Pls Explain How Farmers Finance Themself

[Maizefarmer]

Sunfarmer

Your comments regards the problem(s) facing farmers at the natural resource level is indeed largely one associated with irrigation and water.

However, some additional points need to be kept in mind to put this into perspective – and it’s a perspective that simply was not appreciated at the time of construction (of the canal and water storage system n the NE of Thailand), as it is understood and appreciated today.

The NE of Thailand has a canal infrastructure as good as it can get, as well as an excellent water storage capacity. The problem is, if you haven’t got the rainfall in the first place then no matter how sophisticated the storage and distribution system is – it just ain’t going to work.

The storage and canal infrastructure that Thailand invested in, in the NE was before the changes we are experiencing now climate were understood (and it’s not getting any better)– you just have to go visit the canal and dam facilities in the dry season: the canals are dry and the dams are low – and for what it worth, was also before that sleeping giant net door called China, started to wake up.

In short: the investments made to support rice farming (all the area is good for really), were made against a background of circumstance that were not what they are today, and neither were they anticipated.

But, even if they were, I’m not sure they could have been accommodated for.

Let’s look at Grameen Bank’s micro-finance and why there is such a low rate of default.

G/bank makes it’s microfinance available to borrowers – whatever the idea, so long as they satisfy the due-dilligence requirements – and one of the reasons why it’s lending is as successful as it is, is because it does undertake due-dilligence - relying to a large extent on the ties between family members, and the inter-community bonds amongst it’s clients as part of the loan risk assement (the theory been that if a borrower has strong enough ties to the area and community, they are not likely to be going anywhere). This method of risk assessment features more prominently with Grameen Bank than it does with the big name clearing house banks – after all, many of its clients don’t have credit records of any sort to start with.

The social and economic structures in places like rural India and Bangladesh, are such that this can be an effective risk assessment methodology.

In addition, the opportunities and diversity in these communities is very different to the “like for like” conditions to be found in NE Thailand. As well, it should not be forgotten that the population density is so much greater in those countries than it is in Thailand.

So what’s my point? – well, it’s a theory – and I’d appreciate the benefit of your expertise and knowledge in commenting.

The microfinance model that Grameen is so well known for, is a model that is suitable for the places and the communities that live in them. By contrast, the above characteristics are very much “weaker/more diluted” in the NE of Thailand i.e. the local economy and turnover potential which supports the Grameen micro-finance model on a local level in the above countries, just does not exist in the NE of Thailand.

I'd like to hear what you have to say on the above.........

The problems facing Thai farmers are easy to quote (corruption, education, oppurtunity, water, land ownership, farmgate prices .... ) and on and on we could go. To discuss them in any meaningful way will keep this topic going for weeks.