Potential effects of para rubber plantation promotion in the North-East of Thailand on agricultural output, employment and farmer's income: A case study of Changwat Nong Khai [Thailand]
1991
Somporn Meerungruang
Under the assumptions of planting area of para rubber at 14 rai/household, the price of para rubber at 23.39 baht/kg, the price of cassava root at 0.52 baht/kg and the 25 years life span of para rubber tree, the rate of return on para rubber is 19.22 percent. Other thing being equal, the investment is not feasible if the price of para rubber is less than 16 baht/kg. The sentivity analysis of para rubber price on the rate of return implied that farmers may not join the scheme if the price of para rubber is low. At farm level, para rubber planting at 14 rai/household will produce a net increase in value of employment and farm household income. The present value of net increases in output, employment and income in 1989, at 12 percent discount rate, are 13,142 and 109,583 baht/14 rai/household, respectively. In addition, the present value of the farm households' net output is reduced by 42,078 baht/14 rai/household. At provincial level, the impact of para rubber plantation causes a reduction in cassava output at least 1.45 million ton per year. The present value of net output, employment and farmers' income in 1989 at 12 % discount rate, was at least 1,117.80, 922.25 and 3,337.66 million baht, respectively.
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