The Board of the Bank for Agriculture and Agricultural Cooperatives (BAAC) has approved a 30-billion-baht subsidised loan programme to help farmers transition from traditional agriculture to precision and sustainable farming practices.
BAAC president Chatchai Sirilai said the BAAC board approved the project at its meeting on Wednesday, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas.
The programme, titled the "Half-Half Interest Loan Scheme," will run for three years until April 2029. It is designed to provide farmers with access to low-cost financing for working capital and investment in agricultural activities.
Under the scheme, eligible farmers can borrow up to 100,000 baht each at an annual interest rate of 6%. The government will subsidise half of the interest cost, or 3 percentage points, leaving borrowers responsible for only 3% per year, provided they comply with the programme's conditions.
Loans must be repaid within 12 months, with all repayments due no later than April 30, 2029.
Mr Chatchai said the initiative supports the government's policy of transforming the agricultural sector from traditional farming to a model based on "precision agriculture, resilient agriculture, and sustainable agriculture".
The programme is intended to reduce production costs, increase value creation throughout agricultural supply chains, and boost the competitiveness of Thai farmers by supporting efficient purchases of production inputs and encouraging long-term skills development.
To qualify, participants must be BAAC customers and registered as farmers with government agencies.
The scheme covers seven major crop categories: rice, feed corn, oil palm, cassava, rubber, sugarcane, and fruit crops.
Applicants must also complete training or skills-development programmes focused on agricultural management and cost control through BAAC, agencies under the Agriculture and Cooperatives Ministry, or other participating organisations. Examples include training on efficient fertiliser use based on soil analysis results.
Mr Chatchai said loan proceeds must be used to purchase fertilisers through participating farmer institutions, agricultural groups, community enterprises, or other suppliers approved by BAAC. In addition, farmers must use certified seeds or planting materials that meet standards recommended by agencies under the Agriculture and Cooperatives Ministry or specified by BAAC.
The seeds and agricultural inputs supplied under the programme must be sold to farmers at reasonable prices, with Department of Internal Trade responsible for overseeing prices to see to compliance with established standards.
The government expects the initiative to accelerate the adoption of modern farming techniques while improving productivity, lowering production costs, and promoting sustainable agricultural development nationwide.
