Now it's time for the Bank for Agriculture and Cooperatives (BAAC) to do something to promote the environment, especially since most of its customers' produce will be adversely affected by global warming.

In line with the concern over climate change, the BAAC will provide special incentives for borrowers who promise to grow trees as part of a campaign to promote green areas.

It is part of the BAAC's plan to cover 300,000 rai with trees within three years, paving the way for reforestation in exchange for interest-rate cuts.

The BAAC will collaborate with the forest and land departments as well as its customers to plant 50,000 rai of trees this year. Tree plantations will expand to 100,000 rai for 2008 and 150,000 rai for 2009, president Thirapong Tangthirasunan said yesterday.

The BAAC will spend about Bt10 million on a project designed to lessen deforestation by the poor who occupy public land or conservation areas.

In short, if the BAAC loan recipients - most of them are farmers - want to enjoy lower interest rates, they will have to do a good deed by growing trees to save the environment.

About 340,000 farmers have invaded conservation sites covering an area of 5.7 million rai. They cultivate cash crops, which are sensitive to volatility in market prices. Planting some trees on their farms would cushion market forces.

Indigenous species have been selected for the project. Farmers can make use of the planted trees to encourage them to participate in the project.

The bank also plans to incorporate tree plantations in its lending practices. The bank may offer rate cuts of, for example, 25 basis points annually for trees planted by farmers. The bank may set up a special fund to support the plantation project.

Now, the farmers may not have to wait desperately for the Bank of Thailand's signal for possible rate cuts. Want the rate cuts? Just grow some more trees.

wichitjai@yahoo.com