metikos

One of the strategic goals of our work in Laos is to help communities live sustainable lives in the place where they are, as long as that’s where they want to remain. Since most villagers are farmers, the economic side of this is the most important: can they make enough money planting crops and raising animals to live? CRWRC staff also struggle with this question, and more particularly with how to help villages chose sustainable, low-risk income sources.

Last year, villages in Xiengkhouang and all across Laos decided to take advantage of the high market price of corn and increase their planting area dramatically. We saw corn fields more than double in size, in some cases up to ten times more than previous years. Farmers made significant investments in buying hybrid corn seeds from Vietnam (LVN-10). Some farmers chose to plant only corn and not plant any rice, a major change from their traditional ways. CRWRC staff warned farmers of the risks involved in planting only one crop, and tried to promote alternatives (hot peppers, peanuts, sunflower seeds, fattening cattle with improved grass varieties, etc).

Unfortunately, in the summer of 2008 the rains came 2-3 months earlier than normal and were quite heavy in July and August. This reduced corn yields significantly below previous years. In addition, there are rumors that some defective seeds were sold as if they were good-quality hybrid seeds (note: this is entirely unconfirmed!). Finally, when harvest time arrived, the market price of corn worldwide plummeted drastically, partly because of high local supply, and partly because the previous high price may have been artificially elevated by speculation in commodities markets (note: I may be wrong on this point; an agricultural economist may know better). The end result was that farmers received half the price they got last year: 500 kip/Kg (about $0.05 USD) instead of 1000 kip/Kg (and they were expecting to get 1500-2000 kip/Kg).

In two village meetings that I’ve attended recently, it was clear that farmers feel burned by the corn bubble and want to diversify their income base by trying new crops. This is a good opportunity for CRWRC to help them ask hard questions about how to grow things that will give them reliable income and not too much risk. Of course, farming is an inherently risky income source because it’s affected by the weather, land, seeds, farming skills, and the vagaries of global supply and demand. These two villages, Vieng and Namthoum, will probably continue to plant some corn, but in combination with upland rice (their main food source), pumpkins, peanuts, sunflowers, and hot peppers. Namthoum requested that CRWRC investigate the possibilities of planting cassava root and see if there are any potential buyers in the province. Raising cattle and pigs for sale with improved grasses and legumes has also proven to be a reliable source of income and is one of CRWRC’s Agriculture team’s lasting contributions to these villages.