The cabinet yesterday approved a rice insurance scheme for the first crop of the 2017 season, worth 2 billion baht.
According to Kobsak Phutrakul, assistant minister to the Prime Minister's Office, the scheme will be run by the state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC).
The government expects the scheme to cover 25-30 million rai of rice farmland. The scheme covers six natural disasters: floods, drought, storms, cold, hail and fires.
Farmers will receive compensation of 1,260 baht a rai this year, up from 1,111 baht per rai offered last year, in the case of crops damaged by natural disasters and 630 baht per rai in the event of pests and diseases, up from 555 baht last year.
The scheme will charge an insurance premium of 97.37 baht per rai, down from 107.427 baht per rai last year for farmers with less than 25 million rai and 108.07 baht per rai for those with more than 25 million rai.
The government is expected to pay 61.37 baht per rai in compensation this year. Last year the government paid 67.428 baht per rai in compensation to farmers with less than 25 million rai and 108.07 baht per rai for those with more than 25 million rai of farmland.
The insurance scheme will run from June to Aug 31 for farmers in most parts of the country except for the southern provinces, where it will last until Dec 15.
Mr Kobsak said the government expected the scheme to entice more non-BAAC customers this year.
There is 58.7 million rai of rice fields across the country, according to data from the Office of Agricultural Economics.
According to Mr Kobsak, the Finance Ministry is studying whether to expand the insurance scheme to cover other crops such as off-season rice and corn.
In a related development, Nathporn Chatusripitak, an adviser to PM's Office Minister Suvit Maesincee, said the cabinet yesterday approved tax breaks to support small and medium-sized enterprises (SMEs) that use more computer programs in their management and accounting, allowing them to enjoy a two-fold corporate tax deduction on expenses.
Eligible SMEs need to have registered capital of no more than 5 million baht and annual revenues of no more than 30 million baht.
The tax measures will last until December 2019.
The cabinet also yesterday approved 3.82 billion baht from the mid-year extra 2017 budget to finance local economy development projects.