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Farm size and agricultural productivity in Azerbaijan: challenges and policy implications

Parviz Aliyev Fuad

parviz.aliyev@atm.gov.az

273 ­ ­ EN ­ ­ 47. July 2025 ­ ­­ ­ farm size agricultural productivity Azerbaijan wheat yields land consolidation irrigation precision agriculture rural development

This study examines the relationship between farm size and agricultural productivity in Azerbaijan, using data from the Electronic Agriculture Information System (EAIS) and Farm Data Monitoring System (FDMS). The analysis reveals that medium and large farms achieve higher wheat yields compared to smallholders, primarily due to better access to irrigation and mechanization. Regression results indicate that farm size and irrigation have statistically significant positive effects on productivity, while fertilizer use shows no significant impact. Policy implications highlight the moderate importance of optimizing existing land use through voluntary land consolidation, strategic irrigation investments, and the adoption of precision agriculture. The study contributes to the debate on optimal farm structures in transition economies and provides evidence-based recommendations for agricultural development in Azerbaijan.

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AUTHORS

 

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Расим. Алиев

Chief economist, Scientific Research Institute of Agriculture

  Doctor of Philosophy in Economics  

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Sabina. Valiyeva

Doctoral student of the Agro Researches Center

  Ph.D., docent  

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Lotanna. Emediegwu

Department of Economics, The University of Manchester, UK | Department of Agricultural Economics, University of Ilorin, Nigeria | Department of Economics, Policy and International Business, Manchester Metropolitan University, UK

   

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Saadat. Guliyeva

Azerbaijan Academy of Labor and Social Relations

  Doctor of Philosophy in Economics  

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Narmin. Sattarova

Ph.D. student of the Odlar Yurdu University

   

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Jalal. Safarov

Ph.D. student of the Agricultural Research Center

   

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Kamala. Sadygova

Ministry of Science and Education of the Republic of Azerbaijan, Institute of Dendrology

  researcher  

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Rasul. Balayev

Azerbaijan State University of Economics, professor

  prof, dr  

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Faig. Huseynov

Azerbaijan State University of Economics (UNEC)

   

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Aygul. Salimova

PhD student of the Agricultural Economics Research Center

   

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Aygun. Salimova

Student of Azerbaijan State University of Economics (UNEC)

   

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Turan. Hajiyeva

Specialist of the Agricultural Research Center

   

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Farman. Karimov

Research Institute of Plant Protection and Technical Plants

   

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Hagar. Namazova

Ph.D. candidate of the Azerbaijan State Economic University (UNEC)

   

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Bagish. Ahmadov

Deputy Director of the Agricultural Economics Research Center

  Doctor of Philosophy in Economics  

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Manzar. Nasibova

Senior researcher