Farmer Beka Gonashvili says Georgia's new agro co-financing model is effective in preventing fraud but creates a major obstacle for farmers who lack upfront capital. Under the new rules, farmers must complete a project before receiving the state's 50% reimbursement, unlike the previous system, where state support and bank financing were available simultaneously.
According to Gonashvili, the new model mainly benefits investors who already have sufficient funds. "If a farmer has money under the mattress, it's a great program," he said, adding that farmers who rely on bank loans will find it much harder to access financing, reducing the program's appeal for new agricultural investors.
He said the scheme is better suited to small and medium-sized businesses than micro-enterprises, while acknowledging that the stricter rules will help eliminate cases where subsidized agricultural loans were misused for non-agricultural purposes.
Gonashvili also questioned the state's funding limits, noting that dairy projects are eligible for up to GEL 10 million, while beef cattle projects receive only GEL 1–2 million, despite requiring much longer periods before generating income. Georgia's updated agro co-financing program came into effect on July 1, with applications currently being accepted by the Rural Development Agency.
