1. Implication of Macroeconomic Growth
On small scale farmers (SSFs) in Lao PDR, Cambodia, Vietnam and Thailand
Source:
2017 World Bank Conference on Land and Poverty
Presented by:
Daniel Lindgren
Rapid Asia Co., Ltd.
The World Bank, Washington DC, March 2017

2. Ms. Tarinee Suravoranon
Agenda
Project Team
Study overview
Analytical Framework
Case Study: SSFs in Thailand
Broad Recommendations
Ms. Kaneka Keo
Oxfam, Co-writer
Mr. Hemantha Pamarthy
Technical Lead
Ms. Tarinee Suravoranon
Project Manager
Mr. Daniel Lindgren
Founder, Co-writer

3. Study Overview

4. Broad Areas of Investigation
Impact of current economic growth on small-scale farmers (SSF) in Thailand, Vietnam, Cambodia and Lao PDR
Key challenges for inclusive economic growth
Challenges and their effect on SSF in attaining food security and sustainable livelihoods
Pro-poor policy formulation to ensure food security and sustainable livelihoods for SSFs

5. Lower Mekong Basin Countries
Study Design
Desk Review
Lower Mekong Basin Countries
Case Study
Stakeholders & SSFs
Thailand
Validation Workshop

6. Analytical Framework

7. Key Topics Covered Macro economy Literacy, unemployment and labour
Agriculture
Land rights & land grabbing
Effects of climate change
Migration and gender issues
Contract farming practices
Marketing and exports
Policy environment

8. Farmers Don’t Remain Farmers Forever

9. Hierarchical Stage of Development
Diversified economy
Food production for export
Proper implementation of policies
Infrastructure development
Agricultural technology development
Proper income in agriculture sector
Relevant facilities e.g. rice mills
Access to domestic markets
Access to exports
Gender equality
Education
Alternative livelihoods
Developed private sector
Developed health sector
Relative strengths & weaknesses between the four countries

10. SSF Development Transition Ladder
Thailand
Vietnam
Cambodia
Productivity and Value
Lao PDR
Intensification
Expansion
Diversification

11. Diversification Expansion Intensification
Total Land
331,000 Km2
Rice Production
2-3 crops/year
Avg. Land Holding
0.5 ha
Rice Export
17% of production
Total Land
513,000 Km2
Rice Production
Quality Focus
Avg. Land Holding
3.6 ha
Rice Export
30% of production
Expansion
Total Land
237,000 Km2
Rice Production
1-2 crops/year
Avg. Land Holding
1.2 ha
Total Land
181,000 Km2
Rice Production
1-2 crops/year
Avg. Land Holding
1.2 ha
Intensification

12. Diversification During diversification, Migrants Shift Away from Agriculture
2016 study with return migrants (low skill workers) who worked in Thailand and Malaysia
Unemployed up 8%
Manufacturing up 23%

13. Shift Impact on Poverty Line
Proportion of Migrants Below the International Poverty Line
(SDG Indicator 1.2.1)

14. Diversification Return migrant workers shift in monthly income after return
+90
Upon Return
+12
+21
Before migrating

15. Case Study: SSFs in Thailand

16. Study Design Implementation area of the SEMIL-SRI-LMB project*
Uttaradit, Surin & Srisaket provinces
6 FGDs with SSFs (3 male and 3 female groups)
7 interviews with government agencies, institutions and associations
April 2016
*Sustaining and Enhancing the Momentum for Innovation and Learning around the System of Rice Intensification in the Lower Mekong river Basin countries (SEMIL-SRI-LMB)

17. Job Security & Food Security
Marketing Mix for SSFs
Product
Seed quality
Equipment
Expansive / Intensive
Place (Distribution)
Market access
Dependency on middle men
Ability to sell to mills directly
Promotion
Know how
Financial literacy
Access to training
Price / Income
Product quality
Access to finance
Debt burden
Job Security & Food Security

18. Solution: SRI training and alternative crop growing
Case Study: Thailand
Product
Issues with seed quality and inferior products
Lack of irrigation – climate change
Place (Distribution)
Most use middle men, convenient, quick, no transport
Suspicious of contract farming
Coops often too small
Promotion
Poor marketing skills
Low financial literacy
Price / Income
Income ½ of minimum wage
Debt burden big challenge
Migration leads to burden for women
Solution: SRI training and alternative crop growing

19. Alternative Crops / Livestock

20. Broad Recommendations

21. Recommendations Identify diversification opportunities
Consider how future developments may create future opportunities that SSFs could tap into. For example, tourism, education, urban development, etc.
Education and capacity development to prepare SSFs for future employment opportunities
Completion of basic education is fundamental
Quality vocational training this can be a fast track to new employment opportunities
Education can make SSF more resilient when facing hardship
Financial management and control to mitigate debt burden
Debt is an ongoing problem for SSFs. Education in combination with regulation is potentially the most effective remedy.
Explore best practice approach for rice farming facilities to help improve market access for SSFs
Many SSFs lack access to proper facilities, such as rice mills, water storage, transportation, local research center, etc. Better access would create a more stable business environment for SSFs.

22. Cont… Continuation and expansion of Rice Intensification Programs
Rice intensification programs, such as SRI, have proven successful in the past and should be continued.
Consider to partner with local government agencies, NGOs or private companies that work on similar programs.
Identifying prospective partners that can help in coordinating and expanding SRI.
Establish best practice guidelines for contract farming to promote SSF interests
Contract farming offers potential benefits to SSFs. However, contract farming can also place SSFs at significant risks resulting in dependency.
Best practice guidelines can help SSFs to be better prepared when negotiating as well as shaping the regulatory environment.
Strive for more fair distribution of land
Allowing farmers can cultivate better which will have effect on migration and potentially ease the burden for women
E.g. Only 12% of agricultural land in Thailand is covered by title deeds

23. For more information please contact:
Mr. Daniel Lindgren
Founder, Rapid Asia