Thai farmers, their income, debts and other matters
A popular expression in Thailand is: 'Farmers are the backbone of society'. Looking at their socio-economic circumstances, a completely different picture emerges. A study by the Puey Ungphakorn Institute of Economic Research, part of the Bank of Thailand and reported in the Bangkok Post, shows this.
I'm going to summarize this article from the Bangkok Post in some stark numbers. I leave comments to the dear readers, although my hands are itching.
Their income
The average annual farm income in 2017 was 57.032 baht. 40% of farm households live below the poverty line of 32.000 baht per year, which, together with the high debt burden, hinders economic growth. A farmer's household had an average of 2.7 persons.
The burden of debt
At least 30% of households have debts higher than their annual income from farming, for 10% this is 3 times that income and for 50% less than 60% of the income.
Age
The peasantry is aging. Between 2003 and 2013, the 40-60 year olds increased from 39% to 49% of all workers, while the number of younger farmers aged 15-40 decreased from 48% to 32%.
Land property
The average land holdings of peasant families was 14.3 rai (about 2 hectares), while half owned less than 10 rai. (Tino: A rough rule of thumb is that 1 rai of farmland can generate 2.000 baht in profit per year. Sometimes that can be more or less).
Farm implements
This was used by 68% of the group studied.
Other commentary from the Institute
Younger farmers specialized more but not enough to farm on a larger scale. The government should support these young people for more innovation, increasing productivity and adding value to agricultural products. Government initiatives should be in line with those abroad. Further analysis can also help to provide subsidies in a targeted manner instead of all-encompassing.
Source: Bangkok Post, May 31, 2018
Eh I am curious about a similar study in the Netherlands, Belgium and Germany.
I think that the debt burden of the average farmer is several times their annual income.
But in Thailand with a minimum wage of 325 baht per day and suppose 312 workable days per year (except Sundays) I do not exceed an income of 101.400 baht per year with a 6-day working week.
It is logical that the youth does not take over the farm.
It's a viscous circle. Too little land to be profitable. In the Netherlands, as a little farmer, you have 25 hectares here. needed to do something. You cannot live on the land alone and you switch to chickens, pigs, calves or mushrooms.
If you really want to be able to work profitably as a farmer in the Netherlands, you will soon need 40 to 50 hectares as an arable farmer.
Drop this off to Thailand you would need a 250 to 320 rai there.
Then you have something left over and you arrive at an “income” profit of (300 rai) 600.000 bath per year. Added to this is a large depreciation of personnel and equipment, so it will be roughly 20% or 33,3% and you will end up with a maximum of 200.000 bath what remains.
If you consider such amounts and also take into account the prices of rice, pineapple, jackfruit, rubber, etc. on the market, you will not become a traditional farmer, but you will specialize in ……… (fish), vegetables, durain???? ?
In my opinion, the Thai farming population has always been in a disadvantaged position: they work hard but do not or hardly profit (that is what the buyers/traders do).
In fact, there is exploitation of farmers who are also too often indebted. The fact that they have had little education is a revenge.
They are called “the backbone of society” because it is they who do the work that earns good money for others. I myself think more in the direction of “slaves” because the farmers see no other options for themselves than to continue “farming”.
Let me tell you a case of exploitation. The rice that farmers sell to rice millers may not have a moisture content higher than 15%, otherwise they will receive (sometimes much) less money for it. It often happened that the rice millers used a counterfeit moisture meter that always read 16% or more even though the rice was 15%. When the farmers protested they were chased away. Did you think the police did something? Now things are going a bit better because many farmers now have their own moisture meters.
In Thailand, the little man (and woman) is always screwed. I always read that the Thai culture has so much respect for the farmer. Do not make me laugh.
It is a shame that farmers earn so little and get into trouble. This applies to Thailand and certainly also to the Netherlands. Our most necessary necessities of life are the least valued. A Louis de Vuitton bag for € 800, - and you fill it completely with 100 Bath of vegetables. We should really pay more for the products of the farmers, so that they can do their hard work with satisfaction. When we buy our vegetables at the market (in Isaan), I am sometimes ashamed of the low price.
With an average annual income of 70.000 euros, 2017 is a golden year for Dutch farmers. The CBS researchers estimate the income, in December 2017, that Dutch farmers can get from their farms at 70.000 euros. That is an increase of 28 percent compared to 2016, when farmers still earned an average of 50.000 euros.
Agriculture is the sector with the most millionaires in the Netherlands (measured by property value, not income). One in five working millionaires is a farmer. (Volkskrant 12/9/2017, CBS).
Oops 70.000 euros?
Question 1. Is this the income and can it be compared to salary or are there costs involved?
What about disability insurance, disability insurance, pension, etc?
What is actually left over in terms of income.
Question 2. If it concerns income, what are the employment conditions? I'm talking about a how many hour work week. Are the hours of more than 8 hours per day considered overtime and paid as such?
70.000 Euro income represents a 5000 Euro GROSS per month.
My garage charges an hourly rate of 67,50 inclusive per hour. If I'm going to see that as income I'm doing it wrong. Average work year in hours is 1680 hours.
I come to an income of 114.000 Euro.
EXCLUSIVE VAT 92.500 Euro.
Every mechanic is happy if he sees this and finds it on his annual statement.
The cry of 70.000 euros means nothing to me. The practice is much worse.
The trucks of a customer from Hoogeveen, from my old employer in the Netherlands, always had writing in large letters in English.
No Farmers No Food.
Let's just think about that.
Jan Beute.
Last night Prayut was still in the news on television during his Friday evening prayer in which he indicated that he recognized the problems of the farmers and he indicated what measures the government had taken and intended to take and again asked everyone involved for full cooperation and support to ensure proper implementation of government policy.
You would think that if this policy were implemented it would have many advantages, certainly in the financial field. Apparently it doesn't work and the question therefore travels, what is the reason for this.
Incidentally, I do not know the policy of the government well and it is not pleasant to read on TV with those English translations that go very quickly. It is and remains a major task to make improvements and I hope that there will be successes and the farmers will get a better life, because they certainly deserve that.