Thailand’s agricultural sector, vital for its role in supplying both basic and processed agricultural products globally, is predominantly characterized by small-scale, family-operated farms. These farms are commonly inherited across generations. Despite the sector’s large role in the country’s land use and population, it contributes a modest portion to Thailand’s GDP, highlighting the small-scale nature and challenges such as limited irrigation.

1. In Thailand, the agricultural sector comprises about 5.71 million farming households, with an average of 4 members per household. The average farm size for these predominantly smallholdings is around 4 hectares (9.88 acres or 24.71 rai), involving approximately 16.2 million labor forces in agricultural activities[1].

2. The main cash crops grown by smallholder farmers in Thailand include:

– Sugarcane, with Thailand ranking as the 4th largest producer globally[2].
– Rice, a significant crop with Thailand being the 6th largest producer in the world[2].
– Cassava, with Thailand as the 2nd largest producer[2].
– Palm oil, ranking as the 3rd largest producer globally[2].
– Maize, contributing significantly to the agricultural output[2].
– Natural rubber, with Thailand as the largest producer worldwide[2].
– Mango, mangosteen, and guava, making Thailand the 3rd largest producer[2].
– Pineapple, with Thailand ranking 4th in global production[2].
– Banana and vegetables, each with considerable production volumes[2].
– Coconut, ranking Thailand as the 9th largest producer globally[2].
– Oranges, also a notable crop in Thailand’s agriculture sector[2].

3.The average annual income for a smallholder farm in Thailand varies, and the data available provides a range of incomes based on different sources and circumstances:

• One source mentions that the average cash income for a farming household is about 0.24 million Baht per year, with approximately 60% of this income derived from farm activities[3].
• A specific sustainable rice project, the Market Oriented Smallholder Value Chain (MSVC) programme, helped 19,000 Thai smallholder farmers increase their net income by more than 20%[4]. However, this is specific to the project and not representative of the broader farming community.
• The overall net farm income in Thailand in 2023 is expected to face challenges, with a projected contraction of 0.8% compared to the growth in 2022[5].
• Approximately 40% of farming households earn an annual income below Thailand’s poverty line of 32,000 baht[6].
• An economic model, Thailand 4.0, aims to increase the average annual income of farmers from 56,450 baht to 390,000 baht by 2037. However, this is a goal and not a current statistic[7].
• Approximately 2,284,000 farming households in Thailand earn an annual income below the country’s poverty line of 32,000 baht.[8]

These figures provide a range of incomes for smallholder farms in Thailand, reflecting the diversity and challenges within the sector. The proportion of income derived purely from agricultural activities varies, as farmers often engage in multiple income-generating activities.

4.  To estimate the average farm size for smallholder farms in Thailand that earn an annual income below the poverty line of 32,000 baht, we need to consider several factors:[9]

• Smaller Farms and Lower Income: Generally, there’s a correlation between farm size and income. Smaller farms typically generate less income due to limited production capacity and resources. Since 40% of farming households are below the poverty line, it’s reasonable to infer that many of these households operate smaller farms.
• National Average Size: The national average farm size is around 4 hectares. However, for those below the poverty line, the average size is likely to be significantly smaller.
• Distribution of Farm Sizes: In Thailand, farm sizes vary widely. A significant portion of farms is very small. For instance, the FAO data states that a large number of Thai farms are smaller than 10 rai, and another substantial percentage ranges between 10 to 20 rai.
• Given these considerations, it’s plausible that the average farm size for those below the poverty line might be around or less than half of the national average. If we assume that the average farm size for the lower-income bracket is significantly smaller, a conservative estimate might place it at around 1 to 2 hectares, translating to approximately 6.25 to 12.5 rai (where 1 hectare equals 6.25 rai).

This estimate is speculative and should be treated with caution. It’s based on general trends and does not account for regional variations or specific circumstances of individual farms. For a more accurate assessment, detailed data on the distribution of farm sizes within income brackets in Thailand would be required.

Reference Link:
[1] http://www.fao.org/family-farming/detail/en/c/1117073/

[2] https://en.wikipedia.org/wiki/Agriculture_in_Thailand

[3] www.fao.org/family-farming/detail/en/c/1117073/

[4] www.olamgroup.com/news/all-news/press-release/large-scale-sustainable-rice-project-lifts-incomes-of-smallholder-farmers-in-thailand.html

[5] www.kasikornresearch.com/en/analysis/k-econanalysis/Pages/Net-farm-income-2023.aspx

[6] thailand.un.org/en/163555-thai-agricultural-sector-problems-solutions

[7] https://tdri.or.th/en/2017/06/agriculture-4-0-obstacles-break-2/

[8] Agrisolar AI Analysis Nov 26, 2023

[9] Agrisolar AI Analysis Nov 26, 2023