John Deere Returns to Baku: Why Azerbaijan Needs a New Technological Modernization of Agriculture

On July 16, Azerbaijani President Ilham Aliyev received Csaba Lejko, John Deere’s President for the Commonwealth of Independent States and Central Asia and Chief Executive Officer of John Deere Walldorf International GmbH, as well as Peter Sachse, the company’s Vice President for the Commonwealth of Independent States.

According to the Presidential Administration, the parties discussed the application of modern technologies, state support for agriculture, and opportunities to expand cooperation. No specific contracts, investment amounts, or project implementation schedules were announced following the meeting.

However, the substance of the meeting and the composition of the delegation provide an indication of the parties’ principal interests.

Aliyev’s second meeting in seven months with the regional leadership of the American corporation John Deere suggests that the parties are moving from a general discussion of cooperation towards the development of specific projects. These may involve not only supplies of tractors and combine harvesters, but also the creation of a precision farming system, the digitalization of grain and cotton production, personnel training, and the possible localization of certain operations.

Continuation of Negotiations Launched in 2025

The latest meeting continued the negotiations held on December 10, 2025. At that time, Csaba Lejko presented a John Deere initiative related to Azerbaijan’s cotton sector. The parties also discussed the establishment of an education and training center, irrigation, logistics, and the digitalization of the entire cotton and grain production chain.

The return visit by a high-level delegation, which this time also included the company’s Vice President for the Commonwealth of Independent States, indicates that John Deere views the Azerbaijani market as a distinct and promising area of its regional operations.

The main reason for the intensification of negotiations is the convergence of the interests of the government and the company. Azerbaijan needs to increase the productivity of its agricultural sector and strengthen food security, while John Deere is interested in expanding its presence in a market where agricultural modernization is largely financed by the state.

New State Program Opens the Market

The meeting took place shortly after the adoption of a new State Program for Agricultural Development. Its declared objective is to achieve the highest possible level of national self-sufficiency in essential food products.

In May, Ilham Aliyev outlined the program’s principal priorities: expanding modern irrigation systems, upgrading agricultural infrastructure, increasing crop yields, developing storage capacity, improving fertilizer supplies, and continuing the technical modernization of farms.

The area covered by modern irrigation systems is expected to increase from 130,000 to 300,000 hectares. At the same time, the Shirvan and Karabakh canals are being reconstructed to provide water to hundreds of thousands of hectares of farmland. At a meeting devoted to agricultural issues, Aliyev emphasized that without a modern on-farm irrigation network, the construction of major canals alone would not produce the expected increase in yields.

This is precisely where John Deere’s capabilities extend beyond machinery supplies. The company’s modern equipment combines satellite navigation, automated control, field mapping, fuel-consumption monitoring, precision planting, variable-rate fertilizer application, and remote monitoring.

For the government, this provides an opportunity to increase the return on investments in irrigation and land infrastructure. For John Deere, it represents a potentially large market for machinery, software, maintenance, and personnel training.

Why Cotton and Grain Are at the Center of Attention

Cotton and grain production are the most likely areas for initial cooperation. These sectors cover large areas, require substantial amounts of machinery, and offer the potential for significant gains from automation.

In the grain sector, the principal objective is to increase yields and reduce dependence on imports. Automated planting, field monitoring, and lower harvesting losses could increase output without a proportionate expansion of cultivated land.

In cotton production, digitalization makes it possible to monitor the entire cycle, from land preparation and planting to harvesting and delivery of raw cotton to processing enterprises. This increases the transparency of state subsidies, enables more accurate measurement of actual cultivated areas and yields, and reduces production costs.

John Deere can offer Azerbaijan not merely individual machines, but an integrated technological platform in which machinery, software, satellite data, and maintenance services operate as a single system.

Possible Consequences of the Meeting

The first practical result could be an increase in purchases of tractors, grain harvesters, and cotton-picking machines. The financing model, however, will be of greater significance. Since a substantial share of agricultural machinery in Azerbaijan is purchased with state support, cooperation may include subsidies, preferential leasing, or loans for farmers.

A second area could be the establishment of a John Deere education and training center. Modern machinery requires operators, engineers, agronomists, and data-processing specialists. Without proper training, expensive automation systems may be used only partially, reducing the economic return on public spending.

A third possible consequence is the development of service infrastructure. An expanding machinery fleet will require a permanent supply of spare parts, diagnostic equipment, and qualified repair specialists. This could create new jobs and gradually increase the share of operations performed domestically.

In the longer term, the localization of assembly for certain types of machinery or attachments cannot be ruled out. Ilham Aliyev has previously spoken about plans to expand domestic production of agricultural machinery. At this stage, however, there have been no official announcements concerning the construction of a John Deere plant or the establishment of assembly operations.

Karabakh and East Zangezur as a Testing Ground

The restoration of agriculture in the liberated territories creates additional opportunities. New farms are being established in Karabakh and East Zangezur, reservoirs and irrigation systems are being built, and large tracts of land can be planned in accordance with modern technological requirements.

Unlike older agricultural regions, where land is divided among numerous small farms, the territories under reconstruction make it easier to establish large, digitalized production complexes. They could therefore become a testing ground for autonomous machinery, satellite-based control systems, digital field maps, and automated resource management.

However, the use of such equipment in areas where mine hazards persist will require prior demining and the precise identification of safe agricultural zones.

Risks of Costly Modernization

Expanded cooperation with John Deere could increase productivity, but it would also create financial and technological risks.

Imported machinery, spare parts, and software are expensive and vulnerable to exchange-rate fluctuations. Digital systems often require regular updates, paid services, and continuous technical support. For small farms, purchasing them independently may not be economically viable.

The most realistic model would therefore involve the use of high-technology equipment by large farms, agricultural parks, cooperatives, or specialized service companies that provide services to smaller producers.

Ownership of agricultural data is another important issue. When introducing foreign digital platforms, the government must determine where information on cultivated areas, crop yields, and machinery operations will be stored, who will have access to it, and whether the data can be transferred to other systems.

From Machinery Sales to a Technological Partnership

John Deere Walldorf International GmbH is the American corporation’s international commercial and coordinating subsidiary. It is not a manufacturing plant in Germany, but is responsible for promoting machinery and digital services and for working with dealers in foreign markets.

The participation of its Chief Executive Officer in negotiations with the President of Azerbaijan indicates that the discussions are taking place at the level of regional strategy rather than being limited to a single commercial transaction.

Nevertheless, the July 16 meeting remains, for now, a political and business signal. No agreement, investment project, or procurement program has been publicly announced. The real significance of the negotiations will become clear when concrete decisions emerge, such as the establishment of a training center, the launch of pilot digital farms, the signing of leasing contracts, or the localization of service and manufacturing operations.

If these steps follow, cooperation with John Deere could become part of Azerbaijan’s transition from agricultural mechanization to comprehensive technological modernization. If the process is limited to imports of expensive machinery, however, its impact will depend primarily on state subsidies and the ability of farms to use the acquired equipment effectively.