The Comparative Analysis of Costs and Returns from Rice Cultivation by Farmers in Krok Phra District of Nakhon Sawan Province

Abstract

The objectives of this study were to (1) study the costs and returns of rice cultivation of rice varieties RD 57 and Khao Dawk Mali 105 by farmers in Krok Phra district, Nakhon Sawan province; (2) analyze and compare the costs and returns received from the cultivation of rice varieties RD 57 and Khao Dawk Mali 105 by farmers in Krok Phra district, Nakhon Sawan province; and (3) serve as a guideline for farmers growing rice and getting higher returns. The samples in this study were 50 households of RD 57 rice farmers and 20 households of Khao Dawk Mali 105 rice farmers, voluntarily selected households. The study tool was a structured interview that analyzed the quantitative data using financial data, including capital, income, net profit, net return rate, return on investment rate, and point of funding.

The findings were as follows:  

1. RD 57 rice growers had a total cost of 5,224.14 baht per rai, with a total income of 7,213.22 baht per rai, and rice growers of Khao Dawk Mali 105 had a total cost of 4,245.96 baht per rai, with a total income of 5,917.17 baht per rai.


2. The comparative analysis of costs and returns obtained from this study was as follows:

    2.1 RD 57 rice growers earned an average income per rai higher than those who grew Khao Dawk Mali 105 rice varieties at 1,295.51 baht per rai, or 21.89 percent.

    2.2 Growers of rice variety RD 57 had higher average variable costs and fixed costs, 719.83 baht per rai and 258.36 baht, respectively.

    2.3 RD 57 rice growers had an average net profit per rai higher than those who grew Khao Dawk Mali 105 rice, 317.32 baht per rai, or 18.98 percent.

    2.4 RD 57 rice growers had a net profit margin lower than that of Khao Dawk Mali 105 rice, with a net profit margin of 27.57 percent, while those who grew Khao Dawk Mali 105 rice had a net profit margin of 28.24 percent.

    2.5 RD 57 rice farmers had a lower return on investment than growing jasmine 105 rice, with a return of 12.95 percent, while growing jasmine 105 rice had a return of 17.51 percent.

    2.6 Cultivation of rice variety RD 57 had a break-even point at a sales volume of 390 kilograms per rai, with a break-even point value of 2,817.13 baht per rai. In comparison, rice cultivation of Khao Dawk Mali 105 had a break-even point of 380 kilograms per rai. Rai had a value at the break-even point equal to 1,867.52 baht/rai when comparing the sales volume and the value or amount at the break-even point. The cultivation of the rice variety Khao Dawk Mali 105 had a lower sales volume and amount at the break-even point than the cultivation of the rice variety RD 57.

1. Farmers' ways of growing rice for higher returns; for example, growing the rice variety Khao Dawk Mali 105 had a higher net profit margin and return on investment than growing RD 57 rice and had higher sales volume and value. The amount of money spent producing the rice variety Khao Dawk Mali 105 was more cost-effective than producing the rice variety RD 57.