Benefiting from 123,580 square kilometers of land suitable for agriculture, the agricultural sector is one of the major contributors to Iran's economy. It accounts for almost 13% of Iran's GDP, 20% of the employed population, 23% of non-oil exports, 82% of domestically consumed foodstuffs and 90% of raw materials used in the food processing industry.

Key data reflecting the potential of Iran's agricultural industry include access to 37 million hectares of productive land, 130 billion cubic meters of renewable water, wide spectrum of climatic conditions, 102.4 million hectares of forests and grasslands, 2700 kilometers of water border, and diverse genetic reserves, which have led to the sector’s considerable growth.

Due to its climatic diversity, Iran produces a wide range of agricultural products, from cereals and pulses to citrus fruits and sugar cane. Wheat and barely, however, play a very important role in Iran’s agriculture, having a very large portion of the cultivated lands. During 2005, wheat accounted for about 53% of the cultivated lands in Iran.

In addition, in recent years, the construction of several dams in different parts of Iran has facilitated the irrigation of agricultural lands. Therefore, it is estimated that the production volume of agricultural products in Iran will increase from currently 90 million tons to an estimated 200 million tons within the next decade. This will enable Iran to enter some lucrative markets in the world, especially in the European Union countries, with strategic products such as pistachio, saffron, cumin, citrus fruits, pomegranate, sugar cane, and oil seed.

Both irrigated and rain-fed farming are used in Iran. In 2005, some 13.05 million hectares of land was under cultivation, of which 50.45% was allocated to irrigated farming and the remaining 49.55% to rain-fed system.

Though the country provides about 90% of the total agri-food products, still Iran is a large importer of agricultural products, in addition to the technology and equipment required for this sector. The main products imported, related to this sector activity, include refined sugar, rice, soybean, sunflower oil, corn, palm oil, barley, processed food, fish, animal feed, additives, fertilizers and fertilizer raw materials and agricultural equipment.

On the other hand, agricultural products constitute a large portion of Iran’s non-oil exports. In the Iranian year 1385 (March 2006- March 2007), more than $2 billion of agricultural products were exported, indicating a 22% annual growth. The growth rate of the export of agricultural products is about 33% ahead of schedule (Fourth Development Plan).

Pistachio, raisins, dates and saffron are the first four export products, from the viewpoint of value. In addition to the above-mentioned products, Iran also exports some other important agricultural products such as medical and industrial plants, decorative flowers and plants, as well as livestock products.