Azerbaijan launches new loan subsidy for farmers

Within the framework of the implementation of a new concessional financing mechanism for farmers conducting annual crops in Azerbaijan, the portion of the annual interest rate on loans taken for crop purposes up to 19% will be financed from the state budget, and farmers will only repay the principal debt at the end of the credit term.

According to Report, citing the Ministry of Agriculture of Azerbaijan, the new support tool aims to facilitate farmers' access to financial resources while encouraging the channeling of private sector funds into the agricultural sector.

"The main goal is to improve financial accessibility for agrotechnical services by having the state cover credit interest and to contribute to the development of the agricultural sector. Based on the decision of Azerbaijan's Council of Agricultural Subsidies, the portion of the annual interest rate on crop-purpose credits allocated by banks to farmers to be financed from the state budget has been set at up to 19%.

Concessional loans will be provided to farmers growing rice, corn, millet, sorghum, other grain and grain-legume crops (wheat, barley, rye, oats, buckwheat, chickpeas, beans, lentils, etc.), as well as sunflower, potatoes, vegetables and melons, and also industrial crops – cotton, sugar beet, tobacco, and soybeans," the ministry said in a statement.

Under the new mechanism, the interest calculated on credits with a term not exceeding 1 year for the purchase of agricultural production means, including mineral fertilizers, biohumus, certified seeds, and pesticides, as well as for the use of agrotechnical services, will be paid by the Agrarian Credit and Development Agency (ACDA). This means that farmers will only return the principal amount of the credit to the bank.

"The Ministry notes that the greatest need for subsidy funds arises at the beginning of the planting season. Since subsidy payments are made after the declaration period in the Electronic Agricultural Information System (EKTIS) is completed and inspections are finalized, the new mechanism will enable farmers to obtain the necessary financing more promptly at the beginning of the season. For this purpose, they can apply to banks and non-bank credit organizations," the statement says.

This mechanism is implemented in accordance with President Ilham Aliyev's decree dated March 5, 2026, "On the regulation of certain issues regarding concessional financing in agriculture and amendments to some related decrees."