Planting campaign of 2019. Hopes for good crop. Farmers’ opinion

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APK-Inform

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In the beginning of June, Kazakh agrarians finished the planting campaign of 2019. According to the Ministry of Agriculture of Kazakhstan, in terms of the diversification this year the areas under coarse grains (barley, oats, corn, peas and chickpeas), vegetables and cucurbits, feed grains and potato increased, and there were no problems with provision of the necessary recourses for the field works. However, weather factor should be considered. The editor of the issue “Agrobusiness. Kazakhstan”, Dina Esenova asked farmers about their estimations of the planting campaign and their anticipations concerning the new season, issued exclusively for APK-Inform.

 

Farmers were interviewed and asked the following questions:

  1. How do You estimate in general the results of the spring planting campaign in 2019? How bad were the weather conditions?
  2. How did the cost of the planting change compared to the previous year, did the prices of inventories increase (fuel and lubricants materials, spare parts, fertilizers, PPP, etc.)?
  3. The diversification of the planting areas continues in order to increase them under the competitive highly-demanded crops on the account of areas under wheat. Does Your farm diversify the planting areas and what crops (grain, oilseeds) do You prefer in 2019?
  4. What modern technologies of crop production do You use for the high production and high quality? What are Your forecasts of the production this year?
  5. How do You estimate the provision by the fertilizers this year? Have Your farm had any problems with the purchase of fertilizers?
  6. The high quality of the crop is provided first of all by the use the high quality seeds. While choosing the seeds of the key grain crops, which do You prefer – of domestic production or foreign? Does Your farm participate in the seed subsidy program which provides subsidies of the elite seeds and seeds of first generation in terms of purchase norms?
  7. What is the situation with the provision of agricultural machinery for the filed works? Did You renew the fleet of machines?
  8. How do You estimate the results of 2018/19 MY for Your company? What are Your anticipations of the new 2019/20 MY?

Anatolyi Rafalskyi, the Director of LLC “SK Agro-2050”, North Kazakhstan oblast, Magzhan Zhumabaev district

“Harvest begins with quality seeds”

 

The plant is located in Magzhan Zhumabaev district in North Kazakhstan oblast, the land size is 32 thsd ha, the soil is dark brown, loamy, the average annual precipitation is 360-380 mm.

 

  1. The spring was not simple: the soil was waterlogged, we had to choose the land squares for planting as soon as they were drying, we could hardly find the planting machines, the temperature was lower to average – the extensive precipitation during the planting in the region becomes a trend. However, we managed to finish the campaign in the optimal window, plus 2-3 days.
  2. The prices increased for everything – for fuels and lubricants, for the fertilizers, PPP, and in general the cost of planting this year increased by 15-20%.
  3. We diversified the lands on the farm: the areas under the oilseeds and pulses were increased, whereas under wheat – decreased by 30%. The oilseeds (8`500 ha) contain rapeseed, flaxseed, sunflower seeds, pulses – chickpeas (1`300 ha) and soybeans (1`000). The structure of the areas: wheat (10`000ha) – 32%, oilseeds – 27%, pulses and feed crops – 10%, fallow – 15%, other crops – 16%.
  4. The decline of the planting areas under wheat will result in the production decrease. We work on the improving of the yield of wheat and other crops by means of the use of spot farming, GPS systems, the machines work to its full capacity – all of these give results. The main elements of the yield increase are first of all seeds, fertilizers, preceding crops, PPP. The average yield totals 2.5 t/ha on the farm.
  5. Speaking of the forecast, I cannot tell anything particular. For now the situation is normal, there were rains after the planting, we hold a first combination of the treatment against the weed, diseases and pests.
  6. The problems with the receiving of the fertilizers this year were connected with the online-subsidizing, in particular with the conditions of payments. While placing a request we had to add the agrochemical analysis of the soil, so there were queues and time loss. However, it is a tribute to the Ministry of Agriculture – the decision was taken to postpone the implementation of the changes to the soil analysis to 2021. We use nitrogen and phosphate fertilizers, liquid fertilizers UAN solution (urea ammonium nitrate solution). In terms of volumes we applied fertilizers on nearly 30-40% of the areas, whereas it should be 70-80%, the soil is very exhausted.
  7. The crop begins with quality seeds. First of all, we plant the first reproduction, the second at least, the elite and super elite. We definitely choose foreign seeds, in particular pulses and oilseeds: Australian, German, Canadian varieties and hybrids. We use also Kazakh and Russian seeds. On the latest reporting meeting of the Ministry of Agriculture of Kazakhstan I asked about the subsidizing of the foreign elite seeds. As reported by the ministry, they decided to subsidize 50% of the foreign seeds. The plant breeders will have the possibility to buy the basic material for reproduction and for science. I believe that in terms of the subsidy program the limits of norm per hectare for faster reproduction of the quality seeds.
  8. During the planting campaign we had 16 planting machines and we also purchased one new machine “HORSH Agrosouz”. The machines must be upgraded – with every year the wear-and-tear is higher and consequently the cost for maintenance increases. Even with the 25% of investment subsidies, the cost of the new machines is still very high.
  9. Last year the harvesting was difficult: the crops were coming nicely but then there were more than 3 months rainfalls so we lost both in quantity and quality. The only thing that saved us was the price rise after the New Year. The humid autumn repeats, so we need to pay attention to the infrastructure, to increase the drying capacities and storage capacities.

Utegen Murtazin, the Director of LLC “Saryagash”, Kostanay oblast, Denisov district

“We really hope that our investments will pay off with high crops”

The planting areas on the farm are 21 thsd ha. The soil is dark brown. The average annual precipitation is 240 mm. All these elements are taken into account.

 

  1. If we speak about the past planting campaign the conditions of the campaign cannot be called favorable, because of first of all short soil moisture supply and the secondly of absence of the precipitation.
  2. The cost of the planting field works has changed compared to last year. In particular, all the technical resources became more expensive, including fuel and lubricants, spare parts, PPP, fertilizers etc. In general, the expenditures increased by 15%.
  3. Speaking of the choice of the crops, we always prefer wheat. We do not plant oilseeds. But this do not mean that there was no diversification on our farm. We hold the diversification of our farm together with the development of the commercial dairy farm – we increased the feed production and began to irrigate some fields. Our farm focuses on the intensification of the production by means of the improvement of the technical processes. All the new improvements in farming are connected with the precipitation level. The limiting factor in the region is the soil moisture. So in order to receive solid crops we use time-tested methods – use of mineral fertilizers, chemical weeding, etc. And this practice gives good results. In January of 2019 there was some sort of mix-up with the mineral fertilizers due to the subsidizing. At first we were told to make the soil analysis, later we were told that there was no need to do it, but all in all it was all alright. Anyway, our farm has purchased the needed volumes of fertilizers and uses it.
  4. In our work we pay a lot of attention to the seeds. We have mostly seeds of Russian origin. Earlier we received the subsidy for them but now as the rule changed we can hardly count on the respective governmental support. We were not purchasing new machines this year. There are many talk about the forecasts of the new wheat crop this year. But of course there is not more or less precise forecast.
  1. If we speak of the results of 2018/19 MY the prices fluctuated greatly on the grain market. The reason was the incorrect statistical data of the production. And while it was clear that the volumes of the crop appeared to be much lower than the governmental bodies reported, 2 months passed – December of 2018 and January of 2019. During this period the prices of the grain declined on the market. Later of course we could see an accurate picture and a new price, but many managed to sell the crop at the wrong price.
  2. Now we come closer to another 2019/20 MY. Our hopes as usually are connected with the future crop. We invested a lot of money into soil and we, agrarians, hope that they will pay off by the high crop.

Georgiy Prokop, the Director of LLC “Shakhterskoe”, Karaganda oblast, Nura District

“In 2-3 years we will be planting with the use of digital technologies”

 

The farm is located in Nura District in Karaganda oblast, the planting areas are 36`500 ha, the soil is dark brown, loamy, the average annual precipitation is 250 mm.

 

  1. This year the weather conditions are favorable. Before the planting works we have undertaken considerable works on water collection, we have planted all the crop in time. The spring and June were cold.
  2. The cost of the planting increased – the expenditure for the inventories, including fuel, as well as the cost of the produce increased.
  3. We have changed the structure of the planting areas considering the global market and the demand. We grow grain and pulses, oilseeds (flaxseeds, soybeans), feed crops (annual and perennial grass) and vegetables. Wheat which is a main crop takes 67% of the total planting, we also increased areas under barley. Being the elite seed breeding farm we produce the seeds of the first reproduction for the future planting and selling to the farms of our region. The diversification of oilseeds and pulses depends on the market: if the prices of chickpeas and lentils fall we decrease the planting areas. The oilseeds are in demand, especially from China. We also increased the areas under safflower to 600 ha, and this year we have planted for test two new varieties of soybeans per 5 ha each.
  4. In our conditions we work with the minimal pre-planting chemical treatment. Such crops as flaxseed, soybean are very demanding in terms of cropping. The technologies of their cultivation are more expensive compared to the grains but the return is 1.5-2 time higher too. In 2018 our farm took part in the project of the Ministry of Agriculture of Kazakhstan and the Astana Agrarian University to cultivation wheat with the use of digital technologies. This technology has produced results: the yield on the areas of 50 ha was 35% higher to those with the use of traditional technologies. This year we use the digital technologies on 4`600 ha. I think in 2-3 years we will be planting all the areas with the use of digital technologies. Despite the fact that we use this technology in grain production it is still mostly spot farming. Our tractors and combines are equipped with GPS. It also gives results and increase yield. Speaking of the forecasts of the future crop, we as agriproducers are optimists. For now, everything goes smooth, the weather is cool, the vegetation might delay.
  1. There are no problems with the fertilizers, we have an agrichemical analysis and make new one. The data did not change significantly. The agrichemical analysis for potato we make overseas and of other crops at the local laboratories.
  2. Being the elite seed-production plant, according to the law “On seed production”, I can work with recognized varieties only and have no right to use foreign seeds. And I strictly adhere to it. The law need to be changed, we need to move forward, we need to use global varieties. The restrictions for the seed farms hinder the development of the agriproduction.
  3. We improve and renew our fleet constantly. During the planting campaign we used 18 planting complexes: “John Deer”, “Buhler”, “Bourgault”, “Horsch”, “Krushanel” etc.
  4. Speaking of the results of 2018/19 MY: there are problems with the logistics as we are located in the center of the continent the expensive transport services result in the loss of profit. Now there are favorable condition for the distribution of the products, the prices increase. Speaking of the financing, there are many financial institutes and we use our own funds.

Valerii Stepochkin, Director of LLC “Enbek Agro”, Aktobe oblast, Ayteke Bi district

“It is too early to give any theforecasts; autumn will tell”

 

Farm is located in the high-risk farm area, the overall areas total area of 16 thsd ha, the soil is mild brown, saline locally, the average annual precipitation is 180-240 mm.

 

  1. The weather in May was cold with the lack of precipitation. The soil moisture supply at first was 30 cm and after the rain it totaled 50 cm. We managed to plant crops in time, we started in May 9 and finished on May 28.
  2. The cost of the planting increased, as well as the prices of the fuels and lubricants also because of the remoteness and long distance. The cost of the spare parts increased by 10%, and of the PPP too.
  3. We plant the single crop – wheat (spring soft and hard), use mostly the drought-resistant variety Saratovskaya 70. Also we leave 4 thsd ha for the fallows, and 300 ha for wheat grass.
  4. We use the water saving technology as the moisture deficit in our region is a pressing issue. We use hackle dual-drum harvesters “Slavyanka” that show high results. The soil moisture is accumulat by leaving the high cutting on the fields in winter so the grain losses are minimized. Earlier we worked by zero technology but it does not fit our conditions, so we shifted to grain fallow rotation. It is too early to give any forecasts; the fall will show.
  1. We do not use fertilizers due to the moisture deficit because they would not work.
  2. The program of seeds production is useful and we actually use it, and this year through subsidies we have taken 80 tonnes of the seeds of the first reproduction in order to renew our seed varieties and in autumn we will return 30% of the total cost. We bought the seeds from the elite seed farm LLC “Kumkydyk” at the price 85`000 KZT/t.
  3. We did not renew our machines this year, but we plan to buy 2 combines. We modernize the machines that we have, usually we put new engines.
  4. Last year (2018) was rather difficult, the weather was not favorable. We were planting later because of cold spring and also there were no rains. All these led to the low yield – 5 ts/ha and for fallows – 7.5-8 ts/ha. But there were no problems with the distribution of the products, our wheat obtains a “high-pro” category, e.g. high quality, so the natural weigh, gluten, falling number and the price are higher. In the new season we are expecting high prices, and now we are waiting for the good rain.

Yuriy Kovyazin, Director of LLC “Lina Agro”, East Kazakhstan oblast, Borodulikha district

“This year wheat has become an interesting crop”

The land size is more than 8 thsd ha, the soil is dark brown, the average annual precipitation is 250 mm.

 

  1. The spring this year is very cold, the weather conditions are unfavorable. There precipitation level is good but there is a lack of warmth which will influence the crop development.
  2. The costs of the planting campaign increased, in particular the expenditures for all inventories went up by 10-15%.
  3. This year wheat has become an interesting crop as the prices have risen. We usually use different breeding and this year try the high-yield variety Granny, SAATBAU (Austria). We plant soft spring wheat (Russian variety), winter wheat, buckwheat, soybeans. In terms of planting sunflower seeds, we use 100% hybrids: usually Syngenta, and partially SAATBAU. Also we have planted trial Austrian rapeseeds. Considering the choice of the seeds we experiment every year to see the results in our conditions. For the fallow we leave 10% of the planting areas – 700-800 ha. We use mixed treatment both mechanical and chemical depending on the field. During June 3-20 the precipitation level totaled 86 mm the quarter of the annual precipitation that caused weeds growing.  That is why we have treated buckwheat by the herbicides additionally. If there is rain, we will have to apply fungicide treatment again.
  4. We use classical technology with the application of the high-productive import machines which provide quality seeding-down, planting accuracy and other parameters necessary in order to receive high results.
  5. We definitely use the fertilizers and increase the norm of usage. We shifted to the production of the intensive high-yield varieties, demanding to the agricultural background and moisture. If last year we bought 300-320tonnes of fertilizers, this year we bought 7 wagons (nearly 450 tonnes). We apply fertilizers for every crop we cultivate. The subsidy program has restriction of application rate that need to be widened. From all the dotation the subsidies for fertilizers are the most important for us. All the nutrition elements that are rushed out of the soil need to be compensated.
  6. This year the program of seed production operated smoothly, it was updated in terms of the weight of sunflower seeds – the seed unit (earlier kg/ha). Annually we spent 50 mln tenge for seeds purchase and we received 15-16 mln tenge of subsidies. We prefer foreign seeds – they have higher productive potential. Also we use some Russian and local seeds.
  7. In terms of the machines fleet, we are fully equipped: we have tractors, combines, also we renewed 70-80% of the machines and in general they are not older than 6-7 years. It is only left to get equipped by the heavy machines. The investment subsidies are very helpful as we were able to purchase new machines: planting machine John Deere and tractor John Deere 9420.
  8. Last year was good, even very successful for us but we had one drawback. Every year we prepare thoroughly but sometimes one thing goes wrong – that time it was a technology. Because of the miscalculations we received lower crops and profit. So we moved away from such a crop rotation. In Kazakhstan the production of all the crops increased, the yield increased, for example we harvested nearly 3 mln tonnes of each grain crop but at the same time there is a problem of the grain storage. That is why we decided to build silos in a long-term perspective, drying equipment and cleaning equipment. It is necessary not only to cultivate the crop, but to store it too. We will invest in the modern equipment in order not to sell the crop during the massive harvesting, and as a consequence the price decline, but to hold it. Also, after we sort out the plant farming we will engage in livestock breeding. Speaking of the crop forecasts in our region for the new season I would say we expect the results above the average.

 

Prepared by Dina Esenova, editor of “Agrobusiness.Kazakhstan”, exclusively for APK-Inform Agency

 

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