Georgian farmers will be given state grants for the purchase of agricultural equipment and irrigation systems


Georgian farmers will be given state grants for the purchase of agricultural equipment and irrigation systems

05/14/2020

Farmers should have access to modern technology, which will help increase their competitiveness.

The Ministry of Environment and Agriculture of Georgia announced the launch of the “Program for the Promotion of Agricultural Production” on May 20, which provides grant support for small and medium-sized farms in three main areas – the purchase of agricultural machinery, the arrangement or modernization of greenhouses and the installation of irrigation systems for annual agricultural crops.

In accordance with the program, the amount of state co-financing (grant) in all three cases will be 50% of the project cost, but not more than 50 thousand lari ($ 15.6 thousand). For the implementation of the program in 2020, the Ministry plans to allocate 10 million lari ($ 3.1 million).

This program, presented by the ministry as part of the anti-crisis plan “Caring for the Village, the Farmer,” was approved at a government meeting on May 14.

“The state program to promote agricultural production is a new government decree, in fact, a new project that provides grants for small and medium-sized farmers, and I hope that it will continue in the future in order to strengthen the capacity of farmers. Farmers should have access to modern technology, which is in direct connection with competitiveness. They should be able to modernize and expand farms. Mechanization is the main means of production in modern farming and, accordingly, it is most in demand. Here we are talking about small-scale mechanization, tractors with a capacity of up to 100 horsepower, self-propelled equipment, manual walk-behind tractors, etc. The second component is grant financing for small greenhouses. It is important to note that this component covers not only startups and new farms, but also the renewal and expansion of existing greenhouse farms. The third component provides equipping areas with annual crops with modern irrigation systems. I note that for farmers growing annual crops, we gave the opportunity to use, in fact, free working capital. The state also provides them with important direct assistance in relation to production facilities, including planting materials, agrochemicals and fertilizers. All this, together with the aforementioned grant support, will facilitate the process of production of both vegetable and grain crops for farmers, ”Levan Davitashvili, Minister of Environment and Agriculture of Georgia, said at the end of the government meeting.

See also: From May 20, Georgian farmers will be able to receive state subsidies and cheap diesel for agricultural work

Previously, the “Program for the Promotion of Agricultural Production” was implemented by the Ministry in a pilot mode.

Among the initiatives put forward by the Ministry of Agriculture as part of the anti-crisis plan is also the introduction of an additional component in the “Plant the Future” project, through which the state will co-finance the purchase and installation of irrigation systems for perennial crops. The state grant in this case will also be 50% of the project cost (but not more than 2.5 thousand lari or $ 0.8 thousand per 1 ha).

According to the ministry, the above-mentioned initiatives are far from the only ones within the framework of which farmers are given the opportunity to purchase agricultural equipment, equip a greenhouse or provide irrigation of agricultural land with state support. For example, a farmer can purchase agricultural equipment using an agro-leasing or agricultural loan project, which includes a mechanization component, to create an irrigation system – as part of the existing components of the Plant the Future project, etc.

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