Georgia's soil is one of the most fertile soils in the world! Fertile lands attracts many farmers to Georgia from different parts of the world including India!
As a consequence of 2008 Russo-Georgian War, the economy of Georgia faced a severe downfall and as a result Georgia's fertile lands were sold at a cheaper price of around $800 per hectare and farmers from different countries purchased such lands including the farmers from Punjab, India!
However nowadays the government of Georgia has made many legitimate changes to restrict the foreigners from buying agricultural lands in Georgia!
Georgia’s fertile soil and favorable climate support production of a wide variety of high‐value agricultural products. Georgia leads the country in the production of peanuts and pecans. Cotton ranks second among Georgia's crops, followed by tobacco, soybeans and corn. Other crops include hay, oats, sorghum grain and wheat. Georgia is a leading producer of peaches, apples and watermelons.
Russia traditionally received most of Georgia’s exports but, since 2014 when Georgia signed a Deep and Comprehensive Free Trade Area (DCFTA) with the European Union, new European markets are developing. Georgia also grows an increasing quantity of crops, including vegetables and corn, for domestic consumption.
Agriculture remains an important sector in terms of GDP contribution for Georgia. In 2013, 8.3% was the contribution of agriculture to GDP, which raised up to 12.4% in 2016.
Agricultural sector of Georgia also provides an important safety net for the rural population, employing around 56 percent of the labor force. Small farmers comprise 95 percent of all farmers, typically cultivating around one hectare of land with low output.
As a result of land reform, the Georgian government has privatized over 25 percent and leased out about 30 percent of the country’s agricultural land.
The amount of privately held arable land is much higher at 55 percent compared to any other country! The law on Privatization of State‐owned Agricultural Land was passed in July 2005, which increased the efficiency and output in agricultural sector.
Georgian Parliament has passed a bill in 2015 for laying limitations on allowing the foreigners to own cultivate lands. Foreigners now may own agricultural land if they inherit it; co-own the land through marriage to a Georgian citizen or by being a member of a Georgian citizen household; or hold a residence permit!
Also, agricultural plots owned by foreigners must be no larger than 20 hectares. For entities founded by foreigners, the land plot is limited to 200 hectares. Lastly, the bill stipulates that all agricultural land sales to foreigners require a notarized contract.
The notary must check if the alien or the entity registered by an alien under Georgian jurisdiction meets all the legal requirements for agricultural land ownership. Due to pending Constitutional changes, further restrictions are expected to be introduced on sale of agricultural land to foreigners.
The Georgian government identified agriculture as a priority for development and has increased funding for agriculture by 60 percent. It has also set up the Agriculture Investment Fund to support the sector by providing credits for farmers. This may create additional demand for equipment and inputs to be supplied from many foreign countries.
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