1. TRANFORMED STATE AGRICULTURAL FARMS: CHARACTERISTRICS AND INVOLVEMENT IN WATER MANAGEMENT ISSUES A CASE STUDY FROM UZBEKISTAN AYSE KUDAT SOCIAL ASSESSMENT 2001

2. As part of the social assessment for the proposed rehabilitation of the pumping cascade, a mail-in survey was prepared in cooperation with the Ministry of Agriculture and Water Resources and with the local administration in Karshi. There are 92 shirkats in the impact area. The local administration forwarded the mail survey to all of these shirkats, receiving back 76 completed responses. Of these, 16 were in Kasan, 17 in Nishan, 13 in Kasbi, and about 7-8 each in Boharistan, Karshi, Mubarek and Usman-Yusupov. Results of shirkat survey indicated low willingness of the administrations to respond to issues of lease conditions, revenues and expenditures

3. The findings of the shirkat survey pointed to the inadequate supply of irrigation water, attributed primarily to the low availability of water in the main canal. There was clear support for the rehabilitation of the pumping cascade. Many shirkats believed that having a more regular and adequate water in the Karshi main canal would be a major step in the right direction; other improvements were also suggested. About a fourth of all measures suggested to enhance farm productivity also focused on irrigation. Shirkats have a high need for improved irrigation water supply

4. The survey also points to the need for a multi-sectoral approach to improve farm incomes. Clearly, the dissatisfaction with the drainage system far exceeds the dissatisfaction with the irrigation system. Of particular interest is the wish of the shirkats to improve the distribution of water among users so that potential conflicts are avoided and up-stream communities do not enjoy unjustifiable levels of benefits. Improved management, including crop rotation, lease terms, prices, etc., is also a felt need. Improved agricultural technology and better farm equipment are also included among the suggestions for enhanced farm profitability. Shirkats need drainage system improvements

5. The large-size shirkats (as measured by the size of their irrigated areas), spend even less for irrigation and drainage. This is explained by the higher quality of their canals, which have lining and are better equipped hydrologically. Small and medium-sized shirkats, in particular those that have emerged from kolkhozes and are located in the old irrigation zone have unlined canals requiring additional expenditures for their maintenance. Shirkats spend little on maintenance

6. A majority of the shirkats (64) emerged from the former sovkhozes, 6 shirkats from kolkhozes, and 6 shirkats from other agricultural enterprises. In nearly 80 percent of the cases, the former organization was renamed as a shirkat. In about 5 percent of the cases, two separate shirkats emerged from one state farm and another 10 percent of the former farms were divided into 3 separate shirkats. Over 90 percent of irrigated lands are concentrated in medium and large-sized shirkats with the average irrigated area of 3,000 and 5,000 ha respectively. The total land area of shirkats Shirkat size, measured by irrigated are in (hectares) Number of shirkats Average irrigated area (ha) Average area of dry land (ha) Average pasture area (ha) Average area occupied by infrastructur e (ha) Average uncultivated area (ha) Less than 2.000 151.3038835,595235853 2.000 - 4.000442.9847161,210422275 Over 4.000174.9483341,060505267 TOTAL763.0926342,100404366 Source: Shirkat Survey, Karshi SA. July 2001 hectares

7. Over 80 percent of irrigated lands are leased out by shirkats; 71 percent of the total leased is leased on family contracts. The area of irrigated land leased on family contracts averages 2,200 ha per shirkat for all types of shirkats. Source: Shirkat Survey, Karshi SA. July 2001 hectares Shirkat size (irrigated are in hectares) Average area of leased land Private farmersFamily contractors Less than 2.0002631.087 2.000 - 4.0007662.355 Over 4.0001.6392.808 TOTAL8772.194 Distribution of irrigated shirkat lands among different categories of agricultural producers

8. A typical shirkat entered into contractual relations with 197 farmers on average. Most shirkats, however, established 184 contracts (as measured by the median). Most of the shirkat lands were given to shirkat members (family contractors). The average size of plots leased by a family is 11 ha in all types of shirkats, and ranges from 10 ha in small and large-sized shirkats up to 12 in medium-sized shirkats. Source: Shirkat Survey, Karshi SA. July 2001 Shirkat size (irrigated are in hectares) Average number of families on contracts Average land plot size leased by one family (hectares) Less than 2,00011410 2,000-4,00019112 Over 4,000 a28710 Average19711 The number of families leasing land and the average plot size The average area of land leased out to private farmers is 877 ha or 28 percent per of the lands of a typical shirkat, and it varies from 263 ha in small-sized shirkats up to 1,639 ha in large-sized ones. The area of irrigated lands leased by dehkan farms, as well as lands being otherwise leased, is less than 5 percent.

9. Lease Incomes The inquiries concerning lease terms were unanswered by the great majority of shirkats; some did not answer any of the questions while others answered only a few. It seemed that the managers were unwilling to respond and the particularities of actual practices diverged from the policies that guided them. Shirkat size (irrigated are in hectares) Lease incomes per shirkat in 2000 (monthly average) Cash-sums In kind (centners) WheatCotton Less than 2,0002.174488828 2,000 - 4,00017.0122.0082.405 Over 4,0005.4172.0707.774 Average for all shirkats 11.6891.6952.746 Source: Shirkat Survey, Karshi SA. July 2001

10. Shirkat size (irrigated are in hectares) Annual expenditures Total expendit ure Total average expendit ures per hectare WagesOther expenditures Total Office and managem ent personnel Total Including Irrigat ion Draina ge Equipmt. Land / water tax Ener gy Transp ort Less than 2,000 107,876. 3 82.8 50,569.4 2,503.4 57,306.9 5,981. 9 1,800.01,574.0 8,292. 6 7,415.4 22,870. 3 2,000- 4,000 157,752. 5 52.6 74,125.9 2,454.7 83,626.6 8,578. 9 4,093.12,408.06,100 4,676.5 34,878. 8 Over 4,000 174,111. 1 35.2 84,684.3 3,848.4 89,426.8 4,656. 1 1,800.71,866.0 9,517. 5 4,724.0 45,590. 4 TOTAL 150.688. 2 48.2 71,567.4 2,765.0 79,120.8 7,052. 0 3,259.02,178.7 7,243. 0 5,207.0 35,016. 0 Shirkat Expenditures

11. Expenditures for maintenance of irrigation and drainage systems constitute a less than significant part of shirkats' total expenditures Source: Shirkat Survey, Karshi SA. July 2001 Length of the irrigation networks in different districts kilometers

12. Total length of irrigation canals per shirkat average 131 km, including 110 km of intra-shirkat networks. The length of irrigation networks per shirkat varies from 67 km in small-sized shirkats to 173 km in large-sized ones. Source: Shirkat Survey, Karshi SA. July 2001 kilometers Average length of irrigation canals and expenditures for their maintenance in shirkats

13. In small-sized shirkats irrigation maintenance expenditures were 90 sums per km, and 62 sums per km in medium-sized shirkats. In large-sized shirkats, total expenditures were 4,600 sums per shirkat and 27 sums per km. Over 60 percent of all shirkats assess the condition of irrigation system as satisfactory. In small-sized shirkats this percentage is higher (77 percent). Expenditures for irrigation system maintenance in 2000 Source: Shirkat Survey, Karshi SA. July 2001

14. Only in a half of the shirkats did the water received by the shirkats fulfill 80 to 100 percent of their needs; in others there was inadequate water. The main reason was the insufficient supply of water into the canal; nearly half of the shirkats believed this to be the case. Besides that, representatives of small and medium-sized shirkats believed that the water was inadequate because it was taken by other shirkats. About 20 percent of responding shirkats reported that water was insufficient because of lack of pump or its disrepair. Expenditures for irrigation system maintenance in 2000 Source: Shirkat Survey, Karshi SA. July 2001 It is important to note that there was a relatively high evaluation of the quality of irrigation infrastructure; 44 shirkats assessed the condition of irrigation system to be satisfactory and 25 shirkats as unsatisfactory

15. In contrast with the irrigation systems, over 76 percent of the shirkats assess the condition of drainage systems as unsatisfactory. Despite that the expenditures for drainage system maintenance are much lower than the expenditures for irrigation system maintenance. Source: Shirkat Survey, Karshi SA. July 2001 Length of drainage system and expenditures for its maintenance in shirkats Length of drainage system in different districts

16. Drainage expenditures varied by district; the variations do not necessarily reflect the conditions of the drainage infrastructure Source: Shirkat Survey, Karshi SA. July 2001 Shirkat expenditures for drainage system maintenance

17. Shirkats were also asked whether they operated profitably or not. More than half (58 percent) mentioned that they were not profitable, with very few not responding to the question. They were also asked what specific measures were needed to enhance their profitability and productivity. Most of shirkat chairpersons think that measures for increasing shirkat productivity should be associated with enhancement of water distribution and reconstruction of drainage system. Source: Shirkat Survey, Karshi SA. July 2001 Measures for increasing productivity of shirkats