New fertilizer subsidy scheme for farmers to save govt THB24 billion

Chai was clarifying the Cabinet’s resolution passed on Tuesday.

Chai said the new fertilizer subsidy scheme replaced the previous farmers’ allowance programme under which the government offered cash at 1,000 baht per rai to farmers, with a ceiling of 20 rai (3.2 hectares). Last year, the government spent 56 billion baht for the allowance programme, the spokesman added.

Chai said although farmers would receive 500 baht less subsidy per rai of farmland under the new scheme, they were happy with it.

The spokesman explained that most of the money in the previous scheme went to landlords whose lands were rented by farmers but the new scheme would ensure that farmers would get the money as they would be required to show receipts for purchase of fertilizer to claim the subsidy.

He said 4.68 million farmer households had registered with the Department of Agricultural Extension for the 2024/25 planting season, and would be eligible for the new subsidy scheme.

This year’s subsidy would cost around 29.98 billion baht. The Cabinet has instructed the Bank for Agriculture and Agricultural Cooperatives to advance the subsidy from its coffers.

Chai said the government would later reimburse the subsidy amount to the bank with interest.

The subsidy scheme would raise the government’s liability under Article 28 of the State Fiscal and Financial Disciplines Act to 28.96% of the national budget, but it would still be within the 32% ceiling, the spokesman added.

Article 28 allows the government to use money from state firms and its financial institutions to finance off-budget projects at not more than 32% of the national budget’s value and the government is required to allocate funds to reimburse the spending in future fiscal years.