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

Authors

  • Non Vorlapanit
  • Akaranant Kidsom

Keywords:

return on investment, community cannabis farms for medical purposes

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%.

References

Aumpon, V. 2019. The Narcotic Drugs Act and the laws related to the use of medical

marijuana. Retrieved January 21, 2022 from https://mdresearch.kku.ac.th/files/

cannabis/ใหม่_ภก.วชิระ%20พรบ.%20กัญชา.pdf

Cannabis Catalysts. 2019. Cannabis Catalysts Insides Thailand: Medical Cannabis.

Retrieved January 24, 2022 from https://www.cannabiscatalysts.com/wp-

content/uploads/2020/02/Thai-Version-CC-Insights-Thailand-Medical-Cannabis.pdf

Caulkins, J.P. 2010. Estimated Cost of Production for Legalized Cannabis.

Retrieved January 20, 2022 from http://www.antoniocasella.eu/archila/

Caulkins_RAND_2010.pdf

Department of Health Office of Drug Control in Deloitte. 2016. Modelling the cost of

Medicinal Cannabis. Retrieved January 24, 2022 from https://www2.deloitte.com/content/dam/Deloitte/au/Documents/Economics/deloitte-au-modelling-cost-medicinal-cannabis-230916.pdf

Dontumpai, P. et al. 2021. Policies on marijuana liberalization as a medical plant.

Retrieved January 29, 2022 from https://so02.tci-thaijo.org/index.php/JRKSA/article

/view/246784

Food and Drug Administration, Ministry of Public Health. 2020. Cannabis. Retrieved

January 22, 2022 from https://www.fda.moph.go.th/sites/Narcotics/SitePages/View

Academic.aspx?IDitem=1

Golzar, T.I. 2015. An Economic Analysis of Marijuana Legalization in Florida.

Retrieved January 22, 2022 from https://sites.duke.edu/djepapers/files/2016/10/golzar-

dje.original.pdf

Joint Economic Committee of United State Congress. 2018. The National Cannabis

Economy. Retrieved January 23, 2022 from https://d3n8a8pro7vhmx.cloudfront.net/ marijuananews/mailings/167/attachments/original/national-cannabis-economy_report.pdf?1545798499

Kidsom, A. 2019. Economics of Project Analysis. Department of Economics Faculty of

Economics. Kasetsart University.

Ogrodnik et al. 2015. An Economic Analysis of Different Cannabis

Decriminalization Scenarios. Retrieved January 24, 2022 from

https://www.researchgate.net/publication/290310316_An_Economic_Analysis_of_Differ

ent_Cannabis_Decriminalization_Scenarios

Royal Gazette. 2020. Narcotics Act (No. 7), B.E. 2562. Retrieved January 26, 2022 from http://www.ratchakitcha.soc.go.th/DATA/PDF/2562/A/019/T_0001.PDF

Trang Provincial Public Health Office. 2019. Narcotics Act (No. 7), B.E. 2562. Retrieved January 28, 2022 from http://www.tro.moph.go.th/download/Strategy/ board2562/boardmeeting042562/5.1.4.pdf

Wilson et al. 2019. First known survey of cannabis production practices in California. California Agriculture. Vol. 73. 3 – 4. 19 – 127.

Additional Files

Published

2023-06-15

Issue

Section

บทความวิจัย (Research Article)