Credit has long been recognized as a necessary input in the modernization of agriculture. Yet in most developing countries, institutional credit is available to only a small percentage of farmers and, in general, it has been the larger farmer who has benefitted. Recent recognition of this fact has helped focus on changes or institutional innovations which might reach out to the small farmer. To formulate a mix of policies capable of serving small farmers, it is useful to review the structure of those organizations which supply credit in Thailand, with emphasis on comparative data for the Bank for Agriculture and Agricultural Cooperatives (BAAC) and commercial banks.


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