Feedback Please

[lordofdelusion]

Greetings farmers. The wife and I have been presented with an opportunity to purchase a total of 16 rai of rubber trees. The land borders my wife's family farm in Surat. Just off the 4015 road near Wiang Sa with quick access to the 41. Flat land. The area doesn't flood and the land is planted border to border with trees. I don't have a count. Within a year or so, there is another neighbor that is considering the sale of an additional 20 rai. Since her family borders the land, they will just expand their opertion to the additional 16 rai and split the profits with us, 55% for us, 45% for them. I trust her family as they are very decent people who have never asked for a thing from us. The trees are from 5 to 8 years old. From my searches on this forum I see that most think about 80K per rai is the maximum that one should pay. This will run about 100K per rai. Since I know nothing about rubber tree farming, I plan to be an absent owner and just let the family run the operation. I hope to continue to read up on the subject and someday take a more active role. The next year or so we will be in the US, looking for foreclosures, and this seems to be a decent long term investment that will not require us to be here. Beats a bar or resturant in my mind as land will always be worth something.

Your thoughts are appreciated.

[chang35baht]

are the trees different ages? If so , the ones that are 8 years old should be producing latex already. Are they milking these ones yet?

Haven`t seen your land ,so can`t comment on the price. But, with the trees on it, at that age, it seems not overly expensive to me.

Good luck,

Chang35baht

[seonai]

From what my memory says... you can cut rubber from a tree about 6 years old until it is about 12. Then you cut them and sell for wood. I might be wrong with the calculations but the price for rubber is good now in the south. I would be marginly cautious as to why these folks were selling good rubber land also - just check cos the yield gets a good price right now...

[Gary A]

I'll try again;

I don't think many of us are familiar with the far south especially with land prices. It sounds like a LOT of money for a rubber plantation but I base that on Issan prices.

I replied to the wrong post before.

[sezzo]

From what my memory says... you can cut rubber from a tree about 6 years old until it is about 12. Then you cut them and sell for wood. I might be wrong with the calculations but the price for rubber is good now in the south. I would be marginly cautious as to why these folks were selling good rubber land also - just check cos the yield gets a good price right now...

My wifes sister and her family have been working within the rubber tree industry down Surat and they tell me the trees have a producing life of up to 35 years.

[ozzydom]

From what my memory says... you can cut rubber from a tree about 6 years old until it is about 12. Then you cut them and sell for wood. I might be wrong with the calculations but the price for rubber is good now in the south. I would be marginly cautious as to why these folks were selling good rubber land also - just check cos the yield gets a good price right now...

I had the same thought, with the price of latex up its a bit strange to be selling just as they come into production. Think I would be consulting an independent expert in the field with that sort of money at stake.

[lordofdelusion]

Thanks for the input. The reason or sale is due to relocation of the family because of health issues. yes,the trees are of different age and the more mature are being milked already. Does everyone hold their plantation land through a Thai coporation?

[chang35baht]

Well it`s quite simple for you then. Work out how many trees are being milked at the moment and the yield. caculate the full yield when all the trees are producing. And you will know wether financially its a good idea or not.

AS far as I`m aware trees can be milked for 25-30 years.