Kanysh Izbastin, Chairman of the Board of KazAgroFinance JSC, told why leasing has become popular among Kazakhstani farmers, and what measures the state is taking to make new equipment available.

Kanysh Temirtaevich, what are the tasks facing KazAgroFinance JSC?

Our company is a multidisciplinary one. He credits all branches of the agro–industrial complex and uses various lending tools - leasing and loans.
Now we are paying attention to the leasing of agricultural machinery. We have specifically chosen this direction. This is necessary for the agriculture of Kazakhstan.  

Lending through leasing of agricultural machinery is the simplest and most effective way to increase labor productivity. For example, a combine harvester, this technique increases the size of the farm. If a multifunctional and expensive combine harvester, then this will have an impact on improving productivity.

Leasing as a lending method is ideal for customers. And for the company, it is convenient for easy digitization of data. 

How common is leasing of agricultural machinery among Kazakhstani farmers?

Throughout 2018 and half of this year, leasing has been a popular service among customers.
Statistics show that the industry is growing rapidly. This also applies to expensive and cheap equipment and does not depend on the season. It is used as part of spring field, off-season and harvesting operations.

According to the results of last year, compared with 2017, the volume of leasing increased by 56% in monetary terms and by 42% in digital terms.

Last year, we set a record for our company: $63 billion to farmers over the past five years.3,426 units of agricultural machinery were issued in the amount of about tenge.

What was the basis for the significant growth.

There are two factors that influenced the development.

 The first is farmers' understanding of the need to modernize machinery. Representatives of the agro-industrial complex understand the need to modernize equipment.  Without modern technology, it is difficult to achieve productivity, which directly affects success.

The second factor is the new measures of state support of the Ministry of Agriculture, which will solve the issue of subsidies.

The state was able to create favorable conditions for farmers and make equipment affordable. For example, the state subsidizes an advance payment in the amount equal to a quarter of investment investments. And the remuneration rate is financed at the rate of 10%.

How can you describe the principles of the company?

Our market approach prevails – everything depends on the client. The farmer decides for himself which equipment he will need when.  And we offer various ways to get it.
We focus not only on large farms. Last year alone, the company provided more than 3,400 units. The vast majority of them were put into operation by small and medium-sized farms.

What leasing programs are offered to clients?

There are differences between programs by customer category. We provide special conditions for farmers who were previously funded. We know their professionalism and responsible attitude to work well. We have a simplified approach for them. 
We also have an Express Leasing program. It is focused on a simplified scheme of cheap equipment, which is not too difficult to lease, and is in great demand.

We also have programs called "Harvest", "feed". In addition, we offer secondary leasing services.

The main purpose of our work under the program is to speed up the process of obtaining equipment.

We understand that agriculture is a traditional business. Everyone knows the beginning and the end of the work well. After all, a different problem situation repeats itself every season.  Due to the specifics of the problems, farmers come to us on the last day.

In this regard, we improve every year.  We set ourselves the task of creating the most simplified and accelerated form of access to technology. All programs are designed for this purpose.

You have noted the company's achievements in the field of leasing in 2018. How have the economic indicators changed?

If we talk about growth from a financial point of view, then we have exceeded all the plans and tasks that were offered to us.
But we pay more attention to another fact. The main achievement is not only for us, but also for the entire industry – it is necessary to accelerate the renewal of the machine fleet. Over-fulfillment of planned targets in terms of the number and cost of transferred agricultural machinery had a positive impact on the level of renewal of the entire machine and tractor fleet in Kazakhstan.

This factor will affect the industry in the long term. This is due to the fact that farmers have been using machinery for more than a year and see the results of the work done.

How can farmers contact KazAgroFinance JSC?

Our company is represented in all regions of Kazakhstan. Farmers who are professionally engaged in the production of agricultural products know who they are, what we do and where we live.
If the peasants have a need for certain agricultural equipment, then they choose the right type of equipment. Let's get started.

However, I would like to note that we have certain standards for the availability of equipment. They express a professional approach to business. For example, we cannot provide a large number of combines in a small area - they are not there.

Based on our experience, KazAgroFinance JSC offers a certain model. We can often advise the farmer about the need and quantity of necessary equipment. And analyzing the size of the area, the financial capabilities of the farmer, his willingness to use one or another technique, we are ready to consider all requests open to all farmers.

Kanysh Temirtaevich, what strategic direction will the company follow this year?

For 2019, we are faced with the task of maintaining at least last year's pace of work. The goal is to surpass the results of 2018.
As part of lending to agricultural entities for spring field work in the first half of 2019, we noted the positive dynamics and priority of indicators for the same period last year.