LocationsThe path to sustainable agriculture: new financial tools help restore Kazakhstan’s soils
December 23, 2025
Land degradation is one of the most pressing environmental challenges facing Kazakhstan. It reduces crop yields, undermines ecosystems, and threatens biodiversity. According to the United Nations, around 40 percent of the world’s land has already been degraded, affecting the lives of three billion people globally. In Kazakhstan, approximately 75 percent of agricultural soils are affected by various forms of degradation, including desertification, salinization, erosion, and nutrient depletion from overuse. Data from the State Institute for Land Surveying under the Ministry of Agriculture shows that the potential fertility of soils has declined by 17 percent, resulting in lower agricultural productivity across the country.
The scale of the problem is also evident in regional statistics: in northern Kazakhstan, agricultural production remains poorly diversified. Between 75 and 87 percent of arable land is used to grow wheat. The crop diversity index is just 0.37 in Akmola Region, 0.5 in Kostanay, and 0.62 in North Kazakhstan Region. And yet, the latter already shows potential for expanding into other crops, particularly legumes.
Transitioning to sustainable agricultural practices and restoring ecosystems requires financial support tools that empower farmers to adopt environmentally friendly practices and manage land more responsibly.
One such solution is a set of innovative agro-environmental financial instruments developed by UNDP in partnership with the Ministry of Agriculture of the Republic of Kazakhstan, with financial support from the Global Environment Facility (GEF) and in collaboration with the National company Food and Contract Corporation JSC.
The first financial instrument is a three-year forward purchase agreement for leguminous crops, including lentils, chickpeas, peas, and beans. This mechanism guarantees farmers a stable buyer for their produce while requiring compliance with evidence-based crop rotation, minimal tillage, and other sustainable land-use practices. According to UNDP experts, this tool links market incentives to environmental goals. It lays the groundwork for diversifying the agricultural sector, reducing dependence on monoculture, and easing pressure on soil resources.
The second instrument is a commodity credit scheme for growing perennial grasses. Farmers receive seed material up front and repay the loan with a portion of their harvest. This model promotes fodder production, restoration of degraded lands, and greater national food security. In the long run, it could enable the creation of fodder reserve funds to support livestock farming and boost climate resilience in Kazakhstan’s agricultural systems.
The first pilot projects will be launched in three regions of northern Kazakhstan, where farms will voluntarily participate in testing of new instruments. Under the forward contracting scheme, around nine agreements are expected to be signed, covering roughly 9,000 hectares. Under the commodity credit tool, ten deals will be concluded for planting 2,000 hectares of perennial grasses.
Each participating farm will receive individual support from scientific institutions to develop tailored land management plans and monitoring and evaluation frameworks. This system aims to ensure not only financial sustainability, but also measurable environmental outcomes — from improved soil structure to reduced CO₂ emissions.
In parallel with the pilot phase, an analytical assessment is underway to explore the export potential of priority crops — particularly legumes and forage crops — to enter international markets. This will help lay the groundwork for creating green value chains, where sustainability becomes a new standard of quality.
The pilot is only the first step toward systemic transformation. If successful, the model will be scaled up across other regions of Kazakhstan and proposed for integration into national agricultural support programmes.
The FOLUR Project is implemented by UNDP with funding from the Global Environment Facility (GEF), in partnership with the Ministry of Agriculture of the Republic of Kazakhstan.
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