Agricultural Contract Farming with Social and Community Economy Adaptation. A Case Study: Hin Tang Village Moo7 Non Khong Sub District, Ban Phang District, KhonKaen Province

Abstract

The purpose of this study is to understand the history of contract farming at Hin Tang Village including the social and economic adaptation of the community with contract farming production. The study employed the concept of community economy. In-depth interviews were conducted through guided questionnaires; with twenty one key informants, that was concerned with the issues in the village as well as each general household's information in the questionnaire, were used to collect data from 121 household representatives. The study was to find a model of agricultural, contract farming which incorporates a collaborative management between agricultural companies and farmers. The companies provided materials such as seeds, fertilizers and insecticides, techniques for cropping each type of plant and methods of marketing management. The farmers were responsible for the investment of their labor, land, equipments and devices. Both the companies and farmer signed a contract in advance that established the terms and conditions related to the number and quality of products the farmers were going to produce and sell to the companies. However, this contract farming yielded an inequity between the companies and the farmers as companies had an advantage over the farmers due to the fact that they controlled the production systems and markets. Although the farmers were at a disadvantage, the companies did not force them into a contract; rather, they compromised to solve the problem as an installment debt by reason of business. However, these farmers had already adapted to their economic and cultural lifestyles and social relationships to live under the contract farming based system.