Agricultural Lands in Azerbaijan: Current Usage Situation, Problems and Solutions

Efficient utilization of agricultural land is vital for sustainable food security and rural development. In Azerbaijan, however, the gap between potential and actual land productivity remains substantial due to ecological degradation, institutional fragmentation, and outdated management systems. This study applies an integrated descriptive–analytical approach to assess land-use efficiency across different ownership types and agro-ecological zones. Using official datasets from the Ministry of Economy, the State Statistical Committee, and the State Committee for Land and Cartography, a composite Land Efficiency Index (LEI) is developed, incorporating land-use coefficients, soil bonitation scores, and irrigation adequacy indicators. Results show that while 59.2% of Azerbaijan’s territory is classified as agricultural land, only 30%–65% of its productive potential is utilized. Spatial disparities are most significant in the Kura–Araz lowland and foothill plains, where salinization, erosion, and irrigation deficiencies restrict yields. The study links soil quality with governance and cadastral efficiency, offering a new framework for quantifying institutional impacts on productivity. Policy recommendations include (i) modernization of bonitation and valuation methods, (ii) digitization of cadastral data via a unified National Land Information Platform, and (iii) creation of a State Land Bank to improve land circulation and investment access. Economic feasibility analysis indicates that land rehabilitation and irrigation modernization yield an Internal Rate of Return (IRR) of 16%–18% and a payback period of 5–6 years, confirming their viability for enhancing Azerbaijan’s ecological resilience and rural economic sustainability.