Environmental Services from Organic Agricultural System: Policies Promoting Sustainable Agriculture Thanwa Jitsanguan, Ph.D. Bhantinee Sootsukon,Ph.D. Dept.of Agricultural and Resource Economics Kasetsart University, Bangkok, Thailand

Agriculture in Thailand 50% population 40% country area 25% export earning 10% GDP World leading exporters of rice, rubber, cassava, shrimp, chicken, sugar, canned pineapple, and canned tuna Dualistic structure between Large Scale Agribusiness and Small-Scale Farmers Closely related to environment and culture as “Way of life”

Sustainable Agriculture “SA is any agricultural system that are complementary to natural resources and environmental conditions in order to produce safe and diversified products so as to reduce natural and economic risks while passing the learning process of farmers from generations to generations”

Sub-systems consideration under SA Ecological system Economic system Social system Sustainable Agriculture (SA)

Practical Sustainable Agriculture in Thailand Agro-forestry system Integrated farming system New Theory farming system Organic farming system Natural farming system

Organic Agricultural System Production with ecological balance Most related to environmental services Price premium to farm products Health concern for producers and consumers Food safety from farm to table

Small-scale farmers’ group : Research Data and Rationale Small-scale is majority Thai farmers Produce significant ES from organic agriculture Selecting 8 farmers’ groups from 4 geographical regions ES varied by different regional resource base and society

Framework of the study Organic farming Economic benefitsEnvironmental services Social synergy Market Values Non-Market Values

Estimated ES values Market valuesNon-market values Northern157,058 (25%)462,905 (75%) Central278,038 (40%)405,338 (60%) Northeastern313,458 (30%)699,189 (70%) Southern403,953 (60%)243,035 (40%)

Environmental Services from Organic Agriculture Market Values Agro-tourism Non-wood products

Environmental Services from Organic Agriculture Non-market values Biodiversity Soil nutrients Top soil protection Water purification Water retention Flood resistance Education Research Local wisdom

Policies recommended in promoting Sustainable Agriculture through PES concept

Market- values ProducersConsumersGovt. Agro- tourism  Non-wood products  Price premium on private goods and club goods.

Prevention cost of farm resource base. Non- market values ProducersConsumersGovt. Biodiversity  Soil nutrients  Top soil protection 

Subsidy programs on social welfare. Non- market values ProducersConsumersGovt. Water purification  Water retention  Flood resistance 

Participatory Funds for jointed services. Non- market values ProducersConsumersGovt. Education  Research  Local wisdom 

Policy Recommendation Taken into consideration ES in Agricultural and Rural Planning Better differentiation between private, common and public goods Improvement in property right and identifying payers Always relied on holistic and participatory approach

Conclusion ES is one of main elements in agricultural planning for small-scale farmers Implementation of PES in Thailand requires further discussion Need for Better understanding in ES concept and application for GOs and farmers Scarcity of knowledge development and current research on ES

Thank You for Your Attention……