The impacts of crop diversity adoption on Rubber Farmers’ Welfare: evidence from Thailand

Given the environmental and socioeconomic challenges associated with monoculture rubber plantations, the Food and Agriculture Organization (FAO) emphasized the importance of utilizing and protecting crop diversity for sustainable development of rubber industry in Thailand. However, the adoption of such technology remains relatively low that makes rubber crop diversity highly controversy in Thailand. Based on data collected from 2,159 rubber households between 2012 and 2014, this study aims to investigate the impacts of crop diversity adoption on the net income of rubber farmers in Thailand by using propensity score matching models. The findings reveal that adopting rubber crop diversity has a statistically significant negative effect on rubber farmers’ net income. Specifically, those engaged in rubber crop diversity experience a lower net income per person ranging from − 11,785.29 baht to -10,887.21 baht comparing their counterparts practicing monoculture rubber farming. Furthermore, such significant negative effects are exclusively observed among smallholders and rubber farmers in southern regions. Given the implementation of rubber crop diversity system usually grants environmental benefits to the local eco-systems as positive externalities without market rewards, it is imperative to provide additional incentives and support mechanisms to steam up wider adoption of rubber crop diversity for ensuring long-term sustainability of rubber industry in Thailand.