Rice Farmers Dig In Over Foreigners' Land

[george]

Rice farmers dig in over foreigners' land

Opposition mounts to Saudi venture

BANGKOK: -- The Thai Farmers Association called on concerned agencies yesterday to look into

land occupation by foreign businessmen, which has made many of the country's rice farmers landless.

''Vast areas of farmland in the western and northeastern provinces have fallen into the hands of Taiwanese businessmen, while investors from the United States have also bought a number of plots in the fruit-growing province of Phetchabun,'' said association member Wichian Phuanglamchiak.

''Widespread land acquisitions by these foreign landlords has already made a good number of rice farmers landless, forcing them to rent the same land for rice growing from foreigners,'' he said.

His call came in the wake of an alleged plan to support Saudi Arabian businessmen keen on putting their money in rice farming and setting up a joint rice export venture.

The plan has drawn fierce protests from paddy farmers, who fear they will soon end up being landless farmers if foreigners are not stopped from buying more rice growing areas.

The association said yesterday it would write to Prime Minister Samak Sundaravej, asking him to scrap the plan.

The plan is reportedly the brainchild of deposed prime minister Thaksin Shinawatra, who took a group of Saudi businessmen on a tour of a rice production centre in the Buffalo Village of Chart Thai party secretary-general Prapat Pothasuthon in Suphan Buri on Wednesday.

Agriculture and Cooperatives Minister Somsak Prissananantakul, from the Chart Thai party, also opposes the plan, saying the idea was ''tantamount to selling the nation''.

But Mr Somsak yesterday denied the remark had anything to do with Mr Thaksin.

''I have to apologise to Mr Thaksin if he feels he's been dragged into the dispute for no apparent reason, which might cause him damage,'' said Mr Somsak in Chiang Mai, the hometown of Mr Thaksin.

Chart Thai leader Banharn Silpa-archa said yesterday that Mr Somsak's harsh comment could have resulted from some misunderstandings.

Mr Banharn said Mr Thaksin phoned him before Wednesday's trip, saying he only wanted to show foreigners how rice farming is done in Thailand, and how the sector could be further developed with the help of modern agricultural technology.

Mr Prapat's interview had misled the public into believing that foreign investors were being encouraged by Mr Thaksin to buy up all the paddy fields, he said.

Mr Thaksin's spokesman Pongthep Thepkanjana defended Mr Thaksin yesterday by saying that the former prime minister only wanted to do things he thinks will benefit the nation.

--Bangkok Post 2008-05-25

[LaoPo]

I was under the impression that foreigners couldn't own -agricultural- land in Thailand...?

So, how come Taiwanese, Americans and Saudi Arabians are buying (or bought already) land ?

Second question is: who owned that land, now sold to foreigners ?

LaoPo

[lannarebirth]

How could a person, any person, lose their land to anyone, foreign or Thai, if they didn't first sell it to them?

[JimsKnight]

I was under the impression that foreigners couldn't own -agricultural- land in Thailand...?

So, how come Taiwanese, Americans and Saudi Arabians are buying (or bought already) land ?

Second question is: who owned that land, now sold to foreigners ?

LaoPo

You can own land if you chuck in some ridiculous 8 figure number for investment in a government bond or some such.

Might be what they did...?

[Bagwan]

I was under the impression that Saudi Arabia wouldn't deal with Thailand until they got their jewellery back.

Without a seller there cannot be a buyer. However since most land is mortgaged to a bank I foresee banks calling in loans, the farmers unable to meet their commitments, a rigged auction takes place, and the farmer loses his land.- and is probably still into the bank for a few thou. The bank has, for a private consideration of course, tipped of buddies and those who they need to keep on the right side of, and sell the land at a knock down price. Same thing happened in the UK with Building Societies being the villains. Nobody knew when or where the auctions were taking place so that individuals couldn't participate thus driving the realisable value upwards, and the big battalions acquired at a reduced price.

The lands that we have acquired was from distressed farmers and we paid off the bank loan plus 10% for the unfortunate farmer, which was a far better deal than the banks would agree to.

The real money to be made is in threshing and marketing. Herself's aunt bought a threshing machine two years ago and by renting out to local farmers has recouped her outlay already.

[Farma]

There was an announcement in the Saudi press a week or so back stating they would be investing in foreign farming land in an effort to ease rice shortages in Saudi. Trade restrictions have been steadily easing between the 2 countries over the past couple of years.

From what I’ve been told, the Thai language news is saying the Saudis are proposing to pay all expenses to produce the rice and then keep the rice.

Edited May 26, 2008 by Farma

[meom]

Yeah, the Saudies they sure like their Kabsa and there are some plans to invest in Thai rice farming provided they could convince their population to eat Thai rice which is mostly imported to feed the Filipino guestworkers. Arabs themselves prefer Basmati.

Edited May 26, 2008 by meom

[sibeymai]

Just another opportunity to bash foreigners and keep foreigners excluded from the property market, I'm certain. Who does such a policy advantage ? The average Thai ? The poor farmer ? Absolutely not. It only benefits those few wealthy Thais with enough money to buy land they don't need to speculate with. Blatant lies like this being peddled by the Thai Farmers Association makes me question wether this organisation really represents Thai farmers or is in reality a proxy organisation for the wealthy who couldn't care less about farmers.

Bagwan got the process by which farmers loose land pretty correct in post #5 above. Thaksin is lying through his teeth again. His loans to poor villagers is the catalyst by which the banks can move in and seize land, whereupon the banks on-sell it to Thaksin's buddies. The same scan has happend in th eUK, US and Australia. Just look at any country where the majority of farm land is owned by huge conglomerates or corporations. How ndo you think they managed to force off farmers who had been on the land for generations ? Same method.

And the poor Isaan farmers think Thaksin is their friend by handing out money. Wonder if they will think the same when they're handing their land over to the bank.

[LaoPo]

There was an announcement in the Saudi press a week or so back stating they would be investing in foreign farming land in an effort to ease rice shortages in Saudi. Trade restrictions have been steadily easing between the 2 countries over the past couple of years.

From what I’ve been told, the Thai language news is saying the Saudis are proposing to pay all expenses to produce the rice and then keep the rice.

The OP article still has many questions but if it is like the paper says it's quite risky for the Arabs.

The article says: "The plan has drawn fierce protests from paddy farmers, who fear they will soon end up being landless farmers if foreigners are not stopped from buying more rice growing areas."

One major strike amongst angry farmers/workers and ......Ooooops...NO rice and VELY BIG ploblems for the investors.

Risky stuff for investors.

LaoPo

[Martin]

"One major strike amongst angry farmers/workers and ......Ooooops...NO rice and VELY BIG ploblems for the investors.

Risky stuff for investors."

This is the sort of stuff that we are going to see a lot of. Suddenly, many Governments in the 'developed' world are waking up to the fact that they are going to find it increasingly difficult to ensure enough food for their populations.

Lee Kwan Yew in Singapore had seen it coming over twenty years ago. In a discussion with some students in New Zealand, he pointed to the quite-possibly quite-low number of decades that Singapore might be able to go on (in his graphic phrase) "earning enough foreign currency each month to buy next month's food and fuel".

There was a story (possibly true, possibly exaggerated) that the beef ranch that Brunei had bought in Australia was bigger than Brunei itself, at a time when I was visiting Singapore from Brunei. In casual conversation with a member of the Singapore Cabinet it came up, and his reaction was: "How I wish we could own at least one, preferably several, rice farms in Thailand that were bigger than Singapore". (Singapore island is only about 500,000 rai in area, or 100 times bigger than Khon Kaen University campus).

Peasant Revolts used to happen over no more provocation than this, and as 'LaoPo' says, it is local people who are positioned to wreak havoc on foreigners' holdings if the general community feeling is that it is appropriate to 'turn a blind eye' to a few folk going missing from the village for a few hours in the night.

[fred2007]

Yeah, the Saudies they sure like their Kabsa and there are some plans to invest in Thai rice farming provided they could convince their population to eat Thai rice which is mostly imported to feed the Filipino guestworkers. Arabs themselves prefer Basmati.

[Martin]

"Thai rice .... is mostly imported to feed the Filipino guestworkers".

It is a reducing demand, then, as so many Filipino guestworkers have been brought in for construction work, which is now a 'bursting bubble' in the Gulf. However, when they go back to the Philippines, that will produce greater need for imports of rice there; and the Philippine Government can be expected to have trouble managing that.

There is a parody of Grey's Elegy appropriate to the Dububble:

"Full many a tower is built to be unfilled,

and a waste of capital in the desert air."

[eljeque]

Wr Banharn said Mr Thaksin phoned him before Wednesday's trip, saying he only wanted to show foreigners how rice farming is done in Thailand, and how the sector could be further developed with the help of modern agricultural technology.

The plan is reportedly the brainchild of deposed prime minister Thaksin Shinawatra, who took a group of Saudi businessmen on a tour of a rice production centre in the Buffalo Village of Chart Thai party secretary-general Prapat Pothasuthon in Suphan Buri on Wednesday.

What do Saudi's know about Agricultural techonology? Not much, other than government subsidies to grow wheat, etc., free water and cheap fertilizer.

[DavidF85]

I would wonder the same thing,

it seems the landlords are being unfair to farmers, which is not very good for anyone.

They probably leased the land to the farmers, and now want to sell the land, leaving the farmers out.

I was under the impression that foreigners couldn't own -agricultural- land in Thailand...?

So, how come Taiwanese, Americans and Saudi Arabians are buying (or bought already) land ?

Second question is: who owned that land, now sold to foreigners ?

LaoPo

[Hairy]

Lee Kwan Yew in Singapore had seen it coming over twenty years ago. In a discussion with some students in New Zealand, he pointed to the quite-possibly quite-low number of decades that Singapore might be able to go on (in his graphic phrase) "earning enough foreign currency each month to buy next month's food and fuel".

IIRC, Singapore also has real problems with their water supply. They've had to enter into longterm contracts with Malaysia, but are having trouble with negotiating prices on renewing the deals.

[DaveD]

Thi sounds crazy,in the khao noi area ,near pakchong,most local have already sold ther land to wealthy thais from bangkok,and now live as tennant on land they formerley owned or manage the lane for the new owners,Little foreign property her compared with absentee bangkok owners

[pampal]

If foreigner bought farms in Thailand, who would work the farms?

Logically it would be Thai nationals.