The role of investment in

Agriculture

Student:Samir Aslanov
 The essence of
investment in
agricultural sector

• Technological improvement
• Human capital
• Land structure improvement
• Usage of new agrotechnical equipment
• Improvement in education
• Making research
• Output increase(production increase)
Technological improvement

• Irrigation improvement

• Mapping of fields

• Weather stations

• Topographical measurement
Human capital
• Agronomist

• Tractor driver

• Mechanic

• Engineer

• Irrigation controller
Land structure
improvement
• Nutrients
• Land suitability
• Fertilizer application
• Crop rotation
• Pest control
Making research

• Conducting scientific research

• Usage of seed hybrids
• Use of high-yielding seeds
• Effective pest control
İnvestment in Azerbaijan agriculture
İnvestment to capital ratio
Foreign investment to Agriculture
Tax exemptions
1) import and sale of seeds and seedlings;

2) import and sale of mineral fertilizers, pesticides;

3) for prevention, diagnosis and treatment of farm animals and birds

4) import of used veterinary drugs;

5) production and sale of bran for a period of 1 to 2 years from March 1, 2019;

6) Turnover from the sale of feed and feed additives used in livestock and poultry farms
for a period of 1 to 4 years from January 1, 2020.
Tax exemptions for animal and machinery
- import of fixed assets that are the object of the leasing agreement;

- import of machinery, technological equipment and facilities by legal entities and individual entrepreneurs who have
received an investment promotion document for a period of 7 years from the date of receipt of the investment promotion
document on the basis of an approval document of the relevant executive authority;

- import and sale of breeding animals;

- import and sale of equipment for seed cultivation, poultry and beekeeping, including laboratory equipment, machines for
cleaning, sorting or calibration of seeds, grains and legumes;

- production of agricultural irrigation and other facilities, machines, equipment and machinery, as well as spare parts for
agricultural machinery, the list of which is approved by the body (institution) determined by the relevant executive authority,
import and sale.
İnvestment projects
Within the framework of the “Agricultural Competitiveness Strengthening Project” jointly implemented by the
Government of the Republic of Azerbaijan and the World Bank, in 2020, 30 sub-borrowers were provided with
preferential agricultural loans in the amount of 6735.0 thousand manat and 392 new jobs were created.
One of the innovative activities of the project is the creation of agribusiness value chains, and in 2020, a grant of $
1.13 million (1.92 million manat) was provided. Thus, during the reporting year, the implementation of the sub-
project "Production and processing of rice in Lankaran by modern methods" value chain was completed and
officially opened. Implementation of value chain sub-projects “Modern production and packaging of honey in
Khachmaz region” and “Processing and packaging of hazelnuts by modern methods in Gabala region” has been
completed, but no official opening has been held due to the COVID-19 pandemic. The goals of both sub-projects
have been met.
As a result of the implementation of 15 other sub-projects, 1,375 permanent and seasonal jobs have been created
so far.
Within the framework of “Animal Health and Veterinary Services”, vaccinations were provided to large and small
horned animals within the framework of measures to combat brucellosis, and the country-wide vaccination
campaign was continued. As a result, 4,809,617 head of small cattle and 1,140,420 head of cattle were vaccinated
in 2020.
Within the framework of joint cooperation between the Ministry of Agriculture and
international organizations, projects were implemented in the following priority areas:

Strengthening information and advisory services in the agricultural sector

Increasing youth employment in agriculture

Livestock development

Development of crop production

Support for pest control measures

Promotion of investment in agriculture

 Loans and guarantees to support entrepreneurial initiatives through
authorized banks, non-bank credit organizations and leasing organizations

• In 2020, 4034 legal entities and individuals working in the agricultural sector were provided with preferential
loans in the amount of 47653.0 thousand manat through authorized credit organizations for the use of the
Agency's funds, as well as secured microloans in the amount of 34426.0 thousand manat were allocated to
3,418 legal entities and individuals. The loans were mainly directed to the development of livestock,
agriculture, horticulture, beekeeping and greenhouses.
• At the same time, in order to finance the sale and leasing of agricultural machinery, technological equipment,
sets of irrigation systems and equipment on preferential terms, 2,993 applications were allocated AZN
37,311.2 thousand loans and AZN 73,616.9 thousand concessions through authorized credit organizations.
Purchase of 7,259 units of equipment was financed from the allocated funds. 39 of them are combines, 1,102
are tractors, 159 are irrigation systems, and 5,959 are hanging, connecting and other agricultural machinery.
• In order to finance the sale and leasing of breeding animals on preferential terms, 133.4 thousand manat
loans and 16644.4 thousand manat concessions were allocated to 423 applications. Purchase of 8,758 heads
of breeding animals was financed from the allocated funds. Of these animals, 5,052 are cattle, 3,684 are small
cattle and 22 are camels.
 Provision of subsidies related to the production of agricultural products, as
well as the organization and coordination of activities in this area

Thus, in 2020, 409,141 producers across the country were provided with planting subsidies in the amount of 232,935.93
thousand manat at the expense of the state budget for their crops and perennial crops. Subsidies in the amount of 28361.54
thousand manat were provided to 16,683 cotton producers in 23 regions at the expense of the state budget for 283.62 thousand
tons of raw cotton delivered to persons engaged in cotton processing. Subsidies in the amount of 228.6 thousand manat were
paid to 453 tobacco producers in 12 regions at the expense of the state budget for 2.44 thousand tons of dry tobacco and 21.29
thousand tons of wet tobacco. Subsidies in the amount of 749.5 thousand manat were provided to 169 sugar beet producers in
17 regions at the expense of the state budget for 187.38 thousand tons of sugar beet.

In addition, 4,955 cocoon producers received subsidies totaling 2,157.91 thousand manat from the
state budget for 431.58 tons of wet cocoons delivered to cocoon processing and silk production
enterprises.

In addition, 44,433 animal owners were provided with animal subsidies in the amount of 8389.5
thousand manat from the state budget for 83,895 head of calves obtained through artificial
insemination, 22,287 beekeepers were paid subsidies in the amount of 5017,718 manat for 501,718
bee families.
Gross Agricultural Products