Farmland Zoning Could Cause Cuts To Costly Crop Subsidies: Thailand

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INTERVIEW

Farmland zoning could cause cuts to costly crop subsidies

Chularat Saengpassa,

Pongphon Sarnsamak

The Nation

What crop is the best choice for this drought-stricken area?

BANGKOK: -- Annual losses of more than Bt100 billion from the rice-pledging scheme, the ongoing Bt45-billion programme to shore up rubber prices, or the Bt30-billion corn subsidies for this year: All these could be narrowed, if not abolished, thanks to farmland zoning.

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Agriculture Minister Yukol Limlaemthong believes the zoning, if implemented at full scale, will revolutionise the country's agricultural sector.

Noting that it is a complementary part of the Bt2.27-trillion logistics investment plan, Yukol emphasised that farmland zoning would be crucial for Thailand in the AEC era when free flows of agricultural goods would be activated.

"We need to implement farmland zoning now. Otherwise, when the Asean Economic Community materialises, Thai crops and related industries will be at a disadvantage," he said.

Under the plan, farmers will learn which zones are appropriate for which crops, boost their productivity, and bolster Thailand's competitiveness. Meanwhile, the logistics development will provide convenient material sourcing among industrialists.

Because of the approaching AEC, Thai farmers must prepare themselves well to compete against peers from nearby countries. Located in the same climatic region, most Asean nations can grow the same crops as Thailand, including rice and rubber trees.

Yukol said the farmland-zoning plan would seek to offer incentives to farmers who plant the right economic crops in the right zones. Guidelines prepared by the Agriculture Ministry have identified which zones are best for which of the country's six main economic crops.

"Definite-ly, they are free to choose the types of crops they want to grow on their land. But we plan to give incentives so that they choose the right ones for their own benefit and also for the country as a whole," Yukol said.

According to the ministry, each rai of appropriate paddy fields can deliver 700 kilograms of rice (or 4,375 kg per hectare). If farmers grow rice in inappropriate zones, yield could fall by half. This explains why Vietnam - which is taking Thailand's place as the world's largest rice exporter - has an average yield of 862kg per rai, against a Thai yield of 448kg.

At present, Thailand's rice-plantation area is 58.9 million rai (about 9.4 million hectares), but only 12.2 million rai is found to be the most appropriate for this crop. Moderately suitable paddy fields account for up to 37.6 million rai while 9 million rai is declared the least suitable.

Yukol said the ministry had issued an announcement on recommended farmland zoning related to the six main economic crops - rice, cassava, rubber, oil palm, sugar cane and corn. In the next step, the announcement will be circulated among provincial governors for further action.

"Through this, we seek to prevent the oversupply of agricultural produce," he said. "Eventually, this could also be used as a way to reduce agricultural subsidies."

Given that about 30 million workers - and voters - are in the agricultural sector, subsidies for farmers have been part of policies of all Thai governments, whichever party leads them. But according to Yukol, subsidies to farmers who grow crops on land declared least suitable for the crops could be cut.

Academics have also urged governments to divert subsidies to finance research and development on plantation techniques and tools, to boost farmers' income.

Prime Minister Yingluck Shinawatra has previously lamented that Thailand's agricultural output has dropped. She vowed that her government would launch several measures such as farmland zoning in a bid to shore up farmers' productivity. Others include the plan for a single national map (from more than 20 used by different agencies) as well as the plan to improve efficiency of government land.

Yukol hopes the agricultural |sector will one day become so advanced that a watermelon could be traced to its original source, as Japan can do. If the farmland zoning is a success, the government hopes to apply the same concept to the fishery industry, he added.

He said his ministry would work closely with relevant agencies in implementing farmland zoning using budget for the 2014 fiscal year. The Meteorological Department will be able to help with climatic forecasts, while the Commerce Ministry can help with marketing.

Meteorological Department deputy director-general Somchai Baimuang said weather forecasting could be made for up to four months in advance, and that could help plan the farming season.

"We are ready to provide support. The Agriculture Ministry, meanwhile, has sought the budget to procure necessary devices," he said.

-- The Nation 2013-02-18

[Ricardo]

Thai farmers need a zoning-system, to tell them which crops are best, to grow in their areas ?

"But we plan to give incentives so that they choose the right ones for their own benefit", which is surely what the current already-existing system does, so that worked well then didn't-it ! If farmers are growing the wrong crops, surely that's because the market & farmer' decision-making are distorted, by incentives ?

"Annual losses of more than Bt100 Billion from the rice-pledging scheme", erm perhaps just a little larger than that, wasn't the current-year budget set at Bt420 Billion, and last year the money ran-out (just ask the BAAC !) because it was over-spent ?

"we seek to prevent the oversupply of agricultural produce" is an interesting way to explain the setting of a subsidy-price 40% above world-price, which is encouraging the farmers to grow ever-more rice, for which the government's friends can't build storage fast-enough, or the government find buyers to take off their hands ?

But never mind, a poo-yai has spoken, so everything must be alright, mustn't it ?!

Edited February 18, 2013 by Ricardo

[OzMick]

Central planning with costs for subsidies, incentives and bureaucrats in the billions of baht will always be much more efficient than letting individual farmers decide the best crop for their land and climatic conditions, rewarding the efficient with profits and allowing the less efficient to fail. That's why the USSR is the word's biggest agricultural economy.

[Thai at Heart]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

[dcutman]

According to the ministry, each rai of appropriate paddy fields can deliver 700 kilograms of rice (or 4,375 kg per hectare). If farmers grow rice in inappropriate zones, yield could fall by half. This explains why Vietnam - which is taking Thailand's place as the world's largest rice exporter - has an average yield of 862kg per rai, against a Thai yield of 448kg.

Crop yields do no increase on its own.

Looking at the graph above (Thailand in blue) this tells me rice research in Thailand is almost non existent or we have some terrible scientists. Or farmers not willing to keep up with modern technology.

Edited February 18, 2013 by dcutman

[moe666]

another way to put more money in the wrong hands

[AleG]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Hmmm, grow easily manipulated voters?

[Moruya]

If there's one thing this government needs to grow, it's some new political DNA

[warfie]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Might be appropriate locations for solar or wind farms...

[Pimay1]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Might be appropriate locations for solar or wind farms...

The problem with that is up here in Esaan the wind doesn't blow much and when it does it is only a slight breeze.

[Thai at Heart]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Might be appropriate locations for solar or wind farms...

The problem with that is up here in Esaan the wind doesn't blow much and when it does it is only a slight breeze.

Well, that's easy. Plodprasop will propose building huge electric fans to turn the wind farms.

[Pimay1]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Might be appropriate locations for solar or wind farms...

The problem with that is up here in Esaan the wind doesn't blow much and when it does it is only a slight breeze.

Well, that's easy. Plodprasop will propose building huge electric fans to turn the wind farms.

How stupid of me. You're absolutely right.

[loong]

Requires a lot more thought I think.

Say zone A is deemed most suitable for rice and Zone B for sugarcane

In zone A, the rice processors would be oversupplied and the sugarcane processers undersupplied. This would mean that the sugarcane processors would have to relocate to zone B or go out of business. The rice processors would expand rapidly, but probably offer lower prices to the farmer because of the oversupply. I suppose that the government could subsidies the farmers for the lower prices, but then it's back to square 1.

Obviously vice versa for zone B.

It could also lead to higher prices for some commodities as zoning could mean that the product has to be transporteded longer distances to point of sale

[Soi Dog]

Yet another way for the government to screw up the agriculture sector. How about giving the farmers access to the information they need and the training on how to use it. But of course that would lessen their dependence on politicians for handouts and upset the social order.

[writeshack]

We get 5-7 80kg bags of hom mali per rai - in a good year, not many of those. No irrigation, only one crop a year. So by the minister's criteria a huge area of Isan is inappropriate for rice cropping. Trouble is, not much else grows on much of the land. But he's a poo yai with vast farming experience - he must be, he's the minister for agriculture, isn't he? - so he must be right. Maybe they'll follow the US model and pay us NOT to grow rice. Now there's a goer. I know my family would love it. Another populist policy!

[warfie]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Might be appropriate locations for solar or wind farms...

The problem with that is up here in Esaan the wind doesn't blow much and when it does it is only a slight breeze.

Ok, but I'm sure you get plenty of sunshine.

Seems to work well enough in Lopburi.

[OzMick]

Will the zones with subsidies be decided by the election results?

[SICHONSTEVE]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

Hmmm, grow easily manipulated voters?

You can't make money from weeds!!!

Are there vegetables they can grow to improve brain power (for local consumption only) naturally?

[billd766]

Where DO these people come from?

I am surprised. I Googled Agriculture Minister Yukol Limlaemthongand on Bangkok Business I found this information.

Yukol Limlaemthong appears to be the most qualified minister in the latest cabinet reshuffle by the Yingluck Shinawatra-led government, according to businessmen.

The former agriculture permanent secretary seems to be one of a handful of newly appointed ministers who truly understand what they have been assigned to do.

Mr Yukol’s working experience has been spent mostly in the Agriculture Ministry, with his capability in tackling the 2004 bird flu crisis one of his obvious achievements.

The new agriculture minister was also praised as a troubleshooter who was ready to give advance warning to the private sector once the crisis happened.

More importantly, Mr Yukol is one of the few new ministers the private sector wants to stay in office for a four-year term, said Pornsil Patcharintanakul, a vice-chairman of the Thai Chamber of Commerce (TCC).

Read more: http://www.bangkokbusinessbrief.com/2012/11/21/yukol-ploughs-furrow-to-top-of-agriculture/#ixzz2LEfJlMFB

I sit here gobsmacked and totally astounded that in this government there seems to be one minister who DOES know what he is talking about.

My apologies to you sir.

Read more: http://www.bangkokbusinessbrief.com/2012/11/21/yukol-ploughs-furrow-to-top-of-agriculture/#ixzz2LEfB0Gnh

[Tanaka]

Yet another way for the government to screw up the agriculture sector. How about giving the farmers access to the information they need and the training on how to use it. But of course that would lessen their dependence on politicians for handouts and upset the social order.

That is assuming the farmers in general would accept any information and that they would actually participate in training in how to use it. Not likely as that would tell their neighbours that they did not have the knowledge before. Loss of face in their eyes.

[Thai at Heart]

Problem is, zoning production, is largely incompatible with sufficiency economy.

Many parts of the Thailand produce rice, and yet they are very marginal, and yet everyone does it.

[belg]

why not disown all the small farms, make it a big soulles corporation and reek in the profits by the billions

at least they could use now machines and new techniques

and cutting out the middle man

[Ricardo]

But what are they going to grow on the millions of rai of land that is basically inappropriate for anything?

If they zone isaan they will find huge tracts of it are saline. What to grow?

How about salted peanuts ?

[Pimay1]

I think a more appropiate headline would be:

Farmland Zoning Could Cause Cuts To Costly Crop Subsidies vote buying

[slapout]

I see little respect the boundries of the National Parks/forest, water front/beaches, plus the history of allowing karakoe/bars in residential areas, busines on the foot paths, past history of government pushing rubber, palm oil production country wide, etc.

Who is qualified to determine zones, enforce, monitor, verify and finally handle the baht? To date this government has given lip service to at least one half of the Thai population as to how they are going to improve their standard of living/life Even the government admits to massive corruption having taken place, to solve this, they propose giving more funds to the same corrupt individuals who are bleeding the country now, but it will be under a different program name.