Proposal to give monthly pension to farmers takes shape

[Lite Beer]

Proposal to give monthly pension to farmers takes shape

BANGKOK: -- A good news for farmers when the Rice Department chief says it is going to propose the Ministry of Agriculture and Agricultural Cooperatives a rice development fund that requires farmers to contribute so they will get pension after they reach retirement age.

The rice development fund will be the highlight of a bill which the department is drafting to propose to the ministry next week.

According to the Rice Department director-general Charnpittqaya Chimpalee, farmers who will get a monthly pension of around 4,000 baht will have to become members of the fund and contribute 3% of their monthly income to the rice development fund during their working years.

The state will also contribute an equal amount.

He said the fund is aimed at financially helping farmers and the pension is part of the assistance to them.

When farmers retire at the age of 60 or 65, then they will have a monthly pension of 4,000 baht, he said.

The director-general said the 3.7 million rice-growing families could subscribe to the fund which was similar to the Social Security Fund.

He said after 15 years of contributions, or when participating farmers are 65 years old, the fund would start to pay a monthly pension to each member.

Besides the pension, the fund will also subsidize 20% of rice growers’ production costs and provide loans for farmers to buy rice seed, with a three-year interest-free period.

The draft bill would be proposed to the Ministry of Agriculture and Agricultural Cooperatives next week so that it could be forwarded to the National Council for Peace and Order for final approval because it needs start-up financial support and must become a law.

Source: http://englishnews.thaipbs.or.th/proposal-give-monthly-pension-farmers-takes-shape/?utm_source=rss&utm_medium=rss&utm_campaign=proposal-give-monthly-pension-farmers-takes-shape

-- Thai PBS 2014-07-23

[Chao Lao Beach]

Great News for a pension, but Why ONLY FARMERS, totally screwed up if that is the case.

[Deacon Bell]

Why do I have a feeling that they'll get a nasty surprise in 15 yrs time when it's time to collect.

[Deacon Bell]

Great News for a pension, but Why ONLY FARMERS, totally screwed up if that is the case.

Well they gave all their rice away last year, why not try them for a 'pension fund', wonder where the money will have gone by the time of collection. My guess is the local Benz dealer.

[3NUMBAS]

they have a rotten existance all their lifes ,but they take away the 30baht healthcare in return, not a good idea as many will pass away for lack of money ,and who will replace them ,not their kids who dont want to follow into farming. the future of Thai farming looks bleak

[SoFarAndNear]

Can someone explain how does the government know how much a rice farmers earns or how it defines that someone is a rice farmer?

I guess rice farmers sell their rice to local traders and then get cash for every rice bag. But how does the governent know which farmer sells exactly how much rice? And what exactly is a "rice farmer". Can my mother in law sell every year 1 bag of her own use farmed rice, pay 3% of the selling price to the fund and then get the money?

[iphad]

This is positive news for farmers that Thailand needs to help & also for future food security for Thailand.

As in many employee or age age pension plans in the west...the employer pays a equal amount..then after money paid by that person depending on the amount...it is calculated into a monthly pension.

If one pays on a few bags of rice they grow they wouldn't be getting a full pension...

It would depend on how much money a farmer puts into their pension plan.

[Brit_Doggie]

Why do I have a feeling that they'll get a nasty surprise in 15 yrs time when it's time to collect.

Omg it's a epidemic i got the same feeling as you.

Off to the docs first thing.

[Pib]

This sounds better than the 15% of pay pension I think is given under the Thai Social Security System, if a person has a type of job that participates in social security deductions. Expect other occupations will be saying "What about us?"

[chotthee]

"When farmers retire at the age of 60 or 65, then they will have a monthly pension of 4,000 baht, he said."

So what happen after retirement at 60-65? Move to Hua Hin?

[robblok]

Sounds like the same system that goes wrong in Western countries. If they start it now some people wont have paid into the system and they will be paid from others who pay into the system. Unfortunately with a aging population the ones paying into it will get less and less and when its their time to collect it goes bad.

They did the same in the Netherlands gave everyone a pension and let others pay into it. Now it gets to expensive because of aging population and more elderly. Its a wrong pension program in my opinion. Kinda like a ponzi scheme.

[rickirs]

A typical strategy governments have with such pension fund accounts is to borrow the cash (typically to fund unfunded legislation - ie., "earmarks" or cash shortfalls) secured by treasury bonds, in turn secured by the GDP at some minimum growth rate. The government's own contributions typically are not in cash but rather with the same treasury bonds. If the nation's fiscal policies result in a lower GDP growth rate during the overall pension vested period or higher bond yields due to greater economic risk, the fund cannot meet its payout obligations and goes broke.

The farmer's pension fund should be inaccessible for any borrowing purposes and the government should match fund contributions with cash, not debt.

[Pib]

A typical strategy governments have with such pension fund accounts is to borrow the cash (typically to fund unfunded legislation - ie., "earmarks" or cash shortfalls) secured by treasury bonds, in turn secured by the GDP at some minimum growth rate. The government's own contributions typically are not in cash but rather with the same treasury bonds. If the nation's fiscal policies result in a lower GDP growth rate during the overall pension vested period or higher bond yields due to greater economic risk, the fund cannot meet its payout obligations and goes broke.

The farmer's pension fund should be inaccessible for any borrowing purposes and the government should match fund contributions with cash, not debt.

You are right, but it won't happen in this universe.

[arthurwait]

"When farmers retire at the age of 60 or 65, then they will have a monthly pension of 4,000 baht, he said."

So what happen after retirement at 60-65? Move to Hua Hin?

Well it works for bar girls.

[Bosse137]

Farmers will get 4000 a month.No matter how much they do contribut,same amount for everyone?And as somebody said already;who is a "ricefarmer"?Is it the one who owns the farmingland? Or the one who rents farmingland.Or is it perhaps the many,who actually do the work on it? The owner does not have to do the actual work,which also leads to the question:Why does he have to go into pension??!! If he has the land,the workforce,it does not matter,if he is 50,60 or 90 years old,does it?!The only people who would need a pension are those,who most likely will not get one;the workers.But as usual,the money goes to those,who already have enough.BTW,why only ricefarmers? Are they more important than other Thais? Guess one should not try to find out these kind of things,they are just too much "Thai" for a foreigner to get a grip on...

[Hawk]

Great News for a pension, but Why ONLY FARMERS, totally screwed up if that is the case.

Farmers are a huge group that need to be treated very carefully indeed, no rice, vegetables etc and the country is in very serious trouble.

[marinediscoking]

This sounds like another Thaksin voting scheme. Aren't these supposed to be outlawed now?

[Bosse137]

To answer my own question above,"Who is the ricefarmer" :It has to be the financier,owner ,since he is the one who sell the rice and pay the 3 %.The people who work in the field for small money,has nothing to do with how much the rice is sold for.So,why that person has to be subsidied by taxmoney is anybodys guess.And why does he have to retire at all..?

To Hawk: Yes,farmers are a huge group,but so are the rest of the workforce too! Why single out a section of that group,and the welltodo section especially,well,I will never know.

[3NUMBAS]

Can someone explain how does the government know how much a rice farmers earns or how it defines that someone is a rice farmer?

I guess rice farmers sell their rice to local traders and then get cash for every rice bag. But how does the governent know which farmer sells exactly how much rice? And what exactly is a "rice farmer". Can my mother in law sell every year 1 bag of her own use farmed rice, pay 3% of the selling price to the fund and then get the money?

farming equipment in the yard and sacks of rice stored in an outhouse on stilts ,and generally potless existance without even a truck in most cases ,they may not own the land they farm on but pay rent . the land will be registered for anyone to check ,so from this they know how much is farmed.

they live a hard existence so don't begrudge them a pension ,nothing to do with vote buying .if that was banned the parties will just throw a big bash with free booze and food before the election

Edited July 23, 2014 by 3NUMBAS

[noitom]

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they have a rotten existance all their lifes ,but they take away the 30baht healthcare in return, not a good idea as many will pass away for lack of money ,and who will replace them ,not their kids who dont want to follow into farming. the future of Thai farming looks bleak

Removing the 30 baht is a major setback for the majority of Thais.

[ericthai]

Great News for a pension, but Why ONLY FARMERS, totally screwed up if that is the case.

If someone is working in Thailand and paying into SS then they too will get a pension. My father-in-law gets paid each month, I think he gets

around 1000B or 1500B a month.

[BSJ]

It would have to be a pro rata system of payments over time to end benefit. Even if it is run honestly, you cannot be rewarding people who have only had a few years in the scheme as you would those who have paid in for 15 or longer.

As already mentioned the biggest hurdle is ascertaining who is qualified and who is not. Just like in the pledging scheme where non-farming cousins, sons and daughters, grandparents (and possibly the family dog) were conscripted into the farming ranks if they had a house book in a rice village. Some families did quite well till the thing went pear shaped!

[alant]

slippery slope, no rice subsidy???

[Ricardo]

"And we'll invest your contributions safely, in buying rice, to store in government-owned warehouses " ?

[Pib]

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they have a rotten existance all their lifes ,but they take away the 30baht healthcare in return, not a good idea as many will pass away for lack of money ,and who will replace them ,not their kids who dont want to follow into farming. the future of Thai farming looks bleak

Removing the 30 baht is a major setback for the majority of Thais.

The govt is not taking away the 30 baht medical program---that's like a third-rail to touch. Other than an occasional stupid statement by some official regarding possibly increasing co-pays which immediately gets shutdown by the govt as a stupid statement, the govt would probably have a revolt on their hands if they tried to make significant cuts the 30 baht medical program now. It's the most precious benefit to most Thais now...or I sure know it is to my numerous in-laws.

[Krataiboy]

Great News for a pension, but Why ONLY FARMERS, totally screwed up if that is the case.

Maybe because they are the poorest farmers in ASEAN, including Myanmar and Vietnam where the average living wage is lower than that in Thailand. Many farmers barely make enough to survive, let alone save for a pension. The ill-starred rice pledging scheme was brought in as an abortive attempt to improve their situation and led to a rash of suicides among farmers who simply could not afford to keep their families.

So let's not be too cynically condemnatory about the junta trying to help.;

[Deacon Bell]

4000b p/m..... in 15 years time..... 2 bowls of rice and 10 minutes with a 50 yr old in the village soapy at best.

[Pib]

4000b p/m..... in 15 years time..... 2 bowls of rice and 10 minutes with a 50 yr old in the village soapy at best.

That's better than no bowls of rice and no time with that hottie.

[ezzra]

Enough with handouts and the freebees here to people whom obviously should not be farmers,

if you can't make honest living out of working the land that go and do something else, learn

a trade, open up a small mom and pop shop, no more give ways and dependency on government's

handout, it have tried before and it fails miserably and they're still poor, how long will you continue

to support them?

[AGareth2]

will this only apply to rice farmers

or will it apply to farmers of other crops such as Casava?