Agricultural business model and upland sustainability: Evidence from northern Thailand

Abstract

We posit that agricultural business model can induce farmers' behaviour and practice that suit upland context and help reverse a problematic trend of deforestation in northern Thailand. We analyze how agricultural business models, and their characteristics relate to upland sustainability indicators. The OLS and instrumental variables techniques are used on data from fields. Evidence shows that end-market that gives value to quality can significantly shapes farmers' behaviors toward sustainable practice. Formation of farmers' group to sell products collectively can secure sustainable practice only when environmental rules are enforceable on members. Contract farming may fail to deliver social and environmental sustainability, hence requires effective monitoring. Our findings help shed light on effectiveness and weakness of the Thai government's approach in tackling deforestation issue by promoting integrated farming, perennial fruit trees and agroforestry on Thai uplands.