Ministry of Environmental Protection and Agriculture of Georgia Ministry of Environmental Protection and Agriculture of Georgia

The Ministry of Environmental Protection and Agriculture of Georgia is taking complex measures to reduce economic damage in the agricultural production

The Prime Minister of Georgia has presented an anti-crisis plan, according to which, farmers and entrepreneurs engaged in agricultural activities will be supported by government in the reduction of economic damage caused by the spread of the novel Covid 19 in the country.
New projects have been developed by the Ministry of Environmental Protection and Agriculture in the shortest possible time;
 
Due to the current circumstances, some changes were made to the ongoing projects as well.

Under the frame of the project "Preferential Agro Credit", loans will be issued to finance the current costs for annual crops, the estimated amount of which will be 50,000,000 GEL.
 The state will fully finance the loan interest rate for 6 months, farmers will be provided with an opportunity to pay the principal amount of the loan after selling their harvest. In 2020,  about 5,000 beneficiaries will get benefit under the program.
 
The percentage of co-financing in the component of fixed assets of " Agro Credit" increases by (11% instead of 8%) ,  the lease rate also increases by (12% instead of 9%).

A new subcomponent has been developed for financing food industry, including grape processing, bread and bakery production, pasta production. Government will co-finance the loan with an interest rate of 10% per annum for 24 months. The project also includes a sub-component of agro-leasing for food industry, where state co-financing will be 12% for 24 months.
 In 2020, under the frame of the program, the estimated total amount of loans for farmers will amount to 25,000,000 GEL .
 A secondary security component is added to the project. For loans issued for working capital for livestock, the secondary security collateral of not more than 50% of the total amount of each new loan will be issued and secured by the state within the next 18 months following the issuance of the loan or its first tranche.

With the financial support of the International Fund for Agricultural Development (IFAD), the project "Dairy Modernization and Market Access’’ will be launched to support the development of smallholder milk production in rural areas. In 2020, 3 million GEL will be spent under the program. About 60 farmers will get benefit from the program.

 Within the frame of the "State Program for Subsidizing Wheat Import",  the state will subsidize the difference between the prices generated during the sale of wheat until May 15, 2020 . The budget of the program amounts to 5.2 million GEL.
Changes were made to the state program of Agro-insurance as well. The program will last for three years. In case of insurance of perennial crops, farmers will have an opportunity to insure their crops for three calendar years. 2020  budget amounts to 9 million GEL.
 
The Ministry started renewing the "Agricultural Support Program", which includes increasing access to agricultural machinery and promoting growth of primary agricultural production in the greenhouses. The total amount of the budget for co-financing the program includes 10,000,000 GEL. Under the program, it is expected to finance 200 tractors, 80,000 sq / m greenhouses  and irrigate  400 hectares of land areas.