Farmers in Uzbekistan who achieve high crop yields will now pay three times less in land tax, thanks to a new presidential decree aimed at boosting agricultural efficiency.
The decree, on additional measures to improve land use efficiency and increase crop production in agriculture, introduces several incentives for farmers, aligning with the country’s strategy to enhance food security and agricultural productivity.
The decree outlines key objectives, including organizing the cultivation of vacant agricultural lands under the jurisdiction of district khokimiyats, stabilizing meat and dairy prices through the increased production of feed crops, and promoting efficient land use to improve both employment and living standards for agricultural workers.
Starting in 2025, farms that report an annual yield exceeding 50 centners per hectare of cotton and 80 centners per hectare of grain will benefit from several provisions:
- Crop Rotation and Land Use: At least 25% of the total leased land must be designated for crop rotation, with a focus on livestock feed, vegetables, melons, potatoes, oilseeds, and legumes.
- Land Tax Reduction: A proportional reduction of up to three times the base rate for land tax will be applied to farms with high yields, lowering their financial burden and encouraging sustainable agricultural practices.
- Farmers’ Council Contribution: The membership fee for the Farmers’ Council of Uzbekistan will be set at 0.3% of the initial price for raw cotton and the established average price of grain, providing further financial relief.
Additionally, the decree includes provisions for preferential loans for cotton cultivation. Agricultural cooperatives may receive loans for up to 50% of their cotton cultivation costs, with a 50% property pledge (including land leasehold). The loans will be granted based on the starting price of cotton raw materials, which helps farmers access necessary funds at favorable terms.
The decree also facilitates the direct purchase of cotton grown by farms within agricultural cooperatives. To streamline the process, contracts for cotton purchases must be concluded through the Uzbekistan Commodity Exchange’s information portal.
