The Bank for Agriculture and Agricultural Cooperatives (BAAC) is preparing to launch a new loan product aimed at encouraging salaried workers aged 50 and older to invest in agricultural careers, providing them with supplementary income after they retire.
BAAC president Chatchai Sirilai said he plans to present the loan product, dubbed "Kaset Wiwat" (Agriculture Evolution), to the BAAC's board for approval by October. The main condition of the loan is applicants must be 50 or older.
The loan has a long-term repayment period of up to 15 years at a lower interest rate than the bank's standard rates, with a maximum loan amount of 10 million baht per person. Applicants must be registered as farmers with BAAC before applying.
"As people live longer, there is a need for post-retirement income. City dwellers who are salaried employees have life experience and a strong foundation if they want to start farming as a post-retirement career," he said.
"Starting farming at age 50, before retirement and while still in good health, can provide an additional source of income after retirement."
The loan can be used to buy farmland or set up agricultural systems and equipment, including water systems, or to build greenhouses for cultivating crops.
Typically it is difficult for individuals aged 50 and older to obtain loans from commercial banks because they are thought to be nearing retirement.
However, BAAC promotes agricultural careers and wants to encourage newcomers to enter the farming sector.
In recent years, the bank has promoted policies that motivate young people to opt for agricultural careers. As the country is now an aged society, the majority of farmers are older, with fewer young people pursuing this profession.
The BAAC earlier launched the "New Gen Hug Ban Koet" (New Gen Love Hometown) loan project, offering interest rates about 1% lower than its standard rates to encourage young people to become farmers.
Mr Chatchai said BAAC wants to support small-scale farmers by helping them maintain a balance between efficient cost management and sustainability, preserving the ecosystem for small businesses to establish themselves.
Furthermore, the bank aims to support the creation of small agricultural entrepreneurs who can produce high-value products and achieve quick turnover, he said.
