Thailand's Farmers Sink Deeper in Debt by Phairath Khampha 26 December 2002 As a result of corruption, government policies regarding rural credit and loan sharks, Thailand's farmers are sinking deeper into debt despite rising incomes, the Agriculture Economics Office said in a report. Farmers' debt increased from an average of 37,019 baht (1 US Dollar = 43.09 Thai Baht) per household in 2001 to 43,415 baht in 2002, due mainly to farmers' inability to repay loans although they had shifted their borrowing from loan sharks with usurious rates to government sources. Farmers saw their income rise in 2002 to only 136,761 baht per household from 126,872 baht in 2001. In effect, farmers in Thailand, who form the majority of the country's population, are becoming poorer and poorer. During the five-year 8th National Economic and Social Development Plan ending in 2000, the population in the agricultural sector declined from 26.6 million to 25 million as the average size of household members grew smaller, and family members moved to work in factories amid the slowly recovering economy. Rising export prices and demand for agricultural commodities would encourage farmers to expand production in 2003, the report said. The office expected the overall agricultural sector to expand 3.81 per cent in 2003, assuming good weather and lack of natural disasters. Farm harvests were expected to grow 4.53 per cent, while livestock production would increase 2 per cent and fishery production 2.58 per cent. Only forestry would drop in 2003, by 2.77 per cent. The government's assistance programmes, including soft loans and marketing plans, would strengthen the competitiveness of farmers, the report said.