RURAL POVERTY AND DIVERSIFICATION OF FARMING SYSTEMS IN UPPER NORTHEAST THAILAND.

In northeast Thailand, 85 % of the farmers are smallholders who are unable to meet their basic needs from agricultural production only. These tiny farms survive thanks to non-farm income which face increased difficulties as other economic sectors ran out of steam during the recent economic crisis of the late 1990s. In this context, farmers have to rely more on their agricultural production activity and income. But how can this be made possible in a region well-known for its very constraining soil and climatic conditions? To answer this question, and to examine the whole complexity of agricultural development issues, this article proposes an analysis of recent agrarian transformations and an understanding of farmers ’ current practices and strategies. A diagnostic analysis of a village agrarian system located in Khon Kaen Province in upper northeast Thailand was carried out in 2002 by using a combination of field observations, interviews with key witnesses of the local history, and a farm survey of 26 diverse households. The recent history illustrates that farmers have shown a high adaptability to rapid changes in their economic environment, such as changing market demand for agricultural products and labour. The differentiation among farming households has led t