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Abstract

The Study of Cost and Technical Efficiency in Rice Production of Large Agricultural Land Plot

: Case study in Upper Central Provincial Cluster

The study aims to compare the production cost and the technical efficiency of rice
production in Large Agricultural Land Plot and non- Large Agricultural Land Plot on the Upper

Central area in Thailand. This study samples 160 rice farmers in Chainart, Singburi, Angthong, and

Lopburi province. The statistical methodology for analyzing the data is Propensity Score Matching
(PSM). Also, this research analyzed the Average Treatment Effect on the Treated (ATET) and

Technical Efficiency in rice by using Data Envelopment Analysis Model.

The study found that average cost of rice farmers who participated in Large Agricultural

Land Plot Project were 4,083.29 bath/rai, and having net return 2,069.34 baht/rai. The average
cost of rice farmers who participated in non-Large Agricultural Land Plot Project were 4,476.67

baht/rai, and having net return 395.71 baht/rai. The Large Agricultural Land Plot Project could
decrease variable cost around 397.47 bath/rai.

The study on technical efficiency showed that farmers in Large agricultural Land Plot
Project had technical efficiency at 0.802 that higher than the farmers in non- Large Agricultural

Land Plot Project. However, the farmers’ in Large Agricultural Land Plot Project remained

overusing of their inputs, such as overused seed 0.168 kg/rai , chemical fertilizer 0.966 kg/rai,
weed and pesticide chemicals 0.039 liter/rai and machines 0.010 days/rai. Farmers out of the

project area also found overusing of their inputs, for example overusing seed 0.199 kg/rai,
chemical fertilizer 4.650 kg/rai, weed and pesticide chemicals 0.008 liter/rai and machines 0.006

days/rai.

The recommendations from this study are such as the government should continue

supporting Large Agricultural Land Plot Project in order to reduce costs and increase
productivity. The government should encourage farmers to reduce the use of production

inputs according to academic principles. Also, farmers should be encouraged to record their

productions s. This will be useful for improving both rice production and quality.

Key words: cost, Technical Efficiency, Large Agricultural Land Plot