American Journal Of Agriculture And Horticulture Innovations
22
https://theusajournals.com/index.php/ajahi
VOLUME
Vol.05 Issue02 2025
PAGE NO.
22-26
10.37547/ajahi/Volume05Issue02-07
Directions of financing agriculture: the case of
Uzbekistan
PhD, associate professor, department of Economics. “TIIAME” National Research University, 39, Kori Niyoziy Street, Mirzo Ulugbek
District, Tashkent, 100000, Uzbekistan, Uzbekistan
Received:
24 December 2024;
Accepted:
26 January 2025;
Published:
28 February 2025
Abstract:
Agriculture is one of the main sectors of the economy of Uzbekistan, and it is important to ensure the
country's economic stability and food safety. Agricultural sectors of Uzbekistan are mainly specialized in the
production of cotton, wheat, fruits and vegetables and other agricultural products. These sectors are important
not only for economic growth and employment of the population. Development of agriculture is one of the most
urgent issues today. Good profit is obtained by exporting agricultural products grown in our country to foreign
countries, and international agreements are signed with many countries. In addition, varieties of agricultural
products that produce good yields and are resistant to pests are brought from abroad and are localized in our
country. The above points are important in financing agriculture. This article provides information on the
directions of agricultural financing of Uzbekistan.
Keywords:
Agriculture, world economy, food products, industry, sector, economic stability, production.
Introduction:
In recent years, the importance of
agriculture in the global economy has been increasing
dramatically. That is why it is important to study the
specific characteristics of land, water, and labor
resources, which are the main factors of agricultural
production, on the scale of developed and developing
countries. Industry is one of the main and oldest
branches of material production, providing the country
with food and the main part of the raw materials for
industry. Agriculture mainly consists of two main
branches - agriculture and animal husbandry. These
two sectors provide the population with agricultural
and livestock products. Agriculture includes a number
of branches of primary processing of agricultural
products and livestock products. About half of the
economically active population, and in less developed
countries - more than 80-90 percent, are employed in
rural areas. In developing countries, this figure is 10%.
Social problems and the settlement of the rural
population are closely related to agriculture. In some
countries, forestry is also a part of agriculture. Our
country has great potential in agriculture. Many issues
depend on the development of this direction, from the
abundance of our markets, the abundance of food for
our people, to the earning of additional income from
exports. Great changes are taking place in the field of
agriculture in our country. Modern technologies and
equipment are used in the production of agricultural
products. In addition, new methods such as drip
irrigation and rain irrigation are being used to irrigate
crops. These methods also save water and prevent
wastage. As a result, water is consumed by the plant
itself and the productivity of plants increases. The use
of such methods is important in the financing of
agriculture. Modern agricultural financing methods not
only involve attracting large amounts of capital, but
also
provide
an
opportunity
to
introduce
environmentally
sustainable
technologies
and
innovative solutions. For example, microcredit,
crowdfunding, cooperation between the public and
private sectors, as well as the development of digital
technologies and smart agricultural technologies today
provide new ways to finance the agricultural sector.
These modern methods serve many priority purposes,
such as supporting small farmers, introducing
advanced technologies, efficient distribution of
resources and reducing environmental risks. Also, there
are great opportunities to ensure social stability,
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American Journal Of Agriculture And Horticulture Innovations (ISSN: 2771-2559)
increase the income of rural residents and improve
their living conditions, and fight against social problems
through new methods of financing agriculture. As the
importance of innovative approaches in financing
agriculture is increasing, it is possible to ensure the
long-term sustainability of the agricultural sector
through effective financial mechanisms in this area.
METHODS
Climate change, land degradation and shortage of
water resources are observed in the world today.
Water resources are decreasing, and high temperature
has a negative effect on the productivity of crops and
the number of livestock. This makes it difficult to
ensure the production and safety of food products,
reduces the accuracy of forecasting and planning.
Nevertheless, in recent years, in our country, special
attention was paid to the use of the high potential of
agriculture, and systematic work was carried out on the
reform of the sector and the introduction of market
mechanisms. At the same time, ensuring food safety
and delivering agricultural products of ecological
quality to the population is a constant focus. The
development strategy of the new Uzbekistan for 2022-
2026 defines specific tasks for the further development
of the agricultural sector. In particular, it is expected to
double the income of peasants and farmers through
the introduction of science and innovation, market
mechanisms in agriculture. For this purpose, attention
is paid to efficient use of available land and water.
Measures are being taken to get more income from the
land by increasing labor productivity and productivity.
For this purpose, a system of effective use of these
lands was created by increasing the planting of
exportable agricultural crops in the areas of land that
are being reduced from cotton and grain, and by
involving wide sections of the population. In particular,
200,000 hectares of land with good water supply,
reduced from cotton and grain, are leased to citizens
for 30 years for the implementation of projects such as
vegetable growing, policing, legumes, oil crops, potato
cultivation by establishing a farm.[1]
RESULTS
Today, about 3.5 million of our country's population
work in agriculture. This is more than 55 percent of the
working population of the village. Creation of business
conditions for residents in rural areas, and the
determination of winners in open auctions for land
allocation, along with the representatives of families
included in the "Neighborhood registers", as well as our
citizens who have returned from abroad, are being
consistently carried out to ensure their employment.
Such changes in the network serve to increase
production volumes. In particular, in the next two
years, 193,000 hectares of land were leased to the
population and an additional 2.5-3 million tons of
agricultural products were grown. Also, productivity
increased by 10-15% due to the introduction of water-
saving technologies on 100,000 hectares. 428 trillion
by the end of this year. production of agricultural
products worth 3.7% compared to 2022 is expected. If
in 2017 the stable growth rate of gross agricultural
production in the agrarian sector was 1 percent, by
2022 it was 3.6 percent. Currently, more than 80 types
of agricultural products grown in our country are
exported to more than 60 countries of the world. The
export volume of fruits, vegetables and leguminous
products has almost doubled in the last seven years.
We took the first place in the world in terms of the total
yield obtained from one hectare of cultivated land.[2]
In 2024, on the basis of the programs adopted in the
network in the following years, intensive production of
products will be carried out on 30,000 hectares of
vegetable growing and repeated crops will be carried
out on 780,000 hectares of arable land freed from
grain. At present, attention is being paid to planting
ninety-five crops in all categories of farms. For the 2024
harvest, it is planned to plant onions and garlic on
529,000 hectares, and vegetable crops on 386,500
hectares using the ninety-five method. Of this, 75,800
hectares belong to farms, 266,400 hectares to
residential estates and 186,800 hectares to peasant
farms. In March-May 2024, a total of 10.8 mln. tons, 5.8
million compared to 2022. Tons of fabulous vegetables
are grown. In order to ensure economic growth,
attention is being paid to the introduction of modern
resource-saving technologies, to the expansion of new
varieties with high productivity compatible with
climate change instead of biologically obsolete
varieties, to the establishment of digitalization of the
water accounting system in the irrigation system.[3]
DISCUSSIONS
In order to ensure that the rate of processing of
agricultural products in the regions is higher than 25
percent, measures are being taken to establish 100
new agro-logistics centers with a capacity of 2.5 million
tons throughout the country and to increase their
export potential to 1 billion dollars. In addition, during
the development of the irrigation system and the
implementation of measures to save limited water
resources, it is planned to develop an additional
300,000 hectares of land by using modern water-saving
technologies, and to plant nutritious, medicinal,
oilseed, leguminous, rice, grain, vegetable, sugar crops,
intensive orchards and vineyards on these lands. In
2024, 706 million cubic meters of water will be saved
and 411,000 hectares of land will be irrigated by
repairing canals and renovating channels. In the use of
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American Journal Of Agriculture And Horticulture Innovations (ISSN: 2771-2559)
water resources, we need to be concerned not only
about today's generation, but also about the future
generation. More than 80 percent of water resources
come from neighboring countries. A number of works
are being carried out to develop the agricultural sector
and ensure food security. Ensuring food security and
price stability in domestic markets, increasing their
income by supporting the initiatives of the population
in the production of agricultural products, and
programs on production based on the principle of "One
region - one product" are an important factor in this
regard. In a word, the results achieved today will serve
to ensure food safety in our country in the future,
increase abundance and prosperity in our markets.[4]
In this, the role of farmers and peasant farms of
producers of agricultural products is incomparable. Our
country has great potential in agriculture. Many issues
depend on the development of this direction, from the
abundance of our markets, the abundance of food for
our people, to the earning of additional income from
exports. But for many years, insufficient attention was
paid to the agricultural sector. There was no market
economy, no attitude to the land, no self-interest. The
lack of a long-term agricultural development strategy
hinders the efficient use of land and water resources,
widespread investment in the industry, high incomes
for producers and increased competitiveness of
products. In order to diversify production, improve land
and water relations, create a favorable environment for
agribusiness and the high-value chain, support the
development of cooperative relations, widespread
introduction of market mechanisms, information and
communication technologies in the field, as well as
effective use of scientific achievements and increase
the potential of personnel, a strategy for the
development of agriculture in the Republic of
Uzbekistan was developed. 2020-2030 and the
"Roadmap" of Uzbekistan for the implementation of
tasks was approved., defined in the Strategy for the
Development of agriculture in the Republic for 2020-
2030.Development of directions for sustainable
development of agriculture means improving the
quality of life in rural areas, forming the necessary
amount of food supply for today and future
generations, and ensuring the possibility of sufficient
income for farmers and peasant farms. Supporting the
sustainable development of agriculture, ensuring and
maintaining production capacity for the future,
includes increasing efficiency without harming the
environment and endangering natural resources.[5] In
addition, it requires respect and recognition of local
knowledge, established local ways of managing natural
resources, and efforts to promote the capabilities of
the present generation without compromising the
prospects of future generations. Therefore, economic
and ecological stability, ensuring the efficiency of the
activities of farmers and peasant farms, production
potential for the next generation, improved food
security and social stability are important elements of
the development of agriculture in developing
countries. To date, a number of theories of agricultural
development have been formed, and in this paragraph
of our research, we will analyze their development
evolution. The main and general goal of these theories
is to increase the material and social well-being of
people. In this context, it is often seen as an integrated
approach to improving the environment and society,
and the well-being of the population. The first step in
the process of agricultural development was to
abandon the view of agriculture as static, that is,
unchanging, as in previous or traditional societies. How
do development is not to transform a static agriculture
into a modern dynamic sector, but to ensure that the
growth rates of the sector's output and productivity
correspond to the growth rate of other sectors in the
conditions of modernization of the economy.[6]
Therefore, the process of agricultural development
should be abandoned from the point of view of content
as static as in previous or traditional society. Therefore,
the theory of agricultural development serves to
provide an understanding of the dynamics of
agricultural growth, or variable sources of growth, from
countries with an output growth trend of 1.0 percent
or less to countries with an annual growth rate of 4.0
percent or more. More than 50% of agricultural
products are used as raw materials. It supplies raw
materials for light industry, food, soft feed and other
industries. In turn, agriculture is a major consumer of
industrial goods. Industry supplies the countryside with
tractors, cars, machinery, equipment, fuel, mineral
fertilizers, animal feed, etc. About 40 percent of the
industrial expenditure is spent on the production of
agricultural products. Therefore, the development of
some branches of industry is closely related to
agriculture, and at the same time, the purposeful
activity of producers of goods in agriculture is reflected
in the level of development of the industry. In every
branch of the national economy, means of production
are used, various products are produced, sufficient
skills are required from workers. Similarly, agriculture
has its own characteristics, which must be taken into
account when conducting business activities in this
sector. In the network, land appears as the most basic,
irreplaceable means of production. Unlike other means
of production, when land is used, it does not wear out,
but retains its quality. Land resources used in
agriculture differ depending on their productivity and
location. This requires the existence of differential rent
I m: the owners of land areas located near product
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American Journal Of Agriculture And Horticulture Innovations (ISSN: 2771-2559)
markets have the opportunity to receive additional
income (profit).
2. In agriculture, production is carried out in different
soil and climate conditions, and it is important to take
this feature into account in the mechanization,
chemicalization and network improvement of the
production process, the selection of the variety of
agricultural crops, and breeding.[7]
3. The results obtained in this sector also depend on soil
and climate conditions, and this factor has no influence
on industrial production. In addition, natural and
climatic conditions have a significant impact on the
location and specialization of agricultural production.
Certain agricultural crops can be grown only under
certain conditions. Favorable or unfavorable weather
also plays an important role in rural life. Production in
agricultural plant is seasonal in nature. A significant
difference between the production period and working
time can be seen, especially in autumn grain
cultivation. The period of preparation and planting of
winter grain begins in August and September, and the
harvest is harvested in July of the next year.
CONCLUSION
During this period, there will be several interruptions in
working hours: preparation of fields, planting, care of
crops, harvesting, etc. The production period continues
continuously due to the natural growth and
development of the crop. Seasonality has a significant
impact on the organization of production, the use of
labor resources and equipment. Also, the seasonal
nature of agriculture is reflected in the processing
industry. Because agricultural raw materials are
unevenly distributed throughout the year.
1. Agricultural products are used later in the production
process as means of production (seeds, fodder, organic
fertilizers, fodder for young livestock, etc.). In the
industry, raw materials are brought from other industry
enterprises. In agriculture, the technological process
relies on biological factors and living organisms, while
in industry it is carried out on the basis of chemical,
physical and mechanical processes.
2. The network has a high fund capacity, and the
working capital circulates slowly, since this situation is
not very profitable for investors, the role of the state is
mainly important in the development of this network.
3. Usually, agricultural machinery (tractors, machines,
combine harvesters, etc.) moves from one place to
another, and labor objects (plants) are located in a
certain place. On the contrary, in the industry, the
objects of labor (raw materials) move away, while the
equipment, machines and machines are concentrated
in one place. 4. Most agricultural enterprises produce
several different products. Agricultural and livestock
products are grown in exactly one farm. Because
agriculture provides food for livestock, manure from
livestock serves as organic fertilizer.
5. A large number of producers of agricultural goods
creates a competitive environment in the market. Since
a single producer cannot influence the market price,
there is no single dominance in the industry.[8]
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