Farmers in Đồng Nai City’s Bù Gia Mập Commune have expanded production and improved incomes thanks to support loans from the Farmers’ Support Fund. — VNA/VNS Photo

ĐỒNG NAI—Preferential loans are helping many farming households in the commune of Bù Gia Mập in the southern city of Đồng Nai improve incomes and gradually escape poverty, as local authorities strengthen support for sustainable agricultural development.

Most residents in the commune depend on farming for their livelihoods.

However, limited investment conditions and prolonged shortages of production capital have remained major obstacles to economic development in the area.

In recent years, preferential loan programmes through the Farmers’ Support Fund have provided local farmers with additional resources to invest in production, helping many households stabilise their lives and improve economic conditions.

Rubber plantations and fruit orchards in Cầu Sắt Hamlet have become increasingly vibrant as farmers expand production and apply more effective cultivation methods.

Bế Thị Tuyên, a local farmer in the hamlet, said her family previously faced many difficulties because of limited capital for plantation care.

Farming activities relied mainly on experience, with little investment, resulting in low economic efficiency.

After receiving loans through the local Farmers’ Association, her family was able to purchase fertilisers and invest more systematically in cultivation.

“Previously, we lacked money to buy fertilisers and mainly relied on traditional farming methods,” Tuyên said. “Since receiving support loans from the Farmers’ Association, our rubber trees have grown better and latex output has increased, helping improve our family’s income.”

Many households in Bù Gia Mập Commune have also gradually changed their production mindset after gaining access to preferential loans.

Farmers are becoming more confident in expanding cultivation areas and applying technical advances to improve productivity and economic efficiency.

Đinh Văn Khánh, another farmer in Cầu Sắt Hamlet, said the loans had enabled his family to expand fruit cultivation and gradually improve living standards.

“The support fund has given us more confidence to invest in production,” Khánh said. “Our family has been able to expand cultivation areas and stabilise our lives thanks to the loans.”

According to the Farmers’ Association of Bù Gia Mập Commune, the locality currently has 524 farmer members.

Each year, the commune receives between VNĐ500 million (US$19,300) and VNĐ1 billion ($38,600) from the Farmers’ Support Fund for production loans.

The funding has helped many households invest in crop cultivation, develop household economic models and gradually reduce poverty.

However, local authorities said current loan levels remained relatively low compared to actual production investment needs, particularly for high value crops and larger scale farming models.

Điểu Thuận, chairman of the Farmers’ Association of Bù Gia Mập Commune, said each household currently received loans of around VNĐ50 million ($1,930).

“Through practical implementation, we see that the current loan level is still limited compared to the development potential of local crops,” Thuận said. “We hope funding sources will continue expanding so farmers can replicate more effective production models.”

The Farmers’ Association of Đồng Nai City said it would continue coordinating with relevant agencies and banks to expand preferential loan programmes for farmers.

Loan activities would also be combined with technology transfer, production linkages and product consumption support to improve the efficiency of capital use.

Nguyễn Văn Giang, acting vice chairman of the Farmers’ Association of Đồng Nai City, said lack of capital remained one of the biggest challenges facing farmers seeking to expand production.

“The Farmers’ Association is strengthening cooperation with the Vietnam Bank for Agriculture and Rural Development and the Vietnam Bank for Social Policies to help farmers access preferential loans,” Giang said.

“At the same time, we are promoting the effectiveness of the Farmers’ Support Fund to support cooperatives, cooperative groups and household groups applying science, technology and digital transformation in agricultural production.”

The effective use of preferential loans is gradually creating positive changes in poverty reduction efforts in Bù Gia Mập Commune, contributing to socio economic development and improving living standards in the border area. — VNS