One of main goals for Azerbaijan today is to remove dependence of economy on oil and assure expansion of economic development to rural areas. Being the third biggest sphere in Azerbaijani economy after oil and construction agriculture possesses biggest share in employment (in 2006, 39,1% of total employed population was working in agriculture, and only 1% in oil sector). This sphere has also huge influence on poverty reduction in rural areas.
As result of agrarian reforms successfully implemented since 1995, market relations have been established in domestic economy, land and property effectively used, field structure of agrarian sector improved, entrepreneurship formed, look of village changed.
Fundamental changes happened in social and field contents of agriculture. In place of big economic forms numerous economic subjects were created, form of public property on lands suitable for agriculture, cattle, production and non-production objects, agricultural equipment replaced with individual (personal) property upon the privatization policy.
The number of agricultural producers is 1.208,7 thousand units, 99,98% of which is comprised of private and 0,02% public farms. In addition, there are 78.648 cottage farms dealing with production, processing and sale of agricultural products. 66,8% of specialized agricultural producers is consisted of family-villager, 32,8% housekeeping, 0,2% farming.
Special weight of surplus value created in field of agriculture, hunting and forestry in GDP of 2007 was 7,1%.
In comparison with 2005, production of harvest increased 0,9 % in agriculture, hunting and forestry, decreased 0,8% in plant growing, increased 2,9% in animal produce. Reduction in plant growing is linked to decrease of sowing areas (sowing areas of potato decreased 5,4%, garden plants 0,5%, tea plantations 38,5%).
Investment in agriculture, hunting and forestry increased 42% in comparison with 2005 and formed 32,3 mln AZN.
Special weight of budget expenses on agriculture, fishery and forestry increased 3,5% or 37,2% in comparison with 2005.
Absolute quantity of land areas owned and rented by agricultural producers is 2324,2 thousand hectares (69,3% family-villager, 11,4% housekeeping and 2% farming). Each of agricultural producer has 1,92 hectare of land area on average.
Only 16,0% of farms in cropping use mineral fertilizer and 32,0% organic fertilizer.
80 mln AZN have been allocated from state budget of 2007 to cover 50% of value of fuel, motor oils and mineral fertilizers used by agricultural producers for production of harvest. Technical service centers have been created in 48 districts.
In 2006, special weight of food import and export was 10,6 % and 5,1 % respectively.
Along with positive results of the last year, there are problems in the agrarian sector such as in field of plant growing - lifting productivity, improving technologies and agrotechnical rules, restoring gardens with long-term plantations, involving mountainous and foothill lands in cultivation, properly coordinating production and processing of crop, investing in the field, supplying farms with high quality seeds, taking agrochemical actions, supplying with corresponding equipment and mechanized stores; in field of cattle breeding – weak artificial impregnation points, low-level supply with equipment, seed, liquid azoth, special vehicles, taking fundamental actions to improve the feed base, delay in implementation of pack of actions for improvement of action of private farms and poultry factories to develop poultry, assuring serious veterinary control on production, processing, procurement, import of animal produces, improving sexual content of animals; in field of melioration and water economy – keeping main channels, collectors, water reservoirs, hydrojunctions in use in the required technical level.