Uzbekistan Boosts Agriculture with $177.7M in Loans, New High-Yield Crop Initiatives

TASHKENT, Uzbekistan — Over the past seven years, Uzbekistan has invested UZS 2.3 trillion ($177.7 million) in preferential loans and UZS 265 billion ($20.5 million) in subsidies to support homesteaders and peasant farms, significantly boosting agricultural productivity. On January 30, President Shavkat Mirziyoyev announced new initiatives aimed at further transforming the sector by promoting high-yield crop production on homesteads and leased arable lands.

More than 5 million households currently manage over 500,000 hectares of homestead land. The government plans to optimize this land to create powerful economic assets, generate jobs, and increase income levels. Modern farming techniques have already doubled average crop yields from 18 to 38 tons per hectare in regions like Asaka, Shakhrisabz, and Yangiyul, where farmers now harvest multiple times a year, earning up to UZS 20 million ($1,545) per hectare.

To build on this progress, President Mirziyoyev introduced a comprehensive system for growing profitable crops. A specialized council for peasant farms and homesteads will oversee the provision of seeds, seedlings, and processing and export activities. A new holding company, Uzagrostar, will manage these efforts, with 15 specialized fruit and vegetable growing companies established in key districts. Each company will receive UZS 20 billion ($1.5 million) from the state budget and $10 million from banks.

The government is also launching a “digital marketplace” to connect farmers with buyers, streamlining transactions between producers, processors, and exporters. Additional measures include preferential loans without collateral, grants for exemplary projects, and subsidies for export-oriented production. Over UZS 5 trillion ($386 million) will be allocated to finance food production on household plots, with investments in refrigerated warehouses, greenhouses, and processing facilities offered on flexible payment plans.

Incentives will be provided to farmers who efficiently utilize their land, including tax breaks for those earning over UZS 5 million ($386) per hectare. The government has also addressed land leasing issues, making 3,300 hectares available under a new procedure that emphasizes soil quality and water availability. A national initiative to develop high-yielding potato varieties aims to reduce reliance on imports.

These initiatives are expected to employ 1.5 million people and further enhance Uzbekistan’s agricultural landscape. By introducing modern technologies, increasing access to resources, and fostering market connections, the country is advancing toward sustainable agricultural growth and food security.