The Bank for Agriculture and Agricultural Cooperatives (BAAC) partners with GIZ to hold the event "New Rice Cultivation with Capital from BAAC" providing farmers with capital to adjust rice farming methods to reduce greenhouse gas emissions toward sustainable growth.
On 29 Jan 2026, Mr. Paisal Hongthong, Deputy Managing Director of the Bank for Agriculture and Agricultural Cooperatives (BAAC), announced that BAAC, together with the German international cooperation agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), held the event "New Rice Cultivation with Capital from BAAC under the Thai Rice GCF Project" to launch subsidy and low-interest loan schemes under the Thai Rice: Strengthening Climate-Smart Rice Farming Project. The project aims to transform farmers' rice cultivation practices into climate-smart methods that reduce greenhouse gas emissions by applying Climate Smart Technology (CST).
This initiative enhances smallholder farmers' resilience to climate change, supported by funding from the Green Climate Fund (GCF), the German Federal Ministry for Economic Cooperation and Development (BMZ), and the private sector. It also involves cooperation from multiple agencies such as the Rice Department, Department of Agricultural Extension, GIZ, and other public and private partners. The project targets 21 provinces: Chiang Rai, Chiang Mai, Nakhon Ratchasima, Buriram, Ubon Ratchathani, Roi Et, Surin, Sisaket, Kalasin, Chai Nat, Ang Thong, Pathum Thani, Sing Buri, Ayutthaya, Suphan Buri, Uthai Thani, Nakhon Sawan, Kamphaeng Phet, Phitsanulok, Phichit, and Lopburi, with a five-year implementation period from 2023 to 2028.
Mr. Paisal Hongthong, Deputy Managing Director of BAAC, explained that current rice farming methods require large amounts of water and continuous flooding of fields, which release methane—a potent greenhouse gas. Thailand is among 16 countries considered vulnerable to the impacts of climate change over the next 30 years, which is expected to reduce farmers' rice production efficiency, causing income loss and affecting farmers' livelihoods and global food security.
For these reasons, BAAC emphasizes transitioning to new rice cultivation methods that are expected to increase agricultural yields, boost farmers' income, improve their quality of life, and reduce greenhouse gas emissions.
However, shifting to climate-smart rice farming requires farmers and service providers to recognize and understand the ongoing changes and threats, and to be prepared to adapt and mitigate impacts by selecting technologies suitable for their areas. They must also plan investments and maintain systematic records. Financial support mechanisms are crucial incentives for farmers to accept and implement these changes. There are two main support measures:
1. The Climate-Smart Rice Cultivation Subsidy (CSI) provides approximately 300 million baht (7.6 million euros) under the Thai Rice GCF project as partial subsidies for about 40,000 farmers to experiment with climate-smart rice farming methods. Farmers can choose among three subsidy packages: Package S at 500 baht per rai, Package M at 1,000 baht per rai, and Package L at 1,600 baht per rai, with a maximum subsidy for up to 10 rai per household.
2. The Climate Smart Loan (CSL) offers 5 billion baht in low-interest loans to farmers who have completed training courses on climate-smart rice cultivation technology (Basic CST) from the Rice Department and Department of Agricultural Extension, and advanced courses on investment and finance (Climate Smart Finance: CS-Fin) from BAAC under the Thai Rice GCF project. This enables qualified farmers to access low-cost capital for operational expenses and/or investments in the 10 promoted climate-smart technologies. Additionally, there is a special interest rate loan (BCG) for farmers trained in Basic CST who wish to adopt climate-smart technologies to further transform their rice farming processes.