Prime Minister Anutin Charnvirakul has kicked off a 30-billion-baht "Khon La Khrueng" (half-half) loan programme aimed at helping farmers reduce their production costs.
The premier, together with Finance Minister Ekniti Nitithanprapas in his capacity as board chairman of the Bank for Agriculture and Agricultural Cooperatives (BAAC), launched the scheme on Friday following a cabinet resolution.
The programme forms part of the government's policy to strengthen Thailand's agricultural sector by supporting the transition from traditional farming to precision, resilient and sustainable agriculture, while reducing production costs, creating added value throughout the supply chain and enhancing the competitiveness of Thai farmers.
The initiative offers farmers access to low-interest financing to buy production inputs and supports the development of agricultural skills and farm management capabilities.
The bank also provides advisory services through the BAAC Mobile app, offering knowledge and consultation on fertiliser analysis and crop cultivation to help farmers improve their accuracy and efficiency.
Farmers can access soil quality analysis through the "Nong Din Dee" website or Line Official Account, and receive guidance on using the Agri-Map Online app developed by the Land Development Department. Agri-Map Online provides geospatial information and web-based mapping services, including recommendations for adjusting production through alternative crop options. The app can be accessed via smartphones through the App Store and Google Play.
Farmers wishing to participate in the programme must be BAAC customers and registered farmers with the relevant government authorities. Eligible participants must cultivate one or more of the seven designated cash crops: rice, feed corn, oil palm, cassava, rubber, sugar cane or fruit.
Applicants are required to complete training or skills development in production cost management provided by the BAAC, agencies under the Agriculture and Cooperatives Ministry, or other participating organisations. The training includes the efficient use of fertiliser based on soil analysis.
Loans must be used to purchase fertiliser from participating farmer institutions, farmer groups, community enterprises under the programme, or other BAAC-approved suppliers. Farmers are required to use certified seeds or planting materials that meet quality standards recommended by the Agriculture and Cooperatives Ministry, or specified by BAAC.
The Department of Internal Trade oversees pricing to ensure these inputs are sold at reasonable prices.
Borrowers must repay the loan within the repayment period specified by BAAC. Participants receive payments for the sale of their agricultural produce through a BAAC deposit account and authorise BAAC to act in accordance with Section 28 of the State Fiscal and Financial Discipline Act.
According to Mr Anutin, BAAC extends 500-600 billion baht in agricultural loans annually. Of this amount, 70-80% is for production inputs, including fertilisers, seeds and pesticides.
