ABSTRACT
One very important aspect of such modernization is the question of whether or not peasants in traditional or near-traditional agriculture significantly respond to opportunities which are made available by changes in market conditions. The degree of supply response in such peasant agriculture has been a point of major controversy. This chapter is concerned with the supply-response aspect of the modernization of traditional and near-traditional peasant agriculture in central and northeastern Thailand. It discusses the supply response of the traditionally dominant crop, rice. The chapter examines the supply responses of the three major upland crops, the production of each of which has expanded tremendously in recent years. It also presents the conclusions and policy implications. The major conclusion is that the traditional and near-traditional Thai peasants are quite rational in their response to market incentives, which supports the Schultz-Mellor hypothesis and its implications.
