Feasibility Analyses to Support the Decision Making on Crops Planting in Ratchaburi Province

Abstract

The objectives of this research were to observe initial, plantation and labor costs, as well as analyze payback period, internal rate of return by using a discount rate and a rate of return of 20%, profitability and sensitivity for growing long bean, chinda chili, pineapple and longan at a plantation area of 10 rais adjacent to a water source in Ratchaburi province. According to the study results, the net present values for the planting of four crops were all positive, which the longan planting earned the highest value at 2,275,142 Baht. Moreover, growing longan had the highest profit index of 11 with the longest payback period (5 years and 3 months) and highest investment cost. Growing pineapple had the lowest initial cost because it needed less agricultural equipment and did not require water supply systems. This crop had the highest internal rate of return, however the first return would be waited for a year. The value of the investment costs for growing long bean and chinda chili were in between the growing of pineapple and longan. By growing both crops, farmers earned more consistently and quickly than other crops, since they had a quite short harvest period (of about 3 months). Considering the sensitivity by increasing the cost by 20%, it was found that the investments of growing long bean and chinda chili were unlikely to be invested, while planting pineapple and longan still had the satisfactory yields.