Impacts of Farmers' Support Fund

In recent years, Khanh Hoa Province Farmers' Support Fund has affirmed its role as a vital facilitator of economic development for farmers and association members. The Fund’s preferential capital has truly served as a bridge, helping farmers shift their production mindset and form linkages to achieve prosperity. Fundamental solutions currently being implemented opens up new prospects for this meaningful source of agricultural capital.

A boost for production models

Traveling through agricultural zones from the coastal sand dunes of Phuoc Dinh to the vast mango orchards of Cam Lam, we witnessed the effectiveness of the Farmers' Support Fund capital through various collective economic models. According to leaders of the Phuoc Dinh Commune Farmers' Association, the Fund's total outstanding loan balance currently exceeds VND 2.1 billion, distributed among 117 borrowing households across nine projects. A standout success is the lush green asparagus fields emerging from the arid, sandy landscape. The establishment of asparagus production groups in Tuan Tu, Nam Cuong, and Hoa Thanh villages is closely linked to the Fund’s preferential capital, which enabled farmers to expand cultivation areas and install water-saving irrigation systems. Moving away from isolated farming, farmers now join production groups, contributing to revolving funds and supporting one another with everything from input materials to finding market outlets for their produce.

In Cam Lam Commune, the total outstanding loan balance from the Farmers' Support Fund has reached nearly VND 4.5 billion, disbursed to 157 borrowing households. This capital has been focused on upgrading Australian and Hoa Loc mango orchards, as well as investing in fertilizers and advanced cultivation techniques. According to calculations by the commune-level Farmers' Association, the loan capital has helped boost crop productivity by 15–20% and increased household income by 10–15 million VND per year. More importantly, through these projects and models, the association has established eight professional farmers' groups and two production cooperative groups, attracting over 100 new members.

According to a report by the provincial Farmers' Support Fund Management Board, the total capital of the fund across the province reached over 142.1 billion VND by the end of June, supporting more than 3,100 borrowing households in implementing 588 projects. Loans ranging from 30 to 100 million VND are acting as a catalyst to unlock farmers' production potential.

Farmers harvesting mangoes

Focusing on resolving challenges

Despite positive results, practical implementation still faces difficulties. Review data indicates that total overdue debt across the province stands at over 3.4 billion VND, involving 196 borrowing households. In some specific localities, the overdue debt rate has even reached 33%. These issues stem from fluctuating input material prices, natural disasters, and disease outbreaks, all of which have reduced farmers' incomes. Additionally, the merger of administrative units and the operation of the two-tier local government structure have impacted the handover and management of borrower records.

Thai Ba Hoa – Vice Chairman of the provincial Farmers' Association and Director of the provincial Farmers' Support Fund Management Board: The provincial Farmers' Association has submitted proposals to the Central Committee of the Vietnam Farmers' Union, the Provincial Party Committee, the Provincial People's Council, the Provincial People's Committee, and relevant departments and agencies regarding mechanisms, policies, resources, and support solutions to further strengthen and develop the Farmers' Support Fund in the coming years. The goal is to develop the fund in a safe, effective, and sustainable manner, meeting the needs of supporting members and farmers in the new era.

In late July, the Provincial Farmers' Support Fund Management Board held a thematic conference on solutions to improve the fund's management quality across the province by 2026. At the conference, commune-level Farmers' Associations focused on discussing the measures taken to reduce overdue debt rates to acceptable levels, particularly the practice of "going to every alley and knocking on every door" to assess individual cases. For households facing temporary hardship due to natural disasters or livestock/poultry diseases but demonstrating a willingness to repay, the association devised plans for debt rescheduling and installment payments (monthly or quarterly), combined with advice on shifting production methods. For households facing force majeure events (such as critical illness or death), the association urgently prepared dossiers to request debt handling for risk cases. Regarding households with the means to pay but deliberately stalling, the association took a firm stance by coordinating with competent authorities to address the issue and subjecting the defaulters to public review at branch meetings. This hands-on approach, balancing reason with empathy, has helped localities gradually reduce bad debt, with the aim of bringing the overdue debt rate down to a safe level of under 3% by the end of 2026.

According to Thai Ba Hoa, Vice Chairman of the Provincial Farmers' Association and Director of the Provincial Farmers' Support Fund Management Board, the fund not only addresses short-term capital shortages but also serves as a strategic tool to shape new production methods for farmers. To thoroughly resolve current challenges, the Management Board is focusing on tightening appraisal procedures and linking loans to collective economic models. For the 2026-2030 period, the Management Board of the Farmers' Support Fund has identified digital transformation as a key breakthrough; consequently, it will implement data management software for borrowing households and carry out comprehensive digitization across all levels, from the provincial to the grassroots. This initiative aims to enhance record transparency, automate alerts for due debts, minimize credit risks, and enable association officials to closely monitor how each member utilizes the funds.

Hong Dang

Translated by T.T