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 VOLUME Vol.05 Issue02 2025 

PAGE NO. 22-26 

DOI 10.37547/ajahi/Volume05Issue02-07 

 
 
 
 

Directions of financing agriculture: the case of 

Uzbekistan 
 

  Ahmedov Azamat Kamilovich 

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, 

 

https://doi.org/10.37547/ajahi/Volume05Issue02-07
https://doi.org/10.37547/ajahi/Volume05Issue02-07
https://doi.org/10.37547/ajahi/Volume05Issue02-07
https://doi.org/10.37547/ajahi/Volume05Issue02-07
https://orcid.org/0000-0001-8308-3937


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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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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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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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