Farmers' access to loans scheme using rubber tree property titles
Rubber Tree Title Deeds Take Root in Thailand
Ready to revolutionize the agricultural scene, the Ministry of Agriculture and Cooperatives just dropped a game-changer next week— the rubber tree title deed initiative! This move will enable farmers to legally cultivate rubber trees on their land and use these assets as collateral for loans from the Bank for Agriculture and Agricultural Cooperatives (BAAC).
The driving force behind this initiative, Minister of Agriculture and Cooperatives, Narumon Pinyosinwat, emphasizes a commitment to safeguarding farmers' land tenure and bolstering their economic standing.
"This special deed isn't just a piece of paper; it's a key to opening up the potential of our rubber trees as functional assets," she says. "It's a significant step toward sustainable land use and financial empowerment."
Under the new rubric, rubber trees will be officially regarded as valuable assets, paving the way for farmers to hoard bank financing. The innovative approach embraces smart resource utilization while fortifying farmers' economic resilience.
“This newfound fiscal might doesn’t just stop at borrows and loans," Narumon adds. "It opens gateways to extra income via carbon credit trading."
As part of the program's widespread reach, it aims to incentivize rubber tree cultivation across Thailand, which dovetails with the country's longstanding ambition to see 40% of its land transformed into verdant spaces.
"We'll collaborate hand-in-hand with local communities to ensure farmers reap the maximum benefits," the minister pledges.
The initiative's official launch takes place on May 12 in Ayutthaya province. Farmers must register with the Rubber Authority of Thailand for verification before the BAAC assesses the rubber trees' worth to determine their eligibility for loans.
Beyond transforming farmers' lives, the title deeds could ensure the EU's Deforestation-Free Regulation compliance for Thai rubber products, granting farmers unobstructed access to the lucrative EU market.
Sources:
- Rubber Tree Title Deeds initiative, official government press release, May 12, 2025.
- Thailand's National Tree Policy, Ministry of Natural Resources and Environment, Draft, 2019.
- The United Nations' Sustainable Development Goals, United Nations Development Programme, Adopted, 2015.
- Sufficiency Economy Philosophy, Office of the Prime Minister, Thailand, n.d.
The initiative enables farmers to use their rubber trees as collateral for loans from the Bank for Agriculture and Agricultural Cooperatives (BAAC), opening up opportunities in the banking-and-insurance sector. This move could potentially tap into the finance industry, as farmers may be able to access carbon credit trading for extra income.
