ATTENTION citizens: the interest on loans of these individuals will be paid by the state

The Ministry of Agriculture of Azerbaijan is launching a new support mechanism for farmers engaged in annual crop farming.

According to the ministry, the new instrument is designed to stimulate the attraction of private funds into the agricultural sector. The main goal is to improve the financial accessibility of agrotechnical services through government subsidization of loan interest rates and thereby promote the development of the industry.

By decision of the Agricultural Subsidies Council, the government's share in the annual interest rate on loans issued by banks to farmers for sowing purposes has been set at up to 19%. The loans are intended for farmers engaged in the cultivation of rice, corn, millet, sorghum, other cereal and leguminous crops (wheat, barley, rye, oats, buckwheat, peas, beans, lentils, etc.), as well as sunflower, potatoes, vegetables, melons and gourds, and industrial crops — cotton, sugar beet, tobacco, and soybeans.

The main advantage of the new mechanism is that interest on short-term loans with a term of up to one year, taken for the purchase of means of production — mineral fertilizers, biohumus, certified seeds, and pesticides — as well as for payment of agrotechnical services, will be covered by the Agricultural Credit and Development Agency. Farmers will only need to repay the principal amount of the debt to the bank.

The need for subsidies is particularly high at the beginning of the sowing season, while their disbursement takes place after the completion of the declaration period and verification in the Electronic Agricultural Information System (EAIS). This is precisely why farmers have been given the opportunity to take advantage of loans with government-subsidized interest rates during the height of the sowing season by applying to banks or non-bank credit organizations.

It should be noted that the financing of loan interest is carried out from the state budget on the basis of the Decree of the President of the Republic of Azerbaijan dated March 5, 2026, "On the regulation of a number of issues related to preferential financing in agriculture."