The Ministry of Agriculture is implementing a new support mechanism for farmers engaged in annual cultivation.
This was reported to Oxu.Az by the Ministry of Agriculture.
The new tool will encourage the allocation of private sector funds to the agricultural sector.
The main goal is to improve financial accessibility for agrotechnical services by having the state cover loan interest, thereby contributing to the development of agriculture.
By decision of the Agrarian Subsidy Council, the portion of the annual interest rate on loans allocated by banks to farmers for cultivation purposes, financed from the state budget, has been set at up to 19 percent.
These loans will be provided to farmers growing rice, corn, millet, sorghum, other grains and legumes (wheat, barley, rye, oats, buckwheat, peas, beans, lentils, etc.), as well as sunflowers, potatoes, vegetables and melons, and industrial crops such as cotton, sugar beets, tobacco, and soybeans.
The main advantage of the new mechanism is that interest accrued on loans taken for the purchase of agricultural means of production, including mineral fertilizers, biohumus, certified seeds and pesticides, as well as for using agrotechnical services, with a term not exceeding one year, will be covered by the Agrarian Credit and Development Agency (AKIA). Farmers will only repay the principal amount to the bank at the end of the term.
The need for subsidy funds is greatest at the beginning of the sowing season. Subsidy payments are made after the declaration period in the Electronic Agricultural Information System (EKTIS) ends and the verification process is completed. Taking this into account, farmers have been given the opportunity to benefit from loans with state-paid interest to obtain the funds they need more quickly during the sowing season. To do this, they can apply to banks and non-bank credit organizations.
It should be noted that the interest on loans taken by farmers will be financed by AKIA from the state budget in accordance with the Decree of the President of the Republic of Azerbaijan dated March 5, 2026.
