**4. Agricultural zoning in Thailand**

In this section, the history and the implementation of agricultural zone in Thailand will be discussed as a case study. Thailand has a unique circumstance and context which other countries cannot refer to its success or failure in agricultural zoning policy as their guideline for formulating their own agricultural zoning. What happened in Thailand will be a supporting evidence to the conclusion in the previous section that the effectiveness of agricultural zoning cannot be judged by referring to the result of other area and the evaluation must be done separately for each area. Again, the historically grounded approach was used by reviewing relevant Thailand agricultural acts and policies, various government office reports, agricultural economics crop zoning management manual, and online news.

Thailand is one of the Asian developing economies. As an agricultural country that is facing dynamic change in all aspects especially land use and land market, Thailand has introduced the Agricultural Economics Act which creates the agro-economic zone or in short "agrozoning" since 1979." The act defined an agro-zoning as "an area of agricultural production, to be established according to the soil type, rainfall, temperature, economic crop, farm type and main income of farmer by using the boundary line of the province as border zone." The objective of the agro-zoning is to plan the long-term development in agriculture, promote land-use type that match with its parcel suitability, control the agriculture data and statistic, and follow up the agricultural program with low budget and timeframe. In 1987, the government has divided the agro-zoning into 24 zones as shown in **Table 1** based on the factors prescribed in the act. Therefore, the provinces that have similar attribute and characteristics were included in the same zone, and the specific crop type was set and encouraged for production in each zone.

In 2013, the government adjusted the agro-zoning to become agricultural economic zone or in short "agricultural zoning" in order that it is possible to carry out in practice. The definition of agricultural zoning has been adjusted to "an area of agricultural production, including animal husbandry and reforestation to be established according to the market conditions and agricultural economy of the country by taking into consideration conditions similar to the main factors such as climate, water resources, crop area, animal feed, types of farming and income of farmers." The main objective of the agricultural zone in this era is to promote the land use that matches with its suitability; to balance the crop supply with the market demand, in the hope that the balance quantity will solve the crop price instability issue; and to develop a systematic control of the agricultural program at a provincial level. The government uses

**Province Important commodities**

 Udon Thani, Nong Bua Lamphu, Nong Khai Cassava, rice, cow, buffalo Sakon Nakhon, Nakhon Phanom, Mukdahan Cassava, rice, cow, buffalo Yasothon, Ubon Ratchathani, Amnat Charoen Cassava, rice, cow, buffalo, jute Khon Kaen, Kalasin, Maha Sarakham, Roi Et Cassava, rice, cow, buffalo

 Nakhon Ratchasima, Chaiyaphum Cassava, rice, cow, buffalo, jute Phetchabun, Lopburi, Saraburi Rice, corn, green beans, millet Nakhon Sawan, Uthai Thani Rice, corn, millet, buffalo, cassava Tak, Kamphaeng Phet, Sukhothai Rice, cow, soybean, peanut, fruit

12 Chiang Rai, Phayao, Lampang Buffalo, rice, tobacco, vegetable 13 Chiang Mai, Lamphun, Mae Hong Son Vegetable, buffalo, cow, soybean

14 Chai Nat, Suphan Buri, Sing Buri, Ang Thong Rice, cow, sugarcane

18 Prachinburi, Sa Kaeo, Chachoengsao, Nakhon Nayok Rice, buffalo, cassava

16 Kanchanaburi, Rajburi, Phetchaburi, Prachuap Khiri

22 Nakhon Sri Thammarat, Phatthalung, Songkhla,

**Table 1.** Twenty-four agricultural economic zones in Thailand.

Source: Office of Agricultural Economics, 2015 [28]

Khan

Satun

15 Ayutthaya, Pathum Thani, Nonthaburi, Bangkok Rice, fruit, vegetable, flower

17 Samut Songkhram, Samut Sakhon, Nakhon Pathom Coconut, fruit, fisheries, flower

24 Pattani, Yala, Narathiwat Rubber, cow, coconut, fruit

19 Samut Prakan, Chonburi, Rayong Cassava, fisheries, rice, sugarcane, coconut 20 Chanthaburi, Trat Fruit, cassava, rubber, corn, fisheries

21 Chumphon, Ranong, Surat Thani Rubber, coffee, cow, coconut, fisheries, oil palm

23 Phang Nga, Krabi, Trang, Phuket Rubber, coffee, cow, cashew nut, fisheries, oil

palm

10 Phichit, Phitsanulok Rice, green bean, buffalo, cow, tobacco, corn 11 Nan, Phrae, Uttaradit Rice, soybean, peanut, tobacco, buffalo

Sugarcane, cow, rice, corn, fruit

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Rubber, cow, rice, fisheries, coconut

5 Surin, Buriram, Sisaket Rice, buffalo, corn

**Zone number**


**Table 1.** Twenty-four agricultural economic zones in Thailand.

conversion to other uses and found that zoning has not been successful in agricultural land protection. Coxhead and Demeke [27] evaluated the determinants of land-use decisions made by farmers in an upland area of the Philippines. According to the findings, the most important predictors explaining substantial farmland allocations were crop prices and policy reform.

The past evidence and studies do not provide any conclusion, that is, if the agricultural zoning policy is actually helpful to protect agricultural land and ensure the food sustainability. The only best conclusion that can be drawn from these researches is that the performance of zoning policy depends on the circumstance and the context of each government. One must be tempted to think that the government that has similar context and circumstance will be able to refer to the research result of each other as a guideline for managing their land use, but in reality there is no absolute likeness in a context and circumstance of government. The agricultural zoning formulation of a country is, in fact, a complex issue. Therefore, there is a need for evaluating each government policy performance separately in order to improve and

In this section, the history and the implementation of agricultural zone in Thailand will be discussed as a case study. Thailand has a unique circumstance and context which other countries cannot refer to its success or failure in agricultural zoning policy as their guideline for formulating their own agricultural zoning. What happened in Thailand will be a supporting evidence to the conclusion in the previous section that the effectiveness of agricultural zoning cannot be judged by referring to the result of other area and the evaluation must be done separately for each area. Again, the historically grounded approach was used by reviewing relevant Thailand agricultural acts and policies, various government office reports, agricul-

Thailand is one of the Asian developing economies. As an agricultural country that is facing dynamic change in all aspects especially land use and land market, Thailand has introduced the Agricultural Economics Act which creates the agro-economic zone or in short "agrozoning" since 1979." The act defined an agro-zoning as "an area of agricultural production, to be established according to the soil type, rainfall, temperature, economic crop, farm type and main income of farmer by using the boundary line of the province as border zone." The objective of the agro-zoning is to plan the long-term development in agriculture, promote land-use type that match with its parcel suitability, control the agriculture data and statistic, and follow up the agricultural program with low budget and timeframe. In 1987, the government has divided the agro-zoning into 24 zones as shown in **Table 1** based on the factors prescribed in the act. Therefore, the provinces that have similar attribute and characteristics were included in the same zone, and the specific crop type was set and encouraged for production in each zone. In 2013, the government adjusted the agro-zoning to become agricultural economic zone or in short "agricultural zoning" in order that it is possible to carry out in practice. The definition of agricultural zoning has been adjusted to "an area of agricultural production, including animal husbandry and reforestation to be established according to the market conditions and

solve an individual measure while the policy is on process.

tural economics crop zoning management manual, and online news.

**4. Agricultural zoning in Thailand**

58 Land Use - Assessing the Past, Envisioning the Future

agricultural economy of the country by taking into consideration conditions similar to the main factors such as climate, water resources, crop area, animal feed, types of farming and income of farmers." The main objective of the agricultural zone in this era is to promote the land use that matches with its suitability; to balance the crop supply with the market demand, in the hope that the balance quantity will solve the crop price instability issue; and to develop a systematic control of the agricultural program at a provincial level. The government uses zoning to set specific area for specific crop production based on water, soil, rainfall level, temperature, location, and farmers' income. It is also anticipated that the zone set will help to increase the production productivity in each area as the crop set offers better suitability for the farmers' respective areas. Since farmers are not familiar with such crops, the government provides training for farmers on the production of new crop. In addition, a guaranteed selling price was implemented to help farmers who need to replace the crop type to comply with the zone set. By these actions the crop production will be matched with the physical characteristics of the area, and the farmers will have sufficed knowledge and experience for production. The government also moves and expands the existing factories to the most suitable agricultural areas, so that there will be markets to support such crops. Since the establishment of the program in 1979, the program appears to have limited success. Therefore, the government tries to catch the public attention by announcing the agricultural economics crop zoning of 20 agricultural commodities in 2013. These commodities comprise thirteen agricultural crops (rice, cassava, hevea, oil palm, sugarcane, maize, pineapple, longan, rambutan, durian, mangosteen, coconut, and coffee), five livestock (beef cattle, dairy cattle, swine, chicken, and hen), and two fisheries (sea prawn and freshwater animal). The Ministry of Agriculture and Cooperatives (MOAC) then has scheduled a road map to speed the development of the zoning in the period of 2013–2032 which is totally 20 years.

**Year Total land area (rai) Agricultural area (rai) (%)** 320,696,888 127,789,900 39.85 320,696,888 128,062,343 39.93 320,696,888 128,545,799 40.08 320,696,888 128,546,022 40.08 320,696,888 128,762,844 40.15 320,696,888 129,621,724 40.42 320,696,888 128,589,662 40.10 320,696,888 127,794,556 39.85 320,696,888 128,338,834 40.02 320,696,888 128,959,887 40.21 320,696,888 128,303,197 40.01 320,696,888 127,602,084 39.79 320,696,888 126,901,617 39.57 320,696,888 127,762,512 39.84 320,696,888 127,597,090 39.79 320,696,888 127,431,751 39.74 320,696,888 146,768,298 45.77 320,696,888 146,541,409 45.69 320,696,888 146,602,041 45.71 320,696,888 146,673,114 45.74 320,696,888 146,895,404 45.81 320,696,888 147,119,966 45.88 320,696,888 147,492,689 45.99 320,696,888 147,588,846 46.02 320,696,888 148,055,549 46.17 320,696,888 148,067,113 46.17 320,696,888 149,240,058 46.54 320,696,888 149,236,233 46.53 320,696,888 149,225,195 46.53 320,696,888 149,242,393 46.54

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Source: Office of Agricultural Economics, 2018 [29]

**Table 2.** Agricultural land area in Thailand from 1986 to 2015.

The crucial point here is that Thailand has established the agricultural zoning with different sets of objectives from other countries. The measure does not intend to prevent the loss of agricultural land or to control an expansion of urban area into agricultural area. The data from the Office of Agricultural Economics (OAE) in **Table 2** showed that Thailand has an increasing trend of agricultural land area. There was a drastic increase in agricultural land area between 1986 and 2015, and a quick surge of agricultural land area was found between 2001 and 2002. It was increased from 127,431,751 rai in 2001 to 146,768,298 rai in 2002 due to a great number of agricultural price support schemes and huge demand of economic crop in the global market. However, after 2002 its trend still appears to be increasing along the horizon even in the top ten most urbanized city in Thailand, except for Bangkok, the capital city, as shown in **Tables 3** and **4**.

The figures and facts indicated that Thailand uses zoning to address the issue of mismatching between land use and land suitability and the issue of crop price instability. Therefore, the agricultural zone has been adopted by adjusting it to be commodity-based format and not use-based format as in other countries. As mentioned previously, we can see that agricultural zoning in Thailand has been divided into two periods. In the beginning of the program which is during 1979–2012, the area was first set followed by deciding the suitable crop to be produced in each area, while the second period which is between 2013 and 2032, the crop was first to be set (how much the country wants the specific crop in the market) and then followed by matching the area with the announced crop. The MOAC has created the country's Agri-map which provides suitability information of land in each area, and the provincial office needs to confirm if the map complied with the real physical land of the province. In this period, the zoning program will be operated at a provincial level.



**Table 2.** Agricultural land area in Thailand from 1986 to 2015.

zoning to set specific area for specific crop production based on water, soil, rainfall level, temperature, location, and farmers' income. It is also anticipated that the zone set will help to increase the production productivity in each area as the crop set offers better suitability for the farmers' respective areas. Since farmers are not familiar with such crops, the government provides training for farmers on the production of new crop. In addition, a guaranteed selling price was implemented to help farmers who need to replace the crop type to comply with the zone set. By these actions the crop production will be matched with the physical characteristics of the area, and the farmers will have sufficed knowledge and experience for production. The government also moves and expands the existing factories to the most suitable agricultural areas, so that there will be markets to support such crops. Since the establishment of the program in 1979, the program appears to have limited success. Therefore, the government tries to catch the public attention by announcing the agricultural economics crop zoning of 20 agricultural commodities in 2013. These commodities comprise thirteen agricultural crops (rice, cassava, hevea, oil palm, sugarcane, maize, pineapple, longan, rambutan, durian, mangosteen, coconut, and coffee), five livestock (beef cattle, dairy cattle, swine, chicken, and hen), and two fisheries (sea prawn and freshwater animal). The Ministry of Agriculture and Cooperatives (MOAC) then has scheduled a road map to speed the development of the zon-

The crucial point here is that Thailand has established the agricultural zoning with different sets of objectives from other countries. The measure does not intend to prevent the loss of agricultural land or to control an expansion of urban area into agricultural area. The data from the Office of Agricultural Economics (OAE) in **Table 2** showed that Thailand has an increasing trend of agricultural land area. There was a drastic increase in agricultural land area between 1986 and 2015, and a quick surge of agricultural land area was found between 2001 and 2002. It was increased from 127,431,751 rai in 2001 to 146,768,298 rai in 2002 due to a great number of agricultural price support schemes and huge demand of economic crop in the global market. However, after 2002 its trend still appears to be increasing along the horizon even in the top ten most urbanized city in Thailand, except for Bangkok, the capital

The figures and facts indicated that Thailand uses zoning to address the issue of mismatching between land use and land suitability and the issue of crop price instability. Therefore, the agricultural zone has been adopted by adjusting it to be commodity-based format and not use-based format as in other countries. As mentioned previously, we can see that agricultural zoning in Thailand has been divided into two periods. In the beginning of the program which is during 1979–2012, the area was first set followed by deciding the suitable crop to be produced in each area, while the second period which is between 2013 and 2032, the crop was first to be set (how much the country wants the specific crop in the market) and then followed by matching the area with the announced crop. The MOAC has created the country's Agri-map which provides suitability information of land in each area, and the provincial office needs to confirm if the map complied with the real physical land of the province. In this

ing in the period of 2013–2032 which is totally 20 years.

60 Land Use - Assessing the Past, Envisioning the Future

period, the zoning program will be operated at a provincial level.

city, as shown in **Tables 3** and **4**.


**Year Agricultural area (rai)**

Source: Office of Agricultural Economics, 2018 [29]

Pathum Thani, Khon Kaen.

**Nonthaburi Chiang Mai Udon Thani Pathum Khon Kaen**

**Table 4.** Agricultural land area of the top ten most urbanized cities in Thailand: Nonthaburi, Chiang Mai, Udon Thani,

 198,698 1,401,397 4,829,053 763,674 4,068,582 209,468 1,370,415 4,986,930 780,590 4,158,015 201,581 1,381,934 5,062,530 707,577 3,979,004 196,101 1,377,851 5,080,723 686,146 4,112,119 194,967 1,269,312 5,097,243 695,483 4,157,993 179,941 1,279,141 5,163,631 716,225 4,200,254 166,071 1,247,978 5,184,504 670,599 4,100,790 157,400 1,234,921 3,743,486 613,007 4,073,572 153,632 1,250,985 3,737,699 607,271 4,099,446 148,965 1,265,266 3,726,665 601,844 4,130,219 160,802 1,259,494 3,706,577 577,502 4,089,495 171,899 1,257,296 3,678,779 545,589 4,049,981 184,525 1,248,918 3,638,467 521,029 4,000,177 180,115 1,300,222 3,650,181 502,336 4,044,045 170,652 1,300,530 3,645,349 491,555 4,054,090 165,677 1,308,829 3,632,734 484,043 4,054,701 227,610 1,724,473 4,385,100 572,478 4,502,696 227,992 1,735,925 4,347,167 573,399 4,471,391 228,184 1,742,904 4,346,415 573,884 4,472,107 228,438 1,744,032 4,348,154 574,508 4,474,476 228,596 1,749,532 4,356,468 574,889 4,480,981 228,034 1,758,322 4,371,859 573,489 4,495,596 228,172 1,769,898 4,382,422 573,796 4,507,209 229,089 1,775,998 4,376,284 574,765 4,500,321 228,568 1,790,597 4,397,072 573,062 4,520,704 228,437 1,788,971 4,398,996 572,401 4,519,542 219,259 1,830,686 3,868,581 510,265 4,219,317 219,160 1,830,291 3,867,979 510,192 4,219,427 219,012 1,830,078 3,868,003 509,752 4,219,573 219,185 1,829,976 3,868,703 510,443 4,219,853

**Thani**

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**Table 3.** Agricultural land area of the top ten most urbanized cities: Bangkok, Chonburi, Songkhla, Samut Prakan, and Nakhon Ratchasima.


**Year Agricultural area (rai)**

Land Use - Assessing the Past, Envisioning the Future

Source: Office of Agricultural Economics, 2018 [29]

Nakhon Ratchasima.

**Bangkok Chonburi Songkhla Samut Nakhon**

**Table 3.** Agricultural land area of the top ten most urbanized cities: Bangkok, Chonburi, Songkhla, Samut Prakan, and

 395,075 1,861,900 1,879,848 311,154 7,857,931 355,211 1,724,904 1,878,161 266,853 7,780,447 323,837 1,716,842 1,895,693 245,732 7,746,955 306,574 1,621,656 1,863,396 217,131 7,716,845 313,599 1,446,529 1,913,696 179,865 7,720,889 288,292 1,492,668 1,933,158 239,123 7,833,264 253,871 1,474,013 1,919,411 198,333 7,832,394 237,315 1,466,989 1,924,027 187,608 7,807,216 221,131 1,416,303 1,975,175 197,666 7,747,841 206,822 1,367,404 2,040,258 201,977 7,680,030 181,099 1,336,578 2,035,236 211,205 7,626,904 159,288 1,303,320 2,034,943 213,217 7,615,387 139,394 1,267,573 2,034,351 221,155 7,573,219 125,359 1,271,462 2,062,808 206,558 7,659,630 120,828 1,287,038 2,066,468 200,875 7,676,804 119,623 1,305,153 2,071,358 194,711 7,661,896 322,363 1,631,771 2,428,149 217,151 8,392,312 323,070 1,627,028 2,439,855 216,859 8,299,745 323,361 1,620,896 2,444,975 216,424 8,293,541 323,779 1,620,333 2,450,061 216,666 8,291,510 324,046 1,621,946 2,458,414 216,668 8,310,461 323,269 1,834,552 2,459,470 214,764 8,336,850 323,661 1,624,954 2,463,045 213,389 8,349,161 325,012 1,620,023 2,470,831 212,981 8,336,476 324,645 1,622,629 2,452,728 212,346 8,379,865 326,573 1,621,671 2,451,857 212,248 8,378,455 233,995 1,720,845 2,266,426 211,838 8,382,871 233,911 1,720,137 2,266,511 211,449 8,383,120 233,266 1,718,785 2,267,234 211,421 8,382,551 233,186 1,719,457 2,269,009 211,704 8,385,473

**Prakan Ratchasima**

**Table 4.** Agricultural land area of the top ten most urbanized cities in Thailand: Nonthaburi, Chiang Mai, Udon Thani, Pathum Thani, Khon Kaen.

After the implementation of the agricultural zoning, the agricultural sector in Thailand has transformed in the dimensions of crop diversification. Using the formula of Gibbs and Martin with the data from OAE, crop diversification index was calculated and presented in **Figure 3**. The index showed that Thailand has moved from mono-cropping pattern to a more diversified cropping pattern especially during the 1980s and 1990s which after the agricultural zoning was implemented. In 1977 and 1978, before the implementation of the zone, the index was 0.51, but in 2015, it was increased to 0.68. More farmers switch from rice to perennial crops such as coffee, sugarcane, cassava, corn, oil palm, fruit, vegetables, and flowers, livestock, fisheries, etc.

**5. Policy conflict**

Most of the agricultural policies in Thailand were found to be conflicted with each other especially the policy of agricultural zoning and crop subsidy schemes. Agricultural commodity price in Thailand has been intervened by its government from time to time (more appropriate phase is "all the time"). There were mortgage schemes for rice, cassava, longan, rubber, oil palm, shallots, sunflower seed, and many more. On top of this, there are aid fund, act, strategic plan, and programs for many agricultural commodities such as rubber aid fund, the Sugarcane and Sugar Act of 1984, rubber price stability program, oil palm industry strategic plan, etc.

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The most notorious program that ruins the agricultural zoning program is the rice mortgage scheme. Rice production is the largest portion of the Thai economy and labor force; therefore, any policy on rice will produce a widespread effect in the country. In 2011, while the agricultural zoning is functioning, the rice mortgage scheme was implemented with the objective to increase the rice price, create stabilize Thai economy through increased domestic consumption, increase Thai farmers' well-being, and control the world market price of rice. The attempt to replace rice paddy field with sugarcane field by agricultural zoning failed because most farmers switch from other crops to rice in order to obtain the guaranteed price. Likewise, this incident happens in the case of the mortgage scheme for cassava, longan, hevea, oil palm, etc. While one of the main objectives of agricultural zoning is to control the supply quantity of products, so that the product price is not fluctuated, the price is in fact the cause of the change in the quantity supply. This happens because the agricultural commodities are in fact in the perfectly competitive market. In microeconomics theory, equilibrium price in the perfectly competitive market is determined through a process of interaction between the market demand and market supply not the market supply alone. Therefore, by introducing the series of mortgage scheme for each crop, the zoning policy has failed to function properly. Another program to be discussed is the government's strategic plans for palm oil year 2008– 2012 which aim to expand the plantation area of oil palm from 2.5 million rai in 2007 to 5 million rai in 2012, and the strategic plans for palm oil year 2015–2026 which aim to expand the plantation area of oil palm from 5 million rai in 2017 to 7.5 million rai in 2026. The strategic plan is part of the government's alternative energy development plan for 2015–2036. Oil palm is a primary raw material for biodiesel production which is an alternative energy of the country with an increasing demand in recent year. In 2012, the Ministry of Energy has a target of biodiesel production of 3100 million liters per year to increase the country's' energy security. According to the Agri-map of the MOAC, the suitable area for oil palm production is in the south of Thailand where there is the highest rainfall in the country. The rainfall in the south of Thailand is regular and scattered throughout the region. Oil palm needs plenty of water and 6 hours of sunlight each day with the plantation area lower than 300 meters above sea level. Each tree needs 5–350 liters of water daily, monthly rainfall of 150 millimeters, and dry season not more than 60 days [31]. Therefore, the zone set for oil palm is in the southern area of Thailand. However, the high demand of domestic palm oil and the oil palm strategic plan creates an attractive economic incentive for farmer to switch the production from other crop to oil palm. In 2015, the Ministry of Agriculture and Cooperatives (MOAC) introduced the oil palm to northeast of Thailand through the pilot projects in Nong Khai

Despite that agricultural zoning has caused a significant agricultural transformation in Thailand, the level of success is considered to be limited considering that it has already been implemented for over 35 years. Only my work [30] analyzes the root cause of failure of the agricultural zoning in Thailand. The work found that the agricultural zone in Thailand was set based on physical and environmental characteristics and failed to consider crop prices, input price, and property right, which farmer prioritizes as their top priorities when allocating production to their agricultural land. These missing factors except property rights are economic factors. The zoning control results in land-use efficiency fail because variable factors that the government considers are not in line with private demand. The government fails to adequately perceive the private demands existing in land use of landowner and responds instead to the political pressure of organizing land use at the country level. The analysis of the work is however limited to the farm-level variable. The external factors at the country level such as the government policies are not included in the analysis. In reality, such factors have tremendous effect on the zoning program. Therefore, in the next section, we will go over some of the governments' agricultural policies that conflict with the zoning program and cause it to fall short of expectation.

**Figure 3.** Crop diversification index of Thailand between 1977 and 2015.
