Return On Investment Per Rai

[SGD]

Not thinking about only having one rai but an unspecified amount, enough to benefit from at least some decent economies of scale and thinking about what sort of yields are being achieved per rai from different crops or usage ?

[IsaanAussie]

I'll start off with rainfed rice, single crop per year.

Yield 520 kgs per rai. Average return after direct costs 4,500 baht per rai per year. Cost of land when purchased 20,000 baht per rai. Depreciation on equipment allocation per rai 2,500 baht pa.

IA

[Foreverford]

I'll start off with rainfed rice, single crop per year.

Yield 520 kgs per rai. Average return after direct costs 4,500 baht per rai per year. Cost of land when purchased 20,000 baht per rai. Depreciation on equipment allocation per rai 2,500 baht pa.

IA

Same kind of rice crop. Our first year with 4 farms, the one organic conversion 14 rai plot yielded a bit less than I/A at about 475 kg per rai and profits at just over 4000 baht per rai with no factoring for depreciation or land costs and one time prep of land. The three other farms managed by my f-i-l at a total of near 55 rai saw us drop 290,000 baht due to old methods of production and chem costs.

You are going to get a lot of apples and oranges (different results based on methods, location and annual weather as being some of the many factors that will affect what appears to be the same crops). Fords a Flailin'

[lberk]

First off, new to the forum.

I have been traveling back and forth to Thailand from the US for the past 4 years and now am planning to spend 3/4s of my time in Thailand. Wife is professor at SUT, and I am considering my options as to how to keep busy carrying on a business here. I am considering rice farming - but not the typical scenario. I have been studying the issues surrounding salt contamination of soils and how it is reducing or even eliminating yields. I believe there are short-term solutions and am wondering if one can buy abandoned rai at a substantial discount. As the cost of remediation is anywhere from (USD) $30 to $120 per rai I am leery of paying too much for the raw land.

Additionally, has anyone had experience using SRI techniques for rice production? All of the studies I have read indicate anywhere from 2 to 3 times normal yields using less seed, fertilizer and pesticide/herbicides per rai. Labor inputs might be somewhat greater, but the yields, if true, would substantially offset additional labor inputs.

Appreciate the feedback.

[lberk]

Previous post, posted twice so am removing it herewith.

Edited March 22, 2011 by lberk

[oldestswinger]

Around Phimai there is extensive salt production with consequent degradation of the rice fields. However, there are also some fields producing excellent rice crops under an initiative of the King. With the proximity of SUT to Phimai, your wife should be able to obtain plenty of information about this.

[IsaanAussie]

First off, new to the forum.

I have been traveling back and forth to Thailand from the US for the past 4 years and now am planning to spend 3/4s of my time in Thailand. Wife is professor at SUT, and I am considering my options as to how to keep busy carrying on a business here. I am considering rice farming - but not the typical scenario. I have been studying the issues surrounding salt contamination of soils and how it is reducing or even eliminating yields. I believe there are short-term solutions and am wondering if one can buy abandoned rai at a substantial discount. As the cost of remediation is anywhere from (USD) $30 to $120 per rai I am leery of paying too much for the raw land.

Additionally, has anyone had experience using SRI techniques for rice production? All of the studies I have read indicate anywhere from 2 to 3 times normal yields using less seed, fertilizer and pesticide/herbicides per rai. Labor inputs might be somewhat greater, but the yields, if true, would substantially offset additional labor inputs.

Appreciate the feedback.

I doubt that the condition of the soil plays a major part in setting the price, more to do with the proximity to made roads and water. They just keep dumping on more chemical fertiliser each year with the resultant salt buildup.

SRI is a great solution for Thailand and was effectively practiced here when village populations were higher. Today you can machine plant to replace the labour if you are prepared to invest in the trays etc for germinating the seed. It isnt the labour cost, more the availability. IMHO

Isaan Aussie

[lberk]

First off, new to the forum.

I have been traveling back and forth to Thailand from the US for the past 4 years and now am planning to spend 3/4s of my time in Thailand. Wife is professor at SUT, and I am considering my options as to how to keep busy carrying on a business here. I am considering rice farming - but not the typical scenario. I have been studying the issues surrounding salt contamination of soils and how it is reducing or even eliminating yields. I believe there are short-term solutions and am wondering if one can buy abandoned rai at a substantial discount. As the cost of remediation is anywhere from (USD) $30 to $120 per rai I am leery of paying too much for the raw land.

Additionally, has anyone had experience using SRI techniques for rice production? All of the studies I have read indicate anywhere from 2 to 3 times normal yields using less seed, fertilizer and pesticide/herbicides per rai. Labor inputs might be somewhat greater, but the yields, if true, would substantially offset additional labor inputs.

Appreciate the feedback.

I doubt that the condition of the soil plays a major part in setting the price, more to do with the proximity to made roads and water. They just keep dumping on more chemical fertiliser each year with the resultant salt buildup.

SRI is a great solution for Thailand and was effectively practiced here when village populations were higher. Today you can machine plant to replace the labour if you are prepared to invest in the trays etc for germinating the seed. It isnt the labour cost, more the availability. IMHO

Isaan Aussie

Issan Aussie -

You are right about the fertilizers, but irrigation also plays a major part in salt and sodic contaminations. When you say one can plant using mechanized methods are you indicating that planting can be done under the SRI protocols in re: depth of seedling, orientation of roots, etc.?

Thanks

lberk

[lberk]

Around Phimai there is extensive salt production with consequent degradation of the rice fields. However, there are also some fields producing excellent rice crops under an initiative of the King. With the proximity of SUT to Phimai, your wife should be able to obtain plenty of information about this.

Thanks, appreciate the response. I have been reading of some farmers who are abandoning rice production near these salt producers. I was thinking that these same fields would be prime targets for salt remediation efforts I have in mind. I think I may see if SUT's Agronomy dept might have some leads If you know of any farmers in this situation let me know.

lberk

[IsaanAussie]

First off, new to the forum.

I have been traveling back and forth to Thailand from the US for the past 4 years and now am planning to spend 3/4s of my time in Thailand. Wife is professor at SUT, and I am considering my options as to how to keep busy carrying on a business here. I am considering rice farming - but not the typical scenario. I have been studying the issues surrounding salt contamination of soils and how it is reducing or even eliminating yields. I believe there are short-term solutions and am wondering if one can buy abandoned rai at a substantial discount. As the cost of remediation is anywhere from (USD) $30 to $120 per rai I am leery of paying too much for the raw land.

Additionally, has anyone had experience using SRI techniques for rice production? All of the studies I have read indicate anywhere from 2 to 3 times normal yields using less seed, fertilizer and pesticide/herbicides per rai. Labor inputs might be somewhat greater, but the yields, if true, would substantially offset additional labor inputs.

Appreciate the feedback.

I doubt that the condition of the soil plays a major part in setting the price, more to do with the proximity to made roads and water. They just keep dumping on more chemical fertiliser each year with the resultant salt buildup.

SRI is a great solution for Thailand and was effectively practiced here when village populations were higher. Today you can machine plant to replace the labour if you are prepared to invest in the trays etc for germinating the seed. It isnt the labour cost, more the availability. IMHO

Isaan Aussie

Issan Aussie -

You are right about the fertilizers, but irrigation also plays a major part in salt and sodic contaminations. When you say one can plant using mechanized methods are you indicating that planting can be done under the SRI protocols in re: depth of seedling, orientation of roots, etc.?

Thanks

lberk

Iberk,

I assume so. Japanese style rice planting machines seem to be appearing locally in the dealers yards. It makes sense as the days of seeing groups of villagers hand planting seem to be over. The saving in seed costs and increased returns must push rice production to become more efficient. The unavailability of labour means that only broadcast seeding remains an option to mechanisation.

Generally on the SRI issue, I did a lot of research a few years ago, looking at equipment as well as techniques. At that time there were secondhand imported Japanese planters available but I without spares they would have been impossible to maintain. Today things should be different. Taking last seasons rice harvest cost comparison as an indicator, it is apparent that if manual harvesting is becoming uneconomic, so must be manual planting.

It would not surprise me to see contract planting operators growing seedlings and machine planting rice at a given price per rai within the next year or so. Especially in the rain fed rice areas such as Isaan. In makes sense, no labour and the only cash available being made by people who have jobs away from the farm.

Isaan Aussie