Analysis of The Cost and Economic Returns in Rice Cultivation Investment for farmers in Derm Bang Nang Buat District, Suphan Buri Province

Authors

  • Thatsanee Srikrua Faculty of Business Administration and Information Technology, Rajamangala University of Technology Suvarnabhumi, Suphanburi Campus, Thailand
  • Thanatchon Jangkhum Faculty of Business Administration and Information Technology, Rajamangala University of Technology Suvarnabhumi Suphanburi Campus

Keywords:

cost, economic returns, rice cultivation

Abstract

This research is designed to 1. examine the production costs and investment returns of rice cultivation, and 2. compare and analyze the costs and returns experienced by farmers in Derm Bang Nang Buach District, Suphan Buri Province. Data was collected from a sample of 384 farmers. The research was conducted through structured interviews using convenience sampling. Statistical methods employed included frequency, mean, percentage, and financial ratio analysis. The research found that: 1) Farmers in Derm Bang Nang Buach District, Suphan Buri Province, mostly invest in rice growing by cultivating rented land ranging from 31 to 60 rai. Financial support is derived from bank or cooperative loans, and the agricultural technique employed is broadcast sowing. Rice farming production costs are categorized into: variable costs amounting to 20,988 baht/year (including seed expenses, labor, plowing, sowing, fertilization, weed management, harvesting, and transportation to the mill), fixed costs totaling 257,193 baht/year (covering depreciation and maintenance of tractors, lawn mowers, sprayers, and water pumps), resulting in total production costs of 278,181 baht/year, and operating costs of 243,000 baht/year, culminating in an overall cost of 521,181 baht/year. The return on investment from rice cultivation is also examined. The annual revenue, at a selling price of 10,500 baht per ton, amounts to 1,260,000 baht. 2) The annual net profit amounts to 738,819 baht. The gross profit margin is 77.92%, the net profit margin is 58.64%, the return on investment is 153.92%, and the return on assets is 49.98%. The break-even sales volume is 2,491 units.

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Published

2026-06-28

How to Cite

Srikrua, T., & Jangkhum, T. (2026). Analysis of The Cost and Economic Returns in Rice Cultivation Investment for farmers in Derm Bang Nang Buat District, Suphan Buri Province. Local Administration Journal, 19(2), 155–169. retrieved from https://so04.tci-thaijo.org/index.php/colakkujournals/article/view/286843