Lazy Farmers want debts wiped clean

**dirtydog** · 28-03-2007, 03:08 AM

Hundreds of indebted farmers camp outside the Government House yesterday waiting for the government’s decision on how to help them wipe off their debts.

The Nation

**dirtydog** · 28-03-2007, 03:10 AM

Council of State to rule on farmers' fund, debts help

The Cabinet will wait for the Council of State's ruling on the Farmers' Rehabilitation and Development Fund (FRDF) administration to tackle the long-standing debt crisis, government spokesman Yongyuth Mayalarp said yesterday.

The Cabinet meeting yesterday decided on this course of action as the FRDF was plagued with serious administration problems, said Yongyuth.

The Cabinet assigned the Agriculture and Cooperatives Ministry to submit an explanatory report for the Council of State's consideration, he said.

Yongyuth said Prime Minister Surayud Chulanont had also urged the Cabinet meeting to make haste in solving these problems.
The Agriculture and Cooperatives Ministry said that it would ask the council to rule on who was authorised to transfer Bt900 million to the FRDF's Bt1.2-billion fund to keep buying farmers' debts from moneylenders, following Monday's protest by some 1,000 indebted farmers outside the ministry office.

The Nation

**friscofrankie** · 28-03-2007, 03:11 AM

They could get off their asses in some protest "sit-in" and go to work?
OK now, y'all come back if you have any more questions y' hear?

**dirtydog** · 28-03-2007, 05:43 AM

Indebted farmers to turn to CNS for help

Govt lashed for failing to provide quick relief

KULTIDA SAMABUDDHI

Some 2,000 debt-ridden farmers plan to stage a rally at the Council for National Security (CNS) headquarters on Ratchadamnoen road today, after the cabinet failed yesterday to come up with concrete measures to help them. The Indebted Farmers Network has held several rallies in Bangkok since late last year after their creditors, including financial institutions and agricultural cooperatives, started seizing their assets placed as collateral and taking legal action against the farmers who failed to repay their debts.

Yesterday, the protesting farmers laid siege to Government House, blocking two lanes of Phitsanulok road and one lane of Ratchadamnoen Nok road.

''This time, we will not go back until the government does something to protect us from legal actions and assets confiscation,'' said network adviser Charin Duangdara, who led the protest yesterday.

The group demanded the government speed up appointments of farmers' representatives and new board members of the Farmers Rehabilitation and Development Fund. The old board's term ended early this year. Without a new board, the fund could not use its 900-million-baht budget to buy back farmers' debts.

The farmers also complained that their farmland had been seized and put up for auction by their creditors despite the government's ban on seizure of farmers' assets which went into effect on Jan 16.

The cabinet yesterday instructed the Agriculture and Cooperatives Ministry to come up with debt relief procedures, while the Council of State would find legal measures to tackle the long-standing farm debt problem.

The cabinet's resolution, however, failed to satisfy the protesting farmers.

''The resolution will not solve our problems. What we want is an immediate end to the seizure of farmland owned by members of the fund, and endorsement of the 900-million-baht fund to buy back our debts,'' Mr Charin said.

The farmers, who have set up makeshift shelters in front of the Agriculture Ministry on Ratchadamnoen Nok road, vowed to stay put until all their demands were met.

They plan to rally today at the CNS headquarters, about a kilometre away from the ministry.

''Since the interim government is no longer dependable, the CNS is now our last hope [in tackling the farm debt problem],'' said Mr Charin.

He admitted the on-going farmers' protest would add to the current political tension, already fuelled by a series of demonstrations by anti-coup groups and supporters of the old power clique.

''We will be extra careful to prevent our demonstration from being exploited by other political groups,'' he said.
''However, we might join other protest groups if that would help make our voice heard and force the government and the CNS to solve our debt problems,'' Mr Charin said.

Bangkok Post

**stroller** · 28-03-2007, 09:24 AM

Can't see anyone 'wiping off' the debts, this would effectively punish the ones who have paid their obligations to creditors and set a precedence that it's better to defraud.

But we do not know the circumstances, it's dishonest and prejudiced to call the farmers "lazy".

**RandomChances** · 28-03-2007, 12:07 PM

Originally Posted by dirtydog

''The resolution will not solve our problems. What we want is an immediate end to the seizure of farmland owned by members of the fund, and endorsement of the 900-million-baht fund to buy back our debts,

I did'nt get this bit, what "fund"? The members of the Fund own the land ? Sound like they formed some sort of co-operative and it whent to shit. I think there more to this than meets the eye

Originally Posted by dirtydog

Farmers' Rehabilitation and Development Fund (FRDF).The Cabinet meeting yesterday decided on this course of action as the FRDF was plagued with serious administration problems, said Yongyuth

Sounds like they joined some scheme to help them out of debt but the scheme had "serious administration problems"

and we all know what that means

**DrB0b** · 28-03-2007, 12:11 PM

Originally Posted by RandomChances

I did'nt get this bit, what "fund"?

This fund.

Originally Posted by dirtydog

Farmers' Rehabilitation and Development Fund (FRDF).The Cabinet meeting yesterday decided on this course of action as the FRDF was plagued with serious administration problems, said Yongyuth

**dirtydog** · 28-03-2007, 12:21 PM

Indebted farmers threaten to go to Laos

(BangkokPost.com) - More than 300 debt-ridden farmers dispersed Wednesday after a week of failed attempt in getting assistance from the government in settling their debts.

The protesters gathered in front of the Government House since last Monday to ask the government to give concrete measures to help them settling debts after those who failed to repay their debts for creditors including financial institutions and agricultural cooperatives started seizing their assets.

The protestors expressed disappointment with the government's reaction and intention to help the farmers, considered the grassroots of the Thai economy.

The group representatives said they would migrate to Laos and set up an immigration centre there. They said they would hand their Thai identification cards back to the government before entering the neighbouring country in response to the government's negligence to the villagers.

The group planed to meet National Legislative Assembly members before migrating to Laos.

Bye Bye boys, have fun in Laos.

**Spin** · 28-03-2007, 12:33 PM

For the farmer, the roads in Laos are paved with gold

**RandomChances** · 28-03-2007, 12:50 PM

Originally Posted by DrB0b

Originally Posted by RandomChances

I did'nt get this bit, what "fund"?

This fund.

Originally Posted by dirtydog

Farmers' Rehabilitation and Development Fund (FRDF).The Cabinet meeting yesterday decided on this course of action as the FRDF was plagued with serious administration problems, said Yongyuth

Yea I read it after I made the first bit of my post, hence the second bit.

Ok I've dug a bit deeper, it appears that the Gov set up the FRDF, which bought the farmers loans it can no longer afford to pay for the loans and is now re-possesing their land.

The originol loans looked like thay came from the BAAC, which is also Goverment run

Surayud said most farmers owed money to the Bank for Agriculture and Agricultural Cooperatives (BAAC) and other government-owned banks.

Academic Somkiat said relevant authorities should look into the BAAC's operations. It was now Bt800 billion richer than when set up more than 30 years ago. "It has become much richer and it still continues to take land from farmers,"

They recon there are about 6 billion in loans.

Most of these people probaly should'nt of been loaned the money in the first place as most would have had little chance of paying it off. The deed is done now though and I see no point in repossesing their land to sit idle until sold off to someone else who will take a loan out to buy it.

**Marmite the Dog** · 28-03-2007, 12:50 PM

Originally Posted by dirtydog

considered the grassroots of the Thai economy.

I thought the farmers' daughters were considered the grassroots of Thailand's economy?

**Dougal** · 28-03-2007, 01:16 PM

Sounds like a re-run of 'Grapes of Wrath'.

**El Gibbon** · 28-03-2007, 03:21 PM

Living in a "fruit orchard" I may be able to shed some light on what goes on around here.

There is a farmers co-operative here that's purpose is to support the local farmers. They do this by advancing cash, against future crops, buying mangosteens for export, providing a support for rubber amongst other schemes.

It seems to be run very similarly to a 'user' owned Credit Union in the US. Where there is a board that determines loan approvals, gets loans from the banks etc.

The secretary is the brother of my landlord and stops in every few days to chit chat and learn some English.

They provide a "floor" price for mangosteen for example: they have standing contracts to export to China, Taiwan, Singapore etc. They buy from the farmer at rock bottom pricing, sort, ship and make a profit. They in turn use parts of the profit for making cash advances and loans to the local farmer. Daily cash flow between the co-op and the various banks in the area (they have accounts at all banks) can be up to B15MM a day. The cash flows in both directions depending on the season and loans/paybacks/farmer payments etc. Its all pretty complicated.

It runs smoothly until Somchai the rubber farmer decides that he needs a new pickup truck and spends the money on the truck instead of the 10,000 rubber seedlings he borrowed the money for. Or, in the case of this year Theelat the rambutan farmer borrows agains the crop that is about to be harvested, for fertilizer, new baskets and oh, yea a new pickup truck to haul all his booty in. Oooops Mother Nature just flocked him!

The rambutan orchard down the soi from me (29 rai) doesn't have enough fruit to make picking worthwhile. Bad bad year for rambutan here. Or, last year the first week of mangosteen production was fetching 95 to 100 baht per kilo for #1 grade. This morning the BiL sold his first 20 kilos (very early even for him) for B65/kilo, big difference.

Most of the Thai farmers that I've known all run on a shoe string. Any little problem and they are in deep financial doo doo. Having been raised on subsistence farming methods, most don't plan ahead further than the next (potential) crop. There are a few that I know that have money in the bank and worry about the future crops and markets. They are not the ones ready to move to Laos to get a gov't to bail them out for every mistake they make.

OK time to go and plant some rubber seedlings for the BiL... He ain't bashful

but a nice guy, has mangosteen, durian, longhan and rubber. He thinks ahead.

E. G.

**stroller** · 28-03-2007, 03:42 PM

^
I can confirm this, same up here.
The guys have to clear their debts from the last season before they can borrow more for the new one. The squeeze is so tight, most of them borrow at 3-5% for a couple of weeks to be able to pay back just before the new loans are up for approval. It's just a matter of time before that won't do anymore either.

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