Farmland Rental (pa Mok)

[pwm]

A Thai friend of mine has told me that he owns 7 rai of farmland in Pa Mok (near main road, has power and access to Chao Phraya river water). He told me he currently rents this land out to a tenant/farmer at 30000 baht/month, and has done so (at the same rate!) for more than 8 years. Is that for real? From what I know, land like this sells for approx 150k baht/rai, meaning purchase price would be paid back in under 3 years - after that, gravy! In other words (forgetting interest on purchase if necessary), this property is yielding approx 35%/annum!

I know the land is highly productive - farmers there typically grow vegetables year-round, but...

I'm having trouble believing this story - could it be real, or am I missing something?

[Maizefarmer]

That's 30K not 3K (per month) - correct? Thats 4,5K per month per rai - and he's growing veggies!

Yes - some of that land is the best land in the country, if not the whole of South East Asia - its thousands of years of delta accumulation - super super fertile.

Why don't you get yourself down there and check out just what he's growing and how he's going about it (some photos will put this story into context in a flash - and pic or to of whatever the irrigation setup is )- if it turns out its true, then the farmer renting it must be making an absolute killing, and there should be a good few ex-pats who'll want to know just how he goes about it.

Just running through the best vegatble production figures per rai that i can think of, versus market prices and how much can be produced per rai per month (even on a year round basis) - sorry, but I can;t see them adding up - unless, unless its just possible he has greenhouses and is growing something exotic like melons - but there again, you wouldn't bother renting expensive land if you were going spend money on greenhouses (and not 7rai - you'd use your own land) - as most soil in high production greenhouses gets prepeared and brought in.

Still, will phone a friend tomorrow and ask, but go and have a look - a few picks of whats growing and how its been grown - that will quickly answer the question.

Unlikely....... you don't think he's trying to get you think that 30k per month is acceptable, do you?

[weescotsguy66]

A Thai friend of mine has told me that he owns 7 rai of farmland in Pa Mok (near main road, has power and access to Chao Phraya river water). He told me he currently rents this land out to a tenant/farmer at 30000 baht/month, and has done so (at the same rate!) for more than 8 years. Is that for real? From what I know, land like this sells for approx 150k baht/rai, meaning purchase price would be paid back in under 3 years - after that, gravy! In other words (forgetting interest on purchase if necessary), this property is yielding approx 35%/annum!

I know the land is highly productive - farmers there typically grow vegetables year-round, but...

I'm having trouble believing this story - could it be real, or am I missing something?

I think that is a very high figure also my missus sometimes get mixed up with talking 10,000 (Muang) and 100,000 (Suang) but she knows when she get it in her hand the difference

[loong]

WSG.

Unless you are referring to some sort of dialect

10,000 is หมื่น mèun

100,000 is แสน săen

360,000 Baht per year for 7 Rai sounds well over the top so I think that there possibly may have been a translation/communication error.

[ozzydom]

Your Thai friend does not happen to have some spare land that he would like to interest you in does he ,or perhaps the Brooklyn bridge.

[Maizefarmer]

WSG.

Unless you are referring to some sort of dialect

10,000 is หมื่น mèun

100,000 is แสน săen

360,000 Baht per year for 7 Rai sounds well over the top so I think that there possibly may have been a translation/communication error.

.... well commented - very likely a dialect issue.

[teletiger]

Sounds like a total scam to me. 1000 Baht per Rai is the new, increased, rate around here. (up from 700 Baht) This is for decent (valley) land beside a 20 Rai lake. Doesn't flood, although the road in can be tricky at times. It's a 40 Rai plot and locals who rent it, 1/2/3 Rai, grow onion, garlic and beans. Looks like an allotment back in the UK. Bigger plots, 30/50/100 Rai are 750 baht per year maximum. Of course, local rules apply. But 7K-360K Baht?? It's a scam.

Regards.

[nev]

where i am in kalasin i rent land it is a retunable rent when the owners want the land back.

i rented 3 months ago 10 rai with small sugar on for 70,000 baht, we can sell at the moment the sugar for 4000 baht a rai but we are feeding and keeping to chop.this land is right next to a tar sealed rd easy access a very good deal.

we can have to plant new sugar next year keep for two crops, the owners have also said as they are old now they might not want back so we have a option to buy at 20,000 baht a rai.

next village we have 8 rai rented at 50,000 baht same deal but sugar not great sugar but we are still keeping and feeding and will chop later this year.

[pwm]

Thanks for the mostly constructive feedback everyone. Have not had a chance to go and look at this property yet, but may be able to do so over the next few weeks.

It's possible it's a translation issue - his English is better than my Thai by a long stretch, but not exactly fluent. I have however talked it through at length (including writing the various figures down so there's no pronunciation/translation issues) and he's still confirming the same numbers!

It's not a scam - I am not Thai (and not married) and therefore can't buy or own land, and he's not selling anyway, nor am I interested - I'm no farmer!

I have no additional input at this point other than apparently approx. 30 people are working this property on a daily basis, so I am now really curious as to exactly what they're doing. That seems like a lot of people on such a small plot - perhaps they really are doing something unusual...

Anyway, no point speculating more - I will report back when I have some additional facts.

Regards,

Pat.

[PhuketSakura]

A Thai friend of mine has told me that he owns 7 rai of farmland in Pa Mok (near main road, has power and access to Chao Phraya river water). He told me he currently rents this land out to a tenant/farmer at 30000 baht/month, and has done so (at the same rate!) for more than 8 years. Is that for real? From what I know, land like this sells for approx 150k baht/rai, meaning purchase price would be paid back in under 3 years - after that, gravy! In other words (forgetting interest on purchase if necessary), this property is yielding approx 35%/annum!

I know the land is highly productive - farmers there typically grow vegetables year-round, but...

I'm having trouble believing this story - could it be real, or am I missing something?

Hi

in side the land have what ? maybe price to high...:-) i just rent 8 rai in Burirum for 50,000 baht/year