Cost Benefit Analysis of Continuous Flooding Rice and Alternative Wetting and Drying Rice Cultivation
Keywords:
Continuous Flooding Rice, Alternative Wetting and Drying Rice, Financial and Economic Cost-Benefit Analysis, Greenhouse Gas Mitigation, Climate ChangeAbstract
This study aims to analyze the financial and economic costs and benefits of Continuous Flooding (CF) and Alternative Wetting and Drying (AWD) rice cultivation methods in the central region of Thailand. The data were collected from both existing documents of the relevant agencies and directly from rice farmers. The collected data were then analyzed using Cost-Benefit Analysis (CBA). The objectives of this study are to compare the financial and economic feasibility between different rice cultivation systems. The study also aims to provide supporting information for policy formulation and guidelines to promote sustainable rice production in the future under climate change conditions, and greenhouse gas mitigation. The results show that while Continuous Flooding (CF) and Alternative Wetting and Drying (AWD) cultivation are financially viable in all areas of the central region, but most areas are not economically viable. Even though Continuous Flooding (CF) cultivation is financially profitable in most areas, its value is not high. This study suggests Thailand should reduce its rice plantation areas as the benefits accrue to the farmers do not justify the government subsidies. Thailand also needs to transform economically unviable rice plantation areas into smart farming as it will reduce rice subsidies as well as raise income to the farmers. The reduction in rice plantation areas will also enhance Thailand’s greenhouse gas mitigation without the need for AWD investments.
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