In rural areas there are limited employment opportunities outside the agricultural sector. Manufacturing and service industries are concentrated in urban areas. Secure land ownership is still an unsolved issue for many farmers. Under current legislation, all land, including farmland without legal title is classified as ‘forest land’. falling under the administration of the Royal Forest Department, regardless whether the land is forest or has been cultivated by farmers over many generations. Up to now a majority of farmers are still cultivating land over which they legally have no rights. During the economic boom, millions of farmers, mainly young people and men left their rural areas to search for employment in the cities, leaving the care for farms and families to the elderly and women. But when the bubble economy collapsed many people have been forced to move back to their rural homes and to work in the farming sector.
Paddy farming still dominates Thai agriculture. Almost half of the farmland is used for rice production. The top five crops (rice rubber, maize, cassava and sugarcane) occupy more than 70% of the total agricultural land (Agricultura/ Statistics of Thailand).
The income gap between the agriculture and non-agriculture sector has widened from 1:7.82 in the 70s to 1113.3 in the 90s.
Farm incomes are insufficient to cover the families’ expenditure, resulting in an increase of family debt (negative cash saving). Often farmers are no longer growing their own food they sell all farm produce and spend the money to purchase food requirements. Even rice farmers often sell their rice and purchase milled rice for consumption.

 

Jörg Rosenkranz is international inspector and South East Asia representative for BCS, based in Chiang Mal, Thailand. Before he joined BCS he worked nine years for international development organizations in South East Asia and in the fields of rural development, sustainable agriculture and community business. He believes that the development of organic markets, under business conditions, with the tools of clear standards, may be even a more efficient and sustainable way to support to the socio-economic and environmental development in the region.