An Economic Feasibility Analysis of Salad Vegetables Production with Smart Farm
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Abstract
Currently, concern about consuming pesticide-free vegetables is increasing. Smart farming is being employed for vegetable cultivation to control the quality and quantity of produce. However, the use of smart greenhouses involves various investment costs, leading farmers to be concerned about the cost-effectiveness of their investment. This study therefore analyzes the economic feasibility of cultivating lettuce using smart farming compared to conventional farming methods. The analysis uses primary data from in-depth interviews with 10 farmers who grow lettuce without smart farming technology and 10 farmers who use smart farming technology, incorporating a cost-benefit analysis. The study's findings reveal that farmers using smart farms incur higher average costs compared to those not utilizing this technology due to the expenses associated with smart farm infrastructure. However, smart farm users generate higher average incomes from crop cultivation compared to non-users, resulting in more profitable returns when using smart farms for lettuce cultivation. The cultivation of crops using smart farming yields a higher NPV compared to conventional farming methods. The NPV for farmers using smart farming exceeds that of farmers not using smart farming by approximately 2,185,576 Baht, or approximately 311.30 percent. Additionally, the B/C ratio is higher at around 2.11 times greater. Based on these results, investing in smart farming increases farmers' net income compared to conventional farming practices. Given the financial challenges faced by Thai farmers, the Thai government should support them by facilitating access to loans for smart farm investment and providing knowledge about smart farm technology.
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