BAKU, Azerbaijan, October 9. A draft law regarding product certificates, which would enable farmers to secure financing before the start of production based on obligations related to their future harvest, has been submitted to the Azerbaijani Parliament for discussion, Chairman of the Agency for Agricultural Credit and Development (AACD), Yalchin Jamalov, said at the 3rd International Agro Business Forum, held in Baku on Friday, Trend's correspondent reports from the event.
He noted that the proposed mechanism will expand opportunities for the pre-financing of agricultural production. Depending on the type of certificate, the producer is expected to fulfill their obligation by providing either cash or produce.
According to Jamalov, the new instrument will help strengthen trust among farmers, suppliers, and financial institutions, and increase access to finance within the agricultural sector.
The agency chairman noted that plans are also in place to provide a portion of the planting subsidy as an advance payment to farmers who meet established criteria. This approach will help address funding needs that arise at the start of the season.
"The interest subsidy mechanism, which has already been implemented, facilitates access to credit resources for the production of specific annual crops. Under this mechanism, AACD covers the interest on loans, granted for up to one year to finance the purchase of production inputs and agrotechnical services, from the state budget, subject to established conditions," he said.
Jamalov emphasized that this support reduces farmers' borrowing costs and creates conditions for the timely implementation of agrotechnical measures and the channelling of private financial resources into the agricultural sector.
He highlighted that state support has also been expanded to promote water conservation, technological upgrades, and the reduction of crop losses. The measures include higher subsidies for farms using modern irrigation systems, incentives for laser land leveling, and tiered concessions for machinery and irrigation equipment.
According to the agency's chairman, support for produce storage infrastructure, such as silos and cold storage facilities, as well as incentives for solar panels used in agricultural production, expands investment opportunities for entrepreneurs.
Jamalov added that the expansion of subsidies for produce supplied for processing, new support mechanisms for milk production and intensive livestock farming, and planned product subsidies for fisheries and aquaculture serve to improve the supply of local raw materials to processing enterprises and generate greater value-added within the country.
