Flooding in Thailand has disrupted many sectors, one of the most affected being small-scale farmers. To aid farmers who fall victim to flooding, the Thai government financially compensates them for the damages incurred by covering part of their cropping cost. However, as suggested by some studies, there is a tendency for this type of government aid to crowd out farmer adaptation. An EEPSEA study proved this true for rice farmers in northeastern Thailand. Hence, it is suggested that it may be more prudent not to send out the perception that the government will step in every time there is a disaster so as not to encourage a dependent attitude in the farmers.
Does Government Aid Crowd Out Thai Rice Farmers’ Adaptation?