Rising farming costs fuel smallholder debt crisis

Synopsis: Rural growers and advocates for agrarian equity report mounting financial pressures are compounding rural debt, sparking demands for ecological farming.

High production costs, weak markets and deepening debt burdens are threatening small farmers across Cambodia, prompting calls for stronger policy support and expanded agroecological practices.

The concerns were raised at a Friday forum in Phnom Penh organised by community groups and peasant movements, including Social Action for Community and Development (SACD), Focus on the Global South, United Sisterhood Alliance, and GRAIN.

Anchanch Roung Samaythemy women’s agriculture cooperatives peasant and secretariat member Hy Sochan said weak markets remain a primary challenge.

“When farmers produce agricultural products and take them to sell, the prices are low, while the agricultural inputs we buy from outside are expensive,” she said.

Sochan said smallholders struggling with limited resources have responded by reducing chemical use, conserving seeds, forming savings groups, and sharing agricultural resources.

Om Samol, a representative of communities affected by land issues in Pailin province, said health expenses, climate impacts, natural-resource loss, and land disputes compound rural debt, undermining livelihoods and children’s education.

“We lose time making a living, and when we go to court, we need to spend money. That also pushes us into debt,” Samol said.

SACD representative Chea Sophak said existing agricultural policies fail to address the needs of small producers.

“We want a policy that comes from all of us, or from farmers at the local level,” he said.

GRAIN’s Asia Program representative Afsar Jafri said that a shift toward industrial agriculture has increased farmer dependence on commercial seeds, fertilisers, and pesticides.

“Most of the food that we all eat comes from small farmers, not from big corporations,” Jafri said. “But today, these small food producers are really threatened by industrial agriculture.”

Jafri promoted agroecology and food sovereignty as alternatives to give farmers greater control over land, water, and seeds.

Nim Chheang, a Cambodian agroecology practitioner, said his family has combined ponds, crops, and trees on more than three hectares to minimise external inputs.

Beyond farming, Sreymom Loem of the Workers’ Information Centre, noted that garment workers earning about $210 a month face severe financial strain from rising food, rent, and utility costs, while factory meal allowances remain insufficient.

Agriculture remains vital to the national economy. The Cambodia Agriculture Survey 2024 estimated that 1.87 million households, representing half of all households nationwide, participate in agricultural production, with about 699,000 households carrying loans, of which 61% are used for farming operations.

Link: El Thavanly / Khmer Times