Examining the Current Situation of Farmland Rental Relations in Ubon Ratchathani Province, Northeast Thailand

Abstract

This study examined farmland lender and borrower characteristics to investigate the relationship between farmland leasing and changes in farm size in northeastern Thailand. We used household panel data collected from 581 farmers in Ubon Ratchathani province. The findings indicate that 22 out of 40 households renting in farmland in 2019 did not own land, while 31 out of 41 households renting out did not cultivate their own land. Furthermore, 27% of farmers increased their cultivated land between 2011 and 2019. However, this expansion was unrelated to land rentals, as land inheritance was the main driver. This suggests that land leasing did not significantly alter farm size during the study period. While agricultural land leasing was practiced among some of the farmers who participated in this study, lenders and borrowers were primarily those who had reduced agricultural production and those who did not own their farmland, respectively.