Cost and Return of Rice Cultivation in Pasak Sub-District, Chiangsaen Amphoe, Chiangrai province

Abstract

This research aimed to study the Cost and Return of Rice Cultivation in order to study and analyze the cost structure and the return, as well as to study the problems and remediation action with regard to rice c ultivation in Pasak Sub-District, Chiangsaen Amphoe, Chiangrai Province. The population of the study includes 42 households of rice farmers in Pasak Sub-District, Chiangsaen Amphoe. Questionnaire was used as a research instrument. Data was analyzed using statistical analysis software to determine the frequency, percentage and accounting calculations. Result of the study shows that the majority of respondents, 69.05 percent are male, 57.17 percent aged 51-60 years old, 52.38 percent completed 4th grade of elementary school. The areas of rice production are owned by the farmers themselves and transplant method is used for rice production. The cost of small rice farms average at 4,327.17 Baht per Rai. For the return of rice production, productivity of small rice farms yields at 0.77 ton per Rai, which generate income at 8,863.07 Baht per Rai, average net profit at 3,764.70 Baht per Rai. The break-even point is at 0.02 ton per Rai, ratio of profit to cost at 87%, ratio of profit to revenue at 42.48%, rate of return on assets at 40.37%. For the cost structure of rice cultivation per Rai, there are 3 main cost elements including, labor cost at 49.17 percent, production expenses at 48.21 percent and raw material cost at 2.62 percent. Cost components of the labor cost consists of 4 main parts including, proprietor income at 62.54 percent, labor hiring cost for rice transplanting at 32.74, labor hiring for fertilizing and insecticide spray at 50.14 percent. Moreover, the production cost per Rai consists of 8 components including ploughing hire at 34.83 percent, harvest tractor hire at 28.75 percent, fuel cost at 18.51 percent, fertilizer cost at 9.50 percent, herbicide at 3.52 percent, insecticide at 2.52, nourishment hormones at 2.07 percent, and land tax at 0.30 percent. The top 3 most common problems in rice cultivation of rice farmers in Pasak Sub-District, Chiangsaen Amphoe, Chiangrai Province are natural hazards, i.e. draught, follows by deteriorating soil condition, and the third is increasing price of fertilizer. Regarding the remediation of the rice cultivation problems, the farmers suggested that, firstly, governmental sector should provide education to promote knowledge in rice transplanting and soil condition improvement to be suitable for rice cultivation which, ultimately will reduce the cost and increase productivity. The next suggestion is for the government sector to educate how to minimize the use of chemical fertilizer