Turkish Republic of Northern Cyprus (TRNC) is a non-recognized state, that is no country has recognized it other than Turkey (TR). Therefore, it is not able to develop its economy and moving to a worse economic structure. On the other hand, South Greek Cypriot Administration (SGCA), which possesses the right of illegal Republic of Cyprus identity, still continues to carry on the embargoes and propaganda activities against Turkish Cypriots; even they use the aids provided by other countries or institutions under the name of Republic of Cyprus. This caused huge economic cliffs between the two states. The agricultural sector is the backbone of the North Cyprus economy. It is still of major importance in addition to its contribution to Gross Domestic Product (GDP), employment, exports and supply of raw materials to industry although its share in the GDP decreases over the years. This study analyzes the place, importance and problems of agriculture in the economy of North Cyprus. Owing to the unfavourable climatic conditions prevailing in the TRNC and in conjunction with the importance attached to the agricultural sector a considerable amounts of subsidies have been paid over the years to alleviate the losses incurred in this sector, but it seems that this sector will need more contribution due to the serious problems in this sector as analysed in this study.