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[Royspurs]

isanbirder, on 2011-03-21 10:40:53, said:

EnSvenskTiger, on 2011-03-20 19:06:48, said:

Interesting, but...
What will one year of rice cultivation pay on one rai? After I have payed for the seed, the fertilizer,the laibour etc. and have sold the rice (paddy?) I now have a pack of Bath in my hand to go to the bank with. Assuming I paid 100000 for the rai and borrow from the bank at seven percent they want seven thousand of this money, and then I want to pay back my loan i ten years so thats another 10000 to the bank. Now I want some return on my investment, lets say five percent, so five thousand down in my pocket.
How much money do I still have now?



Tiger

You have a debt to the local loan shark, how much depending on the weather.  

If you get 500 kgs. of rice from your rai (a fairly good yield here), and sell it at 20 b/kg (a good price), you have 10,000 baht.  Take off your outlay, and you probably owe about 15,000.  That's working on one crop annually, which is the case in much of Isan.  

I know the prices quoted on this thread are not far above what is being paid, but it seems crazy to me.

I agree, for me any additional land in Issan would be to keep me occupied (ie hobby farm) and not for reasons of income or capital growth, why not capital growth, well, it's just my own personal rule that when there is a rush to purchase your most probably already too late.

[EnSvenskTiger]

  Its THAT bad! Oh better live on the bank acount while it lasts then. No land for me!

Tiger

PS! Are there other crops that will get better money?

[Gary A]

I can say for a fact that my wife, a country girl, works her little butt of farming about 20 rai. She works very hard and I can tell you that I'm VERY happy that we don't need any income from farming. If you are planning on making any money from farming, I'd suggest that you try to wisely invest your money elsewhere. Eventually she will see a likely handsome profit from selling the land.

[BuckarooBanzai]

Gary A, on 2011-03-21 20:37:41, said:

I can say for a fact that my wife, a country girl, works her little butt of farming about 20 rai. She works very hard and I can tell you that I'm VERY happy that we don't need any income from farming. If you are planning on making any money from farming, I'd suggest that you try to wisely invest your money elsewhere. Eventually she will see a likely handsome profit from selling the land.

A very truthful and correct appraisal!

[cardholder]

isanbirder, on 2011-03-21 10:40:53, said:

EnSvenskTiger, on 2011-03-20 19:06:48, said:

Interesting, but...
What will one year of rice cultivation pay on one rai? After I have payed for the seed, the fertilizer,the laibour etc. and have sold the rice (paddy?) I now have a pack of Bath in my hand to go to the bank with. Assuming I paid 100000 for the rai and borrow from the bank at seven percent they want seven thousand of this money, and then I want to pay back my loan i ten years so thats another 10000 to the bank. Now I want some return on my investment, lets say five percent, so five thousand down in my pocket.
How much money do I still have now?



Tiger

You have a debt to the local loan shark, how much depending on the weather.  

If you get 500 kgs. of rice from your rai (a fairly good yield here), and sell it at 20 b/kg (a good price), you have 10,000 baht.  Take off your outlay, and you probably owe about 15,000.  That's working on one crop annually, which is the case in much of Isan.  

I know the prices quoted on this thread are not far above what is being paid, but it seems crazy to me.

I had heard that 5,000 Baht per rai was the best that you could expect to 'net'.

[swissie]

cardholder, on 2011-03-22 00:13:29, said:

isanbirder, on 2011-03-21 10:40:53, said:

EnSvenskTiger, on 2011-03-20 19:06:48, said:

Interesting, but...
What will one year of rice cultivation pay on one rai? After I have payed for the seed, the fertilizer,the laibour etc. and have sold the rice (paddy?) I now have a pack of Bath in my hand to go to the bank with. Assuming I paid 100000 for the rai and borrow from the bank at seven percent they want seven thousand of this money, and then I want to pay back my loan i ten years so thats another 10000 to the bank. Now I want some return on my investment, lets say five percent, so five thousand down in my pocket.
How much money do I still have now?



Tiger

You have a debt to the local loan shark, how much depending on the weather.  

If you get 500 kgs. of rice from your rai (a fairly good yield here), and sell it at 20 b/kg (a good price), you have 10,000 baht.  Take off your outlay, and you probably owe about 15,000.  That's working on one crop annually, which is the case in much of Isan.  

I know the prices quoted on this thread are not far above what is being paid, but it seems crazy to me.

I had heard that 5,000 Baht per rai was the best that you could expect to 'net'.

Above statement should make furure FARANG FARMERS WANT TO SIT UP AND LISTEN (and grab a pocket calculator).

Since immigration considers a monthly income for a Farang / Thai couple of 40'000 BHT per month as an minimum income to live on and qualify for a O-Visa ( = 480'000 BHT annually.)

Now you figure: If this kind of income should be generatet by farming, assuming a net yield of 5000 BHT per Rai, one would have to own 96 Rai !!!

How many Frarangs are able and willing to tie up the required funds (land purchase) to achieve this (income)-goal ?

I think, Farming for a Farang can be some sort of "hobby" and to keep him busy. No more, no less.

I still feel that the money that a Farang needs to live in Thailand has to come from "outside of Thailand". Preferably in form of some kind of pension-money. Of course, looking at exchange rates Euro / Dollar etc. versus the Thai-Baht, the pension-money of yesterday is probaly not the same as the pension-money of today. But that's another story.

Cheers.

[Gary A]

swissie, on 2011-03-24 22:12:08, said:

cardholder, on 2011-03-22 00:13:29, said:

isanbirder, on 2011-03-21 10:40:53, said:

EnSvenskTiger, on 2011-03-20 19:06:48, said:

Interesting, but...
What will one year of rice cultivation pay on one rai? After I have payed for the seed, the fertilizer,the laibour etc. and have sold the rice (paddy?) I now have a pack of Bath in my hand to go to the bank with. Assuming I paid 100000 for the rai and borrow from the bank at seven percent they want seven thousand of this money, and then I want to pay back my loan i ten years so thats another 10000 to the bank. Now I want some return on my investment, lets say five percent, so five thousand down in my pocket.
How much money do I still have now?



Tiger

You have a debt to the local loan shark, how much depending on the weather.  

If you get 500 kgs. of rice from your rai (a fairly good yield here), and sell it at 20 b/kg (a good price), you have 10,000 baht.  Take off your outlay, and you probably owe about 15,000.  That's working on one crop annually, which is the case in much of Isan.  

I know the prices quoted on this thread are not far above what is being paid, but it seems crazy to me.

I had heard that 5,000 Baht per rai was the best that you could expect to 'net'.

Above statement should make furure FARANG FARMERS WANT TO SIT UP AND LISTEN (and grab a pocket calculator).

Since immigration considers a monthly income for a Farang / Thai couple of 40'000 BHT per month as an minimum income to live on and qualify for a O-Visa ( = 480'000 BHT annually.)

Now you figure: If this kind of income should be generatet by farming, assuming a net yield of 5000 BHT per Rai, one would have to own 96 Rai !!!

How many Frarangs are able and willing to tie up the required funds (land purchase) to achieve this (income)-goal ?

I think, Farming for a Farang can be some sort of "hobby" and to keep him busy. No more, no less.

I still feel that the money that a Farang needs to live in Thailand has to come from "outside of Thailand". Preferably in form of some kind of pension-money. Of course, looking at exchange rates Euro / Dollar etc. versus the Thai-Baht, the pension-money of yesterday is probaly not the same as the pension-money of today. But that's another story.

Cheers.

Depending on a regular steady income of 5,000 baht per rai is optimistic in the extreme. You are at the mercy of middlemen and the weather. More often than not, crop prices are down and often yields are WAY down. Expecting to live a decent life style depending on farm income is indeed living on the edge.

ADDED - My wife planted about 10 rai of sugar cane. She did have to replant some of it because of being way too dry and the pond was already pumped dry. The rains did come and it turned out pretty good. She got 70,000 baht total for her crop. That sounds pretty good until you look at the planting expense. It cost her 65,000 baht to put the crop in. She says that next year she will make some money. She only needs to fertilize and spray for weeds.

Edited by Gary A, 2011-03-25 10:01:07.

[farang000999]

I was searching for residential rai prices but came upon this topic. It is interesting. People talk of population increases and how important farm land will be, yet still even in the USA, farmers are known as being poor. It seems to me that the value of farm land should be a product of the value of it's yield after expenses.

Just as residential real estate is a product of it's rental yield.

In the US housing bubble, rents were not moving with sale prices. People were buying so that they could sell. The profit would be realized by finding another buyer - like a Ponzi Scheme. The question I would ask about farm land is, are the buyers buying to hold or to flip? If everyone plans to flip than it is a game of musical chairs liek aponzi scheme where everyone gets rich as long as there is always a new buyer.

Anyways this thread is a bit old so i wonder how things are going now?