Thailand Agriculture - Tenancy and Land Reform

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Tenancy and Land Reform

Historically, agricultural tenancy nationwide appeared to have been low except in the commercial rice-growing areas of the central plain and in the North. This situation was the result of land reforms instituted by King Chulalongkorn beginning in 1874, the great availability of free land, the absence of population pressures, and the relatively small amount of funds required by the individual farmer to start cultivating rice. Together with customary practices that tended to limit the amount of cultivable land that could be claimed, these factors resulted in a national pattern of small independent farms. Of great significance to this development was the law that the farmer had to cultivate his own land; if it was more than he or his family could handle, the farmer had to supervise cultivation of the excess. Four hectares were considered the maximum tillable by one family, although with hired help up to about eight hectares could be managed, the amount varying with soil differences and climatic conditions.

Nineteenth-century legislation set a four-hectare limit on freely acquirable agricultural land and acted as a major deterrent to the accumulation of land into large estates. Nevertheless, large holdings did exist as grants to nobles and officials under the sakdi na system. Chulalongkorn's reforms played an important part in the breakup of at least some large estates. In such cases the law provided that the uncultivated land would revert to the state after a period of three years. In the area around the capital, however, where many larger holdings were located, land could be rented out, and the landholdings therefore remained intact.

Statistical data on tenancy in the mid-twentieth century varied considerably. A problem of classification concerning whether the fairly numerous part owner-part tenant arrangements should be included with owners or tenants also led to different conclusions. The part owner-part tenant group consisted largely of farmers who owned small plots but also worked as tenants on other larger farms.

In some areas, 95 percent of the farmers were reported to be deeply in debt. According to the government censuses of agriculture in 1950 and 1963, the rates of full tenancy for the country as a whole were 6.6 percent and 4.1 percent, respectively. Rates varied significantly by region. In 1963 the rate in the Center, the chief agricultural area containing the rice-growing central plain, was 10.7 percent as compared with 1.1 percent in the North. A special 1967-68 survey of the Center determined the full tenancy rate to be 22.5 percent (part owners-part tenants constituted an additional 15.8 percent). A 1973-74 survey of the Center, as well as other regions, showed the full-tenancy rate in the Center to be 12 percent (part owners-part tenants constituted another 28 percent). The remainder were full owners. Tenancy in the Center in areas devoted completely to commercialized agriculture was very high, however, especially in some districts near Bangkok where as many as 75 to 85 percent of the farmers were reported in the mid-1970s to be full tenants. Lower, but still comparatively high, rates of tenancy were also found in certain other districts of the plain.

The unusually high tenancy rates were attributed to several factors, including the proximity to Bangkok of estates that were granted to the ancestors of present-day holders under the sakdi na system; large holdings received as remuneration for the digging of canals; and, since the 1950s, acquisition of land as investment by individuals residing mostly in Bangkok. Figures published in 1975 covering 4 provinces in the Bangkok area cited 119 estates ranging in size from 160 hectares to 1,600 hectares and comprising a total of more than 60,000 hectares. Another factor contributing to tenancy in the central plain was the loss of holdings to creditors by farmers unable to repay loans. A large proportion of the small leaseholds was reported to be owned by storekeepers, local craftsmen, and other farmers.

The 1973-74 agricultural survey also provided data on tenancy in other regions. In the North, the survey found that 4 percent of the farmer operators were full tenants, 25 percent were part owners-part tenants, and 69 percent were full owners. The southeastern provinces of the North, where conditions resemble those of the central plain, reportedly had a higher percentage of farmers renting some or all of their land. In the Northeast, full tenants constituted only a negligible proportion; 89 percent of farm operators were full owners, and 8 percent were part owners-part tenants.

In the South, full tenants likewise were only a very small minority; 83 percent were full owners, and 16 percent were part owners-part tenants. One reason given for the development of the part owner-part tenant situation was the effect of Islamic inheritance laws, which in theory divide the land equally among the children. In such cases, the inherited holding might be inadequate to meet family needs, and supplementary land would be rented. The part owned-part rented condition was not in itself detrimental. There appeared to be many cases in which additional land was rented solely because the farmer family believed it would benefit financially by cultivating it.

Unrest among tenants, who constituted a substantial portion of the nation's poorer farmers, began to manifest itself in the early 1970s. Tenant discontent centered chiefly on the amount of rent, but also of great concern was the fact that use of the land was often based on a verbal agreement that rarely exceeded one year and carried no guarantees of renewal. In 1950 a land rent- control act covering part of the central plain was passed but proved generally ineffective. The civilian cabinet that succeeded to power in October 1973 promised rent and land reform. Implementing action was not immediately forthcoming, however, and farmer dissatisfaction mounted, finally erupting in demonstrations in May and June 1974. In December of that year, the government passed a rent reform law known as the Agricultural Land Rent Control Act of 1974, providing for six-year, indefinitely renewable rental contracts. Rents were to be payable once a year only, and procedures for determining the amount were specified. Moreover, if a poor harvest occurred, the rent was to be reduced, and none would be paid if the harvest were less than one-third normal.

Associated with tenancy was the equally serious problem of landless farmers, who by the early 1980s numbered an estimated 500,000 to 700,000. In January 1975, the civilian government, over strong opposition, managed to get through the National Assembly a second reform measure of potentially far-reaching effect. This was the Agricultural Land Reform Act of 1975. The legislation called for the establishment of the Agricultural Land Reform Office in the Ministry of Agriculture and Cooperatives to serve as the implementing agency. Under the act, landless and tenant farmers could be allocated up to eight hectares of land that would be paid for on a long-term installment basis. The land to be allocated was to come from purchases from private holders and from forest and crown lands. Individual landowners were required to make available to the program all but eight hectares of their holding. Under certain circumstances, larger holdings could be retained, but such holdings could be expropriated later if the provisions of the exception were not met. Payment for the private land taken was to be 25 percent in cash and the remainder in government bonds.

Implementation of land reform slowed after the coup of October 1976, which ousted the civilian government, and the act's goals were subsequently shifted. The government of Prime Minister Thanin Kraivichien, installed as head of a military regime in October 1976, announced that a land reform program covering 1.6 million hectares and taking place over a period of four years would be carried out. Prime Minister Kriangsak Chomanand, who succeeded to office in November 1977 after still another military coup, modified this goal to a more realistic one of 1.3 million hectares over five years. By early 1979, almost eighty areas throughout the country had been designated Land Reform Areas under the program. At the same time, although tenancy remained a major issue, a somewhat different concept of reform seemed to have emerged, based on the belief that the most pressing problem was to improve the situation of the large numbers of illegal squatters in the forests. The Land Reform Areas included some areas of high tenancy, but the new goal of helping forest squatters appeared easier to promote than land acquisition by the Agricultural Land Reform Office in the high-tenancy areas of the central plain. There it was strongly opposed by large landowners, including wealthy aristocrats, businessmen, and senior military officers.

The program as projected included furnishing legal titles to squatters and providing them with needed infrastructure and credit. The areas brought under the program were to be organized into self-sufficient cooperatives. Implementation of a given project was expected to take about two years, including about a year and a half to get the basic infrastructure well under way and to provide titles. The latter would permit the landholder to pass on the land to heirs but would not confer the right to sell it to private parties. The title, however, could be used as collateral for credit. According to government sources, by 1978 some 320,000 hectares consisting mainly of public land had been distributed, and another 160,000 hectares were ready to be apportioned.

Library of Congress Country Studies

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