The Cattle Farm Establishment Subcomponent provides co-financing for the following activities:

• establishment of a new farm, or expansion and/or modernization of an existing farm, for dairy, beef, or dual-purpose cattle breeds;
• establishment of a new cattle fattening farm.

The Subcomponent is available to a registered entrepreneurial natural person (individual entrepreneur) or an entrepreneurial legal entity in which the State holds no ownership interest, participation interest, or shares.

In addition, the potential beneficiary must be registered in:

• the Registry of Farms and Rural Enterprises
• the Registry of Economic Activities of the Legal Entity under Public Law - National Agency of Public Registry
  
  

Geographic Coverage

The geographic coverage of the Subcomponent includes all municipalities of Georgia.

Establishment of a New Farm, or Expansion and/or Modernization of an Existing Farm, for Dairy, Beef, or Dual-Purpose Cattle Breeds

Agency co-financing: up to 50% of the total project cost; for dairy breeds, not more than GEL 10,000,000, and for beef or dual-purpose breeds, not more than GEL 2,000,000.

In the case of cooperatives holding agricultural status, villages adjacent to the dividing line, and high-mountain settlements - up to 55%; for dairy breeds, not more than GEL 10,000,000, and for beef or dual-purpose breeds, not more than GEL 2,000,000.

The total project cost must be at least GEL 100,000 for establishment of a new farm and at least GEL 50,000 for expansion and/or modernization of an existing farm.

The total project cost for establishing the farm and purchasing cattle, calculated per cow/heifer, must not exceed GEL 30,000, including not more than GEL 11,000 for the purchase of cattle.

Only establishment of a new farm for dairy, beef, or dual-purpose cattle breeds in accordance with the criteria and costs specified in Annex No. 7 shall be financed.

Only modernization/expansion of an existing farm for dairy, beef, or dual-purpose cattle breeds in accordance with the criteria and costs specified in Annex No. 8 shall be financed.

Activity Criteria and Obligations

Before co-financing is disbursed, the beneficiary must purchase and/or maintain at least 25 heifers and/or cows of the breed(s) specified in Annexes Nos. 7-8.

Cattle must be purchased from farms having breeding status as determined by the Legal Entity under Public Law - Scientific-Research Center of Agriculture and/or through importation, and must have the relevant passport (breeding certificate).

The purchase of a bull is permitted only for the beef-production activity, at a ratio of 1 bull per 30 cows.

The beneficiary shall:

• before co-financing is disbursed, register the cattle owned by it in the National Animal Identification and Traceability System of Georgia (NAITS);
• for three years after co-financing is disbursed, maintain the total number of cattle existing before disbursement of co-financing; if any cattle are slaughtered or die, replace them with cattle of the relevant breeds at its own expense, and annually submit a document confirming the number of cattle existing before disbursement of co-financing.
  
  

Establishment of a New Cattle Fattening Farm

The activity provides co-financing for establishment of a new open and/or enclosed farm/housing facility.

Agency co-financing: 50% of the total project cost, but not more than GEL 1,000,000.

In the case of cooperatives holding agricultural status, villages adjacent to the dividing line, and high-mountain settlements - up to 55%, but not more than GEL 1,000,000.

The total project cost must be at least GEL 100,000.

The total project cost, calculated per head of cattle, must not exceed GEL 2,000.

Only establishment of an open and/or enclosed farm/housing facility for cattle fattening in accordance with the criteria and costs specified in Annex No. 9 shall be financed.

Activity Obligations

The intended purpose of the activity for establishment of a new cattle fattening farm is to establish an open and/or enclosed farm/housing facility.

Before co-financing is disbursed, the beneficiary shall:

• maintain at least 100 head of young cattle;
• establish a farm for at least 100 head of young cattle; for the applicable criteria, see Annex No. 9;
• register the cattle owned by it in the National Animal Identification and Traceability System of Georgia (NAITS);

After co-financing is disbursed, the beneficiary shall, for three years, annually submit a document confirming the number of young cattle existing before disbursement of co-financing.

Project Implementation Period

The Agency shall determine the project implementation period for the beneficiary.

The project implementation period shall not exceed 18 months from the date of execution of the agreement.

If the project is not completed within the prescribed periods, the Agency shall terminate the agreement executed with the beneficiary.

General Terms:

• Potential beneficiaries may participate if they have no ongoing contractual breach and/or litigation under projects/programs of the Rural Development Agency.
• The total cost of the submitted project must include the full amount of eligible costs under the Subcomponent.
• The cost of an audit report may be financed; co-financing shall not exceed 1% of the project cost and in any event shall not exceed GEL 20,000. The co-financing amount shall be included within the Agency co-financing limit applicable to the beneficiary.
• Any procurement contemplated by the project shall be carried out by the beneficiary only after execution of the agreement, from an entrepreneurial natural person and/or legal entity registered in accordance with the legislation of Georgia and/or through importation.
  In the case of procurement of services, procurement from a natural person shall also be permitted.
• Fixed assets to be purchased (plant/equipment/machinery/implements) must be new (not previously placed in service).
• A potential beneficiary may not participate in the Program, and co-financing shall not be disbursed to a beneficiary, if:
  • the potential beneficiary or existing beneficiary, or its founder, member, or shareholder, holds an ownership interest in a legal entity registered in accordance with the legislation of Georgia that supplies the relevant goods and/or services under the project;
  • the individual entrepreneur itself acts as the supplier of goods and/or services;
  • the potential beneficiary/beneficiary or its representative serves as a manager of the company supplying the goods and/or services.
  • Beneficiaries with whom a co-financing agreement is executed shall receive co-financing provided that, after this Resolution enters into force, they have no ongoing contractual breach and/or litigation under projects/programs of the Non-Entrepreneurial (Non-Commercial) Legal Entity - Rural Development Agency.
    
    

General Obligations

The beneficiary shall:

• for three years from the date of disbursement of co-financing, not alienate the property created and financed under the project, any part of such property or related assets, or the land plot on which the project was implemented.

In the event of a breach, the Agency shall terminate the agreement and the beneficiary shall be required to refund the co-financing amount received.

• for three years from the date of disbursement of co-financing, ensure that the project operates solely in accordance with the intended purpose and profile established by the Program and/or the agreement.
• in the case of construction, submit, within the period determined by the Agency, the commissioning/acceptance certificate for the building/structure created under the project.
• submit information on project progress to the Agency at the intervals specified in the agreement.

In the event of a breach of the foregoing conditions, the Agency shall terminate the agreement and the beneficiary shall be required to refund the co-financing amount received, or the Agency may grant the beneficiary an additional period to perform the obligation.

Eligibility Criteria

The potential beneficiary must own, co-own, or lease the land plot on which implementation of the project is planned, and such land plot/lease must:

• be registered with the Legal Entity under Public Law - National Agency of Public Registry and/or have been obtained under a long-term lease from the State, a municipal authority, or the Autonomous Republic of Adjara.
• have a remaining lease term of at least 10 years;
• be free of attachment; in addition, if purchased from the State subject to privatization conditions, such privatization conditions must have been fully satisfied and the land plot must constitute the purchaser's unconditional property.

The potential beneficiary must have no outstanding tax liability to the State Budget. This requirement shall not apply where the amount of tax liability does not exceed GEL 1,000, collection of the tax liability has been deferred, or the obligation to pay it has been suspended by operation of law.

Steps Required to Receive Co-Financing

List of documents to be submitted under the Cattle Farm Establishment Subcomponent for establishment of a new farm, or expansion and/or modernization of an existing farm, for dairy, beef, or dual-purpose cattle breeds

List of documents to be submitted for establishment of a new cattle fattening farm

Co-financing shall be disbursed after performance of the obligations within the period specified in the agreement is confirmed by the submitted audit report and by an on-site inspection conducted by the Agency.

In the case of construction, a construction permit issued in accordance with the legislation of Georgia must be submitted.

For construction/repair/reconstruction works with a value of at least GEL 200,000, the value of the completed works must be confirmed by:

• a report issued by a person accredited by the Legal Entity under Public Law - National Accreditation Body (Accreditation Center)
  or
• an expert report issued by the Legal Entity under Public Law - Levan Samkharauli National Forensics Bureau
  
  

If the project cost is at least GEL 500,000, before co-financing is disbursed the beneficiary shall, for the term of the agreement, mortgage in favor of the Agency, in accordance with the legislation of Georgia, the land plot on which the project was implemented.

The Agency's mortgage may rank second only where the first-ranking mortgagee is the lending bank.

This condition shall not apply in the case of a State lease.

During the term of the agreement, the Agency may conduct on-site inspections and documentary monitoring.

A completed application form and supporting documentation may be submitted in hard copy to the central office of the Rural Development Agency, its regional divisions, or information and consultation centers.

The foregoing documentation may also be submitted to the Agency by email at: document@rda.gov.ge .

The documentation must be accompanied by an application regarding submission of a new application.