https://doi.org/10.37229/fsa.fja.2026.06.22

This study aims to analyze the role of agricultural investment and agricultural loans in supporting agricultural output in Iraq during the period (2005–2022). Despite Iraq possessing significant agricultural resources, the sector's contribution to the Gross Domestic Product (GDP) remains low (approximately 1.64%), a situation attributed to weak agricultural investment and deficiencies in agricultural financing systems. The research employs both descriptive and econometric methodologies, utilizing the **Autoregressive Distributed Lag (ARDL)** model to analyze the relationships between variables. The results indicate that agricultural output is characterized by relative stability compared to the overall growth of GDP, reflecting the sector's poor performance. Furthermore, the findings reveal that the ratio of agricultural investment to total investment is low (averaging about 3%), as are agricultural loans, which do not exceed 1.89% of the agricultural output. The econometric results confirm a significant positive relationship between both agricultural investment and loans on one hand, and agricultural output on the other; a 1% increase in investment leads to an approximately 2.48% increase in agricultural output, while a 1% increase in loans results in a 2.72% increase in output. The study concludes by emphasizing the necessity of enhancing agricultural financing and increasing the volume of investment in the sector. These measures are vital for boosting productivity, achieving food security, and supporting sustainable agricultural development in Iraq. Additionally, the study highlights the importance of adopting clear credit policies and effective strategic plans to revitalize the agricultural sector.