Cost and Return on Investment from Jasmine Rice Farming of the Farmers in Sam Chuk District, Suphan Buri Province

Abstract

This research aimed 1) to study the cost of investment in jasmine rice planting, 2) to study the return on investment of jasmine rice planting for farmers in Sam Chuk District, Suphan Buri Province. The size of the sample was 80 famers obtained by using the random sampling method, type of accidental sampling and the data of planting season were collected between May-September 2019. The method used in the research was the unstructured interview. The data were collected by using in-depth interviews and the quantitative data such as including cost, net profit, net profit margin to cost, net profit margin to sales, return on investment (ROI) and break even point.

The results revealed that: 1) the average cost of jasmine rice planting was 4,012.18 baht per rai, with an average net profit from rice planting of 1,092.13 baht per rai, net profit margin to cost of 27.22 percent, net profit margin to sales of 21.40 percent, 2) return on investment (ROI) of 22.59 percent and the break even point is 0.27 tons per rai. The cost of growing jasmine rice consists of 3 major parts which are raw material cost (12.44%), labor cost (36.32%) and cost of production (51.24%).