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The Future Of Thai Rice Farming: Are Thai Rice Farmers Losing Heart?


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Thailand should look at countries that have had similar problems in the past and learn from what they did.

Holland for instance has been struggling in the past with a huge shortage of farmland and farmers willing to do the backbreaking work.

Furthermore, housing developments raised land prices, so less and more expensive farmland was the result.

Government therefore regulated and controlled land usage.

Land plots can be bought and sold but have a pre-determined future purpose set by the government !

Farmland should only be used and sold for farm purposes so it become unattractive for investors.

This also regulated sales prices of land plots.

Also look at new, more modern and productive ways of farming, like so called vertical farming.

If rice farming indeed is the backbone of this country, it should have full government support, in developing more modern and profitable ways of farming rice.

If rice farming becomes more profitable and less back breaking I guess more people would consider it as a future.

Right now it is indeed hard hard work and the awards are minimal.

I feel sorry for and also deeply respect current Thai rice farmers !

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I am just amazed that mechanisation is not already being used. The result of dirt cheap labour I suppose. This must happen if Thailand is to stay competitive with other nations.

There is nothing wrong with dumping chemicals onto the ground. Fertilizer is a necessity of modern day agriculture. A lot of land would become highly unproducive without it. Thailand has a lot going for it to maintain it's position as the worlds top rice producer. The current government needs to somehow stop unrealistically raising the prices per ton of rice to uncompetitive heights. The world's population is growing. More and more people will be needing food. Don't price yourself out of the market.

http://www.economist.com/node/21558633

Just as you say, artificial fertilizer is very helpful in some ways, but continuous large scale use creates imbalances in the aquatic environment. In fact, large scale modernized agriculture in general takes a toll on the land. You are right about the economic driving forces, but, in particular in the industrialized world, there is a a growing market segment who are seeking organically produced food, and it is likely that as we see more detrimental effects, demand will grow in other segments and other parts of the world as well.

A major problem in Thai agriculture is the rampant and witless use of pesticides. The government has very little control over what substances are used, and the consequences can be absolutely devastating in the long run. There have been a number of reports in the media about this throughout the years, in particular the effect of the pesticides from orange orchards wreaking havoc with the health of people downstream. Nasty stuff.

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Rice is too cheap.

The richer Thai people should pay more for it.

Thai consumers of rice are already paying more for it. The problem is that Thai rice is too expensive compared to India , Vietnam etc. Exports of Thai rice have plummeted, much cheaper rice available elsewhere.

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If the just opened Thailand up to high tech farming people wouldnt have to do this back breaking work. The country would be more producive, more efficient and people would be richer. Government subsidising and controlling prices of rice is just ridiculous and keeps the farmers poor. What's the point? Tradiion? Oh the landowners would suddenly find their land is worth a lot more.. well thats got to be bad right? Oh . humm Protectionist, conservative BS the only people who benefit are the wealthy Thais who benefit from cheaper labor, products and services NOT the poor worried about losting their jobs to machines.. it simply doesnt work like that look at any industrialised country. Then on the other hand there are certain cheap product and services i benefit from so maybe i should keep quiet

Thailand has the same problem with all of it's home produced commodities. When sugar, Palm Oil, Rice, Cassava, are in short supply it is usually due to poor management and / or corruption. Just think what Thailand's GDP could be if senior civil servants, politicians and middle men were not corrupt.

Or if they seriously cut down on all the big government controls and opened up to BUSINESS could be a wealthy country. Thai people will ALWAYS be corrupt, it is part of their culture. Thailand needs a small government / deregulation and a free market. Not being a Thaksin fan by the way but somethings he does have right although of course he wants to line his own pockets through the changeover. Bring in the combine harvesters, foreign investment and foreign ownership.. and make sure those companies pay their taxes. Id rather be an unemployed farmer on welfare than a having to work all day in a field. What is the Thai's reluctance to change? They dont have to lose their culture by opening Thailand up to business. Look at Hong Kong/Singapore.. plenty of cultural stuffs going on over there. Whats the problem?

Edited by BuffaloRescue
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What is the Thai's reluctance to change? They dont have to lose their culture by opening Thailand up to business. Look at Hong Kong/Singapore.. plenty of cultural stuffs going on over there. Whats the problem?

I believe that the last time that foreigners were allowed in and given freedom to open businesses was the chinese.

Who runs the country and controls most of the big business and wealth in Thailand now?

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I am just amazed that mechanisation is not already being used. The result of dirt cheap labour I suppose. This must happen if Thailand is to stay competitive with other nations.

There is nothing wrong with dumping chemicals onto the ground. Fertilizer is a necessity of modern day agriculture. A lot of land would become highly unproducive without it. Thailand has a lot going for it to maintain it's position as the worlds top rice producer. The current government needs to somehow stop unrealistically raising the prices per ton of rice to uncompetitive heights. The world's population is growing. More and more people will be needing food. Don't price yourself out of the market.

http://www.economist.com/node/21558633

If you haven't noticed they already have.
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Rice is too cheap.

The richer Thai people should pay more for it.

Thai consumers of rice are already paying more for it. The problem is that Thai rice is too expensive compared to India , Vietnam etc. Exports of Thai rice have plummeted, much cheaper rice available elsewhere.

Thai rice is the best in the World Thai are the best in the World Expats in Thaiand best in World

So what is wrong if we all pay 3 times more for rice to help the poor farmer and his daughter

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More Thai farmers in debt: UTCC survey

image_201208161721262EF3B207-B7F3-3032-4985C4357405AB0C.jpg

BANGKOK, Aug 16 - A survey by the University of the Thai Chamber of Commerce finds that the number of farmers in debt in the outside system has increased.

Dr Thanawat Polwichai, Director of the Center for Economic and Business Forecasting, University of Thai Chamber of Commerce (UTTC) released the survey on the debt situation of Thai farmers.

The survey finds that their average debt was more than Bt100,000 per household -- Bt103,047 per household -- of which nearly two-thirds, 60.9 per cent, was outstanding debt with financial institutions and over one-third, 39.1 per cent, was debt owed to loan sharks, with the latter increasing from the 37.7 per cent recorded earlier.

For the first group in debt to financial institutions, most farmers owe Bt50,000-75,000 and most have the ability to pay all of their debts, according to the survey.

Meanwhile, 15 per cent of farmers are in debt outside the system, owing about 50,000-100,000 baht on average. In this group, 81 per cent say they are unable to pay back their debt.

Nearly one on four debtors outside the system -- 22.4 per cent-- owe Bt40,000-50,000, with most -- 61.4 per cent – saying they cannot settle their debt.

Comparing the latest harvest to the previous one, most farmers said that profits, selling prices, yields, capital cost, spending and saving are the same, reflecting that the one-year government policy on farming product prices did not help improve farmers’ quality of living.

They still ask the government to control production costs for farmers because they have no bargaining power.

Although their products can be sold at good prices, production costs still high. Mortgage schemes for farm produce did not help reduce their debts. (MCOT online news)

tnalogo.jpg

-- TNA 2012-08-16

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When my wife was growing up in Isaan many years ago the family still used a buffalo to pull the plough. Those days are gone. As Thailand becomes wealthier and cheap labour disappears rice farming will inevitably move towards large scale industrial farming. Just as happened in other countries, the descendants of the small rice farmers will sell their land and become the urban poor.

post-70418-0-36518100-1345137214_thumb.j

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Rice is too cheap.

The richer Thai people should pay more for it.

Means testing before you buy food, brilliant idea. cheesy.gif

I can just see it all now. Every time a Thai buys rice he will have to show a card saying he is not rich before they put a price on it.clap2.gif

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More Thai farmers in debt: UTCC survey

image_201208161721262EF3B207-B7F3-3032-4985C4357405AB0C.jpg

BANGKOK, Aug 16 - A survey by the University of the Thai Chamber of Commerce finds that the number of farmers in debt in the outside system has increased.

Dr Thanawat Polwichai, Director of the Center for Economic and Business Forecasting, University of Thai Chamber of Commerce (UTTC) released the survey on the debt situation of Thai farmers.

The survey finds that their average debt was more than Bt100,000 per household -- Bt103,047 per household -- of which nearly two-thirds, 60.9 per cent, was outstanding debt with financial institutions and over one-third, 39.1 per cent, was debt owed to loan sharks, with the latter increasing from the 37.7 per cent recorded earlier.

For the first group in debt to financial institutions, most farmers owe Bt50,000-75,000 and most have the ability to pay all of their debts, according to the survey.

Meanwhile, 15 per cent of farmers are in debt outside the system, owing about 50,000-100,000 baht on average. In this group, 81 per cent say they are unable to pay back their debt.

Nearly one on four debtors outside the system -- 22.4 per cent-- owe Bt40,000-50,000, with most -- 61.4 per cent – saying they cannot settle their debt.

Comparing the latest harvest to the previous one, most farmers said that profits, selling prices, yields, capital cost, spending and saving are the same, reflecting that the one-year government policy on farming product prices did not help improve farmers’ quality of living.

They still ask the government to control production costs for farmers because they have no bargaining power.

Although their products can be sold at good prices, production costs still high. Mortgage schemes for farm produce did not help reduce their debts. (MCOT online news)

tnalogo.jpg

-- TNA 2012-08-16

footer_n.gif

"BANGKOK, Aug 16 - A survey by the University of the Thai Chamber of Commerce finds that the number of farmers in debt in the outside system has increased."

What kind of a collage is that has it got a name or a campus.

If the number outside the system what ever that is are going up what about the number inside the system and why do they not all stay in the system what ever that is?

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"BANGKOK, Aug 16 - A survey by the University of the Thai Chamber of Commerce finds that the number of farmers in debt in the outside system has increased."

What kind of a collage is that has it got a name or a campus.

If the number outside the system what ever that is are going up what about the number inside the system and why do they not all stay in the system what ever that is?

I guess 'inside the system' is the official 'loan procurement procedure' using BAAC and/or other official financial institutions which are promoted and financially supported by the government to help farmers. That would mean 'outside the system' is using so-called loansharks who charge a wee bit higher percentage in interest wink.png

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Rice is too cheap.

The richer Thai people should pay more for it.

Thai consumers of rice are already paying more for it. The problem is that Thai rice is too expensive compared to India , Vietnam etc. Exports of Thai rice have plummeted, much cheaper rice available elsewhere.

Thai rice is the best in the World Thai are the best in the World Expats in Thaiand best in World

So what is wrong if we all pay 3 times more for rice to help the poor farmer and his daughter

The 2 things that I find wrong with your post is

1 How do you make sure the money goes to the poor farmer and his daughter , and not to the miller or any of the other thieves further up the chain.

2 Everybody including the poor rice farmer has to pay 3 times as much. Not such a big problem if you are rich but if you are a Thai on a minimum wage of 178 baht a day and have to support a wife and 3 kids you don't have enough money to pay 3 times the price.

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  • 9 months later...

Where I live in peri urban Chiang Mai every speculative land parcel that has lain idle for the past 10 years is now sprouting rice.

And there is a small army of piece workers planting, ploughing and spraying the poisons.

So the spectre of a Thailand unable to feed itself is codwallop.

What will happen is mechanisation

The era of back breaking labour will disappear with rsising labour costs and aversion to the hard work

It's what should be happening already. Rather than just throwing money away into the endless ponzi scheme of price subsidies, where the millers get the lion's share anyway, they should subsidize and help the farmers to modernize their installation, buy machinery and learn how to use it, they'll improve their livelihood and make Thailand actually competitive.

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Where I live in peri urban Chiang Mai every speculative land parcel that has lain idle for the past 10 years is now sprouting rice.

And there is a small army of piece workers planting, ploughing and spraying the poisons.

So the spectre of a Thailand unable to feed itself is codwallop.

What will happen is mechanisation

The era of back breaking labour will disappear with rsising labour costs and aversion to the hard work

It's what should be happening already. Rather than just throwing money away into the endless ponzi scheme of price subsidies, where the millers get the lion's share anyway, they should subsidize and help the farmers to modernize their installation, buy machinery and learn how to use it, they'll improve their livelihood and make Thailand actually competitive.

The future of rice in the long-term us sadly not in small holds.

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I would argue that the traditional family rice farmer has already died, if we examine the facts presented in the article we find there "are some 32,000 registered farmers" (.05% of the population) and the majority of the, "rice farmers do not own the land they work". The reality is that the vast majority of rice production is performed by employed worker on land owned by companies and large land holders. These facts only show that its not cost effective to provide subsidies for this industry on the basis it will help the rice farmer as in reality all it does is increase the profits of those land owners and companies.

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I would argue that the traditional family rice farmer has already died, if we examine the facts presented in the article we find there "are some 32,000 registered farmers" (.05% of the population) and the majority of the, "rice farmers do not own the land they work". The reality is that the vast majority of rice production is performed by employed worker on land owned by companies and large land holders. These facts only show that its not cost effective to provide subsidies for this industry on the basis it will help the rice farmer as in reality all it does is increase the profits of those land owners and companies.

The majority of rice farmers do not own the land they work , it is owned by wealthy Thais, quite a few of whom are members of this government. As soon as this policy was re-enacted, the rental price of rice-growing land was doubled, giving huge income increases to those members of this government.

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Have a land reform,,cut middle men and other mafiosi hisos.Government should deal directly with the rice farmers

Someone was trying that, then there was this big fire in Bangkok. The rest as they say, is history.

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I would argue that the traditional family rice farmer has already died, if we examine the facts presented in the article we find there "are some 32,000 registered farmers" (.05% of the population) and the majority of the, "rice farmers do not own the land they work". The reality is that the vast majority of rice production is performed by employed worker on land owned by companies and large land holders. These facts only show that its not cost effective to provide subsidies for this industry on the basis it will help the rice farmer as in reality all it does is increase the profits of those land owners and companies.

The majority of rice farmers do not own the land they work , it is owned by wealthy Thais, quite a few of whom are members of this government. As soon as this policy was re-enacted, the rental price of rice-growing land was doubled, giving huge income increases to those members of this government.

There is a survey I posted elsewhere today that counteracts this. I was surprised too, but don't forget isaan does still have an awful lot of small holdings.

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maybe if the workers were paid a decent wage people wouldnt want to look elsewhere for jobs,170bt for a backbreaking days work why would anyone want to keep doing it.so much for the minimum wage in this country.

I am just amazed that mechanizations is not already being used. The result of dirt cheap labour I suppose. This must happen if Thailand is to stay competitive with other nations.

There is nothing wrong with dumping chemicals onto the ground. Fertilizer is a necessity of modern day agriculture. A lot of land would become highly unproducive without it. Thailand has a lot going for it to maintain it's position as the worlds top rice producer. The current government needs to somehow stop unrealistically raising the prices per ton of rice to uncompetitive heights. The world's population is growing. More and more people will be needing food. Don't price yourself out of the market.

http://www.economist.com/node/21558633

mechanization is here all ready. It is OK for the big agra corporations.

About three years ago a reliable paper in Bangkok ran an article on rice farming.

The article said that when you took all the variables into consideration it was more profitable for the small farmer to use Buffalo for farming over mechanization.

The government of the time had set up a school to help them make the change. It was a ten day school it took three days to train the Buffalo.

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maybe if the workers were paid a decent wage people wouldnt want to look elsewhere for jobs,170bt for a backbreaking days work why would anyone want to keep doing it.so much for the minimum wage in this country.

The government raised the minimum wage to 300 baht a day. supposedly. Well enough to get there vote.

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They have been screwed left,right and centre.Rice farming is no longer a viable business.The only people making money out of it are the fertiliser suppliers,millers shippers in short all the middle men.

Hopefully, rice farming is on it's way out, with regard to Thailand. There are a hundred other crops the Thai people could be growing. Rice is a devastating crop, in that it ensures absolute poverty. The best thing any rice farmer can do is get away from this heinous crop, and find something lucrative, like exotic fruit, herbs, or a myriad of other crops that are far, far more profitable, and not such a backbreaker. Far from what these fools said decades ago, rice is the scourge of Thailand. It is a plague. It is a blight. It is a horrific crop that ensures that a family will remain dirt poor. Terribly unwise use of the land.

So, in reality, the PT government is doing the farmers a favor by destroying the rice market. I hope they have a plan to help them transition to another crop. I'd really hate to see large agribusiness take over all farming in Thailand because they care nothing about ecology and only about profit. BTW I agree with you on every point.

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A view from the village. I have only been in the village for 18 months so my knowledge is limited. What I do know is the vast majority of the rice grown (1 crop due to water supply issues) is mostly kept by the family for their own consumption and not sold. Other crops for income purposes are soya, peanut and corn (animal feed grade) and fruit (small scale). The choice of crop is determined by the perceived market price of the crop. For example if soya seed (bean) is expensive +fertiliser cost adds up to not much less than expected market price, then of course they do not grow. Many fields this last 6 months remain unplanted for this reason. So these 'family' farmers either do nothing for 6 months and consume their rice and home grow veggies or scrape together an income labouring whenever work available. Some are lucky enough to have a couple of pigs or a buffalo. Most have chickens. Life is really tough for these people. Their offspring have a real aversion for hardworking. The girls are more responsible and see office work as their future, or they fall in love and get married and have kids.....not necessarily in that order. The boys become labourers, mechanics etc or just don't work, which leads to possible exposure to criminal activity etc etc. unfortunately many of the uneducated parents lack the motivational techniques for their children's development and hope and pray they will continue working the land .... Otherwise there will be no food to eat!

I see no plans, or any strategy to change this existence. Once this generation dies off I suspect all the land will be sold to pay off the family debt which seems to be out of control. Easy government borrowing for these people will mean a dramatic redistribution of land in the fullness of time..... And then the poor really will become poor..... Destitute in fact. Wish I could see a way out. I would dearly like to start some 'cottage industry' type endeavour, but have already been stung once with young people's aversion for even the lightest of work, and the level of quality for those that do turn up is laughable.......even if you pay the highest wage! They just don't get it! A complete waste of manpower due to apathetic society borne out of flawed government policies over many years.

I'm with you on nearly everything you state. But, I am starting to really question our singling out the governments so narrowly. Surely the governments over many years should bear much of the blame, but what portion of the blame, if any, do we ascribe to others -- regular Thai citizens, parents, educators, children, powerful business people, etc.? Don't they all share much of the responsibility?

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The government of the time had set up a school to help them make the change. It was a ten day school it took three days to train the Buffalo.

That makes it sound like the buffalo got to grips with it faster than the farmer.

//edit/the quote system is screwed btw/ can't even edit this to put it right.

Edited by Thaddeus
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A view from the village. I have only been in the village for 18 months so my knowledge is limited. What I do know is the vast majority of the rice grown (1 crop due to water supply issues) is mostly kept by the family for their own consumption and not sold. Other crops for income purposes are soya, peanut and corn (animal feed grade) and fruit (small scale). The choice of crop is determined by the perceived market price of the crop. For example if soya seed (bean) is expensive +fertiliser cost adds up to not much less than expected market price, then of course they do not grow. Many fields this last 6 months remain unplanted for this reason. So these 'family' farmers either do nothing for 6 months and consume their rice and home grow veggies or scrape together an income labouring whenever work available. Some are lucky enough to have a couple of pigs or a buffalo. Most have chickens. Life is really tough for these people. Their offspring have a real aversion for hardworking. The girls are more responsible and see office work as their future, or they fall in love and get married and have kids.....not necessarily in that order. The boys become labourers, mechanics etc or just don't work, which leads to possible exposure to criminal activity etc etc. unfortunately many of the uneducated parents lack the motivational techniques for their children's development and hope and pray they will continue working the land .... Otherwise there will be no food to eat!

I see no plans, or any strategy to change this existence. Once this generation dies off I suspect all the land will be sold to pay off the family debt which seems to be out of control. Easy government borrowing for these people will mean a dramatic redistribution of land in the fullness of time..... And then the poor really will become poor..... Destitute in fact. Wish I could see a way out. I would dearly like to start some 'cottage industry' type endeavour, but have already been stung once with young people's aversion for even the lightest of work, and the level of quality for those that do turn up is laughable.......even if you pay the highest wage! They just don't get it! A complete waste of manpower due to apathetic society borne out of flawed government policies over many years.

I'm with you on nearly everything you state. But, I am starting to really question our singling out the governments so narrowly. Surely the governments over many years should bear much of the blame, but what portion of the blame, if any, do we ascribe to others -- regular Thai citizens, parents, educators, children, powerful business people, etc.? Don't they all share much of the responsibility?

The system has been in place for the exporters to screw the farmer for generations. This subsidy system doesn't work either.

Chasing rice for export at the expense of other crops has ended up ruining agriculture in Thailand.

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Unfortunately, I feel the middle-men don't like or want their profit margins eroded so they pay a decent rate for the rice they buy off farmers. There are the Co-operatives that operate in many villages, but these don't seem to have a single voice as is the UK. If these cooperatives banded together and set up a department that bought the rice from the farmers, which it then sold onto the millers, cutting out the middle-men, and any rice-farming subsidies were paid to just this cooperative and then passed onto the farmers, rather than via the wholesalers and millers, they just might get a bigger 'cut' than they presently do. Obviously the bureaucrats, officials etc who have previously been taking a 'cut' wouldn't like this!

Many villages had local cooperatives that bought the rice and they also encouraged organic farming methods but with the rice scam all this has went out the window. Why grow one or 2 crops when you can grow 3 and get top dollar for it use as much fertilizer and bug spray to maximize output. The PTP has killed local cooperatives and organic farming in Thailand with there scam.

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A view from the village. I have only been in the village for 18 months so my knowledge is limited. What I do know is the vast majority of the rice grown (1 crop due to water supply issues) is mostly kept by the family for their own consumption and not sold. Other crops for income purposes are soya, peanut and corn (animal feed grade) and fruit (small scale). The choice of crop is determined by the perceived market price of the crop. For example if soya seed (bean) is expensive +fertiliser cost adds up to not much less than expected market price, then of course they do not grow. Many fields this last 6 months remain unplanted for this reason. So these 'family' farmers either do nothing for 6 months and consume their rice and home grow veggies or scrape together an income labouring whenever work available. Some are lucky enough to have a couple of pigs or a buffalo. Most have chickens. Life is really tough for these people. Their offspring have a real aversion for hardworking. The girls are more responsible and see office work as their future, or they fall in love and get married and have kids.....not necessarily in that order. The boys become labourers, mechanics etc or just don't work, which leads to possible exposure to criminal activity etc etc. unfortunately many of the uneducated parents lack the motivational techniques for their children's development and hope and pray they will continue working the land .... Otherwise there will be no food to eat!

I see no plans, or any strategy to change this existence. Once this generation dies off I suspect all the land will be sold to pay off the family debt which seems to be out of control. Easy government borrowing for these people will mean a dramatic redistribution of land in the fullness of time..... And then the poor really will become poor..... Destitute in fact. Wish I could see a way out. I would dearly like to start some 'cottage industry' type endeavour, but have already been stung once with young people's aversion for even the lightest of work, and the level of quality for those that do turn up is laughable.......even if you pay the highest wage! They just don't get it! A complete waste of manpower due to apathetic society borne out of flawed government policies over many years.

I'm with you on nearly everything you state. But, I am starting to really question our singling out the governments so narrowly. Surely the governments over many years should bear much of the blame, but what portion of the blame, if any, do we ascribe to others -- regular Thai citizens, parents, educators, children, powerful business people, etc.? Don't they all share much of the responsibility?

Why blame anyone else Until 2011 Thailand was the number one exporter of rice in the world in 2 years time they have become what 5 or 6 because of the rice pledging scam thanks to PTP. In other words they have done more to hurt Thailand rice exports in 2 years than all of the other governments combined

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