Land Prices (sale Or Lease) Near Nachaluai (isaan)

[Dr. Burrito]

I'm starting to take a few drives over into the countryside near my wife's village of Nachaluai (no doubt spelled incorrectly) south of Ubon and near Nam Yun. Seems like it is a nice area to raise beef cattle, grass, corn and some other interesting products.

Kind of curious what kind of money property is either selling for or leasing for on a large scale, say 200+ acres. I've no real need to be near electricity or piped water, but I do want to find property with a good water source, though I suppose I could also drill.

Not looking for anything concrete, just some ideas to expect as we begin to furhter explore this opportunity.

Thanks,

Dr. B

[pallasaide]

Its excellent territory for cattle.

Drilling is not practised much in Thailland but its understood what you mean. Year round water is your key. You have to get land that can sustain production from its own water sources and if its cattle based with own forage production then reliable year round water is going to be your biggest issue.

Prices can start as low as 5000 per rai and go up to 15 - 20 000 per rai depending on all sorts of factors. If renting then you should be able to negotiate at around 300 - 500 per year per rai for that sort of size.

200 acres!!

That is a huge committment. It puts you into the largest 1-2% of cattle farms in the country. Are you sure?

Putting aside the cost of the land (because you are going to have to rent unless you are willing to spend serious sums of money on paperwork and company setting up not to mention establishing relationships with 3rd parties. 20 years ago this was practical, but now adays it has become more and more complicated and frought with risk) what are you going to do for the first 5 years or so for income, while you get it up and running?

The idea is great (theory) the practicalities of what you want to do are huge. Presume you have a farming background?

Leave your heart at home and pack extra "head" and brain in suitcase when coming out to Thailand to get this up and running.

Water water water, and there is every indication that the next 18 - 24 months in Thailand are going to be hel_l on earth as far water goes in the North and North East of Thailand goes. The forecasts are the most worrying for the last 20 years.

For Tim

D.V.

Before you make committments go look the Pak Chong and Muak Lek areas of Thailand. This is Thailand's premier cattle country and offers what is accepted as the best overall conditions.

Edited January 4, 2007 by pallasaide

[Dr. Burrito]

Hi Pallasaide,

Thanks for the great input. Yes, I spent a good 20 years pushing beef, tractors, corn, watermelons, grass, sweet potatoes and tomatoes around on the family business before chucking it all in and moving to Hollywood and then later, here.

Hollywood and even here, humorously enough are going to fund my decision to expand back into what I grew up with. That would be paying for the operational costs of the first years, though depending on the property, I definitely would be looking at truck crops to bring in more immediate revenue as well.

As top size, one thing I learned from growing up with gas shortages and labor intensive products was economies of scale and mitigating risks. Not trying to be 'big' per say, but if it is going to be a business rather than a hobby, then size will allow for spreading around the risks in ways small but safe doesn't.

I will definitely take a drive up to Pak Chong and Muak Lek and have a look around there as well.

We have a few other ideas on where to ultimately take the business, but I want to get the production end of things up and running first.

Again, thanks for the input. Much appreciated.

Regards.

Dr. B

Its excellent territory for cattle.

Drilling is not practised much in Thailland but its understood what you mean. Year round water is your key. You have to get land that can sustain production from its own water sources and if its cattle based with own forage production then reliable year round water is going to be your biggest issue.

Prices can start as low as 5000 per rai and go up to 15 - 20 000 per rai depending on all sorts of factors. If renting then you should be able to negotiate at around 300 - 500 per year per rai for that sort of size.

200 acres!!

That is a huge committment. It puts you into the largest 1-2% of cattle farms in the country. Are you sure?

Putting aside the cost of the land (because you are going to have to rent unless you are willing to spend serious sums of money on paperwork and company setting up not to mention establishing relationships with 3rd parties. 20 years ago this was practical, but now adays it has become more and more complicated and frought with risk) what are you going to do for the first 5 years or so for income, while you get it up and running?

The idea is great (theory) the practicalities of what you want to do are huge. Presume you have a farming background?

Leave your heart at home and pack extra "head" and brain in suitcase when coming out to Thailand to get this up and running.

Water water water, and there is every indication that the next 18 - 24 months in Thailand are going to be hel_l on earth as far water goes in the North and North East of Thailand goes. The forecasts are the most worrying for the last 20 years.

For Tim

D.V.

Before you make committments go look the Pak Chong and Muak Lek areas of Thailand. This is Thailand's premier cattle country and offers what is accepted as the best overall conditions.

[pallasaide]

Dr. B

Okay we talk the same language.

If you wish to get up and running quickly (and have ample water) and access to a tractor, decent harrow, disc or similar you can't go far wrong by cross cutting and getting a forage crop down for the first 6 - 12months. That will give you a good insight into what the soil is going to be like, and you will have a crop (maize or forage grass) that will walk out the gate (wet or dry, bailed or not), such will be the demand for it over the next 18 months. Prices for the next year or so are going to be good for forages as a shortage is looming.

If you wish to stick to vegetables, am going to stand back as it would appear you have significantly more experiance.

As far as cattle go, where were you up in the hills near the desert or low down Holywood proper? The desert aint much different from the North East of Thailand, except for the night time temperature.

Pak Chone and Muak Lek are on the main road out of Bangkok heading up to the North East. Mauk Lek comes first and then Pak Chone. In both cases look at land on the right hand side of the main road as the run offs are about 25% more than the left hand sides. Dont feel despondant by the dryness in the dry season. The area has excellent subterranian water about 20m - 25m with no lifting restrictions. You are also not far from an export abbatoir, so ideally placed logistically for export beef (if that is the way you wish to go).

All the best and please do come back if there is anything else you need, especially hardware like big tractor or plough (which you will need if you are going for 200 acres. I cant do much now, but will be happy to help in any way I can after about May onwards.

For Tim

D.V.