31 Jul 2021 2599

Agricultural Mechanization Co-financing Program to Start in September - Terms - Source BMG

The co-financing program for agricultural mechanization will start in September this year. According to the press service of the government, this is a grant program worth 50 million GEL. The program will be implemented by the Rural Development Agency.

Under the condition set by the program, the agricultural equipment to be purchased must be new.

The amount of co-financing, in total, per beneficiary was determined by the following condition: if the cost of agricultural machinery to be purchased is up to GEL 20,000, the co-financing is 35% of the cost of agricultural machinery, from GEL 20,000 to GEL 100,000 of agricultural machinery. In the case of cost, co-financing also amounts to 35% of the cost, and if the cost of the agricultural machinery to be purchased is less than GEL 100,000, the co-financing is set at 30% of the cost of the agricultural machinery.

Under the same conditions, the purchase of agricultural machinery, including combine harvesters, will be financed by December 31, 2021, from the Agricultural Logistics and Services Company Ltd.

Applications under the program will be accepted electronically. Applications for potential beneficiaries will be considered in the order in which they are submitted.

"At the initiative of the Prime Minister, within the 10-year program of agricultural development, we promised the population to co-finance mechanization. This is most needed by our population who live in rural areas and are engaged in agriculture.

This is the main desire and request that our citizens had during our visits to the regions. Consequently, we decided to fund the program, which we had in previous years, but with a very limited budget, on a large scale this year. Already from September, we can receive applications from participants in this program.

We will have grant co-financing, therefore, part of the cost of the equipment will be in the form of a grant, while the rest will be financed by concessional, credit or leasing resources. "We will provide significant benefits to our population, which did not have the financial resources to purchase agricultural machinery," - said the Minister of Environment and Agriculture Levan Davitashvili at a government meeting today.