Market mechanisms in agriculture
Number of private producers developing agricultural production is growing in the north of the country like in other regions. More and more individuals and legal entities receive land plots for 99 years lease from special agricultural land funds.
For example, 39 new farms, which have started produce crops from the state order on contractual base, were opened in Zähmet territorial unit, Ruhubelent district. More than two thousands hectares of land was given to them last year in total. Part of the territory has been sown with winter crops last year.
Formation of new economic relations including formation of competitive environment for various business entities is supported by structural modernization of agrarian sector, optimization of legal base, development of the most effective mechanisms of management and financing.
Last year, several dozen thousands of land have been given to private producers from special agricultural land funds in this region of the country last year. It is remarkable that this process is ongoing more actively in S. Turkmenbashy district, a big producer of cotton and wheat, as well as in Ruhubelent district.
The fact that other crops, which are not included into the state order but required for crop rotation and development of farming, can be sown on 30 percent of given agricultural lands is an additional stimulus for private farms.