Farmer And His Rice

[jonik]

Long time since i've been writing in this forum now. But i've managed to get meself marrige to a thailady on the 7 oct this year. Just a quick in and out writing the papers and so.

I visited the family in Buriram , their all farmers there but the bond they've got in that village is outstanding. You've got to look long time to find something like that back home where i live.

After staying about 3 weeks her father got up to the nerve and asked me to borrow him 100 000 bath for some farmerland he was going to rent. He said that he'd be able to pay me back in about 3 years or so. But the way i see it he would be better of just spending the money. I am not sure how much rice he could grow in a year or how much it's value on the market is. But if u rent a piece of land for 100 000 bath for 3 years(i think that was the deal) and u need to pay back the money and on top of that make a profit...........how?

[ColPyat]

But if u rent a piece of land for 100 000 bath for 3 years(i think that was the deal) and u need to pay back the money and on top of that make a profit...........how?

That must be a huge plot of land he's gonna rent. Well, or the profit are the 100 000 he's "borrowing".

[johna]

Here in central Thailand agricultural land can be rented for 500 baht per Rai (1600 Sq M)

1 rai of lad produces approx 1 ton of rice sold at 5000 Baht + at the moment.

100K will be needed for machinery plus fertilizer etc but in my experience in these matters you will probably never see your money again.

Within 3 years other considerations more important than repaying you will see this money diverted

[Little Black Duck]

Dont forget the flock of ducks to eat the pesky insects..

and shouldn't this be in the Farmer Sect ????

[astral]

I would ask how much of the money he is putting up.

Unless he has an investment in the project as well, it will probably fail.

I was asked the same question some years back, regarding a fishing boat.

The family were pawning all their gold and had 60% of the money needed,

I put in the other 40% and within 2-3 years it was paid back.

[jonik]

No the fertilizing is on the top, i gave him 25 k extra for this.

He tell's me he'll only able to make a harvest once a year ....why?

I've tried to ask my wife about this but she always seem to let my questions just fade away...........not that i care so much about the money but it would be interesting to know how they calculate the profit.

But if 1 rai makes 5000 bath ...and say he's got 100 this makes a nice 500 000 a year. I don't know the size of the land but everything else is quite cheap in Buriram so.....

I'm just glad i can help.......

[Johpa]

Generally speaking, rice padi land is rented for 50% of the harvest. Given the vagaries of rice growing, renting padi for a fixed price is a rather high risk investment.