On August 26, a press tour for media representatives was held in Pavlodar region. As part of the press tour organized by KazAgroFinance JSC, journalists visited the vegetable farms Agrologistik LLP and Agro Union LLP in Aksu.

The farm “Agrologistik” is famous as one of the most advanced in terms of technical equipment not only in the region, but also in the country. This enterprise has shown itself to be one of the leaders in cultivation, harvesting and processing of potatoes and is among the top 5 farms in the region. The enterprise follows the renewal and timely maintenance of agricultural machinery. Thus, the farm has purchased the newest potato harvester, the only one in its class among all agricultural enterprises in the CIS countries.

“Thanks to the programs on land irrigation implemented by the state and in particular thanks to KazAgroFinance, we purchase Zimmatic sprinklers, John Deere harvesters and Grimme potato harvesters for a total amount of about 500 million tenge. This year, despite difficult weather conditions, we are already planting 500 hectares of potatoes, carrots and beets. We plan to harvest twice as much, well and without losses,” said Aman Omarov, head of Agrologistik LLP, in his comments to the media.

According to the head of the farm, the expected yield is within 30-35 tons per hectare. To date, the produced products go to the domestic market: Astana, Pavlodar, Almaty, Shymkent, and recently began to export to Uzbekistan. The farm has also signed a contract for the supply of chip potatoes to Almaty.

The farm has a positive history and is one of the successful cases of mutually beneficial cooperation with KazAgroFinance JSC. 

Then the journalists were presented the process of work of the farm “Agro Union”. This enterprise has its own vegetable storage, planting potatoes, carrots and beets. Financing within the framework of KazAgroFinance JSC has been established since 2018.

“This year we planted 100 hectares of potatoes, 50 hectares of carrots and 30 hectares of beets. The expected gross harvest is about 15 thousand tons of potatoes, 3 thousand tons of carrots and up to 1 thousand tons of beets. Also this year the farm purchased a Zoomlion tractor, 2 irrigation frontal 150-meter T-L machines. For next year we have already laid additional irrigation machines”, - said during the round of the farm the manager of the farm ‘Agro Union’ Alexander Starodubtsev. 

To date, the product portfolio of JSC “KazAgroFinance”, has various programs aimed at stimulating the development of agriculture in the country. 

Thus, under the program “Their own fodder” farms have the opportunity to purchase forage harvesting equipment and mobile irrigation systems, which will help to avoid in the future potential problems with a shortage of fodder in the seasonal period. This problem is particularly acute in regions such as the south and west of the country. The contract is concluded for a period of up to 10 years and at 6% per annum.

The 5% preferential leasing program implemented by KazAgroFinance JSC has become a key tool to support the region's agrarians. Thanks to this program, farms in the Pavlodar region gained access to 4 billion tenge to upgrade agricultural equipment. As a result, more than 210 units of new machinery were purchased.  It is worth noting that the proposed leasing program has one of the lowest interest rates among similar ones, including foreign experience. For example, in Kyrgyzstan the interest rate starts from 6% per annum.

“Already this year, the branch of KazAgroFinance JSC has issued 850 units of equipment worth 17 billion tenge. Of these, 550 units of domestic production, in monetary terms about 8.5 billion tenge. In quantitative terms, the indicator of domestic equipment is 60%. Regarding the warranty on equipment, we work with licensed suppliers who have their own service centers and give a guarantee of at least 1 year”, - said the director of the regional office of KazAgroFinance JSC in Pavlodar region Baisal Alpysbay.

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Leasing of agricultural machinery is often more favorable than traditional lending. 

For example, leasing can be cheaper, requires a smaller down payment than a loan. Flexible contract terms can have a flexible and comfortable lease term, which can reduce monthly payments. 

In addition, leased equipment is not on the balance sheet of the company, which avoids accounting for depreciation. At the same time, leasing agreements often include services for maintenance and insurance of equipment, which reduces additional costs for the company.

This form of financial relations is very common in international agricultural practice of different countries. In some countries % is more, in some countries less, but in general comparison the leasing instrument remains one of the most accessible and working tools for farmers and farms.

KazAgroFinance Joint Stock Company is a member of the group of companies of National Management Holding Baiterek JSC. The company has been operating for more than 24 years, contributing to the development of technical equipment in the agricultural sector of the country.