VZCZCXRO4075
RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0495/01 1130333
ZNR UUUUU ZZH
R 220333Z APR 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 0636
INFO RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1472
RUEHAK/AMEMBASSY ANKARA 3654
RUEHKO/AMEMBASSY TOKYO 1339
RUEHIT/AMCONSUL ISTANBUL 1908
RHEHNSC/NSC WASHDC
RUEHVEN/USMISSION USOSCE 2427
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

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. 
 
 
ASHGABAT 00000495  002 OF 002 
 
 
HOAGLAND