Adoption of best agri-practices and innovations are vital for commercialization and modernization of agriculture. Favourable geographic position and climatic resources of Azerbaijan make agriculture one of the most promising launchpads for the rapid development of non-oil industry in the country. However, despite efforts of international donors, the rate of innovation adoption among local farmers is still low. The article analyzes major factors shaping Azerbaijani farmers’ adoption of best agri-methods. It reveals that technological parameters of innovation, while important, are mediated by both personal and structural factors. Therefore, selective improvement of one factor might not yield sustainable results. While both the government and the majority of farmers take conservative position toward innovations, agriculture, despite its potential, has low probability of becoming a strong pillar of Azerbaijani non-oil economy. Specific configuration of incentive structure and social classes means that agriculture in Azerbaijan is unlikely to experience capitalist modernization in the foreseeable future.

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