A STUDY OF COSTS AND RETURNS FROM INVESTMENT IN GROWING JASMINE RICE 105 OF FARMERS REGISTERED IN BANLUMKHAO PHATTHANA AREA, LUMKHAO SUBDISTRICT, NONSUNG DISTRICT, NAKHON RATCHASIMA PROVINCE

Abstract

This study aimed to investigate the production costs of Khao Dawk Mali 105 (KDML105) jasmine rice and to analyze the costs and returns of its production among farmers in Ban Lum Khao Phatthana, Lum Khao Subdistrict, Non Sung District, Nakhon Ratchasima Province. The study employed a mixed-methods approach integrating both quantitative and qualitative methods. Data were collected by the researcher using a structured interview form. The participants were 15 registered farming households in Ban Lum Khao Phatthana with rice cultivation areas ranging from 10 to 30 rai. The data were analyzed using basic descriptive statistics, including frequency, percentage, and mean. Returns were analyzed using financial ratios, net profit, gross profit margin, profit margin on sales, return on assets (ROA), and return on investment (ROI).

The findings revealed that: (1) the average total production cost of KDML105 jasmine rice was 3,920.83 baht per rai, consisting of raw material costs of 420.00 baht per rai, labor costs of 560.00 baht per rai, and production expenses of 2,966.89 baht per rai; and (2) the average yield was 0.40 tons per rai, generating an average income of 4,853.07 baht per rai and an average net profit of 784.89 baht per rai. The gross profit margin was 18.67%, the profit margin on sales was 16.17%, the return on investment (ROI) was 14.79%, and the return on total assets (ROA) was 46.98%.

The results also indicated that rice yield per rai was relatively low. Farmers should therefore consider ways to increase productivity in order to achieve higher net profits. They may seek advice from the provincial agricultural office on rice cultivation techniques to improve yield. In addition, regular field management is important because rice production costs are relatively high, especially the costs of combine harvesting, plowing, and fertilizer. Farmers may also consider reducing unnecessary costs by using organic fertilizers instead of chemical fertilizers, improving soil conditions during the planting period to restore soil fertility, and relying more on their own labor instead of hiring labor exclusively.