The Comparison of Cost and Return in Planting Green Hot Chili by Using Individual and Collaborative Farming in Pak Pha-nang River

Abstract

The research article compared cost and return in planting green hot chili using 11 samples of individual and 13 samples of collaborative farming in 2017-2018. Data were analyzed by financial ratios and investment techniques. The results revealed that two areas seemed similar. Collaborative farming, which pooled crops for distribution, had a higher average yield of 2,901.17 kilograms/Rai and a higher average selling price of 29.15 baht/kilogram than individual farming, which had a lower average yield of 1,771.96 kilograms/Rai and a lower average selling price of 26.64 baht/kilogram. Collaborative farming had a net profit margin of 58.06 percent, whereas Individual farming had a net profit margin of 55.93 percent. Furthermore, collaborative farming had a higher return on investment but a lower input-output ratio than individual farming. For an initial investment excluding land costs, collaborative farming had a net present value (NPV) of 143,959.12 baht and an internal rate of return (IRR) of 354.92 percent, whereas individual farming had a NPV of 47,822.41 baht and an IRR of 111.08 percent. Collaborative farming had a payback period (PB) of 3 months 11 days, but individual farming had a PB of 10 months 17 days. Including land costs, collaborative farming’s NPV of 20,882.12 baht was more acceptable than individual farming’s NPV of -99,177.59 baht. Collaborative farming with an IRR of 26.71 percent was higher than individual farming with an IRR of -11.68 percent. Collaborative farming had a PB of 2 years 7 months, but individual farming had a PB of more than 5 years.