The Government of Georgia adopts changes in the 'Preferential Agrocredit' project.

The Government of Georgia adopts changes in the "Preferential Agrocredit" project.

Under the decision of the Government of Georgia, changes were made in several sub-components of the "Preferential Agrocredit" project.
To better align the project with the requirements of different sectors and existing challenges, changes were made to the state program, considering the interests of farmers and people involved in agribusiness.

Under the updated version of the project in 2024, like in previous years, sub-components were launched for financing annual crops and the primary production of hazelnuts.

In the sub-components- the conditions were specified for the cultivation of new perennial crops, and in the existing sub-components- the conditions were specified in the direction of cattle breeding.

The subcomponent of annual crops finances all expenses for growing annual crops. Loan volume: GEL 10,000 - GEL 100,000; co-financing interest: 9%; co-financing period: 12 months.

All crop-growing expenses in hazelnut orchards- larger than 3 hectares are covered by funding (no more than GEL 3000 per hectare) in the subcomponent of the primary hazelnut production. Loan volume: between GEL 5,000 and GEL 300,000; co-financing interest: 8%; co-financing period: 12 months.

According to the changes presented for the financing of dairy, beef, combined direction, and livestock breeding farms, the beneficiary will have the obligation to ensure at least 1 ha of pasture and/or at least 0.5 ha of arable land per head of cattle, during the co-financing period of the loan.

The sub-component for financing the primary production of hazelnuts underwent a change, by which the upper limit of the amount of the loan per beneficiary was increased and determined from GEL 5,000 to GEL 300,000, as well as the maximum loan volume for the primary production of hazelnuts, calculated per 1 ha, was increased and determined by no more than GEL 3,000.

The Rural Development Agency has implemented the "Preferential Agrocredit Project" over ten years.

The main objectives of the project are to provide farmers and people involved in agribusiness with cheap, long-term, and affordable cash, and to improve the production processes of primary agricultural production, including the processing and storage-sale of agricultural products.

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