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Did the Thai rice-pledging programme improve the economic performance and viability of rice farming?

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  • W. Attavanich

Abstract

This article evaluates impacts of the rice-pledging programme on the economic performance and viability of rice farming in Thailand. It also investigates whether the effects of the programme are heterogeneous across different farm types using the propensity score matching technique to address the self-selection bias in the farm-level data set. We found that the programme enhanced the economic performance less than hoped for. Overall, the programme was estimated to improve the net direct farm income for participating farms by $175.12--$194.82 per hectare. Taking into account the heterogeneous effects of the programme across farm types, we calculated that the greatest effects may be realized by farmers within the small farms subsample, at $404.41--$439.85 per hectare, but only $139.80--$213.36 per hectare for midsize farms, and $138.82--$173.34 per hectare for large farms. With regard to the economic viability of the programme, we discovered that it had an insignificant effect on farm modernization investment initiatives. Thus, future strategies incorporated into the programme that better control increases in production costs, improve small farmers’ access to the programme and require participating farms to spend a portion of the money received on farm modernization may improve long-run benefits of the programme.

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  • W. Attavanich, 2016. "Did the Thai rice-pledging programme improve the economic performance and viability of rice farming?," Applied Economics, Taylor & Francis Journals, vol. 48(24), pages 2253-2265, May.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:24:p:2253-2265
    DOI: 10.1080/00036846.2015.1117049
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    1. Song, Xiaoqing & Wang, Xiong & Li, Xinyi & Zhang, Weina & Scheffran, Jürgen, 2021. "Policy-oriented versus market-induced: Factors influencing crop diversity across China," Ecological Economics, Elsevier, vol. 190(C).
    2. Para Jansuwan & Kerstin K. Zander, 2021. "Getting Young People to Farm: How Effective Is Thailand’s Young Smart Farmer Programme?," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    3. Attavanich, Witsanu, 2023. "A Review of the Impact of Climate Change on Food Security and Co-Benefits of Adaptation and Mitigation Options in Thailand," MPRA Paper 119565, University Library of Munich, Germany, revised 28 Sep 2023.
    4. Deunden Nikomborirak, 2020. "Thailand's Policy Challenges," Asian Economic Policy Review, Japan Center for Economic Research, vol. 15(2), pages 284-300, July.
    5. Nguyen Khanh Doanh & Nguyen Thi Thu Thuong & Yoon Heo, 2018. "Impact of Conversion to Organic Tea Cultivation on Household Income in the Mountainous Areas of Northern Vietnam," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    6. Witsanu Attavanich & Sommarat Chantarat & Jirath Chenphuengpawn & Phumsith Mahasuweerachai & Kannika Thampanishvong, 2019. "Farms, Farmers and Farming: A Perspective through Data and Behavioral Insights," PIER Discussion Papers 122, Puey Ungphakorn Institute for Economic Research.
    7. Amorn Pochanasomboon & Witsanu Attavanich & Akaranant Kidsom, 2020. "Impacts of Land Ownership on the Economic Performance and Viability of Rice Farming in Thailand," Land, MDPI, vol. 9(3), pages 1-18, March.

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