Chaisiri Kumchatpai. Financial and production functions of rice farming analysis : a case study of Lardlumkeaw district, Pathumthanee province. Master's Degree(Environmental Planning for Community and Rural Development). Mahidol University. : Mahidol University, 2006.
Financial and production functions of rice farming analysis : a case study of Lardlumkeaw district, Pathumthanee province
Abstract:
The objective of this study was to estimate the financial return of rice
farming and to find out the relationship of the production factors in 3 types of rice,
Rachinee, Supanburi 35-1 and Supanburi 60. A formal cross section survey of 205
rice farmers located in Lardlumkeaw district, Pathumthanee province was
conducted. Multiple regression technique and Income Statement Analysis were
applied to analyze the significance of production factors on the net income from rice
farming in this region. The results from the analysis showed that the coefficients of
fertilizer quantity per rai, price of rice seed for broadcasting, number of times
fertilizers were used during the season, and number of times herbicides were used
during the season were very significant to rice productivity per rai, while the size of
the field and the farmer’s account keeping had no impact on the productivity per rai.
The factors that influenced net income were rice seed cost per rai, rice seed quantity
used per rai, and rice strains. Given all the significance factors that may have
affected the productivity and profit per rai, the Supanburi 60 rice leads to the highest
productivity and profit. The study also pointed out that the differences in the
amount of fertilizer used also affected the amount of income; it was found that 40-
80 kilogram of fertilizer per rai would yield higher production per rai but when the
cost of the fertilizer was deducted the amount of profit from using 40-80 kg of
fertilizer per rai was virtually no different from using 10, 20 or other amounts of
fertilizer per rai. So it can be stated that higher rice productivity does not mean
higher net income, the more rice produced does not mean higher profit because the
cost is also higher as well. The farmer may misunderstand that the more investment
made in some factors may result in higher profit but the opposite could be true; the
more investment made in unnecessary factors could result in lower profit. It can be
concluded that increase in cost does not necessarily translate to an increase in profit
because there is a certain level of maximum productivity for each paddy field or it
could even translate to a reduction in profit as a result of increased cost. Making
profit from rice farming should focus on cost control rather than increasing rice
productivity.