Farmers voice concerns over land bank bill

Activists demand protection for poor

Activists and farmers have voiced concerns over the Land Bank Administration Institute’s (LBAI) land bank bill currently being considered by the cabinet.

Speaking at a public hearing on the bill yesterday, Prayong Dorklamyai, president of the Northern Development Foundation, argued that the LBAI draft should more clearly state that the purpose of the land bank is to benefit poor and small-scale farmers who have no access to land and therefore struggle to earn a living.

“Because the aim of the bill isn’t explicit enough, the purpose of the land bank could easily be deviated,” Mr Prayong said, insisting that the land bank should suffer no political or market interference.

Locals and activists have for decades called for effective land redistribution. However, 80% of the land in the country is owned by only 20% of the population. Furthermore, most landlords who hold more than 50,000 rai of land only make use of 3% of the plots they own.

This leaves small-scale farmers landless and forces many to rent the land on which they cultivate crops, putting a strain on their finances. Others resort to encroachment as they have no alternative and face legal sanctions, he said.

Fair redistribution of the land through the establishment of a land bank is essential to reduce social and financial inequality, agreed Kobsak Pootrakool, a member of the National Reform Steering Assembly and an LBAI adviser. Farmers who are about to lose their land will have a place to mortgage their property and continue to farm, he said.

However, many are concerned that the plots managed by the land bank will eventually be sold according to free market rules and raised their concerns before the committee.

“In the past 30 years, we have witnessed how legal loopholes have allowed farmers’ land to end up in the hands of investors,” said Sukaew Foongfu, a 57-year-old man from Lamphun who faces a lawsuit for encroaching on private land he previously owned.

He argued that past government schemes to redistribute land failed because of interference from politicians and largescale investors and fears the current land bank project may fall into the same trap.

According to Lt Gen Chanchai Puthong, LBAI committee chairman, the state will hold 51% of the shares in the land bank and the rest will be sold to private bodies.

However, Mr Prayong argued that this business-like model will put the land bank at risk as it may not be able to resist market pressures.

Mr Prayong suggested that the bill be passed together with the bill for a land tax with a progressive rate. By imposing more taxes on landlords, it may pressure them to sell their unused plots while generating revenue to manage the land bank.