Agricultural reform necessary, PM

[Lite Beer]

Agricultural reform necessary, PM
The Nation

BANGKOK: -- Prime Minister Prayut Chan-o-cha said Friday that reforms must be introduced in all agricultural sectors, from rice, rubber, palm and cassava to sugar cane.

Agricultural zoning will be adopted, and monopolies will be eradicated. Seedlings will be provided to farmers by the Rice Department, and rice strains will be studied and developed by farmers' cooperatives in local areas, Prayut said during his weekly TV programme.

The government "sees the problem and will address it accordingly", he stressed.

"We cannot leave this problem unattended. Thailand is a country engaged in free trade. Please understand this fact. We are expediting our efforts to make you stronger," he said.

In addressing the problem of low prices of agricultural commodities, the government has to persevere and implement new methods, he said, adding, "Money cannot be excessively spent - too much borrowing would create a public-debt problem. This figure already stands at about 47 per cent [of gross domestic product], and we will not be able to handle 60 per cent.

"Some countries can cope with a 200-per-cent public-debt ratio because they are more developed than we are and they have ways to recoup the investment. It would be risky for us because we have not prepared as many risk-mitigating measures," he told the TV audience.

Source: http://www.nationmultimedia.com/breakingnews/Agricultural-reform-necessary-PM-30259675.html

-- The Nation 2015-05-08

[trogers]

He is saying "Grow up, Thailand! Gone are the days you can laze about waiting for handouts. Get up and use your brains."

[rametindallas]

Since Thailand is dead-last in agricultural productivity among ASEAN countries, this seems like a logical and, in the long run, a more productive role for the government. Cash subsidies just keep the status quo and take any incentive away from farmers to improve their productivity. This, along with the recently announced subsidy for farm equipment will improve yields, and therefore profits, for farmers. They will also be less dependent/beholden to the government. Of course, this in not good news for politicians who like to get votes by their constituents being dependent/beholden to them. Pride of independence is not to be undervalued.

Edited May 8, 2015 by rametindallas

[NeverSure]

^^^ Getting up and using brains would be a good idea.

"Thailand is a country engaged in free trade."

Is this "free trade" to include no import duties on farm equipment, chemicals and other things necessary to farming or is the government going to continue to suck the farmers dry?

[farmerjo]

Its all good till you've been growing tea for 20 years,now your zoned to grow sugar.

[NeverSure]

"Agricultural zoning will be adopted,"

This has been an onerous development in other countries where not implemented properly. If "agricultural zoning" means no more converting land which is zoned for farming into residential it can cause three big problems.

1. Farmers have been refused the right to break off a chunk, even a small chunk of land for a home for their children. This further drives children from farms and into megalopolises which aren't healthy for the family or the children. This has been true even where the productivity of marginal quality farmland is marginal.

2. It drives up the price of land and homes simply due to an artificial shortage of land affecting the law of supply and demand. No government can revoke that law.

3. As productivity on farmland increases due to mechanization and technology, the ability to convert to something else such as food processing adding usefulness and value evaporates. Thai farmers can't be asked to stay in the 19th Century planting rice instead of industrializing, even with farm products.

[farmerjo]

I sense a feeling with the PM,he may be insecure about having more farmers in the country than milatry personel.

[djjamie]

At last! This should have happened over 15 years ago before certain governments pumped over 1 trillion baht to farmers with nothing to show for it except a tick on the ballot. Could have built a high speed train for 1 trillion baht and had money left over for Justin Bieber concert tickets!!

Sometimes it takes a government that is not reliant on votes to show a sensible rationale towards a sector that was literally suicidal and starving for reform but was ignored as reform would have taken the power away from the govt and put it back in the hands of the voters who would have been free to vote for the most competent govt instead of being forced to vote through a desperate need to escape poverty with that carrot on the stick that never seemed to be in reach. That carrot to be in the hands of the farmers was the last thing a certain govt wanted.

Well done to the Junta for putting the majority first.

Lets hope they adopt some of the ex DEM's finance minster, Khun Korns sustainable approach to rice farming. That has shown to be highly successful and the not a single single baht goes to Khun Korn. It all goes back to the poor farmers. The very ones that were not eligible for the last rice scam.

[Thai at Heart]

Monopolies eradicated.

Hahaha. CP will stage/fund a counter coup if that happens.

[BSJ]

It could be said the middleman is getting fatter by the year. If one drives around the countryside there is a plethora of new receiving centres and mills to be seen. A small one near us has trippled in size in the 4 years I have been passing by.

[canuckamuck]

I would like to see this agricultural zoning explained in more detail. We have a fish farm, tea, coffee, rice and lychee. Will we have to knock it all down and grow peanuts?

[awayego]

Monopolies eradicated.

Hahaha. CP will stage/fund a counter coup if that happens.

Quite right! You've hit the nail on the head.

My wife's family farms, mainly, corn. The price they get from the silos is ultimately determined by the single purchasing factory in Bangkok owned by, yes, you guessed it, CP!

There used to be two processing factories in BKK but since the other one closed prices to farmers have gone down significantly.

There is no substitute for competition and free market forces to ensure prices are fair and in equilibrium.

Prayut must start by eliminating monopolies and price fixing. But that, of course, means tackling CP who maintain a stranglehold against any competition, particularly in the agricultural sector of the economy but also in the retail sector (discussed previously - 7/11, Tesco Lotus, Makro et al).

Ain't gonna happen unfortunately! CP are way too powerful.

[Godders]

At last! This should have happened over 15 years ago before certain governments pumped over 1 trillion baht to farmers with nothing to show for it except a tick on the ballot. Could have built a high speed train for 1 trillion baht and had money left over for Justin Bieber concert tickets!!

Sometimes it takes a government that is not reliant on votes to show a sensible rationale towards a sector that was literally suicidal and starving for reform but was ignored as reform would have taken the power away from the govt and put it back in the hands of the voters who would have been free to vote for the most competent govt instead of being forced to vote through a desperate need to escape poverty with that carrot on the stick that never seemed to be in reach. That carrot to be in the hands of the farmers was the last thing a certain govt wanted.

Well done to the Junta for putting the majority first.

Lets hope they adopt some of the ex DEM's finance minster, Khun Korns sustainable approach to rice farming. That has shown to be highly successful and the not a single single baht goes to Khun Korn. It all goes back to the poor farmers. The very ones that were not eligible for the last rice scam.

Who is Justin Bieber?

[Lunchbob]

I respect this man's honesty and intelligence. Bravo!

[connda]

Since Thailand is dead-last in agricultural productivity among ASEAN countries, this seems like a logical and, in the long run, a more productive role for the government. Cash subsidies just keep the status quo and take any incentive away from farmers to improve their productivity. This, along with the recently announced subsidy for farm equipment will improve yields, and therefore profits, for farmers. They will also be less dependent/beholden to the government. Of course, this in not good news for politicians who like to get votes by their constituents being dependent/beholden to them. Pride of independence is not to be undervalued.

You don't get agricultural productivy by handing out welfare subsidies to farmers. You allow the market to govern itself. Those who make it, make it. Those who don't, don't. Eventually farmers exit production, surpluses become deficits, and prices go up. Those who stay in the game learn to innovate.

The only downsize is when corporations come into the game, and then lobby the government for corporate welfare (subsidies) like in the US. But that's another story, which unfortunately will probably happen in the future.

[Srikcir]

At last! This should have happened over 15 years ago before certain governments pumped over 1 trillion baht to farmers with nothing to show for it except a tick on the ballot. Could have built a high speed train for 1 trillion baht and had money left over for Justin Bieber concert tickets!!

Sometimes it takes a government that is not reliant on votes to show a sensible rationale towards a sector that was literally suicidal and starving for reform but was ignored as reform would have taken the power away from the govt and put it back in the hands of the voters who would have been free to vote for the most competent govt instead of being forced to vote through a desperate need to escape poverty with that carrot on the stick that never seemed to be in reach. That carrot to be in the hands of the farmers was the last thing a certain govt wanted.

Well done to the Junta for putting the majority first.

Lets hope they adopt some of the ex DEM's finance minster, Khun Korns sustainable approach to rice farming. That has shown to be highly successful and the not a single single baht goes to Khun Korn. It all goes back to the poor farmers. The very ones that were not eligible for the last rice scam.

Interesting way to put the majority first: strip them of all rights and liberties.

Gen. Prayut acts for the MINORITY who have decided the future of Thai society, albeit with themselves holding unchecked power.

Let the free market decide who will raise what crop and how much. Just keep farmers AWAY from Prayut's subsidies when they want to protest. Unfortumately, Prayut is too quick to buy their silence for POLITICAL GAIN. So much for economic reform.

Edited May 9, 2015 by Srikcir

[lucky11]

^^^ Getting up and using brains would be a good idea.

"Thailand is a country engaged in free trade."

Is this "free trade" to include no import duties on farm equipment, chemicals and other things necessary to farming or is the government going to continue to suck the farmers dry?

Chemicals are not necessary!!