Resource information
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.
