Shafaq News- Kirkuk

Delayed government payments have placed farmers in Kirkuk, northern Iraq, under mounting financial strain ahead of the new agricultural season, as many warn that limited liquidity could disrupt planting plans and affect domestic production.

Ali al-Obaidi, a farmer in the province, told Shafaq News that many growers depend on credit to finance cultivation, settling accounts with traders and agricultural suppliers only after marketing their crops. “It is unfair for us to wait months to receive our money,” he remarked, describing the prolonged wait as a burden at a critical stage of the season.

Hassan Abbas, another farmer, pointed to a sharp rise this year in fertilizer and pesticide prices, labor wages, transport, and harvesting costs. Under these conditions, some growers have reduced cultivated areas or shifted to less costly crops, while others consider temporarily stepping away from farming if dues remain outstanding —a shift Abbas said could influence overall domestic output.

In a statement, Kirkuk lawmaker Mohammed Ali Al-Nuaimy described farmers’ dues as a “legitimate right that cannot be postponed,” stressing that agriculture remains “a cornerstone of Iraq’s food security and a source of stability for millions of families.” He underlined that the transition between seasons requires liquidity to secure seeds, fertilizers, pesticides, and fuel, as well as to settle prior debts, urging authorities to release payments upon crop delivery or within a defined timeframe.

The issue unfolds as Iraq operates for the second consecutive year under the “1/12 financial management rule,” which allows monthly spending at one-twelfth of the previous year’s operational budget in the absence of a fully approved federal budget, narrowing spending flexibility across key fields, including the agricultural sector.

Read more: Iraq’s budget: How the1/12 rule reduced state finances to salary payments

Agriculture also faces sustained pressure from water shortages. Annual inflows have dropped to between 25 and 40 billion cubic meters —around 30 to 40 percent of historical averages— while national demand exceeds 50 billion cubic meters.

Within these constraints, the cabinet approved a scaled-down winter agricultural plan for the 2025–2026 season, authorizing cultivation on 250,000 hectares using surface water and 875,000 hectares relying on groundwater.

Read more: Iraq’s water crisis: A structural rewrite of agricultural governance