Factors Influencing Farm Investment Planning —A Case Study in Nakhon Si Thammarat Province, Thailand—

Abstract

Farmers who plan on increasing investment in, or expanding, their farms help to keep the agricultural sector sustainable. The decisions and investment planning made by farmers are based on a range of socioeconomic factors and on the farmers’ attitudes and level of knowledge and training. The main objective of this study was to determine the factors affecting farmers’ investment decisions, especially factors related to agricultural policy and farming knowledge gained from formal training. A survey of 252 farming families was conducted during the harvest season in 2012 in Nakhon Si Thammarat Province, southern Thailand. Results from an applied logit model showed that socioeconomic factors such as increased age and increased level of education of the household head had a significant negative influence on plans for future farm investment. Other factors had a significant positive influence, including a positive attitude toward farming as a stable career, a high level of support for a child to study agriculture, a positive attitude toward agricultural policy, receipt of help from a member of a younger generation, and receipt of formal training. Farmer training programs should be supported, because training can increase not only farmers’ knowledge but also farm investment.