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Overall Description of the Sector

Agriculture plays an important role in Iran’s economy. Different climate zones create diverse ecological foundations for agriculture throughout the country. The Iranian climate varies considerably across the country. The Northwestern areas are among the coldest parts of the country, with the temperature in winter falling well below zero. On the other hand, in the Southern areas, the central plateau, and the regions bordering the Persian Gulf, it is not unusual for the temperature to reach 50 ° C on summer days. The majority of precipitation falls on the mountain areas in the North of Iran and along the Southern shores of the Caspian Sea. The main rainfall season in Iran is between October and March, leaving the land parched for the remaining periods of the year. Drawing on its diverse climate, natural resources, and ecological foundations, Iran produces a long array of agricultural products, of which some, such as saffron, pistachios, and caviar, hold worldwide reputations. Nonetheless, Iran’s agricultural industry accounts for a mere 9% of the country’s economy, with 4 mn (17.8% of the total jobs) people employed in this sector. Today according to FAO Iran and Turkey have jointly come in third following China and the United States in terms of the diversity of the agricultural products they produce. Also, 7 Iran Agricultural Sector Guide according to an estimation made by McKinsey & Company, a global management consulting firm, Iran’s agricultural sector is going to grow by 4% annually and create an estimated 250,000 jobs by 2035. The agricultural sector in Iran comprises mainly small privately owned farms with private farmers and ranchers performing 90% of the cultivation activities.


The agriculture sector currently accounts for USD 40 billion or 8% of Iran’s annual gross domestic product. 4.3 million farmers produce a total of 124 million tons of agricultural products per year on more than 18.5 million hectares


According to the FAO report, the agricultural and food sectors account for 90% of the gaining income and 19% of the country’s employment. The value added by the agricultural sector in the year ended in March 2017, was estimated at IRR 441,972 bn (USD 14.08 bn) which registers an increase of 4.2% over the same period of the previous year.


Agriculture Brochure, 1400