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Setting Up A Rubber Tree Project On 7 Rai


corkman

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Hi Folks,

Well what a great site. I cannot believe that I have been married to an Isaan girl for 5 yrs and only now discovered this site! Anyway - very brief introduction. I am 29, married to an Isaan girl, 28, from a small village 40km north of Mukdahan. I want to start investing in the Isaan area, mainly for my retirement (hopefully early retirement).

As is the case with most Farang, you can't do anything without involving the family, and this will hopefully serve to help them help themselves - and help me to grow an returement fund. I have read about rubber trees quite a lot, and think that it is a worthwhile investment. I know it will be 7 yrs before I see a return. I currently own 7 rai of land, which I am led to believe is ideal for planting rubber trees. I know its an average of 10k per rai retrun, so in 7 yrs I could expect 70k a year retrurn/yr ..... which isn't great, but before I get involved in large amounts of land and money I first want to have a "dry run" as it were with this modest sized plot.... give it a year to see how the relationship goes, and gauge off that if I want to dive in. Hence for now my first concern is the set up cost of such an endeavour (on a per rai basis) i.e. how much will it cost to get this plot planted up, and how much is it going to cost me per year to nurture the crop - excluding the cost of clearing the site, fencing it in etc. I understand that the recognised method of payment is to split the profit 60/40 in favour of the land owner. Is this correct? How about during the 7 year "growing" phase? Is it the norm to pay the workers a wage or what? An important element if the exercise will be to establish suitable renumeration with workers etc. and again to give them a year to "live" with that agreement, before I plonk down serious cash. As a note aside, could anyone point me in the right direction for information on planning persmission and plannign guidlines etc.?

Many thanks!

Edited by corkman
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Every year for the last three years we have been planting 1000 rubber trees. Well when I say we I mean I have been paying for it and my brother in law has been doing the work. Not looking for a return on this for myself more to keep the family off my back but agreed that I get first refusal on the raw latex. Have provided other villagers with loans to buy fetrilizer, hire help, etc. On the same basis ie. first refusal.

Costs for each 1000 trees are as follows:

1 tree 20 baht.

10 people for 3 days to plant at 150 baht per person per day

land preperation by tractor 2 days at 1500 per day

fertilizer about 3000 baht every six months

land clearing every six months - 10 people 3 days at 150 baht per person per day.

The land we/they are using was previously used for maize or ginger. I am probably being ripped off but plan is to purchase the raw latex from the whole village rather than "grow" it myself. I personally think that there are better returns purchasing the raw latex and either producing concentrated latex or mats, need a centrifuge and a press for this.

When it comes to harvesting this is a very time consumming and skilled task - not something I would want to get involved in.

Not sure about this but 10K/rai sounds like the turnover rather than profit but havent looked at the figures in a while. Also up in this region the rains will affect the number of days that you can harvest.

As for the wages for the workers as its family they get paid nothing while the trees are growing but the hired help (on a daily basis as needed) get paid the going rate. The going rate here is 150baht per person per day.

No planning permission as far as I know. As for guidelines the dudes from the local agricultural office came round and planned out the first load of trees. There was also a scheme here where the government were giving out trees for free, dont know if its still going on or was only in this area.

I'd think seriously about whether you want to position yourslef as a latex producer or a middleman buying the latex when it comes on stream in 7 years. Personally I'd go for helping out the villagers and getting first refusal rights, get your mrs to build up contacts in the area to sell rubber mats etc. A lot less risky that going it alone.

Disclaimer: I am not a crop farmer or specialist in rubber trees - these are just my experiences and this is not our primary business :o

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Thanks for the detailed reply! I will probe into this matter a bit further - i.e. what to do as regards harvesting the end product. For someone that is thinking in investing in this area I am pretty ignorant to the whole thing to be honest.

Thanks for the figures regarding set up costs etc.

My father-in-law appearently has expereince in the whole concept of rubber trees etc. but quite simply does not have teh cash to put his knowledge to use..... but as with everything, you ask how much something costs and then you normally need to multiply by 4 (or divide it by 4 if you want to know how much you can make).

I think I am going to set aside this weekend to sit down and read every single post here that realtes to rubber trees etc. If anyone has any good links or other sources of info (in english) that you would consider "must read" material, please let me know. Once I have done this, I think I will put together a synopsis of what I find out, and post it here. If folks in the know would then be kind enough to read through it for critical appraisal, it would be great........

Thanks for reading.

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Firstly, congratulations on winning All Ireland.

we have been investigating planting Rubber trees on 200 rai in Chaiyaphum for some time. We got a huge amount of useful info. and responses from this forum. I'm a little tired and lazy to write a treatise on rubber farming now. The subject is well covered on the forum and you will glean a lot of info. and links by simply doing a search on rubber trees Thia visa. Incidentally, I believe it can only be profitable but you have to wait many years.

Good Luck.

Is mise,

Joe

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Hey Corkman

Isaan retirement.

'Think again 7rai won't get you there even if it a dry run but good luck'

I've been trying for over 10 years my wifes hands are in many different pie's of farming and I still find it hard to believe, start listening to metallica sad but true.

As is the case with most Farang, you can't do anything without involving the family Ha Ha...

'Wrong try to avoid working with the family it will drive you crazy trust me I'm there already'

Listen were 60km outside of Roi-et I'm 35 by the way if you're ever around Selaphum area drop in for a cold one and a chat.

PM me for number if so.

Regards

C-sip

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C-sip,

Thanks for the reply. The 7 rai is just a dry run - I want to "employ" the wife's family - I'd pay them well etc. and help them to help themselves as it were, in addition to making a living myself - if they can't handle 7 rai, well more accurately, if I can't handle them handling 7 rai....... when I said the "7 rai is ideal for growing rubber trees" - I meant that it is good ground / good soil etc. not a good size plot or whatever.... much to small to be commercially worth while for furnishing a farangs pockets.

Point taken about family driving you crazy - and to be honest that is the main purpose of the "dry run". I can see it in a couple of years - I will have invested time and MONEY and then for some reason the crop fails, or the family loose interest, and then I will be expected to inject more cash to "make it work" to a point where I will have invested more money than the place will ever make, and then I will be expected to feel sorry for the family..... having lost my investment, and will then probably be expected to start some other wild scheme (at my expense), and further more be greatful that they want to take part in it...... but thanks for thre heads up.

Its like the latest "investment" (which I totally don't mind). We bought this tractor thing for 65k for herselfs parents, because "you can make good money" renting it and your services to other farmers. Of course they are making good money - they are making 100% profit, since the machine didn't cost a penny. But as soon as they realise that this contraption is going to require a bit of maintainance every now and then, they are going to tire of it, and then it will be "better to sell it before it gets too old"..... naturally I won't be getting the money back though.

But its all done with the best of intentions on their part - it is just they lack the foresight to see these things - they are blinded by the light of their own dreams..... so I don't mind..... the way I see it is that if I had farang in-laws I would be spending alot more than 65k a year on birthdays / weddings / anniversaries / xmas / etc. ........... so its fine by me, and we are all happy - I rather that than the policy of monthly "hand outs" that seems to be more the norm.

Thanks for the invite by the way - I'll keep it in mind next time I am up Isaan - which is probably going to be Jan / Feb time.

Cheers,

Corkman

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Corkman, you are a young man with an 'old' head on your shoulders, 5 years on and you know your issan family to a tee, you know all their wiles, things like dont fix it if it aint broke ect, im just starting my 2nd year of retirement here and it still makes me cringe when i look close at a iron buffalo, all the linkages are dry and near worn through, just through the lack of a little lubrication [paintbrush and transmission oil, easy] clean the air filter weekly, no, they never do!! Im sure you know all this,

Now, just an idea, perhaps youve read my posts on this, our 9 rai of papaya is coming to an end, but inter-cropped with the papaya are rubber trees, well, about 4 rai, not the total 9 rai, with irrigation, these rubber trees are 2 mtrs higher than the others out of the papaya plantation, just now, papaya prices are crap, but in the dry season, we can expect 10/12 bht a kilo, and sales of 2000/3000 bht a day are the norm to the local market, plus whatever else we have for sale on the farm.

As our papaya is comeing to an end, we made contingency plans in May, planted 712 banana culms and 1200 papaya [some inter-cropped] and they have started to sell, personally, i find it hard to believe that these things grow and produce so quick, but they do!! this is on 12 rai of new land formely used for thai potatoes,

So perhaps, just to keep the family 'interested in your investment' try a bit of inter-cropping, it might work out for all of you,

Good luck Corkman, rgds, Lickey.

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Corkman,

Your description of your families attituteds toward you and your money and how to utilize it is not necessarily the way it has to be. It is not the way it has been in my family here in Thailand. The fact that you see your scenerio as being inevitable is probably the very same thing that will make it come about. You say, "they are blinded by the light of their own dreams"....and I think you should have said, "we are blinded........"

Chownah

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Thanks for the replies folks:

Lickey - if I were actually living in the region, I would probably look at what you suggest, the "inter cropping" idea - but not being there, I think the logistics of getting produce to/from market etc. would make things a little tricky - the proper market is 20kms away, and they have no vehicle to transport them on. But the idea is great - its gives the family short term profit, and while they are tending to the fruit trees they can tend to the rubber also - I will definitely give this further consideration, but I need to fully review the actual rubber tree concept first.

Clownah - I think in my previous rambling the sentiment may have been a little (although not entirely) twisted. My thai family have really good, and sincere intentions. To be fair, they have never treated me like an ATM, and I certainly have never felt like one. They work hard and do their best to make what they have go as far as possible. But the fact remains that they do not think things through, and they quickly loose heart when things don't work out the way they had hoped. Rather than cutting their losses they end up throwing good money after bad until they end up in some form of debt and end up having to sell up to get back in the black. Then they dream up some other elaborate scheme :D . And they were doing this long before I ever arrived on the scene! You have to admire their determination and spirit though. But this time we are not talking about a couple of grand..... we are talking about 50 grand plus, and if we are going to do it on a large scale, then a little practice on the 7 rai might get them to be a bit more sensible and a bit more realistic in both their approach and their expectations. This proposition could be quite lucrative (on a large scale), but it could easily go the other way and they are probably not factoring in crop failure, drought, disease, fire, their own health, the value of rubber (in otherwords "profit margin") - I am. Hence why I say I am worried they are viewing all this through rose tinted glasses. I am curious however, how do you come to the conclusion that I am blinded by this 'dream'? I'm curious further still how you can make an analogy between seeing a "scenerio as being inevitable" and being blinded by the light of ones own dreams (assuming by inevitable you mean inevitable failure)? Have I missed something? :o

Anyway - thanks again for the input / replies folks. I really need to spend time this weekend number crunching and researching. Ultimately it is the numbers that will either put the wheels in motion or stop them in their tracks......

Cheers,

Corkman

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Hence why I say I am worried they are viewing all this through rose tinted glasses. I am curious however, how do you come to the conclusion that I am blinded by this 'dream'? I'm curious further still how you can make an analogy between seeing a "scenerio as being inevitable" and being blinded by the light of ones own dreams (assuming by inevitable you mean inevitable failure)? Have I missed something?

You are being blinded by your own dream....they are being blinded by thier dreams.....we are each blinded by our own dreams because we only see our own dreams. I can't really know but based on what you have posted so far I think that your dream is that by starting a rubber farm you will provide (at least partly) for your early retirement and that you will teach your family members to be productive and effecitive workers, planners, and investors. Your gift of a tractor seems to be a way to establish the baseline of their ineptitude so that in the future you can point to how bad they were before and contrast that with how wonderful they are today after you have rehabilitated them.

But this is just my dream based on your dream and only really grounded in the scant posts that we have made here....so clearly my dream about your dream is totally off the mark and ridiculous....and I'm anxioiusly awaiting your reply to reinforce my view on the errant nature of my dream.

Chownah

P.S. Your approach has the advantage that in the event of failure you can blame them.....you have clearly set this up in advance.............don't get in a huff.....I know full well that this is just my dream and is totally rididulous!!!!

Chownah

Edited by chownah
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we are talking about 50 grand plus

Corkman,

To set up a rubber plantation on decent scale it would take a lot more than 50K (pounds).

In our area there are loads of rubber trees going in, mostly because the government gave them away. Our area is mostly maize for animal feed but this year the amount of maize produced was about 60% of normal on a good harvest.

Think about all the people in your area planting rubber and those out out of your area as well.

Think about the corps not being planted to make way for the rubber.

Think about what will happen to the price of rubber when all of this comes online.

Keep an eye on the futures market for rubber.

Thai farmers are great at jumping on bandwagons - rubber may be one of them.

Although we are putting rubber in year on year for family, I think it is too much of a risk on a large scale. Perhaps its better to concentrate on crops that rubber is replacing, perhaps its good to encourage people to put rubber in to inflate the prices of other crops - who knows.

I'm not trying to preach to you or be condescending but please, please think really long and hard about why you would want to have a rubber plantation. I personally think your 50k is better spent else where - get a business outside Thailand to fund your retirement.

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Dsys – thanks for the reply. I don't find your post condescending at all, a different point of view is always good to hear – only a fool wouldn't listen to everyone's point of view! I am pretty conscious of the "band wagon" scenari. I suppose one of the reasons I am looking at this particular option is that as chownah correctly interprets, I would like to do something that will benefit us all (as distinct from investing in something outside the area) but ultimately I have to look out for myself first, because if I fall off my perch no one is going to catch me, but if I can I would prefer to pull up those around as I go. I am glad I have found this web site, because the experiences (success and failures) of others will really help fashion how I go forward with this idea. So thanks, and I will keep your input in mind.

Chownah – I few points if I may:

  • To start with, I am not getting in a huff, and I am sure you are not getting in a huff either. I feel I am being misunderstood, and I feel you have a low opinion of me based on those misunderstandings. I am not going to try and be tough and say "I don't care what you think", because I do care and I would like you to understand where I caming from and why I say and think what I do. I am new on this forum and I am looking for friends and like minded individuals to discuss "all thing thai" – I am certianly not looking for people have huffs with :D So, I am left to trying to impart or explain to you what I feel is the difference between my true sentiments and what you (may) perceive them to be.

  • I get your point of the "I" versus "we" thing now, and yes you have hit the nail on the head that I want to my endeavors to benefit them also, pretty much exactly as you describe. I further agree that all this trying to interpret one another's "dreams" etc. is pretty ridiculous (and I found your choice of words quite amusing actually – made me smile – clever word play :o ).

  • I think that you have mistaken my tone and sarcasm in earlier posts for contempt or arogance. I am poking fun a bit, which I suppose I shouldn't, but that is all it is. If you have had nothing but good experiences with your Thai family, then perhaps you have better educated or more (naturally) business savvy in-laws than I (or many other farangs). My in-laws are simple folk, they are hard working, sincere, genuine and very caring, and I would not change them for the world. But business minded they are not, and trying to get them to view something in a proper business sense is difficult to say the least. This is not their fault, nor should they be ridiculed for it, it is purely a lack of education. They recognize that their world is changing, and they want to change with it – they just don't know how, which is why they fail - but at least they try. I am hoping to help them in that regard, but not by breaking them down to build them up – I get no pleasure or pride from such arrogant pursuits, and besides they are a bit long in the tooth for that carry on anway.

  • I am not deliberately trying to create scapegoats for if and when something goes wrong. I feel that their potential investment of labour, in actual terms, is of far greater value than my monetary input. Setting people up for blame would serve no purpose other than for gloating – and what good would that do? Beside, it is not in my character. If someone is doing something wrong, they should be made to understand why it is wrong and shown how to do it right – if they are stubborn and you let them carry on, then it is you that fail by allowing it, and it is your fault for tolerating it. Similarly, if neither of you realise something is being done wrong, then that is a genuine mistake is hardly their fault either. Either way, as far as I see it, it is in everyone's interest to succeed, and in everyone's interest to educate each other to ensure you succeed. Setting someone up to blame (in this context) is incomprehensible to me. The purpose of the 7 rai is that it will always be a year ahead of the "main" crop. If we make a mistake, it will be made on the 7 rai – blame and fault is irrelevant – identifying and solving the problem is the aim. That problem may be communication between them and me, it may be too much or too little water or food, it may be uncertainty how to deal with pests or disease……. it may simply be that after a year the input (either labour or finance) is far greater than was anticipated……. It is for all intensive purposes a prototype – not some fulcrum for me to gain moral leverage with which to later ridicule them for my own failings. Thai culture being what it is, my wife (and by default me) will always be at least part responsible for the well being of her parents and siblings. She is the oldest child, and that carries with it a responsiblity of care. I take that quite seriously (in spite of frequently joking about it), and I will do what I believe to be best in stepping up to that responsibility - I'm afraid humiliating them into seeing things my way does not fit that model - positive reinforcement beats whip and boot and day in my view.

  • As regards the "tractor" thing, your way off target here. I am skeptical, but not cynical. There simply are not enough potential "customers" to make renting the machine and/or its services a viable business proposition. Furthermore they only work a small amount of land, meaning that there is no real justification for the machine. They could pay some guy a couple of thousand baht per year to turn the soil etc. and invested the capital elsewhere. But it boils down to that they just wanted the tractor, for wants sake, so I got it for them. Everyone else is getting one, so they want one too – keeping up with the Jones (thai style). And I have (and want) things, for wants sake too….. as do most people. That's why I got it for them - just to indulge them – not so I rub their nose in it in 2yrs time when they realise it wasn't the golden goose they thought it would be.

Anyway, trying to get back on topic - I have learned (and realised) quite a bit in the post:

  • The concept of inter cropping needs further examination - logisitcs is they key here I suspect.
  • Alternative crops, instead of rubber trees - this has my interest - I am put off by my inital lack of knowledge, again I'm concerned logistics? How are crops sown and sold etc. Labour required to tend them - ongoing costs etc. Likely profits per rai and so on.
  • Although already aware, I am more acutely aware of my need to get down to the nitty gritty and establishing a proper business model and proposal to put to the inlaws, something with some short to medium term pay off for them, and medium to long term pay off for me.

So thanks everyone for your input - the weekend is nearly on us - looks like I've got even more reading / research to do (alternative crops etc.).

Cheers,

Corkman

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Corkman, dont worry to much about Chownahs replies, he is what Maizefarmer calls the Resident Antagonist, ive never meet him, but his knowlage is vauluable and useful, he helped me a lot with our farm, irrigation/planting ect, advice on fertilizer, organnic crop sprays ect, so if you post something here and Chownah replies, then it is interesting for him to coment 1 way or the other, The farming forum is a friendly place to exchange info/views ect, and Chownahs posts tend to bring out the best in people, your reply was excellent Corkman..

Chownah, i always look forward to your posts, please keep them coming :o

Regards, Lickey.

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Corkman, dont worry to much about Chownahs replies, he is what Maizefarmer calls the Resident Antagonist, ive never meet him, but his knowlage is vauluable and useful, he helped me a lot with our farm, irrigation/planting ect, advice on fertilizer, organnic crop sprays ect, so if you post something here and Chownah replies, then it is interesting for him to coment 1 way or the other, The farming forum is a friendly place to exchange info/views ect, and Chownahs posts tend to bring out the best in people, your reply was excellent Corkman..

Chownah, i always look forward to your posts, please keep them coming :o

Regards, Lickey.

Lickey,

Lickey I think that your concern about Corkman's reaction to my post is misplaced...he doesn't seem to be worrying about it at all...which is what I expected and as it should be....no need to worry because of some dream that I took the time to post!!!!!.....dreams are just dreams.

Also, don't be overly concerned over how I might react to your comment vis a vis myself and Maizefarmer. I am not surprised that he would call me an antagonist.....certainly he sees life as a confrontation and anyone who disagrees with him as a challenger and thus someone in opposition and thus an antagonist......all I do is post my opinions or in the case of Mr. Corkman I posted my dreams!!

So....let's analyse my Antagonism......

I started by posting this which on my part was a serious attempt at helping him to see that what he might be thinking was inevitable did not actually have to be:

"Corkman,

Your description of your families attituteds toward you and your money and how to utilize it is not necessarily the way it has to be. It is not the way it has been in my family here in Thailand. The fact that you see your scenerio as being inevitable is probably the very same thing that will make it come about. You say, "they are blinded by the light of their own dreams"....and I think you should have said, "we are blinded........"

Chownah "

He responded with:

"Clownah,

...................................

............"

I thought he wanted to play!!!!!!.....so I got playful....that's all.

Clownah

Chownah

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..................And now we are all happy - that's good ;-)

Just logged on now - gonna do some research now on trees / crops / etc. Nursing a sore head again, it was our 5 year wedding aniversary yesterday, so we had a few friends over...... Friday nights are "thai night" here in Cork (well at least in our area anyway) - we had 14 thai girls plus their partners / kids and one hel_l of alot of drink, and loads of Loas Karaoke music until 4am....... apart from it being cold outside, you would have thought we were in Thailand!

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  • 10 months later...
Hey Corkman

Isaan retirement.

'Think again 7rai won't get you there even if it a dry run but good luck'

I've been trying for over 10 years my wifes hands are in many different pie's of farming and I still find it hard to believe, start listening to metallica sad but true.

As is the case with most Farang, you can't do anything without involving the family Ha Ha...

'Wrong try to avoid working with the family it will drive you crazy trust me I'm there already'

Listen were 60km outside of Roi-et I'm 35 by the way if you're ever around Selaphum area drop in for a cold one and a chat.

PM me for number if so.

Regards

C-sip

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..................And now we are all happy - that's good ;-)

Just logged on now - gonna do some research now on trees / crops / etc. Nursing a sore head again, it was our 5 year wedding aniversary yesterday, so we had a few friends over...... Friday nights are "thai night" here in Cork (well at least in our area anyway) - we had 14 thai girls plus their partners / kids and one hel_l of alot of drink, and loads of Loas Karaoke music until 4am....... apart from it being cold outside, you would have thought we were in Thailand!

I have recently discovered this site while researching Rubber Trees. Some of you are years ahead>> thanks for blazing a trail.

I live in eastern Thailand about 60 kilometers past Kalasin near Kuchinarai with a wonderful Thai wife of 3 years.

We have finally found a nice piece of land with a Chanote title for our house and dreams just outside our village.

For our marriage the family gave a separate piece of land, 7 rai of the family farm with a Chanote title also.

We have planted Rubber trees on the 7 rai although honestly I have no idea what variety they are. I will trust my wife sister who has 30 rai of 5 to 10 year old Rubber trees that look healthy and are beautiful.

Our Plan is to 7 to 10 rai each year to our little enterprise up to about 40 0r 50 rai. The goal is to have a small supplemental income later on life.

Any suggestions are welcome.

FB

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  • 3 weeks later...
C-sip,

Thanks for the reply. The 7 rai is just a dry run - I want to "employ" the wife's family - I'd pay them well etc. and help them to help themselves as it were, in addition to making a living myself - if they can't handle 7 rai, well more accurately, if I can't handle them handling 7 rai....... when I said the "7 rai is ideal for growing rubber trees" - I meant that it is good ground / good soil etc. not a good size plot or whatever.... much to small to be commercially worth while for furnishing a farangs pockets.

Point taken about family driving you crazy - and to be honest that is the main purpose of the "dry run". I can see it in a couple of years - I will have invested time and MONEY and then for some reason the crop fails, or the family loose interest, and then I will be expected to inject more cash to "make it work" to a point where I will have invested more money than the place will ever make, and then I will be expected to feel sorry for the family..... having lost my investment, and will then probably be expected to start some other wild scheme (at my expense), and further more be greatful that they want to take part in it...... but thanks for thre heads up.

Its like the latest "investment" (which I totally don't mind). We bought this tractor thing for 65k for herselfs parents, because "you can make good money" renting it and your services to other farmers. Of course they are making good money - they are making 100% profit, since the machine didn't cost a penny. But as soon as they realise that this contraption is going to require a bit of maintainance every now and then, they are going to tire of it, and then it will be "better to sell it before it gets too old"..... naturally I won't be getting the money back though.

But its all done with the best of intentions on their part - it is just they lack the foresight to see these things - they are blinded by the light of their own dreams..... so I don't mind..... the way I see it is that if I had farang in-laws I would be spending alot more than 65k a year on birthdays / weddings / anniversaries / xmas / etc. ........... so its fine by me, and we are all happy - I rather that than the policy of monthly "hand outs" that seems to be more the norm.

Thanks for the invite by the way - I'll keep it in mind next time I am up Isaan - which is probably going to be Jan / Feb time.

Cheers,

Corkman

Hi corkman,

Investment means risk, 7 rai is not enought to gain profit. Taking 7 years is too long and you might not be able to sustain. Are there rubber plantation around your area? if there are, I have a suggestion to make. Try supplying them nutrient for their trees to help increase yield, prevent dry bark and promote health. I have a very interesting nutrient for those tree, it will help them to make more money and they will love you for it. Want to know more, drop me a note and I'll explain to you.

Regards,

Jeffrey

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