Mirziyoyev approves shift to results-based farm subsidies and wider insurance

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President Shavkat Mirziyoyev approved proposals to overhaul agricultural subsidies and insurance, shifting from cost compensation to results-based payments starting in 2027. The new system will tie support to yields, water and energy savings, and output per unit of resources. Insurance coverage will expand to orchards, vineyards, imported livestock, and new crop products, with a target of 45,000 insured farms by 2027.
Key Facts
- In 2026, agricultural subsidies in Uzbekistan cover 29 areas and 91 types, with 2.7 trillion soums allocated.
- From 2027, the subsidy model will shift from simple fund allocation to results-based payments tied to yield, water and energy savings, and output per unit of resources.
- The new mechanism will first be tested in water-saving technology adoption, with water use, yield, and water efficiency assessed over two to three years.
- Insurance coverage will expand to include seedlings and trees in orchards and vineyards, imported livestock, and risks from accidental events.
- By 2027, the goal is to insure 45,000 agricultural enterprises, cover 60% of agricultural products, train 500 independent experts, and fully digitize insurance services.
Results-Based Subsidy Model
President Shavkat Mirziyoyev reviewed proposals to link agricultural subsidies to concrete results rather than merely compensating costs. Starting in 2027, the system will gradually transition from the 'fund allocation' model to a 'results-based subsidy' model. Key criteria will include crop yield, water and energy savings, and the volume of output per unit of resources used. Data for evaluation will be automatically retrieved from government information systems, eliminating human involvement. An electronic passport will be created for each subsidy recipient, and results will be monitored online.
Water-Saving Technology Pilot
The new mechanism will first be piloted in the introduction of water-saving technologies. For two to three years after a subsidy is granted, water consumption, yield, and water use efficiency will be assessed. If the established indicators are not met, a mechanism for returning the subsidy funds will be applied. This approach aims to ensure targeted and efficient use of state funds.
Agricultural Insurance Expansion
The presentation also focused on improving the agricultural insurance system, which is already largely digitalized through the Agrosafe information system. Insurance coverage will be expanded to include seedlings and trees in orchards and vineyards, imported livestock, and risks related to accidental events. New insurance products will be introduced for livestock farming, melon growing, potatoes, and onions. By 2027, the goal is to insure 45,000 agricultural enterprises, achieve 60% insurance coverage of agricultural products, train 500 independent experts, and fully digitize insurance services. Alongside compensation for damage, priority will be given to risk prevention under the new approach.