The natural and climatic conditions of Azerbaijan are unique. The mountainous areas account for more than half (58%) of the total territory of the republic and the plains account for the rest (42%). The climate of Azerbaijan is very diverse. Nine out of eleven existing climate zones and most types of soil are present in Azerbaijan. Dry, humid, subtropical and continental climates are more pronounced here.

The Land Trust Fund with its total area of 8,641,506 hectares, consists of 4,919,100 hectares (56.9 percent) of government-owned, 2,051,378 hectares (23.5 percent) of municipally owned and 1,670,990 hectares (19.6 percent) of privately owned lands.

1,714,959 hectares of the total area of the Land Trust Fund are used for plant and harvest crops, 161,081 hectares for growing perennial crops, 109,709 hectares for hayfields, 259,037 hectares for private plots, 2,538,318 hectares for pastures and meadows. The remaining 1,039,893 hectares are forests and 2,820,509 hectares are other areas.

Agriculture of the Republic of Azerbaijan is the second, after the oil industry, the largest sector of the economy of this country. It is also a traditional industry in Azerbaijan. Historically, viticulture, sericulture and horticulture have been widespread here. As most of the country has a mountainous terrain, livestock production has always played an important role in the lives of the people living here. The development of animal husbandry, in turn, led to the development of handicrafts and carpet weaving. At that time, high-quality wines, carpets, leather, silk products, etc. were exported from the country to Europe and the East. 

After Azerbaijan gained independence from the Soviet Union in 1991, one of the most important problems to be solved was the implementation of a new land policy and land reform. The collapse of the dependent economic system in the Soviet Union plunged Azerbaijan, like other republics, into a severe economic crisis. The economy of Azerbaijan, including the agricultural sector, began to decline. At that time, the collective and state farms, which were the main forms of agriculture, could not function significantly, and the economic recession deepened day by day. The only and correct way to get the republic out of this crisis was to restore the country’s economy on a new economic basis for a short period of time, and for this to happen, first of all, land reforms had to be carried out.

In such circumstances, national leader Heydar Aliyev stated that the only way to save the economy from the crisis is to develop it through the reforms. Under his leadership and organization, the legal basis for agrarian reform was created and implemented. Thus, in 1995, the laws “On the Fundamentals of Agrarian Reform”, “On the Reform of State and Collective Farms” and in 1996 “On Land Reform” were adopted.

Under the leadership of Heydar Aliyev, there were adopted more than 40 legal documents in the country. As a result of the reforms carried out on their basis, for 1,372,800 hectares of land fell on more than 63,000 machines and tractors, 4,000 heads of livestock, 2,300 stables, 450,000 heads of cattle and more than 1,900 flock. Nowadays, there are more than 2,600 peasant farms in the country. They account for 99.01% of agricultural production. Prices for the sale of these products have been fully stabilized, all obstacles to import and export operations have been removed. At present, Azerbaijan has turned from an import-dependent state into an exporting State.

During the first wave of the agrarian reform process, the privatization of land and property has been completed. 99.8% of land to be transferred to private ownership and 98.9% of property were privatized. As a result of the agrarian reform implemented in our country, about 867,000 families have received a plot of land and acquired ownership. That progress has helped significantly to promote agriculture among up to 842,000 peasant families, 36 state farms, more than 79 agricultural production cooperatives, 2,409 agricultural enterprises (joint farms), 2,571 individual entrepreneurs (legal entities) and 220 other agricultural enterprises (research, educational, practical, etc.).

Also, the first stage of the completed land reforms led to the liquidation of 2032 peasant farms, existing in the Republic and a transfer of fertile lands to the population. The legal document confirming the right of ownership of the land given to each subject was formalized by state acts and introduced to the owners. At present, (except our occupied regions) 869,268 of 873,618 families entitled to get land shares in our country have received them. This means 3,442,778 subjects. Land reform has been implemented in 99.5% in our country. As a result of land reforms, three forms of land ownership have been identified. The total area of the Land Trust Fund of Azerbaijan is 8,641,506 hectares, consisting of 4,913,639 hectares (56.9 %), which are nationally owned; 2,032,744 hectares (23.5 %) transferred to municipal ownership and 1,695,123 hectares (19.6 %) allocated to private ownership.

The State Program on Poverty Reduction and Sustainable Development in the Republic of Azerbaijan for 2008-2015, the State Program on Reliable Food Supply of Population in the Republic of Azerbaijan for 2008-2015, signed by the President for the development of the agrarian sector, The State Program on Socio-Economic Development for 2009-2013 and the Decree on State Support to  Producers of Agriculture Products adopted on 23.01.2007 demonstrated its positive effects and made it possible to provide the population with a number of agricultural products through national production. 

Azerbaijan has entered a period of rapid development in the socio-economic field with its achievements and growth rates in these areas. Due to this, it has become one of the leading countries not only in the region but also in the world.

As some agricultural products are produced in excess of the population’s needs, conditions have been created for their export.

34.3 million finances allocated from the budget by the State Agency for Agricultural Credits under the Ministry of Agriculture to individuals and legal entities engaged in entrepreneurial activities in the agricultural sector were provided to agricultural producers through credit organizations authorized by credit organizations. These loans were issued to 1,300 individuals and legal entities engaged in entrepreneurial activities in the agricultural sector in 48 regions of the country through 13 authorized credit organizations. The loans are essentially oriented towards livestock and crop production.

For the purpose of improving the supply of irrigation water to tillage and backyards used for planting in 148 settlements of 40 cities and districts with a population of about 400,000 people, as well as 10.0 million manat from the Reserve Fund of the President of the Republic of Azerbaijan envisaged in the 2015 State Budget of the Republic of Azerbaijan to the Azerbaijan Amelioration and Water Management Open Joint Stock Company for the design and drilling of 150 subartesian wells to meet the needs of the population for drinking water, providing the supply of irrigation water to the fields and yard lands used for planting, as well as drilling subartesian wells to meet the needs of the population for drinking water in the Nakhchivan Autonomous Republic 2.0 million manat was allocated to the Cabinet of Ministers of the Nakhchivan Autonomous Republic. 

In recent years, water supply of 266,000 hectares of irrigated lands and reclamation of 217,000 hectares has been improved, 43,000 hectares of new irrigated lands have been put into agricultural use and 1,493 subartesian wells have been drilled. Also the works on dam-building and support embankments of Kura, Araz and mountain rivers more than 1,000 kilometers were carried out. 

543 hectares of “Shamkir” Agropark from Shamkirchay reservoir, 523 hectares of “Yalama” Agropark from Samur-Absheron irrigation system, 400 hectares of Hajigabul region and 2100 hectares of Agjabedi region were provided with irrigation water.

According to the Agreement signed between the Government of the Republic of Azerbaijan and the Food and Agriculture Organization of the United Nations (FAO) on May 25, 2015, the FAO Partnership and Coordination Office was established in Azerbaijan. It should be noted that the office currently operates in five countries – the United States, Switzerland, Belgium, Japan and Azerbaijan.

Strategic Road Map on National Economy and Key Sectors of the Economy of Azerbaijan approved by the President of the Republic of Azerbaijan Ilham Aliyev on December 06, 2016 has provided opportunities for improving the business environment and regulatory framework for small and medium enterprises, increasing access to foreign markets, promotion of innovations, free competition environment, facilitation of access of agricultural producers to means of production, facilitating access to domestic and foreign markets, increasing the production of necessary food products to replace imports in the domestic market, strengthening food security and increasing employment opportunities in rural areas.

The State Program for the Development of Tea-growing in 2018-2027 dated February 12, 2018 and prepared in accordance with the Order of the President of the Republic of Azerbaijan “On additional measures in connection with the development of production of citrus fruits, tea and rice in the Republic of Azerbaijan” dated September 12, 2017 was aimed at strengthening state support for the development of tea-growing in our country, effective use of potential opportunities in this field, increasing interest in tea production.

In 2019, the value of gross agricultural output in actual prices amounted to 7836.7 million manat, of which 4085.5 million accounted for livestock and 3751.2 million for crop productions. Compared with the previous year, agricultural production increased by 7.2%, including 11.7% for crop and 3.5% for livestock products. As a result, the share of crop production in the structure of agricultural production increased from 45.4% to 47.9%, while the share of livestock decreased from 54.6% to 52.1%. In 2019, the total value added in agriculture, forestry and fisheries compared to the previous year has grown up to 7.3%. As a result, the share of this sector in the country’s GDP increased from 5.3% in 2018 to 5.7% in 2019.

The policy of state support for agriculture maintained also in 2019. In order to develop agriculture in 2019, AKIA had provided 723 entrepreneurs working in the agricultural sector in 58 regions of the country with preferential loans and development assistance for 21167.1 thousand manat. Due to this loan programs there were created 705 permanent and temporary jobs. 

In the Global Food Security Index, Azerbaijan ranks 61st in terms of food supply and 86th in terms of food quality. Improved agricultural productivity would benefit rural areas and allow Azerbaijan to rise up about the 40th place on both indicators.

Currently, planning for the future development of agriculture in our lands liberated as a result of the 44-day Patriotic War, where we achieved a glorious victory over the Armenian armed forces, has begun. The liberation of our lands will undoubtedly have a positive impact on agricultural development. The country’s crop turnover will increase and hundreds of thousands of hectares will be irrigated due to the liberation of strategically important reservoirs. The liberated lands have great potential for the development of viticulture, grain growing, cotton growing and animal husbandry. Sustainable development of agriculture will be achieved through the correct exploring this potential, as well as the expansion of the agro-processing industry.

The average annual production statistics of all agricultural categories, thousand tons

In the Global Food Security Index, Azerbaijan ranks 61st in terms of food supply and 86th in terms of food quality. Improved agricultural productivity would benefit rural areas and allow Azerbaijan to rise up about the 40th place on both indicators.

Currently, planning for the future development of agriculture in our lands liberated as a result of the 44-day Patriotic War, where we achieved a glorious victory over the Armenian armed forces, has begun. The liberation of our lands will undoubtedly have a positive impact on agricultural development. The country’s crop turnover will increase and hundreds of thousands of hectares will be irrigated due to the liberation of strategically important reservoirs. The liberated lands have great potential for the development of viticulture, grain growing, cotton growing and animal husbandry. Sustainable development of agriculture will be achieved through the correct exploring this potential, as well as the expansion of the agro-processing industry.