Georgia is placing a $100 million bet that its agricultural future lies not just in fertile soil and orchards but also on blockchain. The government recently signed a partnership agreement with U.S.-based Farmway Technologies to modernize it’s farming sector while opening the sector to global investors through tokenized assets.

For Georgia, it is both a bid to transform its agricultural economy and to secure a place in the fast-emerging global market for real-world tokenized assets. For Farmway, it is the proving ground for its model, that fractionalized, blockchain-enabled investments can attract international capital into climate-smart farming.

“This partnership is more than an investment. It is a blueprint for how tokenized agriculture can meet the world’s climate challenges,” said Farmway chief executive Upmanyu Misra in an interview. “By channelling international capital into Georgian farms through transparent, blockchain-enabled structures, we are proving that real orchards and real yields can deliver climate impact while strengthening communities and advancing sustainable agriculture.”

Georgia Bets On Almonds As California Droughts Bite

The choice of almonds is strategic. Global demand for almond-based products from milk powders to oils continues to grow. Yet California, which produces about 80% of the world’s almonds in a market worth $9 billion annually, is suffering from years of drought. Water restrictions on the famously-thirsty crop have taken their toll, with USDA data showing annual fluctuations in production figures of around 20%.

Georgia’s geography and resources also give it an edge. At the crossroads of Europe and Asia, it can ship almonds efficiently to EU and Middle Eastern markets, with free trade deals offering tariff advantages. Unlike drought-hit California, Kakheti’s relatively stable rivers support irrigation, and the government is betting that reliable water will underpin productivity and investor confidence.

As Minister Songhulashvili put it, “Investments are vital in driving modernization and technological innovation. Farmway’s dedication to revolutionizing our agricultural sector ensures sustainable development will not only create job opportunities for our farmers, but also attract international capital and recognition.”

Farmway’s Blockchain Playbook

The company has already piloted projects in a range of different markets, testing similar models in Vietnam’s aquaculture sector and Sri Lanka’s cinnamon trade, learning first-hand how fragile agricultural systems can be. Challenges range from inconsistent yields due to climate shocks, to farmers’ lack of access to reliable credit, to opaque supply chains that limited investor confidence.

Farmway concluded that without new financial structures, agriculture would remain stuck, essential but undercapitalized. Farmway’s approach is to fractionalize rights to orchard yields and infrastructure, then digitize them into tokens that can be sold globally, creating liquidity for an asset class that has traditionally been inaccessible.

Beyond financial engineering, the company frames these as income-generating instruments backed by nature, designed to tie investor returns directly to productive farmland rather than speculative tokens. As Misra puts it, “You cannot own land in Georgia as a foreigner… but you can own the tree,” Misra explains. Almonds are just the proof-of-concept: the ambition is to make agriculture investable across multiple sectors.

Investor Appeal and the Liquidity Question

The investor pitch is diversification and transparency. Agriculture has long been attractive as an inflation hedge but hard to access without direct land or farm ownership. Tokenization lowers that barrier, at least in theory. “We are bringing trust back to farming as an asset class,” Misra says. “Investors can see in real time what is happening in the field.”

But farming is not software. Margins can swing dramatically depending on how a crop is managed. Misra offers a blunt example, “Tomatoes are easy to grow, but efficient irrigation and use of technology can produce 40 kilograms per tree, while kitchen-garden style maintenance may yield only 2. You can’t just say avocados or cacao will always have a 30% net margin, it depends entirely on how you grow it.

That variability cuts both ways. Farmway argues that its Georgian project is already beating expectations, that production is tracking nearly 30% above projections, while costs are running 7–10% below model. By its count, the orchard is among the top five most efficient in the country, with two-thirds of its area operating at zero carbon emissions. For investors, such data points lend credibility to what is otherwise still a very experimental market.

Investor returns will rise or fall with two main variables: global almond prices and how efficiently the orchards are run. On top of yields, the company is testing tokens linked to carbon credits, which could create an additional revenue stream if verified markets develop.

For early token buyers, the upside is discounted entry and preferential access to future projects. The downside is double exposure, to the physical risks of farming and to the adoption risks of blockchain. Liquidity is another challenge as secondary markets for agricultural tokens are still thin, which means investors may need to hold positions far longer than they would in public equities or even private funds.

Government Ambitions

The Georgian government has given the partnership more than symbolic backing. The framework includes fast-tracked approvals for agribusiness projects, transparent land tenders, and a Joint Agri Taskforce to oversee delivery. The government views this as both a capital infusion and a modernization strategy. Minister of Environmental Protection and Agriculture Davit Songhulashvili said, “It brings scale capital and modern agronomy tied to real assets – jobs, exports, and technology transfer. Georgia’s digital public services, clear rules, and strong horticulture base make it the ideal launchpad.”

The state also intends to co-develop irrigation upgrades, fresh water distribution, and HACCP-certified cold storage facilities along the Kakheti highway. Songhulashvili said, “By transforming traditional agriculture into accessible, fractional investment opportunities, the Georgian government places its climate efforts on the global map to lead the way in sustainable investing.”

Can Tokenization Travel Beyond Almonds?

Early experiments in tokenized agriculture across a range of markets provide indicators of both inspiration and caution. In Brazil, coffee tokens gave roasters a way to pre-purchase beans; in Vietnam, aquaculture contracts linked investors to shrimp and catfish farms; in Malaysia, palm oil and durian pilots promised greater traceability. Yet across these cases, common challenges surfaced: limited farmer adoption, thin secondary markets that left investors locked in, and questions around transparency.

The lesson across these pilots is that tokenization alone does not solve agriculture’s biggest hurdles of volatility, operational risk, and distribution. What Georgia and Farmway are attempting is different: coupling tokenization with state-level support, export-ready crops, and verifiable climate metrics. If successful, it could set a precedent for how real-world asset tokenization moves from speculative crypto plays into mainstream commodities investing. For investors wary of opaque farming ventures, the promise of blockchain is accountability in real time and the deal in Georgia offers a new approach - scale, visibility, and government backing.

Sustainability And Tokenization

Farmway emphasizes its on-the-ground sustainability farming practices, from precision irrigation and solar-powered water systems to regenerative farming, that cut input costs and boost resilience. The company pitches these orchards as yield-bearing regenerative farms, hoping to show that tokenization can align financial returns with climate-positive practices. Misra says that two-thirds of its orchard already operates with zero carbon emissions, a tangible metric investors can verify.

Tokenization does not make crops more sustainable on its own. What it can do is change who funds them, and how. By changing the financial plumbing, by fractionalizing farm outputs into transparent digital tokens, Farmway argues it can attract new streams of capital from investors who might otherwise never finance orchards in Georgia. If that capital is tied to climate-aligned projects, like water-efficient irrigation or carbon-reducing practices, the financing model becomes a lever for sustainability, even if the blockchain itself is neutral.

Risks, Rewards, And The Patience Of Farming

The deal is high-stakes for both sides. For Georgia, the upside is modernization, jobs, and global recognition. The downside is overpromising in a volatile sector where drought, pests, or price swings can erase margins. For Farmway, the Georgian orchards are a make-or-break test. Success could put it at the forefront of real-world asset tokenization, while failure would feed the view that blockchain experiments in agriculture are overhyped.

Misra acknowledges the long arc, saying “Investors need patience. Farming doesn’t move in quarters, it moves in seasons and decades.” For Songhulashvili it’s about the sector as a whole, adding, “For Georgia, this partnership is about proving that our farms can deliver both prosperity and resilience on the global stage.”

For all the blockchain framing, the bigger picture is that food is emerging as a strategic asset class in its own right. Unlike digital-only tokens, farming produces calories and commodities essential to life and, as Misra puts it, “You can’t eat AI. Food is the ultimate real asset.”

Source - https://www.forbes.com/