Thai Farmers In 100,000-Baht Debt On Average

[webfact]

UTCC: Farmers in 100,000-baht debt on average

BANGKOK, 17 August 2012 (NNT) - A survey by the University of Thai Chamber of Commerce (UTCC) has indicated that Thai farmers on average are in 103,000 baht debt, the highest since it has conducted the survey.

UTCC's Center for Economic and Business Forecasting (CEBF) Director Dr Thanawat Polvichai said that the university conducted a study on over 1,200 farmers in Thailand during August 8-12. The survey revealed that the debt of average farmers has increased by 6.6% from last year. On average, each farmer’s family has 103,000 debt, the highest in four years since the university has begun conducting the survey.

Dr Thanawat speculated that the debt has a tendency to rise, adding that it would increase by 3-5% next year. He indicated that four out of five farmers do not want their children to work on the farm anymore because the income is so low.

The study showed 60% of them have formal debts, which they are most likely able to repay, while one-third of those who have informal debts do not think they will be able to pay them off.

The CEBF Director expressed that farmers' debts is a chronic problem, particularly the informal debt structure. Many farmers need money to expand their farming fields in order to join the government's crop mortgaging scheme and to recover their farms from the 2011 flood. He urged the government to tackle the debt problems so that farmers can get out of the vicious debt cycle.

-- NNT 2012-08-17

[RogueExpat]

No surprise here.

Government encouraging all the farmers to anti-up if they want a piece of pie from the largest (legal) scam in the history of this country.

Unfortunately for the farmers, it is a loaded deck, and they only get a small cut from this scam, or it could also be called legal vote buying, the majority going to the people running the show.

When will these rural types wise up and realise that their vote is worth 100k Baht up to these politicians, not a measly 1k Baht?

Edited August 17, 2012 by RogueExpat

[Reasonableman]

We're all gonna be rich, I tell ya!!!!

[PatOngo]

The solution is credit cards,issue them with credit cards

[whybother]

Wasnt there supposed to be a debt moratorium?

Sent from my HTC phone.

[belg]

if rice farming is so poorly paid, what are they waiting for the change to more cash crops ?

[KireB]

Sad of course, but in many cases just a result of piss poor financial planning. I see it in my own Thai family here, when the crops are in, the money is spend on BBQ and beers and nearly nothing is set aside to start a next batch. So they end up borrowing money. Not very clever, as they will eventually lose their lands to the banks! The easy access to credit has not benefited the farmers in Thailand.

[saltandpepper]

Now, maybe we misunderstood the government when they mentioned that all farmers will be happier with the current PM and Co...

[connda]

Well, when the crop futures are manipulated at the highest levels, the filter down effect is that Thai farmers receive less for their crops than they spend in expenses and labor. Yeah! It's hard to make a living. But I'm sure the brokers are doing just fine. It's good to be HiSo!!!

Edited August 17, 2012 by connda

[Ricardo]

Wasnt there supposed to be a debt moratorium?

Sent from my HTC phone.

I think that's planned to be the pre-election promise, in exchange for voting the right way, in the next election ?

By which time 'all Thais will be rich after six months', I recall.

[connda]

I'm sure my wife will promise to vote the right way if the price is right. However, as long as she collects cold, hard cash, I'm pretty sure she'll vote however she pleases (at least that's what she has done in the past -- why buck the system if the system is promising cash! From a moral standpoint it's not the way I'd go, but then again, I can't own farmland here, so I'm pretty much a sideline observer.

[h90]

We're all gonna be rich, I tell ya!!!!

Yes we'll be all rich. It started with Shinawattra family, than the PTP MP and Minister.

Next will be the farmer ....sure.....only need to wait and vote red.....

[JurgenG]

At the moment, I'm around 40 millions Bahts in debt and that doesn't worry me a single bit.

Borrowing money to invest at a higher return than the cost of the borrowing is the basis of capitalism.

From the OP : "The study showed 60% of them have formal debts, which they are most likely able to repay, while one-third of those who have informal debts do not think they will be able to pay them off." Which basically means 88% of people who are in debts are in good position to pay them back. If we had similar figures in the USA we wouldn't be in such a worldwide economic mess.

Edited August 17, 2012 by JurgenG

[Reasonableman]

These indebted farmers are mostly borrowing to play the forex and futures markets and making a killing, no doubt.

[JurgenG]

Testing, testing, testing ...

Sorry, just wanted to test if I were able to upload my pictures in a post.

It works !

Edited August 17, 2012 by JurgenG

[JurgenG]

These indebted farmers are mostly borrowing to play the forex and futures markets and making a killing, no doubt.

Hilarious

A farmer is basically an entrepreneur, a small company by himself. They actually borrow to buy seeds and fertilizer, maybe a new tractor. They will pay back after the harvests. A very classical scheme, nothing outrageous here.

[PoodMaiDai]

Makes you wonder what the 100s of 1000s of working girls are spending their money on if it's not going home to their poor rice farming parents. You know, the ones they are selling their bodies for.

Of course that is sarcasm, because we know most of them don't send much home these days, and those who do, their mom and dad usually waste it. Very few do anything productive with the money. Between drinking, gambling, and trying to na yai around the village, very little is put to good use. Which makes you wonder why these girls bother to waste their time in the first place. Oh yea, silly of me to forget... they don't plan for tomorrow or any future at all, so money earned today is money they can spend right now. One more reason why they continue to borrow money, over and over.

[maidu]

if rice farming is so poorly paid, what are they waiting for the change to more cash crops ?

Neither Thai farmers nor Thai political leaders have any innovative thoughts when it comes to what sorts of crops to grow. Thailand is blessed with good soil and rather good weather cycles, but nearly all farmers grow rice, because they went to schools (and grew up in families) which taught them to copy, not to think for themselves. There are many crops which would yield better revenue than rice for Thai farmers. I'm so tired of listing them all, that I'll sit back and let anyone interested pay me $1,000 for the list. send me a message. It could be the smartest $1,000 you ever spent.

At the moment, I'm around 40 millions Bahts in debt and that doesn't worry me a single bit.

Borrowing money to invest at a higher return than the cost of the borrowing is the basis of capitalism.

From the OP : "The study showed 60% of them have formal debts, which they are most likely able to repay, while one-third of those who have informal debts do not think they will be able to pay them off." Which basically means 88% of people who are in debts are in good position to pay them back. If we had similar figures in the USA we wouldn't be in such a worldwide economic mess.

Good for you that 'debtors prison' no longer exists. If you borrow over a million dollars (40 million baht) then that's money for one person (you) which could be circulated and used by many. Sounds selfish. That's one reason why the US is on the ropes, because borrowing became so easy, and selfishmess ruled. It's just as easy to declare chapter 11 and go skipping down the hwy with a grin - and then do it all over again at the next town.

[JurgenG]

At the moment, I'm around 40 millions Bahts in debt and that doesn't worry me a single bit.

Borrowing money to invest at a higher return than the cost of the borrowing is the basis of capitalism.

From the OP : "The study showed 60% of them have formal debts, which they are most likely able to repay, while one-third of those who have informal debts do not think they will be able to pay them off." Which basically means 88% of people who are in debts are in good position to pay them back. If we had similar figures in the USA we wouldn't be in such a worldwide economic mess.

Good for you that 'debtors prison' no longer exists. If you borrow over a million dollars (40 million baht) then that's money for one person (you) which could be circulated and used by many. Sounds selfish. That's one reason why the US is on the ropes, because borrowing became so easy, and selfishmess ruled. It's just as easy to declare chapter 11 and go skipping down the hwy with a grin - and then do it all over again at the next town.

Not if you invest your money in a productive way. For example to run a company so you can create jobs or to buy flats so people can rent them, without landlords there wouldn't be tenants. The same for buying a tractor, it's a big expense that without credit few people would be able to afford it, but it greatly increase farmers' productivity, a win-win situation for everybody.

[Mosha]

If they fllow the Indian farmers solution, will any one in power care?

[hellodolly]

Sad of course, but in many cases just a result of piss poor financial planning. I see it in my own Thai family here, when the crops are in, the money is spend on BBQ and beers and nearly nothing is set aside to start a next batch. So they end up borrowing money. Not very clever, as they will eventually lose their lands to the banks! The easy access to credit has not benefited the farmers in Thailand.

I can't say for sure but it seems to me that most Thai's are as you say poor financial planners.

As for benefiting the farmers of course not. It was not set up for them.

We hear the Government saying that maybe it needs changing but we see them doing nothing.

Wasn't February the month Thaksin said all Thais would be rich?

[hellodolly]

At the moment, I'm around 40 millions Bahts in debt and that doesn't worry me a single bit.

Borrowing money to invest at a higher return than the cost of the borrowing is the basis of capitalism.

From the OP : "The study showed 60% of them have formal debts, which they are most likely able to repay, while one-third of those who have informal debts do not think they will be able to pay them off." Which basically means 88% of people who are in debts are in good position to pay them back. If we had similar figures in the USA we wouldn't be in such a worldwide economic mess.

Good for you that 'debtors prison' no longer exists. If you borrow over a million dollars (40 million baht) then that's money for one person (you) which could be circulated and used by many. Sounds selfish. That's one reason why the US is on the ropes, because borrowing became so easy, and selfishmess ruled. It's just as easy to declare chapter 11 and go skipping down the hwy with a grin - and then do it all over again at the next town.

Not if you invest your money in a productive way. For example to run a company so you can create jobs or to buy flats so people can rent them, without landlords there wouldn't be tenants. The same for buying a tractor, it's a big expense that without credit few people would be able to afford it, but it greatly increase farmers' productivity, a win-win situation for everybody.

Reminds me of a article I read in a respected Bangkok news paper. Well as respected as a news paper can get.

They had discovered that when you take in all the prices for everything needed to run a small farm it would cost you less to go back to using the buffalo instead of machinery. They even set up a ten day school to show the farmer how it was done. They also had a three day school to teach the buffalo.

I kid you not it was in the news paper.

[redroo]

They should translate this doco into thai and air it during soap time

http://www.youtube.com/watch?v=-Ud4n5Py5eA&feature=colike

[jaltsc]

This model of farming, no matter what society/country, goes against basic economics. This is an endeavor where the producer buys all his equipment and materials at retail prices and sells his products at wholesale prices... usually set extremely low by the large corporations/governments so they can make the huge profits. The only types of farming which can make a profit are the large scale industrial models where the producer controls all phases of the process, from raising the seeds, planting, harvesting and selling the final product to the retailer, ..and the farmer who is able to sell directly to the final purchaser/consumer, leaving out all the middlemen. No matter what the government promises, this model lends itself to perpetual debt and serfdom.

[Ricardo]

Testing, testing, testing ...

Sorry, just wanted to test if I were able to upload my pictures in a post.

It works !

Jurgen , is that your Low-Cow Production-Operative, she appears to be sleeping on-the-job, I cud say !

Tell her to get a mooove on !

[connda]

These indebted farmers are mostly borrowing to play the forex and futures markets and making a killing, no doubt.

Hope they haven't made the mistake of using MF Global or PFG. Futures brokers can "vaporize" your segregated client accounts. Aaaaaand it's gone!

[JurgenG]

Testing, testing, testing ...

Sorry, just wanted to test if I were able to upload my pictures in a post.

It works !

Jurgen , is that your Low-Cow Production-Operative, she appears to be sleeping on-the-job, I cud say !

Tell her to get a mooove on !

Just testing.

So far so good.

Edited August 18, 2012 by JurgenG