This policy note reviewed the status offarm machinery in the Kyrgyz Republic. Agriculturalproductivity, particularly in terms of grain yields, is lowbecause of underinvestment. This note finds that asignificant deficit in agricultural machinery is hinderingsector productivity. The Kyrgyz Republic has fewer tractorsper hectare than any comparable country, with a deficitestimated at 40 percent. The deficit of combine harvesters,estimated at 45 percent, is even more critical. When the ageof agricultural machinery is taken into account, theunderinvestment becomes even more acute. The reduceddomestic production of wheat exacerbates food securityconcerns. Inadequate access to credit and small farm sizeare the main factors that constrain farm mechanization. Thepolicy note presents three sets of short- to medium-termpolicy options to: i) promote the demand for farm machinery,by developing credit lines for agricultural productiveassets, leasing, facilitating access to secondhandequipment, and testing/demonstrating the efficiency of farmmachinery for small-scale farming; ii) increase the supplyof farm machinery, by facilitating the development ofmechanical services contracting and improving access to farmmachinery import markets, including for second-handequipment; and iii) remove obstacles to private investment,by avoiding distributions of farm machinery or inputsin-kind, the setting of production targets for specificcrops, and ensuring that the private sector is free tofulfill its role.
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