The government is subsidizing half the interest. Ratchada announced the guidelines and conditions for the "Half Interest Subsidy" loan program to reduce the burden on farmers. Loans of up to 100,000 baht are available, with the government covering 3% of the interest, promoting precision agriculture.
On 18 Apr 2026 GMT+7, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that after the Cabinet approved measures to alleviate impacts on farmers, the government assigned the Bank for Agriculture and Agricultural Cooperatives (BAAC) to prepare the "Half Interest Subsidy" loan program. With a total budget of 30 billion baht, this aims to help small-scale farmers purchase fertilizers and production inputs, mitigating the effects of volatile prices caused by global conditions.
The government will pay 3% annual interest from the normal rate of 6%, resulting in farmers paying only 3% per year. The maximum loan per farmer is 100,000 baht, with a 12-month term starting from the loan disbursement date and no later than 30 Apr 2029.
1. Participants must complete training or learning in skill development and cost management (Reskill/Upskill) provided by BAAC, agencies under the Ministry of Agriculture and Cooperatives, and/or other cooperating agencies, such as efficient fertilizer use based on soil analysis values.
2. Loan funds must be used to purchase fertilizer through agricultural institutions, farmer groups, or community enterprises participating in the "Half Interest Subsidy" loan program, or other sources as determined by BAAC.
3. Use certified seed or seed varieties as recommended by government agencies under the Ministry of Agriculture and Cooperatives or as specified by BAAC, sold to farmers at reasonable prices. The Department of Internal Trade, Ministry of Commerce, will regulate prices to meet established standards.
4. Loans must be repaid within terms set by BAAC. Borrowing farmers agree to receive payment for their produce through BAAC deposit accounts and consent to BAAC deducting loan repayments from these accounts.
The spokesperson for the Prime Minister's Office emphasized at the end: "The 'Half Interest Subsidy' project is an urgent government measure to reduce the production cost burden for small-scale farmers amidst fluctuations in fertilizer, energy, and transportation prices. It also aims to upgrade Thai agriculture towards 'precision and sustainable agriculture,' enhancing competitiveness and improving long-term quality of life. Farmers can inquire for more details at any BAAC branch nationwide."