TURKMENISTAN: AHAL PROVINCE FARMERS EKE OUT A PROFIT

UNCLAS SECTION 01 OF 02 ASHGABAT 000495

SIPDIS

SENSITIVE

SIPDIS

STATE FOR SCA/CEN
AID/W FOR EE/EA

E.O. 12958: N/A
TAGS: PGOV EAGR EAID ECON TX
SUBJECT: TURKMENISTAN: AHAL PROVINCE FARMERS EKE OUT A PROFIT
DESPITE STATE CONTROLS


SIPDIS


1. (U) Sensitive but unclassified. Not for public Internet.


2. (SBU) SUMMARY: Private farmers in Ahal province are chafing
under state controls and regulations that mandate they dedicate much
of their acreage to certain crops rather than to crops of their own
choosing. They consistently tell us they want a less restrictive
agricultural policy. Meanwhile, the construction and improvements
showered on President Berdimuhamedov's hometown are now being
extended to other nearby villages. END SUMMARY.


3. (SBU) Visiting cities in Ahal province to the west of Ashgabat,
PAO visited a USAID, Winrock International-sponsored greenhouse in
the village of Gorjev, not far from President Berdimuhamedov's home
town of Babarab. A discussion with the greenhouse director, who
also conducts bi-monthly seminars for area farmers, revealed much
about the ability of farmers to earn a profit despite the conditions
dictated under leasing of state-owned farmland.

GORJEW VILLAGE GETTING NEW STREETS

4. (SBU) All major streets in Gorjew village were being prepared
for a full-scale paving project. Like nearby Babarab, large
crbside blocks had been installed and dirt/gravel layering had been
provided for the eventual asphalt layer of street. While it was
widely expected that Babarab would undergo major improvements, that
effort now extends to the surrounding area as well.

GREENHOUSE MORE PROFITABLE THAN A STATE-RUN HECTARE


5. (SBU) The greenhouse, a rather ordinary steel and plastic
sheeting structure only extends about 17 by 26 meters and has
healthy tomato vines neatly organized throughout the interior.
According to the director, the prices of tomatoes and other
vegetables make such farming highly profitable compared to cotton
and wheat production which is controlled by the state. He stated
that his small greenhouse is more profitable than any hectare of
cotton or wheat based on the state prices for those two crops.

THE BURDEN ON PRIVATE FARMERS


6. (SBU) Based on feedback from private farmers during the regular
seminars, it's clear that most believe they could produce and earn
much, much more without state controls hindering them. With all
land owned by the state, private farmers lease plots in arrangements
that require them to dedicate large percentages of their acreage to
cotton or wheat. While the precise arrangement may vary from
district to district, a typical arrangement is that a private farmer
might grow 4 hectares of cotton or wheat for every 1 hectare used
for his own crop choice. Despite this heavy burden on crop
selection, many are successfully producing more profitable
vegetables for local markets and export.


7. (SBU) Using the example of grapes, the greenhouse director
explained how Ahal province farmers can produce high quality sweet
grapes that could be sold locally and exported at a large profit.
Grape cultivation would require less water, and require minimal use
of imported fertilizers and other expensive inputs when compared to
state-directed cotton and wheat production. Although the state has
significantly raised the prices paid for cotton and wheat, private
farmers at present can only wish for a less restrictive agricultural
policy which would enable them to grow lower cost crops and yield a
greater profit.


8. (SBU) COMMENT: As we travel around Turkmenistan, we increasing
hear from farmers their desire for agricultural reform. They know
that if they could make their own decisions regarding crop choice,
they would be more productive and would earn a greater profit. It is
unclear if Turkmenistani officials are listening as closely to the
farmers. END COMMENT.


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