Uzbekistan proposes tying agricultural subsidies to performance

Proposals to reform the agricultural subsidization and insurance systems were presented to President Shavkat Mirziyoyev on September 25. Starting next year, a phased transition to a "performance-based subsidy" model was proposed. The evaluation criteria will include crop yield indicators, water and electricity savings, as well as the volume of output produced per unit of resources used. Information for each recipient's electronic profile is planned to be gathered automatically from state databases.

Water-saving technologies will be the first area to test the new scheme. Specialists will monitor water consumption and efficiency, as well as crop yields, for two to three years after funds are disbursed. If the established standards are not met, recipients will be required to return the subsidy funds.

The reform plan also covers agricultural insurance. By 2027, the goal is to cover 45,000 agricultural enterprises with policies, train 500 independent experts, and bring product insurance coverage to 60%. In addition, it was proposed to allocate 3% to 5% of the insurance premium to a special fund to finance preventive measures: livestock vaccination, biological protection of cotton and grain crops, and safeguarding plantings from natural disasters.

Following the presentation, the head of state instructed officials to finalize the presented initiatives and submit drafts of relevant regulatory legal acts. According to the press service, 2.7 trillion soums are planned for 91 types of agricultural subsidies across 29 areas in 2026.