After years of war and social unrest, Iraq is facing a number of challenges that are common to all sectors of the economy, amongst which the most important are the deteriorated state of the social and economic infrastructure, the disruption of the social fabric of the society and the increased dependence on oil incomes –representing two thirds of the GDP and almost all exports and fiscal revenues. The contribution of agriculture to GDP has been declining in the last decade from 9 percent in 2002 to 3.6 percent in 2009, following the problems caused by the war, the social unrest and institutional and economic issues. The security situation and rural poverty have contributed to this decline with an outflow of people from the countryside to the urban areas seeking employment and economic opportunities for displaced families.

Agriculture is mostly practiced on small farming units and it is a low input–low output system. Crop yields are low by any comparative standards as farmers tend to minimize costs concerned with land preparation, planting, weeding and harvesting. Crop production is the major source of income for the majority (75 percent) of farmers in Iraq, while the rest depend on livestock or mixed crop and livestock enterprises. Grains, primarily wheat and barley, are Iraq’s main crops in the north and central rainfed areas. In central and southern Iraq, where agriculture depends mainly on irrigation from the Tigris and Euphrates rivers, mixed farming systems are predominant. Dates are a major cash and food crop with fruit trees interplanted in date palm orchards. Vegetables, mainly tomatoes and potatoes, are important irrigated crops. Livestock raising is extensively practiced and inland fisheries and backyard poultry raising are valuable as a source of protein and income for the rural population.