Agriculture

Agriculture

The condition of agriculture in Kyrgyzstan is determined by the state's continuing control of production, marketing, and prices, as well as by the republic-wide specialization mandated by the former Soviet Union to promote interdependence among the republics. Most agricultural production continues to occur in the state farm and collective farm systems, which are slowly being privatized. In the early post-Soviet years, government policy encouraged self-sufficiency in cereal grains to provide food security. Maintaining such self-sufficiency, however, has entailed continued government regulation such as compulsory marketing, which in turn has discouraged the development of diversified farm enterprise. The main agricultural regions are in the Fergana Valley (Osh and Jalal-Abad provinces), in the northern Chu and Talas valleys, and in the Ysyk-Köl basin in the northeast. In the early 1990s, income declined steadily in both state-run and privatized agricultural enterprises.

Agricultural Land

Kyrgyzstan has about 1.4 million hectares of arable land, which is only about 7 percent of the nation's total area. More than 70 percent of the arable area depends on irrigation for its productivity. In the Soviet period, only about 4 percent of agricultural land was owned privately, although private plots contributed a much higher percentage of overall output, especially in fruits and vegetables. In 1994 only an additional 6 percent of agricultural land had passed to some form of private ownership. The privatization of land was a difficult issue that was contested between President Akayev and more conservative government officials. The latter reflected the Soviet-era view that land should be common property protected and disposed of only by the state. More immediately, these officials represented the interests of state farm administrators, whose enterprises suffered greatly from post-Soviet economic shocks and redistribution of resources.

In 1992 and 1993, the land redistribution program also was hindered by poor cooperation between the national and local governments and by lack of clarity in the program outline. Nevertheless, by early 1993 some 165 of the 470 existing state and collective farms had been reorganized or privatized into about 17,000 peasant enterprises, cooperatives, or peasant associations. However, the state retained control over vital agricultural inputs and market distribution channels, meaning that private land users often lacked material support and that price controls limited the profitability of private farms. The privatization program was halted in early 1993, and a more comprehensive reform program was developed. In early 1995, the government offered debt relief to state and collective farms that expedited the availability of land to private farmers.

According to privatization law, state agricultural assets are distributed according to a share system in which all citizens have the right to a garden plot, but only individuals in the rural population have the right to occupy land and other agricultural assets formerly owned by state and collective farms. Recipients of shares can maintain the property as part of the collective, transfer it to a cooperative, or establish an individual farm. In the early 1990s, the former alternative was much more popular because of the perception that larger units offered greater security in a time of financial uncertainty. Private ownership of land remained illegal in 1995, but use rights are guaranteed for forty-nine years, and use rights can be bought, sold, and used as collateral for loans. In 1994 a new decree on land reform expanded and clarified the legal basis for the use and exchange of land and improved the administration of land privatization, which is the responsibility of the Ministry of Agriculture and Food.

Agricultural Production

In the post-Soviet years, Kyrgyzstan has continued to emphasize production of raw materials for industrial processing, a role assigned to the republic in the Soviet system. An estimated 62 percent of the population is rural (see Population, this ch.). The chief crops are fodder crops, wheat, barley, and cotton. Other agricultural products are sugar beets, tobacco, fruit, vegetables, and silk (see table 13, Appendix). In 1994 the largest crop harvests were of wheat (611,000 tons), barley (300,000 tons), potatoes (288,000 tons), and tomatoes (160,000 tons).

The chief agricultural use of land is pasturage for livestock, mainly sheep, goats, and cattle, the tending of which is the traditional vocation of the Kyrgyz people. An estimated 83 percent of land in agricultural use is mountainous pastureland. In the 1980s, livestock production accounted for about 60 percent of the value of the country's agricultural output; such production included mutton, beef, eggs, milk, wool, and thoroughbred horses. In 1987, when herds reached their largest numbers, about twice as much grain was used for animal feed as for human consumption. However, the prices of and demand for livestock products have dropped significantly in the 1990s relative to those of crops. For this reason and because Soviet-era herds had been supported largely by cheap imported grain, in 1994 livestock contributed less than half the total value of Kyrgyzstan's agricultural earnings. In 1994 the most important livestock products were cow's milk (750,000 tons), beef and veal (70,000 tons), mutton and lamb (50,000 tons), eggs (30,600 tons), wool (56,300 tons), pork products (30,000 tons), and poultry meat (25,000 tons). All of those figures were below the totals for the previous two years.

Agricultural Trends and Problems

The early 1990s saw many farmers turn from commercial production to subsistence crops, a trend that hurt the country's export activities (roughly half of its exports were agricultural in 1990) as well as the availability of foods within Kyrgyzstan. Experts believe that Kyrgyzstan's main agricultural problems are inappropriate and slow-moving reforms (especially land redistribution), intrusive bureaucratic regulations, poor availability of credit, and delayed payments to farmers for their crops. More immediately, both water and fertilizers have been in short supply since the end of the Soviet Union. In addition, Kyrgyzstan's agriculture uses an average of less than 50 percent of the amount of pesticides used by agriculture in the Western nations.

In 1994 the agriculture sector was in the fourth and most difficult year of a major decline that included reduced output, isolation from commercial markets, decreased earnings, and a deteriorating natural resource base (see table 6, Appendix). In 1994 total agricultural output dropped by 17 percent, and the decline in marketed and processed output was substantially greater because of the trend toward subsistence farming. Production ceased to increase at about the time of the collapse of the Soviet system, an event that initiated the loss of markets and trading partners, the loss of transfer payments from Moscow, and a condition of general monetary instability. The national government did not address these problems effectively in the first years of independence; in fact, government marketing quotas, price controls, and trade restrictions exacerbated the decline. By restricting farmers' marketing and pricing practices, the government in effect levied a tax on agriculture that redistributed income to other sectors of society. National reforms in land tenure, farm organization, and the financial system, together with privatization of services, were eroded by the continued authority of local officials to interfere in administration of those reforms.

A key agricultural resource, pastureland, was degraded severely by the Soviet-era practice of mandating livestock populations too large for available pasturage on state farms and by post-Soviet transfer of livestock from inefficient collective and state farms to private ownership without limiting grazing rights on common pastures. By 1994 over-grazing had led to serious erosion of much pasture land (see Environmental Problems, this ch.).

In 1994 a continuing controversy over granting central bank credits to support farmers during the growing season again made financial support a dubious proposition. Without such support, planting and fertilization would be severely limited because farmers in many rural areas lack financial resources to buy seed and fertilizer. On the other hand, such credits have always been a threat to the government's overall economic program. For several reasons, including the state's failure to pay farmers on time for their crops, the agricultural sector's bank debts increased rapidly in the early 1990s. This situation was the basis of arguments that the government could not afford to pay agricultural credits.

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