Thailand Launches Pilot Program Allowing Beef Cattle as Loan Collateral
The Ministry of Agriculture and Cooperatives has introduced a new initiative enabling small-scale farmers to use live beef cattle as collateral for business loans.
The Thai Ministry of Agriculture and Cooperatives has officially launched the 'Livestock Creates Capital' project, a pilot program designed to assist small-scale farmers in accessing liquidity. According to a report by Prachachat Business, the initiative allows farmers to use live beef cattle as collateral for business loans under the Business Security Act. This policy enables farmers to secure necessary working capital while retaining possession and continuing to raise their livestock. To participate, farmers must utilize data from the National Identification (NID) system, official farmer registration records, and relevant certification documents. For residents and those involved in the agricultural sector, this move represents a significant shift in how livestock assets are valued and utilized within the financial system. By unlocking the economic potential of cattle, the government aims to provide a more flexible financial lifeline for rural producers. While the program is currently in its pilot phase, details regarding the specific valuation methods for cattle and the list of participating financial institutions remain to be confirmed. Observers are watching to see how this integration of agricultural assets into the formal credit market will impact local farming operations and overall rural economic stability in the coming months.
