Production costs increase, farmers face losses

ĐBP - As of June 12, farmers in Điện Biên district, Điện Biên province have harvested more than 90% of their winter-spring rice crop for 2024-2025. Unlike the usual joy and excitement during the harvest season, many farmers are ending the crop with concerns, as while the rice has been sold, the calculations show they have either broken even or even incurred losses compared to production costs.

From break-even to losses

Due to sowing rice later than other families, Tòng Văn Thoan from Bông village, Noong Hẹt commune, only just finished harvesting 1,000m² of rice, the last area of his family’s crop, with a yield of 65-70 quintals per hectare. According to Thoan, the price of rice sold directly at the field ranged from VND 8,500-9,000 per kilogram, generating nearly VND 5 million. Although the price of rice this year isn’t particularly low, the farmer still does not make a profit.

Farmers in Noong Hẹt commune harvest rice.

The costs of agricultural production have increased this year. Specifically, for his 1,000m2 of rice, the costs for plowing, seeds, fertilizers, and pesticides amounted to nearly VND 2.5 million. After selling the rice, he only earned about VND 5 million, meaning his family worked for more than 3 months without earning anything. In fact, they even incurred a loss due to unfavorable weather conditions, he shared.

Lò Thị Pản, another farmer from Noong Hẹt commune, also completed her winter-spring rice harvest with deep concerns. “We have never faced this kind of pressure in farming as we do now. The prices of fertilizers, pesticides, gasoline, and essential items for daily life have all increased drastically,” she said. Her family sowed 9,000m2 of rice, using higher-cost varieties such as Séng cù, Đài thơm, and glutinous rice. She calculated that this year’s harvest brought in nearly VND 50 million from selling rice, but after paying for agricultural supplies, seeds, and pesticides, she spent nearly VND 30 million. “The remaining amount is what our family worked for over 100 days, which we basically consider a loss,” she added.

The struggle for profit

The surge in the cost of agricultural supplies has caused production costs to rise, which is a common situation for most farmers in the province, not just in Điện Biên district. The old story of “good harvest, low price; good price, bad harvest” has been frequently covered by the media, but no solutions have been found yet. Therefore, farmers not only feel sad for the season that has passed but also carry the heavy concern for the future of farming. It seems that many are becoming disillusioned with farming, which is hard work with very low returns. This has led to a growing trend of abandoning land or leaving it fallow.

After harvesting, many households opt to sell rice directly at the field to recover their production costs.

Another factor is the sluggish market for rice and other grain products, which heavily impacts prices. Slow consumption has led to businesses limiting their rice purchases. A representative of Hai Trang Rice Mill (Thanh An commune, Điện Biên district) explained: “Currently, the rice market is quite stagnant, and demand for export to other provinces has decreased, causing rice mills to hesitate in buying large quantities. Furthermore, rice from the winter-spring season is difficult to store. After we buy rice from farmers, we have to dry it again, as it will spoil if kept for too long, which requires a lot of labor. We only buy according to orders from other provinces, not on stock, which means there is still a lot of unsold rice, and prices remain stagnant.”

Farmers today have become more proactive in improving soil, selecting better crop varieties, and controlling irrigation and pests, but they still heavily depend on fertilizers and pesticides. Nguyễn Gia Tuấn, Deputy Director of the Department of Agriculture and Environment, stated: “In fact, fertilizers and pesticides make up a large part of the production costs for a harvest. Farmers may accept low profits or even no income from their hard work, but fertilizers are essential nutrients, and pesticides protect crops from pests, improving yields. The continuous price hikes in fertilizers and pesticides are causing a lot of difficulties for farmers.”

According to rice milling facilities, the market for rice products is currently slow.

For the 2024-2025 winter-spring crop, Điện Biên district has planted over 4,100 hectares of rice. As of now, more than 90% of the area has been harvested, with an average yield of nearly 64 quintals per hectare. According to statistics from the relevant department, the price of fertilizers and pesticides has increased by 5-10% compared to the same period last year, putting a significant pressure on farmers’ production costs.

To help alleviate the difficulties in production for farmers and ensure the success of the upcoming harvest, especially in light of the high costs of agricultural supplies, the Department of Agriculture and Environment is continuing its efforts in communication and guidance for farmers on how to treat straw using lime or biological products to reduce environmental pollution while increasing soil fertility. Additionally, they are focusing on reducing the use of inorganic fertilizers and making full use of organic fertilizers to increase soil fertility and improve the quality of the crops. For livestock households, proper treatment and application of animal manure will help plants grow better, which will ultimately reduce production costs and increase profits for farmers.

Quang Hùng
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