Thailand Govt Launches Half-Interest Farm Loans Nationwide

This is not a new idea!

The Thaksin administration ran a three‑year debt suspension for farmers with incentives like reduced interest rates.

Other Thai governments, including Yingluck's also tried different variations of this popularist idea.

They've also tried the same type of thing with SMEs, offering debt‑relief and restructuring measures especially during COVID‑19.

None were that successful, and many SMEs are still facing high debt burdens.

lending money to people who are already deeply in debt … what could possibly go wrong … :-l

this scheme could become again a great opportunity for corrupt individuals to profit, while pushing even more people deeper into financial debt …

2 minutes ago, motdaeng said:

lending money to people who are already deeply in debt … what could possibly go wrong … :-l

this scheme could become again a great opportunity for corrupt individuals to profit, while pushing even more people deeper into financial debt …

It could also help facilitate transferring land to rich people from the poor.

16 hours ago, Georgealbert said:

To qualify, farmers must complete training or skills development programmes focused on cost management, such as efficient fertiliser use based on soil analysis. Borrowers are required to purchase fertiliser through approved farmer groups, cooperatives or community enterprises participating in the scheme, or other sources specified by BAAC. In addition, they must use certified seeds recommended by relevant government agencies, with pricing overseen by the Department of Internal Trade.

The wife's daughter and son-in-law are rice farmers. The odds of them completing a training program are not very high, not something they will not do like X thousands of other rice farmers.

And, who will do the soil analysis? the farmers will not they will say where would we send the samples to , sample ask they local Agricultural office, they could well say we do not know, and how much will it cost, I can tell you the results fields beinging mono culture of rice for the past X yeras will be well short of organic matter, something fertilizers will not help/cure, growing another crop beside rice will help, not easy and could be expensive, so it will not be done.

Most rice farmers keep some of their past crop back as seed for the following year. Certified seed will cost money, put in a field with soil that is about dead (no organic matter) will not reap any benefits.

As has been said, the government wants to do a rethink of this, yet another government scheme that has not been thought out, yet again.

On 4/19/2026 at 4:43 AM, blaze master said:

It could also help facilitate transferring land to rich people from the poor.

Yes, yet another wealth transfer from the bottom to the top, who will then use the money to bid up more assets and push them beyond the reach of working people.

On 4/19/2026 at 4:25 AM, Jim Waldron said:

They've also tried the same type of thing with SMEs, offering debt‑relief and restructuring measures especially during COVID‑19.

None were that successful, and many SMEs are still facing high debt burdens.

The Government Savings Bank had to unload a bunch of bad loans also. This type of "social lending" the BOT is so enthused about has a steep cost and isn't good for the banks.