The push for farmers to invest in production development

Officials of the Bank for Agriculture and Rural Development of Quang Tri inspect a production loan project in the hilly area of ​​Trieu Phong district - Photo: VHT

Previously, the province also issued many policies to support interest rates for loans for production and business development such as: Decision No. 21/2015/QD-UBND dated September 14, 2015 of the Provincial People's Committee. This is a policy that has received special attention from the people, responded to and participated in and has brought about significant results. In the period of 2015-2020, with only over 4.47 billion VND of the state budget supporting interest rates, 49.5 billion VND of credit capital was mobilized from the people.

That shows that, with a support resource, although not large, it can mobilize a large amount of credit capital to develop production, help people proactively expand production and business, increase income, stabilize life, especially, limit the mentality of waiting and relying on direct support from the State, contribute to building new rural areas, and build an increasingly prosperous rural face.

Based on the achieved results, the Provincial People's Council issued Resolution No. 162/2021/NQ-HDND stipulating policies to support the development of a number of crops and livestock that create key products with competitive advantages in Quang Tri province in the period of 2022-2026 and Resolution No. 21/2022/NQ-HDND dated May 31, 2022 stipulating principles, criteria, and norms for allocating central budget capital, local budget counterpart capital, and support mechanisms for implementing the National Target Program on New Rural Construction in the period of 2021-2025 in Quang Tri province, including support for interest rates on loans for production and business development in new rural construction.

Resolution No. 100/2022/NQ-HDND, dated December 9, 2022 of the Provincial People's Council aims to create conditions to support people to reduce investment costs, thereby boldly borrowing capital to develop production and business, creating stable income, improving life, contributing to building new rural areas.

The provincial budget provides subsidy to support interest rates on loans for production and business development, processing, preservation and consumption in the agricultural sector. In particular, priority is given to supporting interest rates on loans for production development for a number of crops and livestock that create agricultural products with strengths of the province as stipulated in Resolution No. 162/2021/NQ-HDND dated December 9, 2021 of the Provincial People's Council.

Support interest rates on loans for production and business development of potential products that have been certified as One Commune One Product (OCOP) products in the province for the following contents: investment and upgrading of infrastructure serving production, processing and preservation of OCOP products; purchase of equipment, machinery and technology serving production, processing and preservation of OCOP products; investment in centers, display points, introduction and sale of OCOP products; investment in infrastructure serving rural tourism development in building new rural areas.

For short-term loans, the state budget supports 50% of the interest for borrowers throughout the loan term; for medium-term and long-term loans, the state budget supports 50% of the interest for the first 2 years, and from the 3rd year onwards, it supports 30% of the interest for borrowers. Based on the production and business plan and project, organizations and individuals can borrow capital according to different limits. The minimum interest-supported loan limit is 100 million VND/project and the maximum is not more than 2 billion VND/project. The interest-support period is calculated from the date of loan disbursement to the final repayment date according to the signed credit contract, but not later than December 31, 2025.

Quang Tri Bank for Agriculture and Rural Development is the main enterprise that individuals, households, farm owners, cooperatives, and agricultural cooperatives borrow capital for production and business under the province's interest rate support program to implement the National Target Program on New Rural Development.

By the end of March 2025, the outstanding loan balance subsidized by the budget for interest rate support at this unit was VND 13,779 million with 35 borrowers. The total amount of interest rate support implemented was VND 538.1 million. After nearly 3 years of interest rate support, bank loan projects under this policy have shown good results.

Mr. Pham Ngoc Tam in Trieu Trung commune, Trieu Phong district built a chicken farm along the ecological road of the commune. His farm was built with high-tech automatic control applications, invested in a closed automatic system. The farm has an automatic cooling fan system to ensure suitable temperatures for the barns. The chicken feed and water systems are all controlled by electricity. The disinfection area is reasonably built in the barn system to ensure disease safety.

During the process of building and developing Mr. Tam's farm, in addition to his own capital, Mr. Tam received a loan from the Bank for Agriculture and Rural Development, Trieu Phong District Branch, with an interest rate support policy according to Resolution No. 100/2022/NQ-HDND of the Provincial People's Council with a total loan of 2 billion VND to invest in machinery and equipment according to the standards of the Joint Stock Company to raise chickens for this company. Each farm invested 1 - 2 billion VND, on average each year raised 3 - 4 batches of chickens, each batch sold 120 - 130 tons, deducting expenses, the profit was about 600 million VND.

Most households borrowing capital under the interest rate support program have carefully prepared project profiles, approved by local authorities and the district Department of Agriculture and Environment, so they are quickly disbursed by bank branches. All projects are invested for the right purpose, on the right scale, applying scientific and technological advances and bringing high economic efficiency.

Director of the Bank for Agriculture and Rural Development of Quang Tri, Phan Hong Hai, said: Thanks to the loan capital supported by the budget with interest rate subsidy according to Resolution No. 100/2022/NQ-HDND dated December 9, 2022, many households and businesses have access to cheap capital, expand production scale, transform crop and livestock structure towards high-value commodity production, quickly escape poverty and become well-off.

The credit capital of the Bank for Agriculture and Rural Development of Quang Tri has really promoted high efficiency, contributing to the successful implementation of economic restructuring in rural agriculture, contributing to the good implementation of the National Target Program on New Rural Construction in the locality.

Vo Thai Hoa

Source: https://baoquangtri.vn/luc-day-nong-dan-dau-tu-phat-trien-san-xuat-193424.htm