Effects of Government Support on Rice Farming in Contemporary Thailand : A Simulation Analysis

Abstract

This study evaluates the effects of supportive policies on income formation by input factor in Thai rice farming, where the government support has surged in recent years. Our simulation analyses led us to conclude that (1) under the price support policy for rice, family labor is most benefited by major-crop rice production, and hired labor and suppliers of other purchased inputs by second-crop rice production, and (2) under the alternative policy to reduce the price of purchased inputs, the benefits accruing to farmers might be severely limited while rice production strongly increased as in price support for rice.