2023 which was heavily affected by both drought and floods, the agriculture sector experienced significant expansion, with the gross output of agriculture increasing by 13.7% to KZT 8.3 trillion, (USD 16 billion) (The Press Service of the Government of the Republic of Kazakhstan, 2025[1]). This growth was primarily driven by a 21.1% increase in crop production, reaching KZT4.95 trillion, (USD 9.55 billion) and a 3.6% rise in livestock production, amounting to KZT 3.27 trillion (USD 6.3 billion).

Kazakhstan has been a net agro-food importer since the mid-2000s, yet the country remains one of the world’s largest wheat exporters (Figure 18.5). About 60% of agro-food exports are in primary commodities, with most being used for processing by industry. More than 65% of agro-food imports are processed commodities, the bulk of which are for final consumption.

Agricultural total productivity growth has been rapid in Kazakhstan compared to many industrialised systems (Figure 18.6). The high productivity growth and development of the agriculture sector and the development of other sectors has also supported the reduction of agriculture's share of GHG emissions. However, targeted inputs including nutrients and machinery renewal are one limitation to productivity growth, as nutrient balances were negative 14.1 kg/ha in 2023, with little change since 2000, and far below the OECD average of 29.7 kg/ha (Table 18.3).

Table 18.3. Kazakhstan: Productivity and environmental indicators

	Kazakhstan		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	2.1%	3.4%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	-14.8	-14.1	32.0	29.7
Phosphorus balance, kg/ha	-2.7	-2.2	3.3	2.5
Agriculture share of total energy use (%)	4.0	2.6	1.7	2.0
Agriculture share of GHG emissions (%)	27.1	12.7	8.7	10.1
Share of irrigated land in AA (%)1	0.9	0.6	-	-
Share of agriculture in water abstractions (%)	67.3	62.6	47.0	49.5
Water stress indicator	..	..	8.7	..

Note: * or closest available year.

1. 6.4% of sown agricultural area in 2024 was irrigated.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

In the Soviet era, all sectors of Kazakhstan’s economy, including agriculture, were regulated by central planning. Production, the marketing of agricultural inputs and outputs, and processing and distribution of food were controlled by state enterprises. Agriculture was supported by high administered prices and considerable input and output price subsidies, in addition to policies such as cheap energy and transport, which were not agriculture-specific.

Kazakhstan became an independent country in 1991 following the collapse of the Soviet Union. Stabilisation and transition to a market economy were its main economic challenges. During the transition, the agricultural sector was affected by economic shocks, land reform and reduced government support. The main agricultural policies were geared towards decreasing food import-dependency and increasing domestic food production (Baubekova, Tikhonova and Kvasha, 2021[2]).

Agricultural products and inputs became exposed to market forces post-independence in the 1990s. After this early period of market reform, Kazakhstan made little progress in pursuing further trade liberalisation. It was not until its accession to the WTO in 2015 that the country restarted trade liberalisation measures. However, Kazakhstan continues to apply a range of border and domestic price intervention measures such as tariff rate quotas and non-tariff measures. They have also imposed export restrictions in times of global uncertainty or high prices, such as 2008, 2020 and 2022.

The State Programme of Agro Industrial Complex Development for 2017-2021 (hereafter, “the 2021 State Programme”) provided the main agricultural policy framework in Kazakhstan up until the end of 2021. While maintaining the principles of the previous framework (Agribusiness-2020 Programme), the 2021 State Programme put a stronger emphasis on the development of, and support to, individual household plots and small farms, agricultural producer co-operatives and agriculture supporting services and infrastructure. In addition, some input subsidies including on seed, fertiliser and pesticides were increased.

In 2024, many measures and policy frameworks like the National Development Plan of the Republic of Kazakhstan until 2029 focus on increasing the productivity of farmers, exports and developing Kazakhstan input manufacturers such as fertilisers, equipment, and machinery. This goal is supported by a large increase in support to farmers. Much if the support is received indirectly from the government through reduced interest rate loans from financial institutions and lower input costs from input manufacturers.

Table 18.4. Kazakhstan: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1992	Soviet era Closed economy	Government control of the agricultural economy through regional trade controls, input supply controls, and the continuation of soft budget constraints Taxation of the agricultural sector to support the industrial sector Tariffs Low administrated prices on energy and transport
1992-1997	Initial structural reforms towards an open economy	Price liberalisation of agricultural products and inputs Emergence of new policy institutions
1998-2002	Economic crisis Stabilisation measures	Debt rescheduling Limited support to the sector Agrarian Credit Corporation created as main agricultural lender (credit at preferential rates) Restructuring agricultural enterprises
2003-2015	Agriculture as part of economic diversification	Price support Support for import-competing products Tariff protection for meat Taxation of agricultural exports
2015-2023	Reforms to trade liberalisation	WTO accession 2015 EAEU membership in 2015 Elimination of payments per hectare for priority crops Promotion of agricultural co-operatives Increase in land tax rates Debt restructuring programme Introduction of investment subsidies Introduction of interest concessions Agricultural insurance reform
2024-present	Policies target production and export growth while strengthening domestic self-sufficiency	Increase in production subsidies for inputs Increased support for value-added processing for exports Introduce subsidies for domestically produced inputs including seeds and fertilisers Strengthen irrigation and water saving policies Strengthening focus on domestic self-sufficiency for staple products

References

[2] Baubekova, A., A. Tikhonova and A. Kvasha (2021), “Evolution of Agricultural Policy in Kazakhstan”, in Kazakhstan’s Developmental Journey, Springer Singapore, https://doi.org/10.1007/978-981-15-6899-2_3.

[1] The Press Service of the Government of the Republic of Kazakhstan (2025), Six Years of Progress: Kazakhstan on Sustainable Development Pathway, Official Information Source of the Prime minister of the Republic of Kazakhstan, https://primeminister.kz/en/news/six-years-of-progress-kazakhstan-on-sustainable-development-pathway-29812.