Approaches to Sustainable Financial Mechanisms in Agriculture: International and Azerbaijani Experience

DOI

10.2991/978-94-6239-666-1_47How to use a DOI?

Keywords

Sustainable Agriculture; Agricultural Finance; Self-Financing; State Support; Financial Constraints

Abstract

Agriculture is a strategic sector of the economy, playing a crucial role in food security, employment, regional development, and social welfare. However, its financing is constrained by seasonality, high risks, low profitability, and limited access to credit, which undermines long-term sustainability. The aim of this study is to identify the main characteristics of financial mechanisms in agriculture, analyse existing and potential sources of financing, and assess their applicability to ensure sustainable agricultural development. The research is based on a systematic literature review of 41 scientific sources published between 2003 and 2024. The analysis shows that while state support programs provide subsidies and soft loans, major barriers persist, including high interest rates, weak cooperatives, underdeveloped market infrastructure, and low financial literacy among farmers. International practice highlights the potential of complementing traditional sources with innovative instruments such as green bonds, venture capital, Islamic finance, and project-based financing. The study suggests that sustainable agricultural finance requires integrative mechanisms that diversify funding sources, strengthen cooperative structures, and improve financial literacy. Applying these strategies in Azerbaijan, alongside international experience, can reduce risks, increase resilience, and ensure long-term sectorial growth.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Elay Zeynalli
AU  - Mehman Karimov
AU  - Elcin Nesirov
AU  - Xalsa Nesibova
PY  - 2026
DA  - 2026/05/07
TI  - Approaches to Sustainable Financial Mechanisms in Agriculture: International and Azerbaijani Experience
BT  - Proceedings of the 5th International Conference on Research of Agricultural and Food Technologies (I-CRAFT 2025)
PB  - Atlantis Press
SP  - 527
EP  - 536
SN  - 3005-155X
UR  - https://doi.org/10.2991/978-94-6239-666-1_47
DO  - 10.2991/978-94-6239-666-1_47
ID  - Zeynalli2026
ER  -