Agricultural subsidy and insurance systems to be improved

President Shavkat Mirziyoyev reviewed proposals to improve subsidy and insurance systems in the agricultural sector.

In recent years, the scale of state support for agriculture has expanded, while subsidy provision has been gradually digitalized. This year, the number of areas and types of subsidies in the sector has reached 29 and 91, respectively, with 2.7 trillion soums allocated for these purposes. In several areas, applications are generated proactively, and payment processing times have been significantly reduced.

During the presentation, the President noted that subsidies should not only compensate for costs but also be linked to achieving specific results. Starting next year, it was proposed to gradually shift from a “funding allocation” model to a “performance-based subsidy” model.

Under the new system, key criteria will include yields, water and energy savings, and the volume of output produced per unit of resources used. All data will be obtained automatically from the information systems of relevant government agencies and organizations, without human intervention. An electronic profile will be created for each subsidy recipient, and results will be monitored online.

Initially, this mechanism will be tested in the introduction of water-saving technologies. For two to three years after a subsidy is granted, water consumption, yields, and water-use efficiency will be assessed. If the established targets are not met, subsidy funds will be subject to repayment. This will ensure the targeted and effective use of state funds.

During the presentation, particular attention was given to improving the agricultural insurance system. Currently, many processes have been digitalized through the Agrosafe information system – from submitting electronic applications and issuing contracts and policies to monitoring, expert assessment, and the payment of insurance compensation.

Plans call for expanding insurance coverage to include seedlings and trees in orchards and vineyards, imported livestock, as well as risks associated with accidental events. In addition, new insurance products will be introduced for livestock farming and the cultivation of melons, potatoes, and onions.

By 2027, the goal is to provide insurance coverage to 45,000 agricultural enterprises, increase insurance coverage of agricultural products to 60 percent, train 500 independent experts, and fully digitalize insurance services.

Under the new approach, alongside compensating for losses, priority will be given to risk prevention. Officials proposed allocating 3–5 percent of insurance premiums to a special fund and using these funds to finance vaccination, preventive and veterinary services in livestock farming, biological protection measures in cotton and grain farming, and the installation of protective equipment against natural disasters in horticulture and viticulture.

The Head of State emphasized that subsidy and insurance systems should, first and foremost, be simple and convenient for farmers, and that state funds should be directed toward achieving specific results. He instructed responsible officials to minimize the human factor and ensure transparency in all processes, fair assessment of insured events, and prompt payment of insurance compensation.

The President also instructed responsible officials to finalize the proposals and submit drafts of the relevant legal acts.