Soft loans urged for Thai rice farmers

[webfact]

Soft loans urged for Thai rice farmers
BY LARRY BANKS



BANGKOK: -- According to an article in The Nation, rice farmers in Thailand have called upon the government to release soft loans worth around 40 billion Baht to those who joined the rice plantation integration project so they can have more financial liquidity.

The president of the Thai Agriculturalists Association, Suthep Kongmark, said that small farmers need soft loans to invest in rice production.

The plantation-integration project was launched by the Thai government to help small farmers integrate their rice fields and lower production costs. Each farmer reportedly needs around 100,000 Baht in loans to increase financial liquidity, said Suthep.

Full story: http://ethailand.com/business-news/soft-loans-thai-rice-farmers/1477/

-- eThailand 2016-02-01

[leeneeds]

STOP! STOP! please just go and borrow some money off the rubber farmer as he has some money now,

[BSJ]

'rice plantation integration project' I'd like to know more about that!

[Ricardo]

A soft-loan to help reorganise a struggling business is one thing, but there's a risk that it is used only to keep the same model going without any change, only getting the farmers into further debt.

Rice-farming as an industry has a few tough years ahead yet, the damage done by the previous administration's rice-scheme has to fully work through, and world market-prices are depressed. Add-in the effects of the drought, and the risk of losing your land, this offer may be one to miss ?

[trogers]

Might as well be giving them soft loans to plant Blueberry...

[worgeordie]

Yet again they are again going to use the majorities, tax payers monies,

to help the minorities,the rice farmers,this has been going on for years

and nothing improves,there is something wrong with the whole agricultural

system in Thailand,when every year,the Rice farmers,Rubber tappers,Shrimp

farmers, and Tapioca growers, need financial help from the Government.

regards Worgeordie

[otherstuff1957]

Soft loan? Is that the kind of loan where they won't repossess the land when the farmers can't pay, but just keep adding interest and penalties to the unpaid balance until they have no possibility of ever paying it off?

[Bob12345]

Yet again they are again going to use the majorities, tax payers monies,

to help the minorities,the rice farmers,this has been going on for years

and nothing improves,there is something wrong with the whole agricultural

system in Thailand,when every year,the Rice farmers,Rubber tappers,Shrimp

farmers, and Tapioca growers, need financial help from the Government.

regards Worgeordie

I think there are more farmers in Thailand than tax payers (not counting VAT, only profit and income related taxes).

So the rulers are using money from the "silent minority" to pay off the "loud majority" to extend their own time at the trough.

[Srikcir]

Soft loan? Is that the kind of loan where they won't repossess the land when the farmers can't pay, but just keep adding interest and penalties to the unpaid balance until they have no possibility of ever paying it off?

The present and past governments arrange the banks to make loans to farmers at below market interest and subsidizes the difference between market interest and loan interest using taxpater funds. And Prayut has made it a practice when pressured sufficiently to have banks provide for loans requiring little or no collateral and loan forgiveness.

The government of course makes sure the banks do not lose any of their investment by supplementing uncollectible loans with taxpayer funds. Banks are in for profit and Prayut seems to respect that fundamental.

Prayut might do better to simply devise the same scheme he uses for rubber purchases - simply purchase at above market value and stockpile until higher market prices can be obtained, hopefully. But that might seem too similar to Yinglucks' rice pledge program for which the junta is prosecuting as corruption.

[X pat]

Soft loan? Is that the kind of loan where they won't repossess the land when the farmers can't pay, but just keep adding interest and penalties to the unpaid balance until they have no possibility of ever paying it off?

I was wondering that my self.

[Eric Loh]

Yet again they are again going to use the majorities, tax payers monies,

to help the minorities,the rice farmers,this has been going on for years

and nothing improves,there is something wrong with the whole agricultural

system in Thailand,when every year,the Rice farmers,Rubber tappers,Shrimp

farmers, and Tapioca growers, need financial help from the Government.

regards Worgeordie

Whole lots of difference between a loan and paying a higher price for rubber. The former has to be paid back while the latter is strict out of the tax payer pockets.

[bark]

A soft-loan to help reorganise a struggling business is one thing, but there's a risk that it is used only to keep the same model going without any change, only getting the farmers into further debt.

Rice-farming as an industry has a few tough years ahead yet, the damage done by the previous administration's rice-scheme has to fully work through, and world market-prices are depressed. Add-in the effects of the drought, and the risk of losing your land, this offer may be one to miss ?

Soft loan to a farmer, is the same as a credit card. Spend the full amount; not have money to pay back. Some takes the land, and the farmer, sadly

kills himself.

[Hawk]

Soft loans were handed out by the Thai Farmers bank a long time ago and of course thousands of farmers got into serious financial difficulties, losing their land etc. Now this idea will simply be history repeating itself. Isn't Thailand already drowning in debt?

[trogers]

Yet again they are again going to use the majorities, tax payers monies,

to help the minorities,the rice farmers,this has been going on for years

and nothing improves,there is something wrong with the whole agricultural

system in Thailand,when every year,the Rice farmers,Rubber tappers,Shrimp

farmers, and Tapioca growers, need financial help from the Government.

regards Worgeordie

I think there are more farmers in Thailand than tax payers (not counting VAT, only profit and income related taxes).

So the rulers are using money from the "silent minority" to pay off the "loud majority" to extend their own time at the trough.

Still better than a few years ago where they borrowed through the State into pockets of individuals...

[eliotness]

Yet again they are again going to use the majorities, tax payers monies,

to help the minorities,the rice farmers,this has been going on for years

and nothing improves,there is something wrong with the whole agricultural

system in Thailand,when every year,the Rice farmers,Rubber tappers,Shrimp

farmers, and Tapioca growers, need financial help from the Government.

regards Worgeordie

Just for clarification geordie me lad, are you sure that in Thailand tax payers are in the majority and farmers in the minority. After all isn't the reason Thaksin et al won all the elections is because they had the support of the rural Thais ! I've not seen PAYE applied in Thailand, but I've never worked in a factory or a city. Most taxes I see are indirect tax. I've no doubt that Bangkok and its surrounding areas pay the majority of the taxes raised in Thailand, but the majority of the Government's money is spent there too. ?

[bangon04]

A soft-loan to help reorganise a struggling business is one thing, but there's a risk that it is used only to keep the same model going without any change, only getting the farmers into further debt.

Rice-farming as an industry has a few tough years ahead yet, the damage done by the previous administration's rice-scheme has to fully work through, and world market-prices are depressed. Add-in the effects of the drought, and the risk of losing your land, this offer may be one to miss ?

Soft loan to a farmer, is the same as a credit card. Spend the full amount; not have money to pay back. Some takes the land, and the farmer, sadly

kills himself.

Didn't you read the news that car sales are down, so a stimulus is needed - this would be perfect - all the farmers buy another new pickup that they cannot pay for long term.

[scorecard]

A soft-loan to help reorganise a struggling business is one thing, but there's a risk that it is used only to keep the same model going without any change, only getting the farmers into further debt.

Rice-farming as an industry has a few tough years ahead yet, the damage done by the previous administration's rice-scheme has to fully work through, and world market-prices are depressed. Add-in the effects of the drought, and the risk of losing your land, this offer may be one to miss ?

And IMHO the days of making good money from small scale farming are finished and especially where the farmers don't own land. In today's environment small scale farmers can perhaps make survival money but no more, in other words they remain on the poverty line, and if something goes wrong they are quickly in serious financial trouble with no back up at all.

Ultimately for the sake of a better quality of life for a lot more Thais the country has to create the circumstances where these folks have different and better opportunities, and also bring their children into better circumstances. This needs action now.

Edited February 1, 2016 by scorecard