The cabinet yesterday approved a new insurance scheme for four key farm products: paddy from the main rice crop, maize, pond-raised fish and poultry.

The Agriculture Ministry proposal calls for financing of the insurance coverage from the farmers' assistance fund with initial capital of 4.2 billion baht.

Two options are proposed. Under the first, the government would subsidise 80% of the fund and participating farmers the rest. The second option would involve a 100% government subsidy.

The basic protection will cover all costs of compensating farmers for losses including basic production costs such as fertiliser and seeds. The second level would charge premiums so that their coverage extends to production costs and any wider losses.

In a related development, the cabinet approved a budget of 1.2 billion baht to compensate farmers hit by planthopper infestations in the northern and central provinces. The Agriculture Ministry had been seeking 2 billion baht.

Source: Bangkok Post