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

Parviz Aliyev Fuad

parviz.aliyev@atm.gov.az

454 ­ ­ 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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Nurida. Gasimova

Ph.D. student of Azerbaijan University of Cooperation

   

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Yusif. Abayev

Ph.D. student of the İnstitute of Economics of ANAS

   

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Aygul. Salimova

PhD student of the Agricultural Economics Research Center

   

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Maarif. Yusiphov

Vegetable Research Institute

   

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Shovkat. Yusufova

Azerbaijan Cooperation University

  Ph.D., docent  

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Hagar. Namazova

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

   

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Huseynaga. Asadov

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

  Ph.D., ass, pr  

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Tahmina. Safarli

Ph.D. student of the Baku State University

   

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Javid. Hasanov

Senior specialist, Agricultural Research Center Ph.D. student of the Agricultural Research Center

   

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Ramil. Huseyn

Center for Economic Reforms and Communication

  Doctor of Economics  

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Расим. Алиев

Chief economist, Scientific Research Institute of Agriculture

  Doctor of Philosophy in Economics  

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Mehman. Rzayev

Azerbaijan RPA Hydrotechnics and Melioration

  doctor of agrarian sciences  

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Vusala. Nagiyeva

Azerbaijan Cooperation University

  Ph.D., docent  

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Turana. Mustafayeva

Ph.D. student of Western Caspian University

   

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Abdulrahim. Dadashov

Ph.D. candidate of UNEC, Agricultural Economics Research Center

   

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Chilenay. Abishova

Ph.D. student of the Agricultural Economics Research Center