Agricultural Systems Working Paper No. 142 Farmers' Production

Agricultural Systems Working Paper No. 142

Farmers’ Production Practices, Yields and Profitability In Major Maize Growing Areas of Thailand, 1998-1999.

Benchaphun Ekasingh, Kuson Thong-Ngam and Phrek Gypmantasiri

Multiple Cropping Center, Faculty of Agriculture Chiang Mai University

June 2001

Farmers' Production Practices, Yields and Profitability in Major Maize Growing Areas of Thailand, 1998-1999. 1 Benchaphun Ekasingh, Kuson Thong-Ngam and Phrek Gypmantasiri

Abstract The objective of this study is to assess production practices, output, costs of production, income and returns from maize production in major maize growing areas of Thailand. Farm households in 8 provinces were interviewed in 1999-2000 using rural rapid appraisal methods. The results showed that among some 200 farmers interviewed, 98 per cent of the farmers used hybrid maize seeds and only 2 per cent still adopted maize open pollinated varieties. Average seed and fertilizer rate used were 17 and 215 kg ha-1 respectively. Two- thirds of farmers used a mechanical seeder in planting. Farmers growing maize in the early rainy season obtained an average yield of 3.52 ton ha-1, a level lower than that obtained by farmers who planted maize in the late rainy season with an average yield of 3.75 ton ha-1 and that obtained in the dry season in the paddy field with an average yield of 4.97 ton ha-1. Average farm-gate prices were not so different in different seasons, being around 3.4-3.6 baht per kg. Costs of production were 11,175 baht, 10,163 baht and 13,351 baht ha-1 in the early rainy, late rainy and dry season respectively. After deducting the costs of production, farmers who planted maize in the early rainy season obtained a profit of 1,494 baht ha-1 while those growing it in the late rainy season obtained a profit of 4,087 baht ha-1 while farmers who planted maize in the dry season after paddy rice obtained a profit of 3,544 baht ha-1. Gross margin per ha for the early rainy, late rainy and dry season were 3,144, 5,344, 6,056 baht respectively. Small maize farmers with less than 3.2 ha had more profit and gross margin equivalent to 2,181 baht ha-1 and 3,894 baht ha-1 respectively, while medium farmers (3.2- 6.4 ha) obtained 2.000 baht of profit per ha and 3,387 baht of gross margin per ha. Large farms (> 6.4 ha) obtained 1,232 baht and 3,194 baht of profit and gross margin per ha respectively. Given these results, maize production in late rainy season, dry season and in small farms were more profitable on a per rai basis. Nevertheless, income wise, large farmers yielded more income per farm with an average 50,000 baht per farm. Generally for many subdistricts, it was found that farmers had high costs of production while yields were low resulting in loss or small profit. There should be special extension programs to improve yields in these areas.

Background

In the past 10 years, maize cultivation areas in Thailand decreased from the peak of 1.98 million ha in 1985, to around 1.33 million ha in 1995. However, in recent years, the acreage in maize increased slightly to some 1.44 million ha in 1998 (Office of Agricultural Economics, 2000). About 740,000 farm households have been involved in maize cultivation. This is more than one-thirds of upland farm households in Thailand which are estimated at 2 million households. This indicates the importance of maize in Thai economy. Most maize areas are rainfed. The highest acreage of maize is found in the North. Next highest in acreage are the Northeast and the Central Plain respectively. In terms of total maize output, there have been some variations according to climatic conditions and varying production areas year to year.

1 Paper presented in the Fourth Annual Workshop of the Asian Maize Socio-Economic Working Group organized by CIMMYT held in Katmandu, Nepal. June 4-8, 2001.

Although Thai farmers have switched from open pollinated varieties to hybrids in the past 15 years, the national yield per hectare has not been substantially increased. Yields are still quite variable from sites to sites. Moreover, with the continuingly increased costs of production, whether seeds or fertilizers, while output prices stagnating and fluctuating on the downward side, farmers' profit has been squeezed. Even though Thai farmers have now switched nearly completely to hybrid maize, most being single-cross, nevertheless, the data on farm-level practices and performance are still lacking. Maize hybrids are sold in the market by 5-6 major seed companies. While the adoption of these hybrids are rapid through the promotion of government sector, the information as to how farmers are using them, the problems associated with its use, the reasons why they use certain hybrid, as against another brand, the yields obtained, the resulting profitability and the impact to farmers' households, etc. are not yet carefully studied. So, it is the purpose of this study to examine such issues. The information obtained will be useful for extension officers, breeders, agronomists as well as for policy makers at the national level. Problems and constraints facing maize farmers in their production environment will highlight further needed price, market, research, and extension policies so that maize production in Thailand can be stabilized.

Objectives of this study 1. to study production environment, patterns, and farm-level practices of maize farmers in major maize farming areas of Thailand. 2. to ascertain maize production costs, yields and profits to farmers in different production agroecozones in Thailand. 3. to investigate problems, constraints and factors affecting farmers' maize productivity and incomes.

Research methods

Data collection

This study was conducted using rural rapid appraisal, RRA, to investigate farm-level biophysical and socio-economic conditions as well as farmers' practices. Group discussions were conducted with interviews of key informants and village leaders. Focused questionnaires were also employed to obtain more details on individual farmers' production practices, costs of production, income, profit, individual farmers' problems and constraints. Data collection was conducted in two periods, one in 1999 and another in 2000. The consequent farm level data were those of 1998 and 1999 production years. The study was done to cover 8 provinces, 13 districts and 24 tam bon (subdistrict) in North, Northeast and Central Thailand which are currently important maize areas in Thailand. In each site, there will be a group interview and individual interviews. A group of at least 4-5 farmers were interviewed in each site and about 10-15 more of them were interviewed individually using a focused questionnaires. The group interviews covered aspects of the villages, biophysical and socio-economic conditions, trends in production, cropping systems, maize varieties used, pests and diseases problems, credit and market sources and other village-level data. These data were supplemented by information at the District Agricultural Extension Office for the relevant subdistricts. Individual farmers' interview covered specifically on production data, costs, prices, yields, input uses and maize production practices. A total of 85 farmers in 17 sites were interviewed in a group or via informal appraisal methods. At the same time, a total of 218 farmers were interviewed in 21 sites using focused questionnaires during the same period (Table 1). Figure 1 shows the study sites while Table 2 shows maize areas for 1990- 1999 in the 8 provinces under study.

Table 1 Study sites, number of farmers interviewed, 1998-1999.

Table 2 Trend of maize cultivation area in study area, 1990 -1999

Data analysis

Data were analyzed using both descriptive and descriptive statistical methods. This study were able to cover more individual interviews than the group interviewed because in many sites, the appointments for group interviews were imperfect and the research team had to find the farmers in their individual houses and in such a case more individual farmers were interviewed. In the case where both interviewed could be conducted, the information from both sources would complement each other. In the case where only individual interviews were conducted without the group interview, then more information had to be sought from the District Agricultural Extension Office.

Past agricultural economic studies on maize in Thailand.

Office of Agricultural Economics (1999) reports that maize cultivation areas in Thailand in the production year 1997/1998 totaled 1.4 million ha with a total output of3.83 million tons. The national average yield was 2.74 ton ha-1, slightly less in the early rainy season (2.72 ton ha-1) compared to that in the late rainy season (2.88 ton ha-1). This level of average yield was quite low considering that 87 per cent of farmers use private sector hybrid seeds, most of which single-cross. Yields were found to be highly variable from place to place. For example, Tipatom et al (1994) found out that in the Upper North, farmers using hybrids obtained a yield of 4.3 ton ha-1, 25 percent higher than those who used open pollinating varieties. Benjavan (1996) found that farmers using hybrid seeds in Nakorn Sawan obtained an average yield of 3.67 ton ha-1 in 1994. Saran and Sanit (1997) found that farmer planting hybrid maize in the early rainy season in Pak Chong, Nakorn Ratchaseema had an average yield of 2.96 ton ha-1 while those planting it in the late rainy season had an average yield of 2.91 ton ha-1. Surasak (2000) found that farmers in Mae Chaem district, Chiang Mai province planting maize hybrid were able to obtain an average yield of 5.6 ton ha-1. As for the yield in the paddy areas of Phetchabun, Chiang rai and Chaiyaphum in the production year

1996/1997, it was in the range of 4.06-5.31 ton ha-1 (Mallika and Bumpen, 1997). It can be seen that although maize hybrids improved in quality throughout the years, maize yields are still highly variable from location to location. In terms of production cost and returns from maize cultivation, the Office of Agricultural Economics (1998) reports that the national average of production costs was 9,169 baht ha-1 or 2.8 baht/kg for the production year, 1997/1998. The price of maize output was also 2.8 baht/kg. This means that farmers could hardly enjoy any profit. Gross margin was 969 baht ha-1. According to Saran and Sanit (1997), farmers in Pak Chong, Nakorn Ratchaseema enjoyed a level of profit of 2,131 baht ha-1 for the early rainy season, 1,513 baht ha-1 for the late rainy season. As for the production in the paddy areas in that year, farmers were able to enjoy returns over cash costs at a level of 10,625 baht ha-1 (Mullika and Bumpen, 1997)

Maize cultivation in study areas

Agroecozones

The producing areas for maize in Thailand can be grouped into two broad agroecozones, namely

Rainfed uplands -1st season maize Maize is planted in these areas in late April, May until June. This is a period of early rain. 87 per cent of maize in the country is produced in this season. Most of the study sites fall in these season, namely, in Sites CI-3, LNI-I0, UNl, LNE2, UNEI-4 (i.e. in Lopburi, Nakorn Sawan, Phetchabun, Nakorn Ratchaseema, Loei and part of Chiang Rai).

-2nd season maize Maize is planted in these areas in July-August. This is a period of late rain. About 10% of maize is produced in this season. The study sites in which farmers grow maize in this season are LNEl, LNE3-4, UNl, UNE2 (i.e. in Nakorn Ratchaseema, part of Loei and Chiang Rai.) Rice-based irrigated zones Maize is planted in the paddy areas in December or January after harvesting of rice. Dry- season irrigation is necessary in these areas. This is an area with an increasing trend. Currently, maize in these areas is a small proportion, about 3 per cent of the total maize in the country. The study sites in this season are UN2 and LNll (Chiang Rai and Phichit).

Terrain

Maize areas include those areas which are flat plain, uplands and highlands with and without slopes. Nearly all areas are rainfed. In two sites, one in Tueng District (UN2), Chiang Rai Province and the other in Phichit (LN 11), maize was grown in the dry seasons in the paddy areas after paddy rice. In Chiang Rai, farmers brought water from nearby streams and reservoirs to be used in their maize cultivation. In Phi chit, they invested in individual water wells which were at one time subsidized by the Government (Table 3).

Table 3 Terrain, temperature and water sources in the study sites, Thailand, 1998-1999.

Soils

According to information obtained from RRA, heavy-textured soil was the most common in maize cultivation areas. It was reported in 43 per cent of the areas. 27 per cent of fanners reported their soil being fine-textured with mixed gravels, 20 per cent being medium- to-coarse textured soil. Only 10 per cent of the fanners reported to have fine-textured soil

9 which is most suitable to maize. In some areas, for example in Kao Chai Tong (LN3) and Suk Sumram (LN4) subdistricts, in Nakorn Sawan province and Ta Kam (LN8) subdistrict, Phetchabun province and Ta Kien (LNE4) subdistrict, Nakorn Ratchaseema, over 30 per cent of the fanners reported having fine textured soil in their land. In Kamphaeng Phet, the soil was low fertility fine-textured sandy loam which dried quickly after rains. The site in Phichit where farmers grew dry season maize with irrigation services, the soil was sandy loam with good drainage.

Farm sizes and land tenure

Average farm size for all locations was calculated to be 7.3 ha. 33.5 per cent of the fanners had a small farm averaged 2 ha. 35.8 per cent of fanners had an average farm size of 5 ha. 30.7 per cent of the fanners had a large farm averaging about 16 ha (Table 4). Only in Pattananikom (C2) in Lopburi province and in Pak Chong (LNE1), Nakorn Ratchaseema province in which fanners have on average a large farm size of more than 16 ha. The maximum farm size was found to be 80 ha in tambon Pak Chong, Nakorn Ratchaseema province. Maize fanners in the Central Plain, the Lower North and the Lower Northeast were found to farm a larger sized plot than fanners in the Upper North. In Wieng (UN1) and Ngaw (UN2) subdistricts in Chiang Rai province, fanners have on average 2.2-3.4 ha. The large fanners in this area had 6 ha. (Table 5)

Table 4 Average maize cultivation area classified by farm size, Thailand, 1998-1999.

Two-thirds of maize fanners surveyed owned their own farm land, 22 .5 per cent were part owners and 10.6 per cent were tenants. Large fanners have a higher proportion of rented land than smaller fanners. For example, those fanners in Pak Chong (LNE1) subdistrict, Nakorn Ratchaseema and Pattananikom (C2) in Lopburi planted over 16 ha of maize and rented over 60 per cent of their farm land. In terms of areas involved, fanners in Lopburi (Cl-3) and Pak Chong (LNE1), Nakorn Ratchaseema had more rented areas in maize cultivation than owned areas (Table 6).

Table 5 Average maize cultivation area classified by farm size, Thailand, 1998-1999.

Table 6 Land tenure in study sites, Thailand, 1998-1999.

Cropping systems

Major cropping systems having maize as a major crop in the Central Plain and Lower North such as in Lopburi (Cl-3) and Nakorn Sawan (LNl-4) was maize-sunflower. In Phetchabun (LN5-8), the systems were maize-mungbean/black bean. In Kamphang Phet (LN9-10), farmers planted one crop of maize in the early rainy season and in places where there were enough water, double and triple cropping of maize. Maize was also integrated in the young banana plantation, and in some sites, it was in rotation with cassava. In Phichit (LNll), farmers planted maize after paddy rice in the dry season. The irrigated maize after

12 rainy season rice was recently being extended in Phi chi by the District Agricultural Office. Double maize cropping was also found in the upland areas of Phi chit province. In the Lower Northeast such as in Nakorn Ratchaseema (LNEl-4), there was maize in the middle rainy season or double cropping of maize, the first crop in April and the second crop in August. In Loei province (UNEl-4), farmers planted only one crop of maize in the rainy season but some would plant it between rows of fruit trees. In the uplands of the Upper North as in Wieng subdistrict (UNl), Chiang Rai province, farmers also planted either one crop of maize or double crops of maize. In Ngaw subdistrict (UN2), Chiang Rai, farmers planted maize in the dry season following paddy rice in December and January (Table 7).

Table 7. Farmers' maize-based fanning systems, 1998-1999

Adoption of maize hybrids/varieties and reasons for adoption.

Out of the 218 farmers individually interviewed in 1999/2000, there were only 4 farmers who still used open pollinating varieties (OPVs). This means that 98 per cent of farmers surveyed by focused questionnaires reported using maize hybrid seeds and only 2 per cent of them still used OPVs. Even these 2 per cent of farmers were using hybrid seeds before and for reasons related to capital, they had to use OPVs. All the rest of the farmers were found to use hybrids, most of which single cross hybrids. These hybrids were 4-6 times more expensive than OPV varieties (Table 8, 9). CPDK 888 was the most popular hybrid. Next were C919 and C717 from Cargill group. A few farmers planted Novartis and Pioneer hybrids (Table 9). Note that the percentages shown in Table 9 are not a result of a random representation of all maize farmers in Thailand and should be used with care.

Table 8. Maize seed price (baht/kg) by site

Table 9 Maize hybrids and open pollinated varieties used by fanners and its price in study sites in Thailand, 1998-1999.

The reasons why farmers chose these hybrids were that they were high yielding. Other reasons were drought and disease/insect tolerant, large cops, easy to harvest and early maturing. Some farmers reported adopting certain hybrids because of the existence of the government program which subsidize the costs of the hybrids. Some responded that they chose lower cost hybrids to economize on production costs. Table 10 shows answers from the surveyed farmers regarding the most wanted characteristics in maize hybrids. 61 percent responded on the issue of prices indicating that hybrid seeds are getting more expensive. High yielding and drought tolerant were among other wanted characteristics for maize hybrids.

Table 10 Most wanted characteristics in maize hybrids/seeds

Planting methods

About two-thirds of farmers were now using mechanical seeders in maize planting operation. The seeders has many types, some mixed with fertilizers, some longer than the others, some attached to a large tractor and some to a small walking tractor. This was mostly done in large farms, especially in the Lower North and in the Northeast. In the Upper North where farm sizes were smaller, farmers were still planting maize using manual labor (Table 11).

Table 11 Methods of maize planting, selected sites in Thailand, 1998-1999.

Seed rate

Seed rates used by farmers in the study were calculated at 16.9 kg ha-1. More than 50 per cent of farmers used between 12.5-18.8 kg. of seeds ha-1. About 25 per cent of the farmers used more than 18.8 kg. ha-1, most being those in Phetchabun and Nakorn Ratchaseema (Table 12, Figure 2).

Fertilizer use

Most farmers applied fertilizers twice. The most popular fertilizers used by farmers were 16-20-0 and urea 46-0-0. More than 65 per cent of surveyed farmers used these two kinds of fertilizers. Some used only 16-20-0 and others used only 46-0-0. The third most popular fertilizer was 15-15-15 being used by 30 per cent of the farmers in the study. The average rate of fertilizer application was 215 kg ha-1. 40 per cent of the farmers used between 125-250 kg. ha-1, 26 per cent used 250-375 kg ha-1. Farmers in Loei province applied the lowest rate of fertilizer i.e. 125-187.5 kg. ha-1. Equivalent nutrients in farmers fields were 59.4 kg. ha-1 of N, 61.3 kg. ha-1 off P and 16.9 kg. ha-1 of K (Table 12, Figure 3 )

Table 12 Seed rate, fertilizer rate, equivalent nutrients in fanners' maize fields, production year, 1998-1999

Figure 2. Distribution of maize seed rate used, 1998-1999.

Figure 3. Distribution of fertilizer rate in maize cultivation, 1998-1999.

Figure 4. Distribution of average yields of maize, 1998-1999.

Weed/insect/pest control

Weed control was reportedly more important than insect and pest control in maize cultivation. Farmers would spray pre-emergence herbicide after planting. After maize was about 30-40 days old, mechanical equipment was used for weeding usually by fixing it to small tractors. This was done together with the second round of fertilizing. Occasionally, when weed was abundant, post-emergence herbicide was used.

Irrigation

In certain areas where farmers had access to irrigation water as in Chiang Rai (UN2), Kamphaeng Phet (LN9) and Phichit (LNll), farmers used water pumps to bring water to their farms from either rivers, reservoirs and deep wells. They would irrigate about 3-4 times per season, i.e. once before planting, 20, 50 and 70 days after planting. In these cases, farmers would have better yields but with an increase in fuel costs.

Harvesting

Harvesting was in all cases done by manual labor. This was when hired labor was necessary. Harvesting teams would be hired from outside the village, sometimes coming as far as different provinces and regions. Many Northeasterners made their living from being maize harvesters. Wages were paid per sack of maize cobs. A rate of 20-25 baht per sack was common in the study sites. The costs paid to harvesters were a substantial item in maize costs. When a maize hybrid yield maize cobs which were too hard to break, then the harvesting cost per sack increased. Farmers would try to avoid such a hybrid. In the North (UN2) and Upper Northeast (UNE4) where farm sizes were small, exchange labor was used in harvesting. In these ways, cash costs were reduced but substantially more labor would be required.

Maize Yields

Average yields of maize across all study sites were calculated to be 3.66 ton ha-1 (Table 13). Most farmers (40 per cent) obtained an average yield between 3.13-4.69 ton ha-1. 30 per cent of them obtained a low yield of 1.88-3.13 ton ha-1. About 10 per cent obtained an unusually low yield with less than 1.88 ton ha-1. Some 5 per cent of farmers obtained a high yield of more than 6.25 ton ha-1 (Figure 4). When comparing different seasons, it was found that dry season maize (irrigated maize) yield was the highest, being 4.97 ton ha-1 on average (Table 15). The early rainy season maize average yield was 3.52 ton ha-1 while the late rainy season yield was 3.75 ton ha-1 (Table 14, 15).

Table 13 Yield, farm gate prices, costs of production and profit in maize production, by production sites, production year, 1998-1999

Table 14 Average maize yield in early rainy season (ton ha-I), selected sites, Thailand, 1998-1999.

Table 15 Average maize yield in late -rainy season and in irrigation area (dry season), selected sites, 1998-1999. (ton ha-1)

Marketing and prices

About 55 per cent of farmers sold their output immediately after harvesting. About 25 per cent of them kept the output for 1-2 months before sale. 15 per cent of them kept it for 2-3 months. About 5 per cent of them kept it more than 3 months. The longest time some farmers would keep the output was 5 months. The average farm-gate prices were 3.64 baht/kg, the lowest being 2.98 baht/kg and the highest 4.58 baht/kg (Table 13).

Costs of production and profits from maize cultivation

The costs of maize production in the early and late rainy seasons were found to be similar i.e. 11,175 baht ha-1 for the early rainy season and 10,163 baht ha-1 for the late rainy season respectively. Dry season costs of production were higher averaging at 13,351 baht ha-1 (Table 16). More than 80 per cent of the costs in all production seasons were variable costs. 50 per cent being labour costs and 30 per cent material costs. Labour costs were composed of mostly harvesting and post-harvesting costs. In terms of material costs, the largest item was fertilizer cost and the next largest item was seed costs. Non-cash costs composed of family and exchange labor costs. Family and exchange labour costs constituted around 46 per cent of total costs in the dry season, 25-30 per cent of the total costs in the rainy season. This indicated that hired labour was more common in the rainy season compared to the dry season (Table 16). Comparing among different farm sizes using the early rainy season data, it was found that the costs of maize production were highest among smaller farms of less than 3.2 ha. This was calculated at 12,738 baht ha-1. The medium farm was able to have a lower costs

22 at 10,125 baht ha-1 but the lowest costs per ha were in large farms which averaged at 9,681 baht ha-1 (Table 16).

Table 16 Costs of maize production, production year 1998-1999

Large farms had larger proportion of costs as fixed costs. Some part of the costs were from land rental costs. These large farms were found in Nakorn Ratchaseema (LNEs) and Lopburi (Cs), where land rental rate was quite high. As for other costs, the highest item was on harvesting costs. Next was fertilizer and seed costs respectively. Small and medium farms had lower proportion of cash costs to total costs than in large farms. This was because higher hired labor costs and larger land rental expenditure were more prevalent in larger farms compared to small and medium farms.

Income and profits from maize cultivation

Given the level of prices and yields that farmers obtained, maize farmers in the study sites were having 10,625-15,000 baht ha-1 total revenue depending upon the production seasons. After deducting the costs of production, farmers could obtain from 1,230-4,087 baht ha-1 of profit from maize cultivation (Table 13, 18). Average profit per rai was more for the

23 late rainy season (4,087 baht ha -I) and the dry season (3,544 baht ha-1) than for the early rainy season (1,494 baht ha-I). Small farms enjoyed more profit per rai than medium and large farms (2,181 baht ha-1 for small farms, 2,000 baht ha-1 for medium farms and 1,232 baht ha-1 for large farms) (Table 18). Returns over cash costs were 4,663 , 6,681, and 9,731 baht ha-1 for early rainy, late rainy and dry season respectively. Small farms "enjoyed the highest returns over cash costs at 6,019 baht ha-1 compared to 5,094 baht ha-1 for medium farms, and 3,269 baht ha-1 for large farms (Table 18).

Table 17 Costs of maize production by farm sizes, early rainy season, production year 1998-1999.

These results indicated that maize production in the late rainy season, dry season and in smaller farmers gave higher profits than that in the early rainy season or in medium and large farms. However, in terms of household income, large farms had more profits than medium and small farms. Some 52,000 baht per household was enjoyed by large farms as return over cash costs while medium farms would have an average of 25,000 baht per household and small farms had 12,500 baht per household (Table 18).

Table 18 Yield, income, costs of production, and profit, by season, production year, 1998- 1999.

When analyzing profit by subdistrict, it was found that in many sites, there were low yields and high production costs. Sometimes, farmers would incur losses or very little profits from the maize cultivation. Examples were in Dan Sai (UNE3) and Kok Ngarm (UNE4) subdistrict, Loei province, Pattananikom (C2) and Chai Badan (CI) subdistricts, Lopburi province and Bua Wattana (LN6) and Chon Dan (LN7) subdistricts, Phetchabun provinces (Table 13) The importance of maize cultivation can be shown in Table 19. Maize contributed about 70 per cent of total income in most of the sites under study. The other 30 per cent were from other sources e.g. crops, livestock and off-farm employment, etc.

Table 19 Total income, maize income, ratio of maize income per total income, Thailand, 1998-1999.

Sources of capital and other inputs

Maize fanners in Thailand depended heavily on borrowed capital. Only 13.3 per cent of the fanners were self-sufficient in their capital needs using their own capital. 35.3 per cent of them had to borrow all needed capital from somewhere, usually from the Bank of Agriculture and Agricultural Cooperatives (BAAC) or local merchants. 51.4 per cent of them used a combination of owned and borrowed capital (Table 20). 87 per cent of farmers therefore depended on borrowed capital some forms or others.

As for other inputs, sources of inputs were again BAAC and local merchants. Farmers relied more from BAAC for seeds, while obtaining other inputs from merchants (Table 21).

Table 20 Sources of capital used in maize cultivation in study sites, Thailand, 1998-1999

Table 21 Important source of inputs

Problems in maize cultivation

Farmers reported drought and dry spells as an important problem in the production year. 1998- 1999. This was especially damaging to maize plants when occurring after planting or during flowering. Other problems include insect and pest problems. They were also complaining about low yields and high seed costs (Table 22).

Table 22 Problems in maize cultivation, 1998-1999

Conclusion

Fanners in Thailand were seen from the results of this study to be quite responsive in terms of modem technology, more in seed technology but also in other fields such as mechanization and chemical input use. Most of them planted single cross hybrid maize seeds despite the fact that they were more expensive than OPVs. They also used more mechanized methods of land preparation, and planting. They used a relatively high fertilizer application rate, compared to other crops. For weed control, they used chemical inputs quite readily. Despite all these technologies, their profitability have not been impressive except in a few cases. More dependence on purchased inputs, higher costs of production, low or stagnating output prices and high capital needs all culminated to make maize fanners still struggling to survive. Many of them found no better alternatives than maize and still had to grow it. Some wanted to stop growing it in the long run. From our RRA, maize seems to be quite profitable when grown in the dry season with the support of irrigation facilities and when maize prices are high. Phi chit and Chiang Rai fanners who were able to grow it in this season were quite happy with maize cultivation. For those who are still growing maize under rainfed conditions, many improvements in production practices can be possible to either improve their yields or reduce their input costs. Currently, extension services relating to good maize practices are still lacking. Soil conservation or soil improvement methods are not known to fanners. In general, despite the fact that Thai fanners are using many modem technology related to maize, but their management of the inputs as well as their environment is still much to be desired. Consequently, the national yield and the overall fanners' profits are still low. Programs of research, extension and policies to support maize cultivation therefore need careful designs and implementation.

References

Tipatorn Masjaroon, Narong Wuttiwan, Nikorn Tip-Aksorn and Wattana Rodprasert. 1994. Comparison of economic returns in maize cultivation using hybrids and open pollinated varieties in the Upper North of Thailand. Northern Office of Agricultural Extension. (in Thai) Mullika Koewwan and Bumpen Koewwan. 1997. Extension of Integrated Agribusiness in Field Maize Extension Program in Irrigated Areas, Production year 1996/97. Division of Agribusiness Promotion, Department of Agricultural Extension. (in Thai) Saran Wuttanutchariya and Sanit Koa-ian. 1997. Economic Analysis of Maize Production in amphoe Pakchong, Nakorn Ratchaseema Province, Production Year 1996/1997 (in Thai) Center of Agricultural Information. 2000. Agricultural Statistics of Thailand, Production Year1998/1999. Office of Agricultural Economics, Ministry of Agriculture, Document no. 0/2000. (in Thai) ------. 1999. Report of Survey on Maize, Production Year 1997/1998 Office of Agricultural Economics, Ministry of Agriculture, Document no. 28/1999. (in Thai)

Sorasak Kaeu- Thai. 2000. Social Returns of Maize Productivity Improvement, Amphoe MaeChaem, Chiang Mai Province. Masters' Thesis in Economics. Graduate Program, Chiang Mai University (in Thai).

Office of Agricultural Economics. 1998. Production and Trade data of Important Agricultural Commodities, Production Year 1997/1998. Ministry of Agriculture and Agricultural Cooperatives. (in Thai). Benchaphun Ekasingh, Kuson Thong-Ngam, Methi Ekasingh and Phrek Gypmantasiri. 2000. "Maize in Thailand, 1998-1999: Evidence from the Fields." Paper presented in the Third Annual Maize Socioeconomics Working Group Workshop, held in Ho Chi Minh City, Vietnam, 26-29 June, 2000. Benjavan Jumroonpong. 1996. Conditions Related to Farmers' Adoption of Hybrid Corn Seed: case study in Tak Fa District, Nakhon Sawan Province. Agricultural Systems Masters' Degree Thesis, Faculty of Agriculture, Chiang Mai University.