Best Investment To Make In Farming In Isaan ?

[junglejimbo]

hi,

i would like to invest money into something in isaan. ive commitments in uk but if they dont work out im moving back to isaan and staying here. i know nothing about farming but obviously my wife and extended family are farmers and will know what to do. i have asked my wife what she thinks and she told me there is good money in man/cassava ? or pig farming ? was told frog farming but my wife told me thai,s do not like to eat the frogs from farming and would eat them when caught in fields naturally . i have 4 m baht sitting in a bank here doing nothing and i would like to make my home here in isaan ( kranuen - thakanto area ) ive allready built house here etc so this is where i want to be but need to invest in something. ive asked my wife to put the feelers out about buying land in this area , that was a few weeks ago. still she hasnt come up with anything. buying land, is it all word of mouth with the locals here ?

sometimes i think she,s just happy to live off our savings so maybe its a non starter from the begining but i would love to hear some ways of investing money in isaan. just so i can make more enquiries myself.

thanks

Edited July 20, 2012 by junglejimbo

[jubby]

Junglejimbo,

I suspect there's some money to be made in most things given the sheer hardwork and determination shown by lots of guys and there wives on here.

but if your wife does want to sit back and live off your savings, and who could really blame her. then don't even think about anything more than a Hobby farm. Don't take it the wrong way, my wife hates farming, don't think she's planted anything in the 15 or so years I've known her. surprisingly enough we have thousands upon thousands of things we've managed to plant despite that fact and with no real direction. but it can feel like banging your head against a brick wall sometimes, or getting blood out of a stone. having said that she's a good woman and a good mother and if worst came to worst she'd go back to the UK and do a cleaning Job rather than farm here

[loong]

i know nothing about farming but obviously my wife and extended family are farmers and will know what to do.

Actually I am amazed at how little knowledge most of the Thai farmers that I meet have.

What you have is generations of Isaan people that have relied on farming that have managed to lose their land. 99% are extremely poor. That should tell you something about the investment potential here.

If you have 4Mill to invest, I strongly suggest that you do a trial run with a very small %, maybe 5%. This will allow you to see if the family are actually interested in building a good business or not. Invest all your money, relying on the family's knowledge will quite possibly result in you losing everything.

[TommoPhysicist]

sometimes i think she,s just happy to live off our savings so maybe its a non starter from the begining but i would love to hear some ways of investing money in isaan. just so i can make more enquiries myself.

To make money from farming in Thailand.

1) You need to have experience.

2) Your wife needs to want to do it.

3) Hard work and dedication from both of you.

From what you have posted, any money you invest in farming will be a total write off, with no profit at all.

Don't do it.

Edited July 20, 2012 by TommoPhysicist

[jamescollister]

JJ 4 mil Baht may sound a lot, but in real terms it is not enough to really do anything big enough to turn a reasonable profit. Things like cassava are hit and miss, one year you win the next you lose.

If the wife's family are farmers, how much land do they farm and how rich are they, there will lie the answer to your question.

Not saying it can't be done, but you need to be smart and know your onions so to speak.

What do you do in the UK and can that skill be used here. You will never get anything going here as an absentee farmer. Best of luck Jim

[kwonitoy]

If you know nothing about farming then Thailand is not a good spot to learn, just as countless people that have never run a business come here and try to be business owner's and fail

Just the fact that you will have trouble getting your ideas across to the locals because of the launguage barrier and the locals resistance to trying anything not "same same as before"

I've been at it for 6 years, grew up on a farm, the wife was on board 100% (and still is) and it's been difficult. SHE gets pissed off at the locals and how stupid her family is so you can imagine how I feel sometimes

It's been a lot of hard work on both our parts but we are on the money making end of things now so it's starting to pay off.

Your not going to poke some seeds in the ground and make money the first year.

Also keep in mind your wife's idea of "good money" and yours.

My wife and I have been together for 15 years, and she knows what my offshore income is but she'll sell the recycled bottles and be all smiles about making good money and it'll turn out to be 87 baht, there's Isaan good money and western style good money.

Tommo nailed it in less words than me.

[David Peters]

If you know nothing about farming then Thailand is not a good spot to learn, just as countless people that have never run a business come here and try to be business owner's and fail

Just the fact that you will have trouble getting your ideas across to the locals because of the launguage barrier and the locals resistance to trying anything not "same same as before"

I've been at it for 6 years, grew up on a farm, the wife was on board 100% (and still is) and it's been difficult. SHE gets pissed off at the locals and how stupid her family is so you can imagine how I feel sometimes

It's been a lot of hard work on both our parts but we are on the money making end of things now so it's starting to pay off.

Your not going to poke some seeds in the ground and make money the first year.

Also keep in mind your wife's idea of "good money" and yours.

My wife and I have been together for 15 years, and she knows what my offshore income is but she'll sell the recycled bottles and be all smiles about making good money and it'll turn out to be 87 baht, there's Isaan good money and western style good money.

Tommo nailed it in less words than me.

I agree with Tommo.

If you don't know about farming don't do it. Farming in Isarn is only profitable if you and your wife do it yourselves. Hiring people to weed and cultivate is getting more and more expensive-up to 300 baht/day plus food in some places.

Do you like to get up early? Does your wife like to get up early? Early I mean 5am. If you plant rubber then maybe 3am.

No one makes money from cassava unless one does everything oneself - planting, weeding, fertilizing and then digging, cleaning, drying. Really hard hot work.

Are you fit? How old are you? Is your wife fit?

For a easy life with 4 m baht, built a few of these village one room "resorts" but do the cleaning yourself.

Good luck.

[jamescollister]

If you know nothing about farming then Thailand is not a good spot to learn, just as countless people that have never run a business come here and try to be business owner's and fail

Just the fact that you will have trouble getting your ideas across to the locals because of the launguage barrier and the locals resistance to trying anything not "same same as before"

I've been at it for 6 years, grew up on a farm, the wife was on board 100% (and still is) and it's been difficult. SHE gets pissed off at the locals and how stupid her family is so you can imagine how I feel sometimes

It's been a lot of hard work on both our parts but we are on the money making end of things now so it's starting to pay off.

Your not going to poke some seeds in the ground and make money the first year.

Also keep in mind your wife's idea of "good money" and yours.

My wife and I have been together for 15 years, and she knows what my offshore income is but she'll sell the recycled bottles and be all smiles about making good money and it'll turn out to be 87 baht, there's Isaan good money and western style good money.

Tommo nailed it in less words than me.

I agree with Tommo.

If you don't know about farming don't do it. Farming in Isarn is only profitable if you and your wife do it yourselves. Hiring people to weed and cultivate is getting more and more expensive-up to 300 baht/day plus food in some places.

Do you like to get up early? Does your wife like to get up early? Early I mean 5am. If you plant rubber then maybe 3am.

No one makes money from cassava unless one does everything oneself - planting, weeding, fertilizing and then digging, cleaning, drying. Really hard hot work.

Are you fit? How old are you? Is your wife fit?

For a easy life with 4 m baht, built a few of these village one room "resorts" but do the cleaning yourself.

Good luck.

If I could find people to work for 300 Baht a day I would be happy, want a few guys/girls to collect latex in the morning. Bring it to the factory [ I supply the motorbike and sidecar ] they make it into sheet. 7am start , finished by noon or 1. Best I can get is 500 Baht a day out here. Jim

[ozzydom]

If you know nothing about farming then Thailand is not a good spot to learn, just as countless people that have never run a business come here and try to be business owner's and fail

Just the fact that you will have trouble getting your ideas across to the locals because of the launguage barrier and the locals resistance to trying anything not "same same as before"

I've been at it for 6 years, grew up on a farm, the wife was on board 100% (and still is) and it's been difficult. SHE gets pissed off at the locals and how stupid her family is so you can imagine how I feel sometimes

It's been a lot of hard work on both our parts but we are on the money making end of things now so it's starting to pay off.

Your not going to poke some seeds in the ground and make money the first year.

Also keep in mind your wife's idea of "good money" and yours.

My wife and I have been together for 15 years, and she knows what my offshore income is but she'll sell the recycled bottles and be all smiles about making good money and it'll turn out to be 87 baht, there's Isaan good money and western style good money.

Tommo nailed it in less words than me.

I agree with Tommo.

If you don't know about farming don't do it. Farming in Isarn is only profitable if you and your wife do it yourselves. Hiring people to weed and cultivate is getting more and more expensive-up to 300 baht/day plus food in some places.

Do you like to get up early? Does your wife like to get up early? Early I mean 5am. If you plant rubber then maybe 3am.

No one makes money from cassava unless one does everything oneself - planting, weeding, fertilizing and then digging, cleaning, drying. Really hard hot work.

Are you fit? How old are you? Is your wife fit?

For a easy life with 4 m baht, built a few of these village one room "resorts" but do the cleaning yourself.

Good luck.

If I could find people to work for 300 Baht a day I would be happy, want a few guys/girls to collect latex in the morning. Bring it to the factory [ I supply the motorbike and sidecar ] they make it into sheet. 7am start , finished by noon or 1. Best I can get is 500 Baht a day out here. Jim

Applicants line up behind me please

[David48]

Just some cheeky, but well meant advice.

If you want to get in a small farming enterprise do the following ...

Buy a large Farm in the first year.

Remember that you are a foreigner and know more then the local Thai, invest heavily in machinery.

It's darn hot here in Thailand, so hire some local help. Make sure you get the good ones so pay a little more ... they’re worth it and you know you could never labour so cheap back home.

Plant your crop, buy your animal, your special feed etc.

The rains have been good ... a bumper crop, I see you rubbing your hands already.

Still hot ... hire some more labour ... judging from last years prices, you can still turn a profit.

Off to market ... WHAT ... 45/kilo?? they were paying 120 Baht last year ... you did your research.

Sigh

OK ... no problem, next year will be better, better returns ...

1 year

2 years

3 years ... try something new ... Plan A did not work!

5 years later, still struggling to turn a profit ... down to your last 500K Baht .. where did it all go?

Your lady and you split ... what the land is yours darling ... what about all the money I tipped into it.

Six years later, 500K Baht .. the dream is crushed ... off to Pattaya and Old Age Pension for you sunshine.

Buy a big farm and within a few years ... you can easily be into a small farm, or out on your ass.

Sure ... a cheeky assessment I know but seriously ... you would not be the first, nor I am sure, the last to till this road.

Maybe an alternative could be, find a small nice holding, arable soil, power. 200k

Build the nice home 300k

Better still, rent, don't buy the first year or two ... look around for your twin brother in Issan ... the one who didn't have good advice and buy his farm.

Spent 2 million ... desperate, can buy now for 500k

Discover the small joys that a Hobby Farm can bring.

Some here do make a marginal living ... some a little better.

'Some' is an important word ... better odds for you as a Farming Virgin if I could say 'most' make money Farming ... but it is closer to 'few' or 'some, rather then 'most'

[David48]

The reason for the 'hard man' approach by me is that you said that magic word 'Invest'.

Investing means firstly that you

1. remain in control of the asset
   
2. that there is a profitable return on the asset (ROE, Return On Equity) and
   
3. at the end of the day you have a saleable asset to sell.
   

Unfortunately, when you buy that Farm ... you definitely lose #1, #2 is unlikely, as is #3

Others experience here may vary ... they are the smart Farmers, but, at the end of the day, they still don't 'own' the assets, even though they might 'control' it.

So, be a hard ass, buy cheaply, retain the majority of your money in an investment such as bonds or shares which pay a return/dividend ... or a term deposit, if you think the previous suggestion is risky.

So spend a lazy million on a modest Hobby Farm, learn to improve the soil, grow some things, keep your Farm inputs ( materials, labour, grain etc) to a bare minimum.

With the remaining 3 million Baht … into an investment, a Term Deposit earning 4%.

That gives you 120,000 guaranteed each year. Combined with some fruits of your labour at the Farm … a comfortable living.

Just my thoughts ... amongst many other you will undoubtedly receive.

OH … BTW, 4 million Baht in the Bank is not ‘just doing nothing’ … it’s your comfortable sleep at night money ...

[bergen]

The reason for the 'hard man' approach by me is that you said that magic word 'Invest'.

Investing means firstly that you

1. remain in control of the asset
   
2. that there is a profitable return on the asset (ROE, Return On Equity) and
   
3. at the end of the day you have a saleable asset to sell.
   

Unfortunately, when you buy that Farm ... you definitely lose #1, #2 is unlikely, as is #3

Others experience here may vary ... they are the smart Farmers, but, at the end of the day, they still don't 'own' the assets, even though they might 'control' it.

So, be a hard ass, buy cheaply, retain the majority of your money in an investment such as bonds or shares which pay a return/dividend ... or a term deposit, if you think the previous suggestion is risky.

So spend a lazy million on a modest Hobby Farm, learn to improve the soil, grow some things, keep your Farm inputs ( materials, labour, grain etc) to a bare minimum.

With the remaining 3 million Baht … into an investment, a Term Deposit earning 4%.

That gives you 120,000 guaranteed each year. Combined with some fruits of your labour at the Farm … a comfortable living.

Just my thoughts ... amongst many other you will undoubtedly receive.

OH … BTW, 4 million Baht in the Bank is not ‘just doing nothing’ … it’s your comfortable sleep at night money ...

Some good advice here from David48!

[somo]

Crickey there's a lot of doom and gloom here.

Junglejim must be in despair of ever earning a living which makes me wonder what all the other posters are doing.

Are you all independently wealthy and happily losing money farming or are any of you making enough to live?

I disagree with a lot of what has been said above.

You can make money out of cassava and not lift a finger yourself.

You can make money farming and not live on the farm

Wages in many areas are 200 Baht/day

You can find people to trust and partner with.

There is a lot of negativity surrounding farming because many people have been burnt but if you

take a common sense and practical approach it can be rewarding. Start small would be my advice and the learning process will then not be too expensive.

Try to find land to rent or if you buy don't pay more than 40k/rai for agricultural land. No need to invest more than 200-300k to give it a good go and learn.

Persistence is important as for sure things do go wrong but if you keep at it the things turn around and then

[TommoPhysicist]

I make money out of farming.

My total investment 125k ........ paid off the loan on her farm 100k ........ upgraded the living accom. proper toilet, electric shower, furniture.

Better to find a woman that already has a house and farm, plenty of those around.

That's the right way to do it.

[David48]

Hi there somo, with your involvement, this might evolve into an interesting discussion.

And, before we start, I have respect for you from your other missives here.

One of the OP's opening statement was "i know nothing about farming"

Ponder that for a second ...

Secondly the OP said that he wanted to 'invest'

So 3 or 4 million baht is immediately transferred to another party and he has no control over that what so ever ... that's not an investment.

Remember the Visa condition of 'no work' ...

So, my comments are referring to what the OP wrote ... not to ex-pat Farming life in general in Thailand.

However, you might hear the success stories, but rarely the 'I've done me dough' stories because of the loss of face.

But, from above, this could, if we remove the personalities form the conversation, turn into an interesting debate, over and above the OP's question ...

.

Edited July 21, 2012 by David48

[David48]

Just some more stuff somo.

You say that you can make money out of cassava, and maybe a smart operator like you can, however, what are the return on the cassava crop averaged over say 10 years to remove the seasonal fluctuations?

One thing that Farmers and Business [people in general never take account of is the ‘Opportunity cost of money’. If the money wasn’t invested in the Farm, what risk free’ return could you have gotten with that money if it wasn’t invested in the Farm.

Wages in Issan might be 200 Baht a day … but try getting workers.

Difficult from what I read here.

You say that you can find people that you ‘trust’

What greater ‘trust’ is there then marriage.

Trust is a transient thing and a two way street.

Once one of the parties decides to drive the other way … that trust is gone.

You well know that Thailand is littered with the shattered dreams of men here who have loved, married bought the property … and lost it all.

[David48]

Following on from above ...

I fully agree with you somo that starting small is a good idea.

Renting first is a great idea. See if you like the cut of the thread by renting.

But renting is not ‘investing and that is what the OP asked and what I replied to.

I come from a Farming background in Australia.

Maybe you have visited the Farming thread called the Fish and Shrimp Farm that the gf’s parents run.

So I’m not new to the game.

You could not find a more positive person then me (well maybe one or two !) ... my glass is half full.

I just didn’t want the OP to contemplate this venture with his eyes ‘half open’.

Wishing that his eyes are fully open to the path that may lay ahead ...

So, come you good Farming Folk, please contribute to what could be an interesting discussion ... and a few home truths revealed.

.

[Gary A]

You don't need prior farming experience from your home country. In fact you don't want prior experience. Unless you do absolutely everything by yourself, the Thais will still do everything their way.

You may be able to make a living from farming but the farm will have to be efficient and well diversified. It will require long hours and hard work that few farangs are willing to do. I'm very happy that I don't require any income from our farming operations. Actually my wife must make some money but I don't ask how much. Whatever she makes is hers as long as the operation costs me nothing. She did borrow some money from me to convert the rice paddies into suitable sugar cane ground. It took a couple years but I did get my money back.

I also agree that it is nearly impossible to find good farm help. My wife works her little butt off and the local ladies were forced to form sort of a co-op. Yes, ladies. The local men are paid to prepare the land and run the thresher but the ladies do everything else. I'd guess that my wife cut 70 percent of her sugar cane by herself. Her nephew hauled it to the weigh station with my wife's tak tak and trailer.

[David48]

Tell me Gary A, if the "opportunity cost of capital" was taken into account, would the Farm still turn a small profit?

Or look at it the other way ... if you had to have a Bank Loan to buy the Farm, would the loan repayments be less then the modest profit made (after all the expenses)?

[Gary A]

Tell me Gary A, if the "opportunity cost of capital" was taken into account, would the Farm still turn a small profit?

Or look at it the other way ... if you had to have a Bank Loan to buy the Farm, would the loan repayments be less then the modest profit made (after all the expenses)?

I seriously doubt it. You would make more money renting the land and farming it. Farm land in this area rents for 500 to 800 baht per rai per year. I doubt that you could buy chanote titled land for 50,000 baht per rai. You couldn't pay the interest much less the principle by farming it.

[jamescollister]

OK the OP says he has 4 mil, Somo you say you can make money with cassava. I am not cassava farmer, tried some years back and ended up letting it rot in the ground. Anyway how many rai would you need to make a living, without getting into the land price argument, deduct the land from his 4 mil. Now I am guessing you need more than a spade and a hoe for that size of land, plus a pickup truck to shift fertilizer and take the crop to the buyers. Subtract tractor, truck and and costs for the first harvest.

4 mil Baht is not going to cut it. Jim

[somo]

OK here goes with my story that may be a bit more encouraging for junglejim.

Just over 4 years ago we invested about 500k buying and renting some land.

We grew casssava and employed people to do all the work.

We have already recouped the 500k and now have an effectively passive income of about 130k/year from cassava.

Not a lot but better than a kick in the teath and effortless.

This is an average and fluctuates according to all the usual farming variables.

My original plan was to reinvest the money as it came back in more land but that has been tricky to find.

This inability to find more to buy or rent has been one of the few disadvantages of being an absentee farmer.

We live in Bangkok and go home when we feel like it. It seems you need to be there at the time the land becomes available to snap it up.

Instead my wife has a small loan business helping other farmers. There was another thread on this matter that turned nasty but i am not shy to say

it is mutually compatible with our farming. We focus on helping those that work for us and get as much a buzz out of seeing them do well as i do the cassava growing.

Our cassava production will decline after this year as we have to return the 15 rai we rented but who knows when another chance may come our way.

I can't talk for other crops and animal farming is not my thing but cassava has been good for me.

Another point worth making is that if I had come here to ask advice first then judging by the above posts I would never have gone ahead with my littl project!

Sometimes you just have to go for it. Don't jump in with both feet, step by step is better.

[somo]

OK the OP says he has 4 mil, Somo you say you can make money with cassava. I am not cassava farmer, tried some years back and ended up letting it rot in the ground. Anyway how many rai would you need to make a living, without getting into the land price argument, deduct the land from his 4 mil. Now I am guessing you need more than a spade and a hoe for that size of land, plus a pickup truck to shift fertilizer and take the crop to the buyers. Subtract tractor, truck and and costs for the first harvest.

4 mil Baht is not going to cut it. Jim

You don't need to buy anything other than the land. Rent the tractor tuk tuks etc I own no capital equipment.

1 rai needs about 3,500 (possible 4,000) spent on it to produce about 4 tons of cassava which will then cost about 2000 Baht to harvest and transport to the buyers. So 5,500 total cost. Average price last few years has been about B2.50/kg so one rai returns about 10,000 giving a profit of 4,500/rai

It is however important to be able to choose when to harvest to get a decent price.

It is worth noting that the investment other than land is only about 3,500/rai as the 2000 harvesting cost comes out of the sale of the crop. investing 3,500 for a return of 4,500 is a good return.

[jubby]

Somo, all your post say 'us' and 'we' making it clear your wife was onboard with your cassava operation. The OP didn't seem to be too sure which is I think where the negativity came in. I've planted a bit of cassava myself, no fertilizer, no weeding, nothing. It was mainly just to supplement the feed for the few pigs we have. I must say I'm amazed by the size of the roots on some of these plants. with a professional team managing it, I don't doubt you can make a reasonable profit.

[sjefrie]

Thai minimum wages 2012 per day and area

From 1 April 2012

Baht 300 for Bangkok, Phuket, Nakorn Pathom, Nonthaburi, Pathum Thani, Samut Prakarn and Samut Sakorn

Baht 273 for Chonburi

Baht 269 for Chachoengsao and Saraburi

Baht 265 for Ayudhya

Baht 264 for Rayong

Baht 259 for Ranong

Baht 258 for Phang-nga

Baht 257 for Krabi

Baht 255 for Nakorn Ratchasima and Prachinburi

Baht 254 for Lopburi

Baht 252 for Kanchanaburi

Baht 251 for Chiangmai and Ratchburi

Baht 250 for Chantaburi and Petchburi

Baht 246 for Songkhla and Singhburi

Baht 244 for Trang

Baht 243 for Nakorn Srithammarat and Angthong

Baht 241 for Chumporn, Pattalung, Satun, Loei and Sakaew

Baht 240 for Prachuab Kirikhan, Yala, Surat Thani and Samut Songkram

Baht 239 for Narathiwat, Udonthani and Ubolratchathani

Baht 237 for Nakorn Nayok and Pattani

Baht 236 for Trad, Lampoon, Buengkan and Nongkai

Baht 234 for Kampaengpetch and Uthaithani

Baht 233 for Chainat, Supanburi, Kalasin and Khonkaen

Baht 232 for Chiangrai, Buriram, Nakorn Sawan, Petchaboon, Yasothorn, Roiet and Sakolnakorn

Baht 230 for Chaiyapoom, Mukdahan, Lampang, Sukhothai and Nongbualampu

Baht 229 for Nakornpanom

Baht 227 for Pichit, Pitsanuloke, Prae, Mahasarakam, Maehongson, Utaradit and Amnatcharoen

Baht 226 for Tak and Surin

Baht 225 for Nan

Baht 223 for Srisaket

Baht 222 for Payao

The above rates are subject to change from time to time.

http://thailawyers.com/thai-laws/thai-labor-law/

[jamescollister]

OK the OP says he has 4 mil, Somo you say you can make money with cassava. I am not cassava farmer, tried some years back and ended up letting it rot in the ground. Anyway how many rai would you need to make a living, without getting into the land price argument, deduct the land from his 4 mil. Now I am guessing you need more than a spade and a hoe for that size of land, plus a pickup truck to shift fertilizer and take the crop to the buyers. Subtract tractor, truck and and costs for the first harvest.

4 mil Baht is not going to cut it. Jim

You don't need to buy anything other than the land. Rent the tractor tuk tuks etc I own no capital equipment.

1 rai needs about 3,500 (possible 4,000) spent on it to produce about 4 tons of cassava which will then cost about 2000 Baht to harvest and transport to the buyers. So 5,500 total cost. Average price last few years has been about B2.50/kg so one rai returns about 10,000 giving a profit of 4,500/rai

It is however important to be able to choose when to harvest to get a decent price.

It is worth noting that the investment other than land is only about 3,500/rai as the 2000 harvesting cost comes out of the sale of the crop. investing 3,500 for a return of 4,500 is a good return.

On those numbers the OP would need over 200 rai of land to make a reasonable living. Jim

[rgs2001uk]

OK the OP says he has 4 mil, Somo you say you can make money with cassava. I am not cassava farmer, tried some years back and ended up letting it rot in the ground. Anyway how many rai would you need to make a living, without getting into the land price argument, deduct the land from his 4 mil. Now I am guessing you need more than a spade and a hoe for that size of land, plus a pickup truck to shift fertilizer and take the crop to the buyers. Subtract tractor, truck and and costs for the first harvest.

4 mil Baht is not going to cut it. Jim

You don't need to buy anything other than the land. Rent the tractor tuk tuks etc I own no capital equipment.

1 rai needs about 3,500 (possible 4,000) spent on it to produce about 4 tons of cassava which will then cost about 2000 Baht to harvest and transport to the buyers. So 5,500 total cost. Average price last few years has been about B2.50/kg so one rai returns about 10,000 giving a profit of 4,500/rai

It is however important to be able to choose when to harvest to get a decent price.

It is worth noting that the investment other than land is only about 3,500/rai as the 2000 harvesting cost comes out of the sale of the crop. investing 3,500 for a return of 4,500 is a good return.

On those numbers the OP would need over 200 rai of land to make a reasonable living. Jim

Assuming he bought land at 50k per rai it would take him over 10 years just to recoup his outlay.

[somo]

OK the OP says he has 4 mil, Somo you say you can make money with cassava. I am not cassava farmer, tried some years back and ended up letting it rot in the ground. Anyway how many rai would you need to make a living, without getting into the land price argument, deduct the land from his 4 mil. Now I am guessing you need more than a spade and a hoe for that size of land, plus a pickup truck to shift fertilizer and take the crop to the buyers. Subtract tractor, truck and and costs for the first harvest.

4 mil Baht is not going to cut it. Jim

You don't need to buy anything other than the land. Rent the tractor tuk tuks etc I own no capital equipment.

1 rai needs about 3,500 (possible 4,000) spent on it to produce about 4 tons of cassava which will then cost about 2000 Baht to harvest and transport to the buyers. So 5,500 total cost. Average price last few years has been about B2.50/kg so one rai returns about 10,000 giving a profit of 4,500/rai

It is however important to be able to choose when to harvest to get a decent price.

It is worth noting that the investment other than land is only about 3,500/rai as the 2000 harvesting cost comes out of the sale of the crop. investing 3,500 for a return of 4,500 is a good return.

On those numbers the OP would need over 200 rai of land to make a reasonable living. Jim

Jim you seemed determined to poo poo any idea of making a go of farming. My figures are pretty much a worse case scenario. If you use the 18 month cycle suggested by khonwan your profit can shoot up. What i described is also a passive income as I farm out everything (pun intended). If I lived there all the time I would have expanded a lot more by now and started with just 500k which now produces an income of 250k/year. Step by step this will increase each year.

Would be interested to know your figures for rubber and how much you invested.

[David48]

Gentlemen, by your nature, you are strong characters, able to steel yourselves through the good and not so good times of the farming cycle.

Could I warmly suggest that we adopt this same steely resolve to discuss the economics of Farming in Thailand and not other issues.

I respect you both and have had personal contact with Jim.

[jamescollister]

Think we have the usual clash of the hobby farmer and the I want to make a living from farming in Thailand.

Somo sounds like you have a sweet it earner there. but in the end it's beer money. The OP wants to be a Thai farmer and make a living from it. If he can live like a Thai on sticky rice,frogs and bugs 4 mil Baht will get him there. If he wants a western style life and income, then 4 mil will not be even a start.

Farming is hard anywhere in the world, in a strange country with strange customs, it's harder. You don't see too many rich subsistence farmers here.

The OP would be wiser to look outside the square, the usual crops, rice, cassava, watermelons etc are not viable on a small scale.

Pigs, chickens, rabbits, frogs etc are all things that Thai farmers have as a side line for a bit of extra cash. Only the big players make real money, you can't competed.

We live in a global economy and a farm that makes a few million Baht here is not really going to be cheaper than a farm that makes the same profit in another country. 4 mil Baht wouldn't buy the farm house in the UK never mind the whole money making farm. Why would it here. Jim