Possibility of Arbitration Processes In the Contract Farming System
Main Article Content
Abstract
This article endeavors to address the problem of significant bargaining power imbalance between farmers and agricultural business operators under the contract farming system. In Thailand, it is clear that the majority of farmers face economic challenges, limited access to knowledge, and limited financial resources, whereas agricultural business operators are financially powerful capitalists and businessmen with extensive expertise and substantial capital.
As a result, there is a clear power imbalance between farmers and agricultural business operators, which increases the likelihood of disputes in the contract farming system. When disputes arise, agricultural business operators generally exploit such a comparative advantage during dispute resolution, especially in negotiation and mediation processes because there is no involvement of a neutral third party with the authority to resolve such disputes effectively. Although the Thai Contract Farming Promotion and Development Act B.E. 2560 (2017) ('Thai Contract Farming Act') has been enacted to address these problems, the majority of farmers still face the aforementioned challenges. These underline the need for effective dispute resolutions for all parties involved.
To achieve a more equitable balance of bargaining power among disputing parties, the author thoroughly examines the legal frameworks of India, Vietnam, the United States of America, and China, where arbitration is currently employed for dispute resolution in the contract farming system. The objectives are to identify and explore methods that can redress the prevailing power imbalance and foster farmers’ fairness.
The results assert that dispute resolution through mediation under the Thai Contract Farming Act necessitates updating and improvement to align with the complexities and vulnerabilities of the agricultural business environment. In the end, this article provides recommendations to ensure a just and effective framework for the dispute resolution process for agricultural businesses in Thailand.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Dissertations
Amornchai Banmueang, “The Challenges of Implementing the Promotion and Development of Contract Farming System Act B.E. 2560”, Master Degree Thesis Faculty of Law, Thammasat University
Chanathip Chinnanawin, 'The Settlement of Labour Dispute by Arbitration' (2004) Master's Thesis, Chulalongkorn University, Faculty of Law
Khemchat Tonboon, “Chicken ranchers under contract farming system” (2015), Master Degree Thesis, Chiang Mai University
Vissanu Tinmanee, Legal Problems of the Contract Farming Business, Master Degree Thesis Faculty of Law, Thammasat University
Journals
Assawin Sangkeattiyut, “Legal Problems Relating to the Bargaining Power of Thai Farmers in the Conclusion of Contract Farming Agreement”, Sripatum University Graduated Journal
Isakorn Konthongkham, Suan Sunandha Rajabhat University Graduated Journal on the topic of “Legal issues related to unfair contract terms in the contract farming system”
Issara Kongtongkham, SRRU Graduates Studies Journal on the topic of “Legal Problems On Unfair Contract Farming”
Radamanee Punchote, DPU Graduate School Journal on the topic of "The Legal Guide on Adequate Protection to Parties in Contract Farming Agreement According to The UNIDROIT Convention on Contract Farming"
S. Singh, “Understanding Practice of Contract Farming in India: A Small Producer Perspective” (2016)
Sondhikanj Pueansongkram, Radio Journal on the topic of "Contract Farming Promotion and Development Act B.E. 2560 (2017)"
Websites
Arkansas Department of Agriculture, Plant Industries Division, “Seed Arbitration” <https://www.agriculture.arkansas.gov/plant-industries/feed-and-fertilizer-section/seed-section/arbitration/> accessed on 15 April 2023
Bank for Agriculture and Agricultural Cooperatives, Credit Project to Promote and Develop the Contract Farming System (Contract Farming)
<https://www.baac.or.th/file-upload/16625-1-Sales%20Sheet_โครงการสินเชื่อเพื่อส่งเสริมและพัฒนาระบบเกษตรพันธสัญญา%20(Contract%20Farming)%20ระยะที่%202.pdf> accessed on 05 January 2023
Kristy Zander & Katie Walsh, LK Law Pty Ltd, “Changes to the Regulation of Litigation Funding in Australia” <https://www.lk.law/2020/08/changes-to-the-regulation-of-litigation-funding-in-australia/> accessed 8 January 2023
Minburi Civil Court’s Website, ‘What is the Mediator's Role?’ <https://civilmbc.coj.go.th/th/faq/item/index> accessed 11 July 2024
Minister of Agriculture and Rural Development of Vietnam, Quyet-dinh-62-2013-QD-TTg <https://thuvienphapluat.vn/van-ban/Thuong-mai/Quyet-dinh-62-2013-QD-TTg-chinh-sach-khuyen-khich-phat-trien-hop-tac-lien-ket-san-xuat-211219.aspx> accessed on 14 April 2023
Minister of Agriculture and Rural Development of Vietnam, Quyet-dinh-80-2002-QD-TTg <https://thuvienphapluat.vn/van-ban/EN/Linh-vuc-khac/Decision-No-80-2002-QD-TTg-of-June-24-2002-on-policies-to-encourage-the-contractual-sale-of-commodity-farm-produce/74417/tieng-anh.aspx> accessed on 14 April 2023
Minnesota Department of Agriculture, Seed Unit, Plant Protection Division, “Seed Arbitration” <https://www.mda.state.mn.us/sites/default/files/2018-07/seedarbitration.pdf> accessed on 15 April 2023
Minnesota Legislature, 2022 Minnesota Statutes, Section 17.697 Informational Exchanges; Dispute Resolution <https://www.revisor.mn.gov/statutes/cite/17.697> accessed on 1 May 2023
Ministry of Agriculture Department of Agriculture and Co-operation Government of India, ‘Final Report of Committee of State Ministers, In-charge of Agriculture Marketing to Promote Reforms’ <https://dmi.gov.in/Documents/stminpr reform.pdf> accessed on 1 January 2023
Ministry of Law Services Centre, “Third-Party Funding to be Permitted for More Categories of Legal Proceedings in Singapore” <https://www.mlaw.gov.sg/news/press-releases/2021-06-21-third-party-funding-framework-permitted-for-more-categories-of-legal-preceedings-in-singapore/> accessed on 15 May 2023
Ministry of Law, Singapore, “Third-Party Funding to be Permitted for More Categories of Legal Proceedings in Singapore” <https://www.mlaw.gov.sg/news/press-releases/2021-06-21-third-party-funding-framework-permitted-for-more-categories-of-legal-preceedings-in-singapore/#:~:text=From%2028%20June%202021%2C%20the,)%2C%20and%20related%20mediation%20proceedings> accessed on 15 May 2023
Packers and Stockyards Act, 1921 <https://www.ams.usda.gov/sites/default/files/media/PSAct.pdf> accessed on 1 May 2023
Thailand Arbitration Center (THAC), ‘Third-party Funding: Another promotional option for the arbitration process’ <https://thac.or.th/th/third-party-funding/> accessed on 8 January 2023
Thailand Arbitration Center (THAC), The arbitration costs are fixed by the THAC in accordance with the schedule of costs attached to the THAC set of rules <https://thac.or.th/fee-calculator/> accessed on 18 January 2023
Thammasat University, “Summary of the Key Points from the Academic Seminar on 'Contract Farming” <https://www.law.tu.ac.th/seminar-summary-contract-farming/> accessed 11 July 2024
Legislation
Arbitration Act B.E. 2545 (2002)
Contract Farming Promotion and Development Act B.E. 2560 (2017)
Dispute Mediation Act B.E. 2562 (2019)
Labour Relations Act B.E. 2518 (1975)
Minnesota Legislature, 2022 Minnesota Statutes, Section 17.697
Packers and Stockyards Act, 1921
The Law of the People’s Republic of China on Mediation and Arbitration of Disputes over Rural Land Contract and Management, Article 2
Thư Viện Pháp Luật (Law Library), Policy Decision 62/2013/QD-TTG, "Decision on Policies to Encourage Development of Cooperation and Production Linkages Associated with Agricultural Product Consumption, Building Large Fields."
Thư Viện Pháp Luật (Law Library), Policy Decision 80/2002/QD-TTG, "Decision On Policies To Encourage The Contractual Sale Of Commodity Farm Produce"