Bangkok: The Bank for Agriculture and Agricultural Cooperatives (BAAC), in collaboration with the German International Cooperation Agency (GIZ), has initiated a significant financial program aimed at transforming rice farming practices in Thailand.
According to Thai News Agency, the initiative, part of the Thai Rice GCF project, introduces subsidies and low-interest loans totaling over 5.3 billion baht to aid 40,000 Thai rice farmers in adapting to climate change and reducing their environmental impact.
The BAAC and GIZ have organized an event titled 'New Rice Farming Methods with Funding from BAAC under the Thai Rice GCF Project' to launch this project. The program is designed to shift traditional rice farming methods towards more sustainable practices by adopting Climate Smart Technology (CST). This transformation is backed by funding from the Green Climate Fund (GCF), the Federal Ministry for Economic Cooperation and Development (BMZ), and private sector contributions. The project is being implemented across 21 Thai provinces and will continue for five years, from 2023 to 2028.
Mr. Paisarn Hongthong, Deputy Manager of BAAC, highlighted the urgent need for change, noting that current farming techniques contribute significantly to greenhouse gas emissions due to their high water consumption and methane release. Thailand is classified as vulnerable to climate change impacts, which are expected to affect rice production and farmers' livelihoods significantly. To address these challenges, the BAAC is prioritizing the transition to climate-smart farming, which promises increased productivity and reduced emissions.
The initiative offers two main financial incentives: the Climate-Savvy Rice Transition (CSI) subsidies and the Climate Smart Loan (CSL). The CSI subsidies, amounting to approximately 300 million baht, will support farmers in experimenting with climate-savvy farming methods. Additionally, the CSL provides a 5 billion baht budget for low-interest loans to farmers who have completed specialized training courses. These financial measures aim to encourage the adoption of climate-friendly technologies and practices, ultimately enhancing the resilience of Thai rice farming to climate change.