Comparison of economic costs and returns structure of chemical and organic rice cultivation: a case study in Nong Sano sub-district, Sam Ngam district, Phichit province

Abstract

The main purpose of this study was to compare the economic costs and returns of chemical and organic rice cultivation. The study perspective was expanded by the comparison of cost structures classified by different kinds of rice farms as well as the analysis of cost structures of rice cultivation using Nong Sano sub-district, Sam Ngam district, Phichit province in the crop year of 2008/2009 as a case study. The selection of five rice farm areas was made through consultation with the community development specialist using purposive sampling technique while the selection of 333 farmers was made through voluntary sampling. The comparison results, using independent samples test with weighted cases, revealed that the returns of organic rice cultivation were on average 73.2% higher than the average cost; as the product price, yield and average income were higher while the average cost was lower than that of chemical rice cultivation. Furthermore, almost all costs of organic rice were lower than those of chemical rice, with the exception of depreciation and labor costs. All factors were statistically significant (P<0.01).