The Board of Investment (BoI) is set to propose promotional packages to support "smart farmer" projects at its next board meeting.
Secretary-general Hiranya Sujinai said packages should combine both the BoI's investment privileges and other support such as finance, technical assistance and market access development.
The next board meeting, chaired by Prime Minister Prayut Chan-o-cha, will be held this month or next.
Large companies will be asked to support market access, distribution channels and packaging development in return for privileges.
The BoI's privileges are likely to be similar to those it offers to small and medium-sized enterprises (SMEs).
The agency may need to scale down investment for the smart farmer scheme to less than 500,000 baht per project.
SMEs with a minimum investment of only 500,000 baht each are now allowed to enjoy corporate tax exemption for five years, increased to eight years for those that invest in high-technology projects.
They are also allowed to use old machinery worth not more than 10 million baht and hire foreign workers even though their factories are located outside industrial estates.
Deputy Prime Minister Somkid Jatusripitak recently instructed the BoI to offer incentives to promote and support farmers to develop their own businesses.
He said large companies that locate their factories in remote areas or join smart farmer projects in processing agricultural products should be eligible to enjoy privileges.
Mr Somkid also instructed the Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Government Savings Bank to provide funding for the smart farmer project.
The BAAC will also help screen smart farmers who have potential to develop their businesses, while the government aims for each tambon to have at least one smart farmer project.
The Prime Minister's Office will soon ask the cabinet for approval to provide a budget via the Village Fund to support agricultural cooperatives to implement development projects in their communities such as farm product processing, small mills, small silos or agricultural machinery purchase.