Credit Cards For Thai Farmers To Be Launched By Nov 1

[CWMcMurray]

The Government are not better than the loan sharks.

Load em up with debt, own their souls.

Before planting, Thai farmers have no money to buy fertilizers, seeds, or labor. These are elements for farming.

Normally they have to get loans from private sectors for 20% interest and that make them sunk in debt.

No one wants to borrow, the expenses are just there. Please understand.

I think the above post hits the nail on the head... with or without credit cards, Farmers need to barrow money to buy the supplies needed to plan and raise their crops. They can then pay off these loans only when the crops are harvested and sold.

Under the current system, this means they borrow money from local loan sharks at super high interest rates.. so this is a viable alternative.

I also think it is good to have the safe guard to only be able to be used to buy Farm products, but of course close attention will need to be made at how a store becomes allowed to enter into the system as their is certainly possibilities for back handers and price gouging if it is not closely monitored.

This being said, it is better than the previous policy that allowed farmers to take out cash loans from Gov Bank atthe beginning of the year and pay back the loan at the end of the year. Under this previous policy, money was spent on many things that did not have anything at all to do with farming and that is were the problem comes in... as if you give the farmers 50k in cash, some will send the money on motorcycles or consumer goods or schools tuition for kids go or on a drinking binge or other things and they would then have problems paying back the money as these activities will not generate any money for them.

If it is controlled and only supplies needed for farming can be bought, then it stands to reason that the cards are more likely to be used for what they were meant for and that Framers will be able to pay back the debt from their crops.

[Sydebolle]

Happy days are here again ...........

[a99az]

The Government are not better than the loan sharks.

Load em up with debt, own their souls.

So very true, so sad too

[Robby nz]

The 20K a ton for rice the farmers have been promised should allow them to pay their credit card debt.

But then if they did get 20K they would not need the credit card.

Anyone know who has shares (ownes) the companies where the credit cards can be used?

[teko]

The whole scam is nothing more than an elaborate extension by Thaksin , his family and their brown nosing acolytes to lure farmers into debt so as the local loan sharks can snatch more ground as their reward for supporting the P.T.P. ( Personal Thaskin Property) administration.

Yet again the innocents are funding their own debt bondage and enslavement to the new elite who profess sympathy for the ordinary people.

No small wonder that education is feared.,

Summed up to perfection.

Dumb them down and you can get away with anything,then come election time 'trot out' the usual promises.

[elgato]

All this so the farmers can owe their souls to the "company store". What's next?

[PankajAmrit]

Give a farmer 100 baht and he eats for a day, give him a credit card and he is yours, forever!!!!

[thaikahuna]

"...a 30-day interest-free period..."

Just wondering what the APR is after this 'honeymoon period', or is that irrelevant?

Don't see this a a long term or even medium term solution, but then are any of these election promise policies?

I also see alcohol being purchased under the guise of "grain" and nothing will get done, the farmer stays drunk and the credit card company bills the government for its delinquencies.

Stupid, stupid move and I hope it bites them in the ass.

[Dellboy218]

Perhaps the credit-card pack might also include an educational-leaflet, explaining the hard facts of what happens if you fail-to-repay the debt on-time, and are left losing up-to-70% of the crop you've just grown, and the other 30% has gone to pay the owner of the land their rent ?

Helping farmers gain access to fertiliser or better-tools is laudable, making it easier for them to take-on debt which they later can't repay is not, credit-cards per-se are not a bad thing but can easily lead the financially-naive into long-term debt or the clutches of the mafia-lenders.

Previous loan-schemes have often gone wrong, and required bailing-out, what will be different this time, apart from having a nice plastic-card ?

I agree but tis one thing to have a credit card and another to get someone to accept it! They might find it becomes all but useless PDQ.

[noahvail]

I'm a bit concerned that those 3,000 or so outlets will start selling "farm communication devices" - mobile phones - and "farm transportation equipment" - scooters. And a whole lot more that's only marginally concerned with farming.

[scania]

Beginning of the end. Credit crisis in few years.

The Government are not better than the loan sharks.

Load em up with debt, own their souls.

Yep. Absolutely crazy.

[Arkady]

"Other benefits include annual fee exemption, a 30-day interest-free period, free life insurance of no more than Bt100,000, emergency cash loans of Bt10,000, and special interest rates for cash deposits."

I wonder how many farmers will require "emergency cash loans" in the first week? Should be good for mobile phone and TV sales.

[blacksuitdandruff]

Any others takers on a bet that after the dog and pony show of choosing a "worthy" contractor that SCB will be announced as winner?

[lannarebirth]

"Other benefits include annual fee exemption, a 30-day interest-free period, free life insurance of no more than Bt100,000, emergency cash loans of Bt10,000, and special interest rates for cash deposits."

I wonder how many farmers will require "emergency cash loans" in the first week? Should be good for mobile phone and TV sales.

I'm more concerned about the widows who will be cashing in those life insurance policies because the husband saw no other way out of his debt than to commit suicide.

[bitterbatter]

d

Every home in my village already have big loans in this Baac bank, nothing new. But before, they can buy anything with the money(motosai, laokao, more laokao), now if You read the story, these cards are good only in some shops "will be limited to payment for agricultural production costs from varied cooperatives and over 3,000 stores affiliated with the BAAC nationwide"

I think this is better way now.

It looks real rosy up front but this plan is full of holes. I saw a similar pattern happen when I grew up in Iowa. Farmers would get fat loans in the spring and the poor farm kids would have new motorcycles and snowmobiles. If the rains were good and there were no hail storms toward harvest then the farmers could make out ok. But that is always based upon what the market price for corn and soybeans was come fall. They could only purchase certain brands of seed corn, fertilizers, and pesticides. It would work out well for a few years, then one bad season would come along and blammo! They were in a hole so deep that they would lose eligibility for money the next year.

Small farmer after small farmer would lose their farm and nearly all the farmers end up working for a low wage from the Agricorp who owned their farm now, and they would have to pay rent on the house. Absolutely all the freedom and joy of working your own land how you wanted to was gone.

Next step: GMO seedcorn. It was supposed to be this incredible new technology that would give the farmers all kinds of new crops that were pest resistant etc. But what they ended up with is crops that are resistant to the most deadly pesticides and herbicides ever used. Good old agent orange technology from the Vietnam war, but without the flourescent coloring. Just spray that crap everywhere and use it generously and the only thing surviving in the fields was there genetically altered crap, so low on nutritional value. But geez it sure does look good, and there is a lot of it. Monsanto and others made bank. They get rid of toxic waste by mixing it into Round-Up and selling it at a premium cost and the seed corn will not reproduce so they totally control the pricing so that pretty much nobody can earn back the farm. Then they take all this excess product and turn it into all kinds of food additives, colorings, flavorings, sweetners, etc. and put it into every food you can buy on the grocery store shelves. Now the USA is leading the world in obesity. And most people can't eat healthy because they are assuredly being paid only enough to buy the processed junk that looks and tastes real good but leaves you feeling tired and with chronic indigestion.

So okay, Thailand isnt' quite the same and maybe there is some good intentions at work. But this is not the way to fix the economic disparity in Thailand. Typical political move to try and solve problems by throwing a bunch of money at it. The farmers are going to get credit in the early season, and listen to the sales pitch that if you do it this way you will come out so much ahead. The companies giving the money have it all worked out so that you have to give most of it right back to them.

A few drunk nights, a pretty girl or two, a pissed off wife, and kids that always take more money then they are given and that dream of success will fade fast. I really don't expect too many farmers to make it profitably for more than a few short seasons. But the big corporations will be making big bucks from money flowing in both directions. Overworked soils that will never recover with the sexy NPK fertilizers on TV along with poor people who never keep good track of money and very unpredictable weather are a recipe for disaster.

Ok I have vented long enough and would like to share my idea on how Thailand can fix the problem and bring farmers back into a more prosperous and healthier future, that will bring goodness to their land, communities and children along with more profitability. Make a transition for Thailand to become the first 100% organic country, diversify the crops, and export really good food at premium prices. I know this is an outrageous idea that will probably never happen. Not because organic farming is more difficult to do and profit from, but because of the powers that be won't get their immediate rainfalls of annual profiteering. The ruling class will eventually have to lose power over what people do with their time, energy, and money. The farmers would gaiin a more equal status. But if they can look beyond a future that may lead to them losing corporations or product lines and continuous growth, they may just see that if everyone was doing better we would all be a lot happier and they life would actually be more enjoyable for them if they weren't so rich and powerful. No more political fighting day in and day out to keep their thousand of employees working for the greater corporate good.

I really hope that this may come true someday, and if I ever have a chance to talk to YIngluck I will let her know that their is another way that brings the easy country living back into the cities.

Edited September 9, 2011 by bitterbatter

[philhal2]

The Government are not better than the loan sharks.

Load em up with debt, own their souls.

The Abhisit govt had a very good program to refinance the high interest debt caused by the previous Sinawatra program of "easy credit" for farmers. Now here comes another Shinawatra plan to put farmers back into debt. A very good way to pick up farms for a song, making it another sad day for Thai farmers, once again.

Hopefully the last laugh is on those stealing sor bor cor land that remains the property of the

government and the <deleted> cant get channote to save their thieving souls .

[plumeria]

This is more along the lines of DERIVATIVES because the farmers are already in debt up to their eyeballs and there is no way out.

Credit cards will simply help them charge the interest payment on the money they already owe.

[Tokay]

Why not just give them no doc home loans while they are at it?

Wait... I've heard this story somewhere before. I think it ended badly.

[connor6063]

Well this will be nice, maybe if i go to a darn 711 or another store i will not find my self broke due to no creditcard machine and my withdraw limit maxed. That hapenned all the time

[tpthai2]

"Some people say a man is made outta mud

A poor man's made outta muscle and blood

Muscle and blood and skin and bones

A mind that's a-weak and a back that's strong

You load sixteen tons, what do you get

Another day older and deeper in debt

Saint Peter don't you call me 'cause I can't go

I owe my soul to the company store"

*1955, Tennessee Ernie Ford

[legendarysurfer]

The Government are not better than the loan sharks.

Load em up with debt, own their souls.

There are a couple of reasons why this is a really bad idea: 1) It is just a little more sophisticated approach to vote-buying than has been the traditional norm; 2) Thais generally do not know how to calculate interest/debt and, what is worse, are not interested in learning how to do the math; 3) Obviously, this will make it easier for Thai farmers to lose farmland and homes to lenders.

[MAJIC]

This credit card scheme,seems very similar to the Government loan schemes in existence already:

They pay their interest once a year on the loan contract,the original must be paid off in full at the same time,so the villagers borrow from someone with money (at a high interest rate,for a few days) pay off the lump sum loan + the years interest.

Then take out a new Government loan to pay back the person they borrowed from (plus their high interest rate) and then start paying it all back again on the new loan,at the end of the new years loan.

Got it ? everlasting debt!

Same Same,the new scheme is just a plastic version,with higher % interest rates, and shorter interest payback periods.

And Bingo! another captive audience has been bought with their own money ,ready for the next batch of Election promises.

The ironic part is, they probably do not even understand they are being bought with their own money.

Edited for Typo

by Majic

Edited September 9, 2011 by MAJIC

[NanaFoods]

I live in a vast farming area. Most farmers I know dont travel much, and there are no businesses locally that take the cards for payment.

[bkkjames]

Does it come with a platinum member coffee shop at paragon? If so, I am sure I can find a friend of a friend who will get the card and ask them to take me there as a guest-ya know, just so I can feel hiso once.

[Colin Yai]

"Some people say a man is made outta mud

A poor man's made outta muscle and blood

Muscle and blood and skin and bones

A mind that's a-weak and a back that's strong

You load sixteen tons, what do you get

Another day older and deeper in debt

Saint Peter don't you call me 'cause I can't go

I owe my soul to the company store"

*1955, Tennessee Ernie Ford

Nice one, but instead of St Peter it should be "say Buddha don't you call me" :lol:

[Colin Yai]

I live in a vast farming area. Most farmers I know dont travel much, and there are no businesses locally that take the cards for payment.

Don't worry the Government will no doubt open one and appoint a "suitable person" to manage it , as they say were there is need there is always a supply, :lol:

[Ricardo]

The Government are not better than the loan sharks.

Load em up with debt, own their souls.

There are a couple of reasons why this is a really bad idea: 1) It is just a little more sophisticated approach to vote-buying than has been the traditional norm; 2) Thais generally do not know how to calculate interest/debt and, what is worse, are not interested in learning how to do the math; 3) Obviously, this will make it easier for Thai farmers to lose farmland and homes to lenders.

Thus nicely defending the rural/Bangkok-elites' right, to screw-over the rural poor, and ensure a steady-supply of cheap-labour, and continuing support & funds for the major political-parties too.

Bring-on a Land-Tax to raise a little cash off the major landowners, it's clearly long-overdue, the Dems were at-least discussing one so when will the defenders-of-the-poor pass the legislation & introduce it ? Sadly my guess is not for a long time yet.

[prvtdetdave]

Loan Sharks maybe, indentured servitude yes.

Just look at what Republicans did to America, corporate greed is an animal hard to kill.

[NanaFoods]

Bring-on a Land-Tax to raise a little cash off the major landowners, it's clearly long-overdue, the Dems were at-least discussing one so when will the defenders-of-the-poor pass the legislation & introduce it ? Sadly my guess is not for a long time yet.

I'm sorry, but how is paying rent on one's own property going to help the poor?

The result is no true land ownership, and the rich will certainly survive such a measure.

Are you being sarcastic?

[nurofiend]

There are no valid arguments to putting these people with little or no experience of the debt world in perpetual debt. I know many rice farmers that will look at this like a dog looking at the Television.

people with 'experience of the debt world' still took money for mortgages all over the world

this isn't an uneducated poor matter

at least they are making an effort to give more opportunity to the under privileged

they are not doing it for the sole purpose of shafting the poor, unlike what some people will perceive it as

not everything they do is with bad intentions for god sake

Edited September 10, 2011 by nurofiend