Agriculture is an important sector of the Azerbaijan economy, with approximately 58% of land area used for farming (World Bank, 2012) and 36.4% of all employment taking place in this sector (ILO, 2017). Productivity in agriculture, however, is below the national average, so that the sector only accounted for 5.0% of GDP on average from 2013 to 2017 (State Statistical Committee, 2018a). Furthermore, the 30% of agricultural land that is irrigated produced over 80% of the agricultural output in 2010 (Ministry of Ecology and Natural Resources, 2010), meaning that those farmers operating in non-irrigated areas are likely to have relatively low income levels. This evidence suggests that greater variability in precipitation, increased probability of drought and increased temperatures are likely to exacerbate regional and sectoral inequality in Azerbaijan, by having a disproportionately severe effect on rain-fed agriculture.
This section provides insights into the climate change impacts on agricultural productivity indicators and the trends in agriculture related socio-economic indicators.