Tajik Farmers: Reaping What They Sow

April 2007—Nazokat Tilakova’s 10 hectares of land seem to stretch forever, in the shadow of the mountains in the distance. Here, she is able to grow wheat, potatoes, tomatoes—whatever yields the highest profit for her. Her land is reliably irrigated, and most importantly, the land is all hers.

“We now have plenty to eat, and I feel more hopeful about the future,” she says. “Life is still hard, but I am thankful for what I have.”

It was not always this way—after the collapse of the Soviet Union and the 1992-1997 civil war, the agricultural sector was in disarray. Most land was still in government hands, and farmers had little control over what they could grow. Eighty percent of the country’s arable land requires irrigation, but by 2000, irrigation and drainage infrastructure was in danger of collapse. Farmers also simply did not have they money to invest in better equipment or avail themselves of modern farming techniques.

Improvements in the sector were urgent, as about two-thirds of Tajikistan’s primarily rural population relies heavily on agriculture to make a living, with the sector comprising about 24 percent of GDP. To help bring about a recovery and spur economic growth, the World Bank has launched several rural projects in collaboration with the Government of Tajikistan since 2000. The first step was to transfer state land holdings into private hands. Starting in six districts, owners of newly-privatized land received a certificate declaring their legal right to use the land as they saw fit. The certificates do not expire and guarantee that the land can be inherited by the next generation.

Of course, privatization was not as simple as handing farmers a piece of paper. Vested interests had to be overcome, as many municipal leaders did not want to lose their control over what the farmers grew. The cotton industry is also very powerful and reluctant to allow farmers to profit from other crops. Finally, farmers themselves, who knew little about how to grow anything other than what the state had dictated, needed training, as well as a fundamental change in their economic outlook.

To give an initial boost to the farmers, land owners received $300/ha for up to two hectares of land—a considerable amount of money at the time. This was often used to make ends meet and help pay off debts, which still burden many farmers. Farmers also received instruction from 150 trainers—trained through the project—on new crop types and varieties, as well as how to improve cultivation and irrigation techniques.

“We had to fight the collective for two years to get the rights to our land,” says Ms. Tilakova. “Since then, it’s been easier. Even with the certificates, many of us still feared the land would be taken away. But the training helped explain our rights, as well as how to grow profitable crops and put new technology to use.”

To make the most of their land rights, farmers needed reliable irrigation. The Farm Privatization Support Project, and afterward, the Rural Infrastructure Rehabilitation Project, repaired and upgraded canals, headworks, gates, control devices, pump stations, and more. To oversee the irrigation systems and collect money for water usage, Water Users’ Associations were created for each district. The WUAs work closely with farmers to determine approximately how much water they require for the crops they grow, which helps them use water more efficiently. The WUA is obligated to provide the agreed amount of water, as well as to pay for regular maintenance of the irrigation systems.

“Farmers no longer argue among themselves over water, and because they know how much water to use, usage has dropped about 30 percent,” says Mr. Ziyedullo Khamroev, a field officer at the “Mirob” WUA in Shahrinav district. “Without the WUAs, it would be very difficult to regulate how much water goes where.”

Mr. Khamroev, a former collective farm engineer, receives regular training to learn new skills, and the WUA is

Even so, paying bills is still a problem for many farmers, which means that acquiring new equipment, seeds, fertilizer, and other necessities is sometimes nearly impossible using only their income. Receiving loans from traditional sources was not an option due to poor credit, so the World Bank helped the government establish the legal foundation for more flexible non-bank financial organizations (NBFO) that could lend with fewer requirements.

“We have 93 clients who use their loans for everything from fertilizers to machinery to new farm animals,” says Mr. Burikul Saraev, chairman of the NBFO “Barhak” (True) in Shahrinav district. “Farmers must first design a business plan so that we know the funds will be put to good use. Most borrowers have given us very positive feedback, and many return for additional loans.”

The new lending organizations have made a large amount of loans with high repayment rates. However, interest rates are very high, and still, the salaries of the NBFO staff are extremely low, particularly compared to what many of them were earning previously at private banks. Even so, organizations such as Mr. Saraev’s are accumulating capital and are optimistic about their sustainability.

To maximize the impact of available lending, some farmers have organized into cooperatives to borrow money together and reap the benefits of the loan collectively. Ms. Tilakova is one such entrepreneur, having founded a cooperative

The Farm Privatization Support and Rural Infrastructure Rehabilitation projects helped to lay the groundwork for a functioning agricultural sector in a market economy—private land, modernized irrigation infrastructure, and small-scale financing organizations. Now, with the Community Agriculture and Watershed Management Project, the Bank and other donors are helping train farmers in mountainous areas to implement projects related to improving agricultural production, land management—including erosion prevention and pasture rotation, and strengthening infrastructure.

As part of the new project, community cooperation is encouraged, with locals electing municipal development committees, which must approve the farmers’ projects and guarantee that the projects benefit not only the farmers, but the larger community as well. So far, projects have helped prevent landslides through tree planting, as well as improve soil quality. The project is being implemented jointly with the Global Environmental Facility to ensure a focus on larger environmental impacts.

The Cotton Sector Recovery Project also complements the ongoing Land Registration and Cadastre System for Sustainable Agriculture Project by increasing farmer capacity and incentives to privatize their land in cotton growing areas, where progress with land privatization has been slowest. The Bank is also helping Tajikistan focus on specific rural issues, such as the potential impacts of an avian flu outbreak.

Individual farmers still face many hurdles to independent land use, such as continuing land reform issues and the power that the cotton industry wields. Compounding this is the outflow of poor rural people to Russia and neighboring countries. However, more and more farmers are now able to provide for themselves and are in control over the day-to-day decisions regarding their land.