RETURN COST OF RICE CULTIVATION OF FARMERS IN NON THAI DISTRICT, NAKHONRACHASIA PROVINCE

Abstract

The research purpose was to study of cost and return from rice cultivation of Non Thai Subdistrict Farmers, Non Thai District, NakhonRatchasima Province. The population was the farmers in Non Thai Sub district who worked in rice cultivation, and the sample size was the 385 farmers. The sampling was performed using an accidental probability-less sampling method. The research instrument was the questionnaire. The data analysis statistics were the frequency distribution, percentage, and return analysis by the financial ratios. The research findings were the average cost was 1,105 baht per Rai, average net profit margin was 8,895 baht per Rai, net profit margin to cost ratio was 80.50%, net profit margin to sales ratio was 88.95%, return on investment ratio (ROI) was 73.91%, return on asset ratio (ROA) was 68.42%, and break-even point was 0.11 tons.The cost of rice cultivation consisted of 3 important parts: the raw material cost was 45.25%, labor cost was 30.77%, and overhead cost was 23.98%.The research recommendations were the raw material costs were the lowest, which was an advantage for farmers to make them more profitable and farmers should keep this cost level; and the overhead costs of production was high proportion, therefore, farmers should reduce unnecessary costs such as supplies, farmers should seek advice from relevant government agencies to find a way to reduce such costs. In addition, the Chief of District Agricultural should guide guidelines for the selection of quality rice see, but the price must not be high so that farmers do not have to add more costs.