Executive Summary
Iraq's agricultural sector is crucial for economic diversification, social stability, and poverty reduction, despite being largely oil-dependent. In 2019, agriculture contributed 5% to Iraq's GDP and employed 18% of the workforce, making it the largest private-sector employer. However, its contribution to GDP has steadily declined from 9% in 2002 to 2% in 2019, with the country increasingly relying on imports for domestic food needs. The Import Dependency Rate (IDR) rose to 76% in 2008.
Historically, Mesopotamia's agriculture was foundational to its civilisation. However, in recent decades, the sector has faced significant setbacks including:
- Neglect and underinvestment from the government.
- The draining of the Mesopotamian marshes in the 1990s, causing environmental damage and impacting the livelihood of Marsh Arabs.
- Armed conflict and ISIS occupation, which destroyed farmlands, confiscated grain crops, and led to significant agricultural losses (estimated at 40% in 2016, with $200 million lost in revenue) and internal displacement of rural populations.
- Water resource issues, including inefficient irrigation systems (81.4% use surface irrigation), water waste (only 40% used by crops), contamination, and reduced water flow from the Tigris and Euphrates due to dams in neighbouring countries like Turkey.
- Increased salinity, affecting up to 70% of cultivable areas and causing 20-30% loss in irrigated areas, leading to low productivity and increased sandstorms.
- High poverty rates in rural areas (30%, double that of urban areas) and a decline in agricultural employment for both men and women.
To address these challenges, the Iraqi government and various partners have initiated several efforts:
- Government Policies and Plans:
- The National Development Plan (NDP) 2018-2022 aims to increase agriculture's GDP contribution to 5.2% by 2022 and enhance food security.
- The Ministry of Agriculture's initiative (2010-2012) purchased 4170 sprinkler irrigation systems.
- An import ban on 25 agricultural items was issued in 2019 to promote local production and achieve self-sufficiency in strategic crops like wheat, tomatoes, and potatoes. Iraq also seeks to export barley, dates, and eggplants.
- Legislation protects agricultural areas, and farmers are provided with subsidised machinery, supplies, and premium seeds.
- An agricultural meteorological network provides data for better planning and resource management.
- Recent Agricultural Projects:
Initiatives like the Imam Hussein, Abu Al-Ahrar, Alfirdous, Buckthorns, and Fadak agricultural cities/farms demonstrate efforts to transform desert soil into fertile land, combat salinity, and produce various crops and livestock, contributing to domestic needs.
- Partners' Projects:
- FAO works with the Iraqi government through the Country Programming Framework (2018-2022) to restore agricultural livelihoods in liberated areas, increase water productivity, and enhance food security, with a budget of USD 92.95 million.
- IFAD's Smallholder Agricultural Revitalization Project (2017-2025), costing USD 31.84 million, aims to improve rural livelihoods, diversify crops, and repair irrigation schemes across four provinces.
- USAID's Agribusiness INMA program (2007-2012) focused on private sector growth, job creation (14,711 jobs), and increased revenues (USD 142 million).
- The World Bank provides an additional financing loan of USD 32 million (2018-2023) for agricultural recovery in terror-impacted areas.
- The Orange Knowledge Programme (OKP) and Sustainable Development Goals Partnership (SDGP), funded by the Netherlands, promote economic diversification, sustainable agriculture, and provide training and funding for agro-food development.
Key recommendations for the future of Iraq's agricultural sector include:
- Modernising irrigation networks and introducing advanced systems like drip irrigation to reduce water waste and combat salinity.
- Implementing tariffs on water to promote rational consumption.
- Establishing international treaties for the equitable division of Tigris and Euphrates water resources.
- Restoring the marshes to revive cultivation and support indigenous communities.
- Diversifying crops, promoting horticulture, and cultivating salt-resilient and drought-tolerant crops for higher returns and better water management.
- Investing in agricultural technology, such as greenhouse and smart farming, to overcome environmental constraints and ensure year-round production.
- Supporting local production by strengthening the entire supply chain, providing market access, and developing food processing facilities.
- Improving agricultural education and research to support better planning and execution of projects.
- Encouraging private sector investment and supporting agricultural businesses and startups through incubation programs.
- Enhancing rural livelihoods by improving access to education, healthcare, and services, and empowering rural women.
- Developing the livestock sector through improved pastures, vaccinations, and establishing processing factories.