How much do you make rice farming?

[marc26]

11 hours ago, Tongjaw said:

When you say it supports 3 families, you mean it feeds them? No way would 12 rai cover living costs such as cars, holidays, medical etc no matter what you grow. My wife had 36 rai in Issan but sold it all a couple of years back. She rented it out to rice farmers but not for cash. For every 3 sacks of rice the farmer harvested my wife got 1 sack. Basically it would feed the family and some got sold. Initially we got 2-3 harvests a year, However, if no rain then no rice so she would get next to nothing.
Local farmers do get a certain amount of money from the Farm bank if they cannot produce from the land due to drought, not much but at least they get something. During harvest time you have to be present and count was they harvest or you will get cheated. Like you the family did grow sweet potato, corn, tapioca and other vegetables on land she let them use. They ate what they needed and the mother in law would sell the rest at the local market. 
I’m my opinion the OP would be best to keep his cash in the bank. 

I'm not looking to make an investment, or build any sort of business

We will be buying land and building a house, so if it was a decent amount of land, just trying to figure out to do something on it

[marc26]

9 hours ago, khunPer said:

If it's good land you might get 1,000 baht to 1,500 baht a rai (1,600 ­m²) per year; in some areas/cases the fee is as low a 500 baht a rai.

 

Some times the rental fee is not money, but a share of the harvest, so you might need storage space for rice, or insist on cash.

 

You can as a general hand-rule count around 1 percent of the buying price as yearly rent for farmland, so looked as business then farmland for rent is not a good one. However, land prices normally increase, so over time you make money just keeping the land and later sell it, or just see the rent-percentage rise a bit, but often less than the land value. If you can find some really bargain priced land from someone in urgent need for cash, you might be able to get as much as up to 3-4 percent in annually return.

 

Normal rental deals are for 3 years – which is the legal maximum without registration as lease at the land office and paying tax – and renegotiated, or just renewed, for another 3 year after the first period ends. If used for sugar cane – or other crops with more than one year growing period – instead of rice, it need to be 3-year agreements. Normally the fee is paid annually after the harvest; the payment date can vary depending of selling time for the harvest. Often a rent agreement will stipulate than the renter pays land-tax, and the renter might also be eligible for any support based on farmed land-size.

 

If you – or rather your wife – have a 25 rai land size you can normally make between 12,000 baht and up to around 25,000 baht a year; if you make more you are very lucky...????

Holy hell, i thought 20 rai of land would make us a few 100k per year or more!! 555

 

So there is my question answered!

 

(I also said I didn't know <deleted> about any of this............)

[marc26]

3 hours ago, Paradise Pete said:

 

Even if it is, I'd ask myself if have the heart to boot them off if they couldn't pay. If so, would I be willing to still live there being the farang that did that?

I wouldn't have the heart and that's all part of the hassle I spoke about........

 

[kingofthemountain]

22 minutes ago, marc26 said:

Holy hell, i thought 20 rai of land would make us a few 100k per year or more!! 555

 

So there is my question answered!

 

(I also said I didn't know <deleted> about any of this............)

First hand experience

 

i have paid for 20 rais of ricefield 2 millions of bahts

Thaksin (The sister) was still first minister and the rice sheme

in place with the harvest sold twice the normal price on the market

 

i rented the plot to farmers (gf family) with an oral deal of 40 000\year

 

just before my first harvest, comes the coup and the end of the rice sheme

the harvest was sold at the normal price, 50% less than expected.

then the farmers could paid only 20 000 for the year.

 

the second year it was a flood, so 0 money, and the third year a drought, again 0

and finaly the 4 year a storm just before the harvest, 0 money back again.

 

I have tried to sale the land, half of the price, nobody was interested

the land monsymaker ''history'' of the last 4 years wasn't a good advertising lol

 

1 year later it was over with the gf, this land was a very bad idea and

the worst ''investissment'' of all my life, 2 millions ''invested'', 20 000 return on invest

in 4 years, and the lost of the 2 millions at the end with a land impossible to sale.

 

i still have my name on a Chanote for the land, beside of the name of the gf

it's was a costly and painful experience maybe i have been unlucky, or maybe

i haven't read enough advices before to do it

 

was just my 2 cents

good luck

[marc26]

1 hour ago, kingofthemountain said:

I don't mean its happen all the time

i just write it because when you think to all the risks like the OP wants to do it

you have maybe to take also this one in the decision, and you are right if the wife

dies first, it could be a problem for doing what you want with ''your'' land, particularly 

if you don't have child to put the land in his name. Good luck to deal with the rest of

the family if you want to sell the land and having your money back and they don't want.

 

After 17/18 years(I should try and figure that out 555) I am not concerned with my wife screwing me over.

If she was looking to do so, then she played the real long game and is an idiot not to do it sooner 555

 

But as I said above, the 4mil or so that might go into this is money I would consider a settlement/inheritance/savings for whatever may come down the road, after so long together

 

[marc26]

Thanks for all the advice and opinions, this is a good discussion..........

[billsmart]

On 7/9/2020 at 11:17 PM, marc26 said:

40-80k/yr wouldn't be worth it for me to deal with any potential drama from the lessees............

We don't lease our land; we work it ourselves as contractors. We hire people to till, fertilize, plant, tend, and harvest. Most times, they are a different set of people for each task. We have leased out our land out in the past to be farmed by someone else, but made much less profit doing that, and, the treatment of our land was not always what we would have expected. And, yes, often, the lease is paid, at least in part, by giving a portion of the harvest.

[marc26]

3 hours ago, billsmart said:

We don't lease our land; we work it ourselves as contractors. We hire people to till, fertilize, plant, tend, and harvest. Most times, they are a different set of people for each task. We have leased out our land out in the past to be farmed by someone else, but made much less profit doing that, and, the treatment of our land was not always what we would have expected. And, yes, often, the lease is paid, at least in part, by giving a portion of the harvest.

We are a bit too city for that 5555

 

But you sound like you enjoy it, that's all that matters 

[kickstart]

3 hours ago, billsmart said:

We don't lease our land; we work it ourselves as contractors. We hire people to till, fertilize, plant, tend, and harvest. Most times, they are a different set of people for each task. We have leased out our land out in the past to be farmed by someone else, but made much less profit doing that, and, the treatment of our land was not always what we would have expected. And, yes, often, the lease is paid, at least in part, by giving a portion of the harvest.

We use rent land, and get local farmers to come and do the work ploughing ,drilling ect ,on a corn  crop, we harvested  it ourselves, with our own tractor and trailer 

We found it was all right, but the contracting charges ate in to the profits ,if you want to do the job right you need your own equipment ,that way you can keep costs down.

But, a big but you need the acreage to make your own equipment pay for its self ,you need a bit more than 10-20 rie

[kuma]

On 7/7/2020 at 10:56 PM, ratcatcher said:

Have you been living with your Thai wife in the city for 17 years?

Will you be paying for the land which she will own?

Could you adjust to country life and how far from the nearest large town is this land?

Would you want to build a house on the land or just lease it to other farmers for rent?

I live in rice country, but my wife is a mango farmer. I could never go back to the urban jungle, here or anywhere.

Good luck in your investment plan.

Always interesting the signifivant default to buy land in thailand where the village of the girl you met lives. On our list of criteria, that was never even included. After 17.years and significant visits to more than 40 provinces, we closed on the place that seemed most attractive to us, rented here for a few years to confirm our thinking, then just about a month ago bought something. Wifes family home was never a criteria. 

Actually, mother n grandmother in the end decided to get a place and come here anyway, once they discovered how great a spot it us. They have their own place, in same area but enough away that we connect once / week or so, not a communal all in one property idea. 

Wife does not farm either but got enough space to grow some fruit as a hobby and for her to start a restaurant, her real.joy. bkk not far away so easy to go if we get the itch, but really now head to the islands more if we do head out. Will always love bkk but this place is paradise.

Find what you want, not get painted in to buying on the basis of someones birthplace only, imo

[473geo]

1 hour ago, kuma said:

Always interesting the signifivant default to buy land in thailand where the village of the girl you met lives. On our list of criteria, that was never even included. After 17.years and significant visits to more than 40 provinces, we closed on the place that seemed most attractive to us, rented here for a few years to confirm our thinking, then just about a month ago bought something. Wifes family home was never a criteria. 

Actually, mother n grandmother in the end decided to get a place and come here anyway, once they discovered how great a spot it us. They have their own place, in same area but enough away that we connect once / week or so, not a communal all in one property idea. 

Wife does not farm either but got enough space to grow some fruit as a hobby and for her to start a restaurant, her real.joy. bkk not far away so easy to go if we get the itch, but really now head to the islands more if we do head out. Will always love bkk but this place is paradise.

Find what you want, not get painted in to buying on the basis of someones birthplace only, imo

While I understand your thought process, and, as the with the OP there are no children involved, one can hardly expect to isolate a wife who is having a child from the support of her family. I am grateful to my mother in law for her support, in so many ways. Always there for us. Being close to the rest of the family means they willingly step in to assist if we require cover or support, on the farm, with children, also enables my wife to return the favour and support where necessary, only recently being there to go to hospital with a cousin giving birth.

For me I can say the best decision we made was to be close to my Thai family. They are very supportive, polite, and not intrusive.

 

Just lucky I guess ????

[marc26]

23 hours ago, kuma said:

Always interesting the signifivant default to buy land in thailand where the village of the girl you met lives. On our list of criteria, that was never even included. After 17.years and significant visits to more than 40 provinces, we closed on the place that seemed most attractive to us, rented here for a few years to confirm our thinking, then just about a month ago bought something. Wifes family home was never a criteria. 

Actually, mother n grandmother in the end decided to get a place and come here anyway, once they discovered how great a spot it us. They have their own place, in same area but enough away that we connect once / week or so, not a communal all in one property idea. 

Wife does not farm either but got enough space to grow some fruit as a hobby and for her to start a restaurant, her real.joy. bkk not far away so easy to go if we get the itch, but really now head to the islands more if we do head out. Will always love bkk but this place is paradise.

Find what you want, not get painted in to buying on the basis of someones birthplace only, imo

I come from an extremely close family and my wife does as well.

We have a plan to now start spending 3 months per year in Boston near my family and friends.

So I don't know if it is a default as much as what seems normal in our lives.

We enjoy being around family and friends..........

 

My only demand is that we are at least a 10-15min drive away from her family's area. I told her I have no desire to live right next to my brother/sisters, so I don't have a desire to live right next to her family either.........

[morphem]

On 7/9/2020 at 2:02 AM, billsmart said:

My wife has 30 rai of rice land. We grow khao homili (jasmine rice). We used to harvest two crops a year, but now, because of government restrictions which you should check out, only have one crop a year. We spend about 60K baht a year on expenses, and our crop can sell for anywhere between 100K to 140K depending on our yield and current rice prices. So, our profit is 40K to 80K a year.

 

As far as I'm concerned, it's not really worth the effort or investment, but if your wife is like mine, they feel very secure knowing they have rice land. Also, the land keeps increasing in value, so it's a good investment. We bought our land about 10 years ago for a total of 600K, and it is now worth 2M or more.

If you have any specific questions, don't hesitate to contact me directly.

Very similar profits from my thai wife in central Thailand.

 

Tip 1 : Be 100% sure your wife & yourself are in for the long run

Tip 2 : Invest in land near road & water supply

Tip 3 : Choose a non flooding area

 

- 25 rai of rice land bought in 2010 : Price 1M 300K

- Price of land if sold today : 3M 500k

- We supervise only one crop a year : Small profit, about 50k 

- Estimated price (by government agent) of this land if sold after the next 10 years : 8M

 

Probably one of the best investment my wife ever made.

 

 

 

 

 

 

[kingofthemountain]

6 hours ago, morphem said:

- Price of land if sold today : 3M 500k

- We supervise only one crop a year : Small profit, about 50k 

Who can be silly enough to ''invest'' 3.5 millions bahts in something

with a return on investissment as little as 50 000\year if you are lucky?

6 hours ago, morphem said:

Estimated price (by government agent) of this land if sold after the next 10 years : 8M

Estimated price (By  my crystal ball) of this land if sold after the next 25 years 100 M

 

come on mate, it's time to come back on earth now

[vinoman82]

Not much money in rice farming these days most of my wife's rice farming family stopped rice farming. My Mil has 23 rai outside of Nakon Sawan which she rents for 40,000 baht a year, down 20,000 baht from a few years ago. But many farmers are renting out their land to the remaining rice farmers, our area gets two rice crops a year. My two stepdaughters graduated from the University and work in banking along with the eldest husband and the other husband is an electrician in a hospital in Nakhon Sawan. Many young villagers are working other jobs not joining the family rice farms.