Cost-benefit Analysis of Smallholder Farmers in Nong Phai Subdistrict, Dan Makham Tia District, Kanchanaburi

Abstract

The purpose of this research is to analyze the cost and return on investment of sugarcane cultivation for small-scale farmers in Nong Phai Subdistrict, Dan Makham Tia District, Kanchanaburi farmers which were divided into 3 groups: first group consists of farmers with less than 32,000 square meters planting areas and 52,640.00 baht/rai total income from sugarcane cultivation; second group consists of farmers with 33,600-160,000 square meters planting areas and 57,645.71 baht/rai total income from sugarcane cultivation; third group consists of farmers with more than 161,600 square meters more planting areas and 58240.00 baht/rai total income from sugarcane cultivation. With a total of 6 samples in, the structured interview was used as a tool for this study to analyze the obtained investment and return on cost of sugarcane cultivation for one year. We found the result for 3 groups of sugarcane farmers. The first group farmers have a total cost of 40,096.92 baht, which consisted of an average fixed cost of 9,124.36 baht/rai and an average variable cost of 30,972.56 baht/rai. The second group farmers have a total cost of 41,105.09 baht, which consisted of an average fixed cost 9,989.38 baht/rai and an average variable cost of 31,115.71 baht/rai. The third group farmers have a total cost of 42,580.80 baht, which consisted of an average fixed cost of 10,510.80 baht/rai and an average variable cost of 32,070.00 baht/rai. Then we can conclude that the first, second and third group farmers get an average return on cost of 12,543.38 baht/rai, 16,540.63 baht/rai and 15,659.20 baht/rai, respectively.