Understanding Agricultural Commercialization through Market Participation

This chapter explores the determinants of agricultural commercialization in Thailand by analysing farm household participation in crop markets using a Double Hurdle model. Drawing on nationally representative survey data, the analysis distinguishes between the decision to participate in markets and the extent of participation. Framed within the agricultural household model, the study considers utility maximization under production and market constraints. Findings reveal that landholding size and irrigation access significantly drive both participation and sales intensity, while land ownership affects only the level of participation. Access to agricultural credit and extension services facilitates market entry, whereas off-farm income reduces participation. Gender and education have mixed effects. Unlike earlier Thai studies focused on land use, productivity, or crop choice, this chapter provides one of the few rigorous household-level assessments of commercialization. Policy insights emphasize improving rural infrastructure, credit access, and land tenure to promote inclusive commercialization and strengthen linkages with rural MSME development.