The return on investment of community cannabis farms for medical purposes: a case study of Rak Chang farm community enterprise group Nakhon Ratchas

Abstract

Research on the return on investing in community cannabis farms for medical purpose is aimed to know investment type, investment value and return on investment as an alternative economic crop for community enterprises in cannabis cultivation by analyzing the present value of investments, profit-to-cost ratio, internal rate of return, payback period and project sensitivity analysis applying in-depth interviews and small group meetings. Data are collected using interview forms with 5 smallholders in the Rak Chang Farm Community Enterprise Group at Thai Samakkhi Subdistrict, Wang Nam Khiao District, Nakhon Ratchasima Province.

The results of investment found that the farmers interviewed use a private investment model, most of which is used for the construction of closed houses and use your own land between 1 and 4 rai. Initial investment value (excluding land value) is approximately 1.35 million baht. This project was 5 years old. This project has a positive net present value of the project (approximately 2.24 million baht), resulting in a profit-to-cost ratio of approximately 1.25 times. The project was at 67.36%, above the threshold discount rate (6.5%) and the payback period was about 1 year and 3 months, indicating a low project risk. and when considering the sensitivity of the project, it was found that projects can also support cost and outcome changes at a reasonable level because it still supports the decrease of income by about 13-14%.