Thesis Abstract of AGS Students

Economic Analysis of Baby Corn Production under Risk

Pilai Panumatmonton (1997)

The study was carried out to investigate whether cropping systems with baby corn will be more profitable than those without under uncertain water and market conditions.

In response to this problem, this study was conducted by using the optimal farm plan under risk. The method employed in this study was Quadratic programming to estimate E-V frontiers. It is a useful design for identifying the profitability and levels of risk involved in baby corn farming, and providing information for expanding baby corn production in Thailand.

Data from 88 farm households in Ratchaburi province were collected for 1992/93 crop year. In this study, comparisons were made of the cropping systems that combine crops under contract farming without contract farming on both upland and lowland areas.

It was found that in lowland, cropping systems with baby corn has higher variation in expected gross margins (risk) than those without. In upland, cropping systems with baby corn has smaller variation in expected gross margins than those without at any given income.

The study also showed that on the average, there were not any efficient farm plan both of lowland and upland when it was compared with farmer ’s practice plan. One of the reasons was there were some errors in their risk estimates.

From the above findings, it could be concluded that in upland, cropping system with baby corn is more profitable and the risk is lower than that without. In lowland, cropping system with baby corn should be an alternative for the farmers who like to take risk, whereas for farmers who are risk averse should adopt cropping system without baby corn.

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