Agrarian policy

Agriculture is one of the key sectors of the country’s economy, which provides about 12% of the GDP (according to 2019 data). About 317,000 farming enterprises provide 97% of the gross agricultural output, of which each enterprise has 1.48 hectares of land. The agricultural sector accounts for 24․3% of the employed in the Republic of Armenia.

One of the guiding documents of the agrarian policy is the 2020-2030 strategy of the main directions ensuring the economic development of the RA agricultural sector approved by the RA Government Decree No.1886-L dated December 19, 2019. The vision of the strategy for the next 10 years is to have agriculture that ensures sustainable development, is innovative, creates high added-value, is careful towards natural resources and environmentally friendly, creates ecologically clean products and guarantees the well-being of people living in rural areas.

According to the RA Government program approved by the RA Government Decree No.65-A dated February 8, 2019, the core of the agricultural policy will be the increase of agricultural efficiency, increase of the food security level, introduction of modern technologies, increase of exportation volumes, increase of profitability of all entities engaged in the entire value chain of agriculture - small households, farming cooperatives, processors, and exporters.

Along with the task of creating a competitive and efficient agriculture that is based on new technologies and science, the RA Government has also set a goal to:

  • Support the development of cooperative agriculture and define the minimum prerequisites required for realization of cooperatives.
  • Create educational, scientific and research, industrial clusters and contribute to enhancement of cooperation between educational, scientific, scientific and production and consultation centers in agricultural and agrarian sector.
  • Support the introduction of agricultural and food system equipment, new technologies, as well as food safety systems.
  • Implement state support programs aimed at development of local seed breeding and seed production, intensive agriculture, and livestock breeding, as well as support establishment of pedigree farms.
  • Contribute to the expansion of non-agricultural activities in rural communities and development of agritourism.
  • Ensure the introduction of an effective system for prevention of animal and plant diseases.
  • Ensure the introduction of a system on dissemination of agriculture-related knowledge and experience and access to information among agricultural producers.
  • Ensure the introduction of insurance system in the agricultural sector.
  • Define the main principles, methodology, and strategy of assistance to agriculture.

In order to implement the afore-mentioned policy, the expenses envisaged by the state budget for the mid-term program in the Republic of Armenia will be primarily aimed at execution of the following projects:

  • Application of subsidizing the loan interest rates and compensation mechanisms to enterprises operating in the agricultural sector and agricultural products processing entities.
  • Supply of technical means for the agrifood and agricultural sector through affordable mechanisms - financial lending, leasing.
  • Activities to promote intensive gardening implemented by modern technologies.
  • Introduction of modern technologies for irrigation.
  • Support to introduction of hail protection nets.
  • Introduction of small and medium-sized greenhouse enterprises and “smart” livestock buildings using compensation mechanisms.
  • Activities for development of viticulture and wine-making.
  • Agricultural and chemical surveying of soils and increase of fertility.
  • Implementation of state assistance programs aimed at development of animal breeding.
  • Introduction of advanced technologies in livestock raising.
  • Implementation of a pilot agricultural insurance project.
  • Enhancement and development of information and consultation sector.
  • Organization of seed breeding and seed preservation activities.
  • Seed quality inspection and state-funded testing of sorts.
  • Plants protection measures.
  • Anti-epidemiological measures against infection diseases of farm animals.
  • Targeted and coordinated use of natural grazing lands.

As a result of the implemented agrarian policy and realization of projects aimed at it, in the mid-term perspective, each year 3.5-5.5% growth of the gross agricultural output will be ensured compared to the previous year.

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