Within the framework of the State Agro Co-financing Program, the Rural Development Agency continues to subsidize the interest rates on loans issued by commercial banks to support the cultivation of annual crops. This support mechanism had been available to farmers and agribusiness operators for years under the Preferential Agrocredit Project, and since July of this year, it has been integrated into the State Agro Co-financing Program.

Commercial banks participating in the program will begin issuing loans for the financing of annual crops starting next week.

The Rural Development Agency will subsidize the interest rate on the issued loan at the level of the refinancing rate established by the National Bank of Georgia (annual 8.25%), for a period of up to 12 months. The maximum annual interest rate on the loan is set at 18%.

The loan amount per beneficiary ranges from a minimum of GEL 10,000 to a maximum of GEL 100,000, while for grain crop production, the loan amount ranges from a minimum of GEL 10,000 to a maximum of GEL 300,000.

Loans are issued to finance the operating costs of one production year for annual crops (vegetables, grain crops, and melons). The financing covers the purchase of seeds and planting materials, fertilizers, biological plant protection products, as well as labor costs, agricultural machinery rental, fuel used, and irrigation pipe expenses.

The program defines the maximum eligible cost per hectare for the cultivation and maintenance of specific annual crops during one operating year. This information is available on the official website of the Rural Development Agency at www.rda.gov.ge 

The annual crop financing subcomponent is available to individuals, individual entrepreneurs registered in accordance with the legislation of Georgia, and legal entities.

One of the mandatory prerequisites for participation in the program is registration in the Registry of Farms and Rural Enterprises.

The State Agro Co-financing Program is a unified support mechanism established to promote agriculture, bringing together various state support instruments across different sectors.