A Study of Maize Farmers’ Incomes and Vicious cycle of Highland Maize farming
Keywords:maize farming, highland farming, income accumulation, informal credit, vicious cycle of highland maize farming
With continuous supports by the Thai government and private sector over the past three decades, maize has become one of the major cash crops grown in many parts of Thailand. This paper employs data gathered from maize farmers in various areas of Wiangsa District in Nan province, to investigate a profit margin out of a price per kilogram of maize retained by farmers, taking into account the differences in farmers’ socioeconomic contexts, and their sources of money spent on maize cultivation. The result obtained allows us to calibrate the farmers’ accumulated income over the year 2004 to 2010. Linear regression and Logit model are used to find factors determining level of maize income and a tendency of farmers to rely on informal credit as a source of money used for cultivation, respectively. These analyses highlight the importance of highland/lowland factors, that is: the highland farmers tend to have lower level of maize income and are more dependent on informal credit than the lowland ones. A qualitative analysis of farmers’ access to certain agricultural policies, together with the results from regression and calibration analyses enable us to get a big picture of the situation faced by highland maize farmers. Such situation is wellcaptured by a “vicious cycle of highland maize farming” whereby the more farmers produce, the worse their situations become.
How to Cite
Submission of a manuscript to Applied Economics Journal will be taken to imply that the author(s) guarantee that the paper is an original work, has not been published, and is not being considered for publication elsewhere either in printed or electronic form. The author(s) have obtained permission from the copyright holder to reproduce in the article material not owned by them, that author(s) have acknowledged the source, and that this article contains no violation of any existing copyright or other third party right or any material of an obscene, indecent, libelous or otherwise unlawful nature and that the article does not infringe the rights of others. The author(s) will indemnify and keep indemnified the editors and Applied Economics Journal, Center for Applied Economics Research (CAER), Faculty of Economics, Kasetsart University against all claims and expenses. The author(s) agree that the publisher may arrange for the article to be published and sold or distributed on its own, or with other related materials, and could reproduce and/or distribute in printed, electronic or any other medium whether now known or hereafter devised, in all languages, and to authorize third parties to do the same.