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[Thai Economics Library | Archives| Currency Crisis 2007| Entrepreneurs]
April 22, 2009

farmersdisappearing

Stemming the flow from farm to city
Renewal in Thai agriculture

By Jon Fernquest

farmer saraburiFarming is not what it used to be in Thailand

A decade ago, almost half the population of Thailand farmed.   

In 2006 the number had declined to 40% (25 million farmers) and continues to fall. Last year there were only 23.8 million farmers.

Smallholder farming has been a staple part of Thai culture from the very beginning over 1000 years ago.

Smallholder farming has become much less attractive as an occupation than it once was.

One of the most urgent problems Thailand faces now is how to make this core Thai activity more attractive and thus stem the flow of people from countryside to city.

At the height of the commodities boom in 2008 there was talk of foreign investment in Thailand's rice farming sector. This idea was firmly rejected (Read articles #1 and #2).

Meanwhile, Cambodia has relied on foreign investment to become a competitive rice exporting nation (Read article). 

Foreign investment in the agricultural sector of an agricultural country like Thailand or Laos seems to threaten the very culture and existence of the nation itself.

The massive foreign investment in
plantations in Laos has been firmly rejected in Thailand (Read article on Chinese investment in Laos)

Government efforts are being made nowadays to improve almost every aspect of agricultural and food production in Thailand, ranging from improved seed varieties to improved irrigation and stronger food safety measures (Read this week's article).

Efforts are also being made to improve the government agricultural price support system (pledging system) so that poor farmers are better protected from the vagaries of international commodities markets (Read this week's article, also check out archives of Easy Business English and Business Blog).

Today's article takes a look at the reasons why young people are increasingly migrating away from the farm to work in the city.

stemming the flow - stopping or reducing the flow
renewal - growing strong again (became weak in the past)
not what it used to be - it was better before, it has gotten worse over time
smallholder farming -  small family run farms (See website)
staple - something basic and essential
urgent - must be done quickly, a problem that must be solved quickly
core - the center, the most important part
commodities boom - a period of time when the prices of commodities such as oil and agricultural products rises to very high levels (so agriculture becomes profitable for a time)
firmly rejected - did not accept, and won't change mind
plantations - large farms
irrigation - capturing water in one place and delivering to farmers' plants to help them grow (See Wikipedia)
food safety - the study and job of making sure that food is clean and safe to eat (See Wikipedia)
agricultural price support system, pledging system - a system for making sure that farmers receive enough money for their crops (at harvest time prices drop and market conditions can cause temporary decrease in price)
vagaries - unexpected and unpredictable changes in a situation 
migrate - move from one place to another to live and work

HOME GROWN

Life is slowly draining from the farms

Fewer young people want to plant rice any more.
By: Surasak Glahan in Saraburi
22/04/09

After four decades farming rice in Nong Saeng district in Saraburi,Boonma Kantasorn has no plans to quit. Yet he does not want his children to follow in his footsteps.

It is a job that produces the staple food of more than 60 million Thais, but rice farming these days is increasingly being left to ageing farmers like Boonma Kantasorn.

At the age of 57, Mr Boonma works on rice farms in a village in Nong Saeng district, just as he has done for the past four decades.

"Rice farmers here are older than before. The majority of them are in their 40s and beyond," he said.

Like most families in the area, his three grown-up children took advantage of educational opportunities their parents never had, and have now opted for jobs in Saraburi town and Bangkok.

"My eldest son, now 28, has worked at a factory in Bangkok since he finished high school."

His second child works for a bank, and the third is employed in a local copy service shop.

"I told my children to carry on with their jobs, because they can earn more than me. Here you cannot get a steady income."

The flow of young people from rural areas to towns and cities could eventually result in the loss of a new generation of farmers, said Rice Department director Prasert Gosalvitra.

follow in his footsteps - do the same career or job as someone before you, like your father 
a staple, a staple food, a staple good (noun) - important and basic goods used in everyday life, mostly food also consumer goods (rice, cooking oil, soap, shampoo), also means more generally, something basic and essential (See glossary)
majority  - more than 50%
take advantage of -  choose to use something that can help you
educational opportunities - possible ways you can study learn more in school 
opted for Y - chose Y
copy service shop -  a shop that makes photocopies of documents
income - money that people receive from work or some other source, used for household consumption and savings
a steady income - income that remains the same over time, without decreasing by large amounts 
a generation - 20 years (the father is one generation, the son is the next generation, the grandson is the next generation, and so on....)

Young generation less interested in farming

"There is a growing national trend which is seeing more ageing farmers and fewer younger ones," he said. "The new generation just doesn't want to do it."

This reflects a reality that, with many rice farmers amassing debt and seeking financial rescue from the government, the occupation is fast losing its appeal with younger generations.

The number of people working in the farm sector is declining across the board, according to the Office of Agriculture Economics (OAE).

In 2006, Thailand had about 25 million farmers, who accounted for 40% of the population. About 10 years ago, half of the country's population farmed, but last year the figure had dropped to 23.8 million.

If the trend continues the agency estimates the number is likely fall to 37% of the population by 2013. This could threaten the country's food-producing capacity.

X reflects Y - X shows that Y is true
amassing debt -  having more and more debt over time , borrowing a lot of money you have to pay back
losing its appeal - people don't want to do it, less and less people want to do it  
Office of Agricultural Economics (OAE) - the Thai government agency in charge of collecting agricultural statistics and making forecasts
X accounted for Y% of Z - X was Y% of Z
if the trend continues...  - if the same pattern of events continues on into the future ... 
capacity - the greatest number of goods that can be produced with existing factories and labour (resources) 
food-producing capacity - the greatest amount of food that can be produced with existing resources 

Threat to smallholder farming traditions

Witoon Lianchamroon of BioThai Foundation, a non-government organisation campaigning for increased biodiversity, said the situation was worrying and the government must act to reverse the trend, otherwise investors will exploit the opportunity to implement industrial farming methods.

"In the next 30 years, there'll be a much higher demand for food than now," he said. Investors could then rent or buy land from farmers to invest in large-scale farming, agricultural processing plants and hiring local people.

"The state must not encourage such investment," Mr Witoon said.

Farmers nationwide are increasingly selling their land then renting it back to grow rice, Mr Prasert said. "In the central region about 60% of land formerly owned by farmers is now occupied by non-farmers," he said.

OAE statistics show the total area of farm land in 2006 was about 130 million rai. Of that, about 93 million rai was owned by farmers, and 25% of this was mortgaged.

Making farming an attractive occupation again

Mr Prasert said it was critical rice farming be made a more secure and profitable occupation by finding ways to reduce production and logistics costs, increase productivity and improve irrigation.

There should be better welfare for farmers and more local cooperatives to strengthen their capacity, he said.

Mr Witoon said farmers should have better access to markets, more negotiating power with traders, and have guaranteed security in terms of income and improved livelihoods.

In an effort to "mark the beginnings of a new generation of farmers", the Education and Agriculture and Cooperatives ministries last year initiated a project in selected colleges to make agriculture more business-savvy.

secure (adjective) - safe from harm and loss (safe from losing farm, for example)
occupation - the work or a job that one does to earn money and support one's family 
logistics - transporting and storing goods
welfare - good health and happiness
cooperatives, agricultural cooperatives - groups of farmers who cooperate in marketing their crops after harvest (See Wikipedia)
negotiating power - when you are able to make people agree to what you want
guaranteed - will happen for sure (promises have been given)
security (noun) -  a situation with safety from harm and loss
livelihoods - a source of money and income such as a job that allows you to buy the things that you need (See glossary)
initiated a project -  started a project
business-savvy - have a good unserstanding and practical knowledge of business

Moving away from the family farm

But for Aekalak Boonma, 22, whose parents are farmers in Phayao, rice farming would not be his ideal job no matter how profitable it was.

"I wouldn't do it. It's a tiring, laborious job," said Mr Aekalak, who moved to Bangkok after finishing high school and currently works in a convenience store to put himself through college.

"Even if we can earn more from it, it's money we only get once or twice a year. At home, people my age have moved out to work somewhere else."

ideal job - the job you would like most (if you could pick any job)
laborious job - a job that requires a lot of hard work
convenience store - a small neighborhood store like 7-11 
put himself through college - when a person pays their college costs themselves  

(Source: Bangkok Post, business, 22/04/09, Life is slowly draining from the farms, Surasak Glahan, link


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