What Leads Farmers to Abandon Coffee Production?: An Experimental Study on Crop Choice in Chumphon Province, Thailand

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  • Kwanmuang Kanjana
    Office of Agricultural Economics, Ministry of Agriculture and Cooperatives, Thailand
  • Wangyeesen Apinya
    Office of Agricultural Economics, Ministry of Agriculture and Cooperatives, Thailand
  • Shuto Hisato
    Faculty of Life and Environmental Sciences, University of Tsukuba

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<p>Our study examines farmers’ crop choice to investigate the motivation behind the recent coffee production decrease in Chumphon, a southern province of Thailand. Through a choice experiment based on a random parameter logit model, which takes into account farmers’ heterogeneous preferences for commodities, we find that the constraint on hiring labor induces farmers to refrain from replanting new coffee trees. In addition, the coffee tree aging problem induces the removal of old coffee trees, but does not affect significantly the replanting of new coffee trees when the hiring labor constraint is not imposed in the experiment. This seems to suggest that, since coffee has only one harvesting opportunity in a year, the constraint on hiring harvesting labor amplifies the income uncertainty of coffee management.</p>

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