The Change in Economy and Social Livelihood in the Contract Farming System: Case Study Pong Hang Village Moo5 Vang Hin Lad Sub District, Chumpae District, Khon Kaen Province

Abstract

The purpose of this study was to investigate the context of contract farming at Pong Hang Village including the social and economic adaptation under the process of contract farming system. The study employed the concept of community economy. In-depth interviews were applied through guided questions, with 23 key informants, who were concerned with issues in the village as well as household information questionnaires from 133 household representatives. The study was found that agricultural contract farming system was a collaborative management between the agricultural companies and farmers. The companies provided; materials such as seeds, fertilizer and insecticide, knowledge for cropping each type of plant and methods of marketing management. The farmers were responsible for the investment of their labor, land, equipment and devices. The companies and farmers signed a contract in advance that established the terms and conditions relating to the numbers and quality of products for sell to the companies. However, this contract farming resulted in an inequity between the companies and the farmers - the companies had an advantage over the farmers that they had been controlled production systems and markets system. Although the farmers were at a disadvantage, but in the fact companies did not force them into a contact; rather they compromised to solve the problem as an installment debt by reason of business. By these event was show that famers were maintained in their freedom to select to grown each kind of plants included with power to bargaining. Hence, the community adaptation was also change for maintain the relationship of their livelihood under the process of capitalism.