Corn Farming

[CWMcMurray]

Just curious what the local experts think...

What would you estimate the yield and cost per rai of planting corn?

Looking at 10 Rai...

Costs advised is aprox 30,000 total for all 10 rai (this includes rent of 10 rai, seeds, fertilizer and labor) with estimated yield of 1 ton per rai (is this realistic? or high or low estimate?)

What are your thoughts? How realistic are these estimated numbers?

[jamescollister]

Doubt whether you would make a Baht profit on 10 rai of corn if you did not do all the work yourself. That would be a Thai farmers income.

Off course if you were not there , the money to plant etc would be spent on other things.

Don't know where you come from, but knock off the taxes. how much could you earn off 4 acres of corn, if you did it your self, in your home country.

Farming in Thailand is no different than in the west, prices are the same and sometimes more expensive. People here just need less to live. Jim

[CWMcMurray]

Not looking for any huge profit...

FIL has a regular job and would be looking after things during his off time. He estimates could make about 100 k from selling crops.

Minus costs... So roughly 70 k profit

This will not be a full time thing for FIL as he has a full time job and as is only 10 Rai... But just a few extra bucks

Also we are living in BKK both wife and I are working and will not be doing any work, so just a financial investment

Agreement would be we get back costs first then split any profit 50/50 with FIL

Opportunity cost...If leaving in bank... 4% apr on 30k for 6 months is only 600 thb, so return doesn't need to be much for it to still be a good investment for us

Also there is not any real risk on our part, as wife also sends back 2000 thb per month from her salary to FIL and he agreed that if any loss, she can take out of this, so can't see much downside

But knowing nothing about farming, was just curious if anyone knew if the numbers FIL is mentioning makes sense to those farming here in Thailand

Additional info... Rental cost 1,200 thb per rai per year.... Area is Pakchong

Edited January 6, 2013 by CWMcMurray

[loong]

I have no idea about growing corn, but I would have doubts about these projected figures.

Not saying that it cannot be done, just doubtful.

First question - How much experience does your FIL have with growing and selling corn?

70,000 Baht profit from 10 rai in 6 months working part time. That's nearly 12,000 Baht per month from a part time job

2nd question - why isn't everyone doing this instead of working full time for 7,000 Baht per month?

[Gary A]

Some Internet searching reveals that the average field corn yield in Thailand is about 440 KG per rai. Apparently the price varies widely and falls between 3 and 5 baht per KG. So, if you got the average yield and 5 baht per KG, you would gross 2,200 baht per rai or 22,000 baht on the 10 rai. There are many different varieties of corn so the yield varies according to the variety. Then you have sweet corn which is obviously a totally different story.

[CWMcMurray]

Had similar questions, so made this OP trying to look for some answers on what folks with some experience in this forum think about the realistic numbers

FIL has experience in farming all his life, although always on some one else's land

Currently a foreman on a grape farm but has worked on corn farms a number of times in the past

Honestly doesn't matter if doesn't turn out as good as he is estimating, as if it makes back costs + 1,200 thb then I am in the same boat as if I left the money in the bank

And if it losses money, then it would just be considered a loan and would still get initial investment back, as would be subtracted from monthly allowance sent by wife to FIL

So no risk on my end... But just curious on what the realistic numbers would be

[CWMcMurray]

Thanks for the info Gary

The info from FIL is that can expect aprox 1 ton+ yield per Rai and that current price for corn is 9.5 thb per kg

[Gary A]

Thanks for the info Gary

The info from FIL is that can expect aprox 1 ton+ yield per Rai and that current price for corn is 9.5 thb per kg

He could be correct because I have no idea how current the information that I found is. The Internet is a good tool but quite often a lot of important details are missing.

[jamescollister]

OP just a few questions you should ask your self before getting involved. FIL have a tractor for plowing, or will you have to hire one. Come planting time hire tractors can be as rare as hens teeth.

Labor costs, both planting and harvesting, do you have a truck to transport the corn to market, or will you need to hire one.

Is your FIL going to just not turn up to work during planting and harvesting times or is he going to leave a unemployed, yabba taking Lao Kow drinking cousin in charge.

I have said this often enough, no matter how good the family is, if you are not there, nothing will get done properly. Jim

[IsaanAussie]

I am adding to the concerns expressed above. I have never seen a bad investment repaid as you suggest. It simply is not something Thais do. Once the money is spent it is gone so is the responsibility. They figure that if you could afford to handit over, then you can afford to lose it.

Second issue is the price at time of sale. It will not be the same as when prices are good and people decide to plant. Gluts happen and prices drop. The department of internal trade and others post figures on crops, study the history for a few years based on the expected harvest date.

If the return happens, good for you. IMHO Jim is correct, you are either involved first hand, or you will lose.

Edited January 7, 2013 by IsaanAussie

[CWMcMurray]

Comments are well noted but getting a bit off track , as repayment is not an issue if loss occurs... We just don't send money to FIL(wife and FIL both agree to this already)

So if all 30 k is "lost" FIL just doesn't get 2 k for 16 months (30k + 2 k for interest lost...)

He may be able to borrow tractor or any equipment from current farm he is working at

Anyone with any first hand knowledge of costs and yield for corn growing in Thailand?

Would be interested in feedback from any Local corn farmers out there.

[CWMcMurray]

Thanks for the info Gary

The info from FIL is that can expect aprox 1 ton+ yield per Rai and that current price for corn is 9.5 thb per kg

He could be correct because I have no idea how current the information that I found is. The Internet is a good tool but quite often a lot of important details are missing.

Thanks for the feedback Gary A, it's much appreciated

[Bluetongue]

In 2010 I got about 6 ton from 9 rai, the first crop. Sold it for about 5. something per kilo. The second crop failed miserably due to extremely heavy rain waterlogging it and I only got a ton or so. This was feed corn not sweet corn which has to be irrigated. So maybe the FIL is talking about 2 crops?. The field has to be ploughed first and then a tractor is used for sowing. Some fertiliser is added, not much cant remember.

and not much else required as the weeds dont get much of a foothold. People from near and wide came to pick it they got so much per sack I think 40baht from memory so that was about 2.5k. Took it to the place myself in several journeys. So maybe made close to 20 k profit the first time and then lost 5k or something the second time.

Although not doing it this year or last, I have followed the prices as I drive past all the places once or twice a week. It has stayed steadily above 5 all year but has not hit 6. Further north from me I know the price is above 6 as they all have signage indicating the price.

[CWMcMurray]

Thanks Bluetongue

Will need to check on if the tonnage was based upon 2 crops.

Thanks for the info

[farmerjo]

I've been growing corn for a few years now.

Average 600 kilo's a rai on 20 inch rainfall for growing period april till august after that to wet.

To be honest make about 1000 baht a rai after costs.

However everyone else in the village i employ makes money out of it(and i have fun on tractor in return)

Like everything you grow variety of seed is of most importance if you want yeild.

This year going minimum till seedin,no p loughing to see if that makes a difference.

Oh pay 50 baht a bag for harvest plus 20 baht load and transport 25kms to middleman's factory

[joeuk1]

I would like to buy 5 tonne of decent quality maize also am a buyer of 5 tonne of small rice .

Best regards

[loong]

I've been growing corn for a few years now.

Average 600 kilo's a rai on 20 inch rainfall for growing period april till august after that to wet.

To be honest make about 1000 baht a rai after costs.

However everyone else in the village i employ makes money out of it(and i have fun on tractor in return)

Like everything you grow variety of seed is of most importance if you want yeild.

This year going minimum till seedin,no p loughing to see if that makes a difference.

Oh pay 50 baht a bag for harvest plus 20 baht load and transport 25kms to middleman's factory

As you have experience, do you have a figure for total expenses per rai?

The OP is working from a figure of 1,800 Bt per rai.

This seems rather low to me considering that he has to pay for ploughing, seed, fertiliser, weed control as well as labour for sowing and harvest, transport costs to the buyer.

I know that I am growing a different crop, but 1,800 Bt/rai wouldn't cover the cost of ploughing and fertiliser.

Is the OP likely to be getting phone calls because the FIL needs more money to cover expenses?

[farmerjo]

Dont keep actual records these days as its only to help supplement extensions to infrastructure every year.

Generally i have my own equipment and do it all myself with exception of harvest and transport.

Plough twice,rototill once then seed = approx 1200/rai

50kg 15-15-15 fertilizer = 1100/rai

Chemical glysophate and attrazine = 800/rai

Harvest bagging and transport = 700/rai

Total = 3800/rai

If i took into account my labour which is paid in leo,things would look pretty sad.

[tingtong]

well i know nothing...but

seeing the big picture, i think i would go for it, nevertheless.

the reasons:

- while land cost 1 yr=1200thb, that leave enough time for a second crop of some kind, and chance for profit beyong one crop of corn.

- cost of opportunity is low

- total investment to fork out is also low, just 1000 USD

- chance for losing all is low, as FIL has some experience with corn, some return can be expected, or worst moderate loss. still not pure casino.

- if fail to make profit, you bail out cheap from further requests, and can site this failure.

- if success, FIL will be thankful for the chance, and you have your profit.

i would give it a go for above reasons. it is not like asking money for whisky, pickup, or making face in the village.

also your FIL has a job, not just sitting at home for handouts.

you and your wife work, if you can take the opportunity/investment, why not?

i love corn, and a decent size sweet corn by the roadside is 10 thb...so is in tesco and that not even cooked yet.

[farmerjo]

I would like to have tingtog's optimism,unfortunately in my situation i go away for a job and looking after the crop goes to not looking after it and enjoy the fishing

[Jotham79]

My neighbor got about 4K per rai a year ago last rainy season on her land and hired out everything. I recon I net 4k+ in the rainy season and 3+k in the dry season. I have water to pump so I have less risk of drought. Local grainery a few months ago was selling at about 10 baht a kilo and buying at about 9.

[farmerjo]

That's good,wish i could net 7000 a rai then i woundn't have to go and work a couple of months a year.

Any secrets or just good loams that dont need much fertilizer.

Regards steve

[Jotham79]

I'd say the dirt is pretty good, but could be better. I can pump water to every square inch if needed and I stagger the planting a little. 4-5 rai goes in then in a few weeks I do the next batch. It needs water more often when it is young. I only go for 2 crops a year and use the best seed I can get.

[jamescollister]

OP if you want to give the FIL 30,000 Baht, just give it to him and forget it.

Asking how much will I get per rai and price and profit are the wrong questions.

You say FIL may be able to borrow a tractor from where he works, what if he can't. Then you won't even get the seeds planted, hiring a tractor during the season is hard. You will be at the bottom of the list and miss the optimum planting time.

The 2 crop thing, you would probably need irrigated land, depending on which part of Thailand I guess, out my way definably. Has the FIL even found land to rent, with or without irrigation, surely if he is so keen on the idea and lives in a corn area, he would know all the answers by asking his neighbors and be telling you average yield etc for that area.

Sorry if I am being a bit blunt here, but that's the facts of life for an absentee farmer. Money given is money gone and his daughter will continue to send the monthly money not matter what happens. Just the way it is. Jim

[farmerjo]

I'd say the dirt is pretty good, but could be better. I can pump water to every square inch if needed and I stagger the planting a little. 4-5 rai goes in then in a few weeks I do the next batch. It needs water more often when it is young. I only go for 2 crops a year and use the best seed I can get.

Thanks for the reply,i'm starting to lean that way instead of planting 100 rai just plant 30 and do it properly,rotating land every 3 years for better weed control.

To the op,jim's right just give the money if your happy.It will be a gift,a return is a bonus.

[CWMcMurray]

Thanks all for your replies...

For FarmeJo and Jim, thanks for your posts, but no chance at giving it away as a gift... this isn't even what is being asked for by FIL.

Also a bit off the topic... but have no doubt that wife will not send monthly allowance if it doesn't work out... in the past wife had an issue with her FIL. Without going to much into detail... her parents ended up getting a divorce and did not send to FIL for about 2 years... just started sending again about 6 mo ago..

She is willing to give him a chance.. but ensureing that she is protected and wife would never consider giving FIL a gift of the 30k even if I was...

In any case, as no downside on our part we will go ahead and do it...

Will come back from time to time and update how things are going.

[Monkeypants]

A Thai friend of mine has 30 rai of corn, he has his own tractor, he makes about 5000 baht per rai net.in the rainy season, here in Phetchabun.

[IsaanAussie]

A Thai friend of mine has 30 rai of corn, he has his own tractor, he makes about 5000 baht per rai net.in the rainy season, here in Phetchabun.

Thanks MP, I have been looking for a number for corn for a while. About the same as I get from the rice crop. Any idea what his cost base is? Even net margin roughly would help.

[Monkeypants]

I will be seeing him later today, he only lives round the corner, and we usually visit each others houses, a few times a week, will get more info and post later today, and perhaps a pic or two of his current dry season crop.

[IsaanAussie]

I will be seeing him later today, he only lives round the corner, and we usually visit each others houses, a few times a week, will get more info and post later today, and perhaps a pic or two of his current dry season crop.

Thanks, by the way, and definitely off topic, do you know where I can get a load of dried chicken manure?