Economic Analysis of Lop Buri Land Reform Project, Lop Buri Province.

Abstract

The objectives of the study are : (1) to study socio-economic situation of the farmers; (2) to evaluate minimum farm size; and (3) to analyse economic rate of returns of Lop Buri Land Reform Project (LLRA). According to the analysis of the collected data, the average of the household size in the LLRA is about 5 persons of which 3 are the household labor force. The average land holding is 1 rai and the average net farm income amounted to 36,420 baht. The average off-farm income was about 4,438 baht and household expenses averaged about 13,432 baht. The minimum farm size according to the proposed cropping patterns were as follows : (1) farm size should not be less than 18 rai, by growing rice 18 rai and mungbean 4 rai before rice in the second year, or growing maize 18 rai, followed by sorghum 5.5 rai and soybean 5.5 rai as the second crops, (2) farm size should not be less than 17 rai by growing maize 17 rai, followed by soybean 10 rai as the second crop; (3) farm size should not be less than 16 rai, by growing maize 16 rai, followed by soybean 5 rai an mungbean 5 rai as the second crops, or growing maize 16 rai and dividing this to grow mungbean 8 rai in the second year as the first crop, followed by soybean 10 rai as the second crop, or growing mungbean 14 rai and chilli 2 rai, followed by maize 5 rai and soybean 5 rai as the second crops; (4) farm size should not be less than 14 rai, by growing maize 12 rai and chilli 2 rai, followed by soybean 8 rai as the second crop; (5) farm size should not be less than 13 rai, by growing maize 10 rai and growing cotton 3 rai, followed by soybean 8 rai and mungbean 1 rai in the second year as the second crop. Therefore, it is recommended that the farmers in the LLRA Should be provided with at least 18 rai per household in order to generate net income of 35,000 baht in the tenth year of development. The result of the economic analysis shows that, at the 12 percent discount rate, the ERR will be 35 percent. If the total project cost increases by 20 percent, the ERR will be 18 percent. According to this analysis, it is concluded that the implementation of Lop Buri Land Reform Project will be economically viable.