BFC Georgian Agriculture Finance Bulletin. Edition #93, May 2020
State Initiatives 1)
Georgia to conduct systematic registration of 1.2 million hectares of land
May 10th, 2020, https://www.newsgeorgia.ge/za-tri-goda-v-gruzii-provedut
Over the next three years, the government is planning to systematically register 1.2 million hectares of land. The land registration project will be implemented in three phases, starting in several mountainous regions and then expanding to cover all regions of the country. Georgia has been working to expand land registration since 2016 and has seen some success in this regard, especially with simplified procedures. Land registration will enable easier and less-costly logistical processes for the government and private entities, making it much more efficient to provide aid when necessary and contact the right person(s).
2)
State Agricultural Support Program renewed for another year
May 12th, 2020, https://mepa.gov.ge/En/News/Details/18941
The Ministry of Agriculture is renewing the Agricultural Support Program for another year in order to further promote primary production in the country. The program includes a GEL 10 million co-financing component designed to help agricultural producers procure agricultural machinery and other resources necessary to modernize production techniques in the country. The amount of co-financing available under the program is up to 50% of the total cost of investment and up to GEL 50,000. The program also includes a GEL 1.5 million technical assistance component to further promote high-quality production. Eligible beneficiaries include registered natural or legal persons engaged in agricultural production.
3)
Georgia continues efforts to increase uptake of agricultural insurance
May 12th, 2020, https://mepa.gov.ge/En/News/Details/18943
The government of Georgia, in continuation of its efforts begun in 2014, has announced a three-year agricultural insurance project that will provide up to 70% co-financing for small farms in order to encourage increased uptake of available agricultural insurance policies in the country. This covers policies that insure farmers against hail, floods, hurricanes and autumn frosts. In 2020, the budget for this project will be GEL 9 million, which is enough to cover 15,000 policies and 12,000 hectares. Eligible beneficiaries are those that are natural or legal person who own or use agricultural land that is registered in the National Public Registry.
4)
Government anti-crisis plan for agriculture unveiled
May 13th, 2020, https://cbw.ge/economy/details-of-anti-crisis-plan-on-agriculture
In response to the COVID-19 crisis the government has passed a series of anti-crisis measures designed to ensure the long-term security and safety of the country. For the agricultural sector, this plan calls for giving every farmer with registered land direct financial aid in the form of GEL 200 per hectare as well as a guarantee to be able to purchase 150 liters of diesel at a price of GEL 1 cheaper than market rates. Additionally, farmers will be fully exempt for having to pay irrigation fees this years and will have access to increased co-financing support for the procurement of agricultural machinery.
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