@article{article_1733808, title={Directions for Improving the Financial Mechanism of the Agricultural Sector in Azerbaijan}, journal={Tahlil}, pages={46–55}, year={2025}, author={Ibrahimov, Eltun}, keywords={Tarım sektörü, finans, bütçe, vergi}, abstract={The development of the agricultural sector in Azerbaijan is closely linked to improving the financial security of this sector. Therefore, improving financial security in the agricultural sector and researching the sources of stability are considered to be quite current issues. Financing sources in agricultural production can be divided into two parts: internal and external. Internal sources include income from the farm, depreciation deductions and deductions made from a portion of the profit for production development. External financing sources are also divided into two groups as debt financing and non-debt financing. Debt financing includes long-term bank loans, state loans for investment purposes and other credit sources. Non-refundable financial aids, subsidies and grants are classified as non-refundable resources. The financial mechanism of the agricultural sector is of critical importance for Azerbaijan’s sustainable economic development. The main goal of the study is to analyze the existing financial mechanisms in Azerbaijan’s agricultural sector, identify their strengths and weaknesses, and propose practical directions and policy recommendations to enhance financial access, efficiency, and sustainability. The study typically employs a mixed-methods approach, combining: reviewing national policy documents (e.g., Strategic Roadmap, subsidy laws), statistical reports, and relevant literature, benchmarking Azerbaijan’s financial instruments against international examples and best practices. Key findings of such a study generally show that Azerbaijan has made significant progress in expanding state-supported financial mechanisms, such as electronic subsidies, concessional credits, and leasing programs, implementation is mostly state-driven, with limited private sector and commercial banking involvement, many farmers, especially smallholders, still face information barriers, lack financial literacy, and have difficulties meeting collateral requirements. The study concludes with specific directions: modernizing the subsidy system, expanding digital finance tools, improving farmer training, strengthening risk management instruments, and encouraging greater private investment. The basic trends for improving the financing mechanism of agriculture in the country include budget financing, direct subsidies from the state budget, bank loans, privileged funds provided by the National Fund for Supporting Entrepreneurship, leasing services as basic investment services, organization of the agricultural insurance system and a proper tax policy. The article deals with about these in detail.}, number={1}, publisher={Şırnak Üniversitesi}, organization={Nahcivan Devlet Universitesi}