Thai Government Approves Livestock as Loan Collateral
The Thai Ministry of Agriculture and Cooperatives is developing a framework to allow farmers to use live cattle as collateral for business loans.
According to Khaosod Online, the Thai Ministry of Agriculture and Cooperatives has initiated a project titled 'Livestock Creates Capital' to enable farmers to use live animals as collateral for loans under the Business Security Act of 2015. Songsak Songserm-udomchai, advisor to the Minister, chaired a meeting with representatives from the Bank for Agriculture and Agricultural Cooperatives, the Thai Bankers' Association, and various insurance entities to establish the necessary criteria.
This initiative aims to provide small-scale farmers with better access to working capital. By using their livestock as collateral, farmers can secure funding while continuing to raise and care for the animals until they are ready for market. The program will initially pilot with beef cattle, with plans to expand to dairy cows, fighting bulls, and buffaloes. Future phases may include goats, sheep, fighting cocks, and ornamental fish.
For residents and those involved in the agricultural sector, this policy represents a significant shift in how rural assets are valued for financial liquidity. While this move is intended to support the agricultural economy, specific details regarding valuation methods, insurance requirements, and the timeline for full implementation remain to be confirmed by the relevant authorities.
