Business story: Farming in 5-house style

SRI fields in Tanh Linh.

Hearing Mr. Sin say that, I felt confused so I called Mr. Mai Tri Man - Head of the Agriculture and Environment Department of Tanh Linh because this place is the rice granary of the province. Mr. Man said that what the people said was right and it depends on the place. If you want to sell rice at a high price, you have to strictly apply the stages of production organization. Rice production nowadays is not only linked by 3 households but by 5 households, so it is understandable that it sounds confusing.

Mr. Man explained that in Tanh Linh, in the past 3 years, a model of linking 5 parties in agricultural production has been implemented, especially the model in high-quality rice areas. The 5 parties include: State - business - bank - scientist - farmer. To put it simply, the State guides and directs production; businesses are the units that purchase products, supply fertilizers, pesticides, etc.; scientists are the units that research, provide agricultural engineers to support farmers and supply seeds with many advantages to create products that are favored by the market and create high profits for farmers; banks are banks or financial institutions that lend capital to farmers and businesses for production and business, and finally farmers are the main producers in the fields.

In Tanh Linh field, currently each crop produces about 11,000 hectares, the main rice varieties produced in the field are OM4900, OM5451, OM18, ML202 of Southern Seed Joint Stock Company, Loc Troi Group Joint Stock Company, Cuu Long 666, Huong Cuu Long of Cuu Long Seed Joint Stock Company... In which, OM5451 rice variety of Loc Troi Group Joint Stock Company is being produced in about 80% of the area. The reason why Tanh Linh farmers produce OM5451 rice variety a lot in the field is because through the production process of different rice varieties, OM5451 has more advantages and is favored by the market, production is more profitable than other rice varieties so it is grown more widely.

Returning to the cooperation, to have the OM5451 rice variety for planting, the People's Committee of Tanh Linh district has persistently implemented the socialization of rice varieties for many years. The Department of Agriculture and Environment had to study many demonstration models of rice seed research institutes. Then, they signed cooperation agreements with rice institutes and companies so that agricultural engineers could guide the production process and through many other stages, they were able to select the rice variety for mass planting as it is today...

In Tanh Linh, many cooperatives and farmers have signed contracts with a number of enterprises to purchase rice to produce rice according to orders. Many rice areas are produced in an organic direction, applying the SRI process in cultivation (SRI is an ecological and effective method of rice cultivation, increasing productivity but reducing investment costs in seeds, fertilizers, and pesticides). The model has an average yield of 75 quintals/ha (5 quintals/ha higher than traditional production), according to the market purchase price of 8,000 - 9,000 VND/kg, the income from the model is about 4 - 5 million VND/ha higher than normal sowing. With businesses having clean rice seeds, it is easy to bring rice to the domestic market and export, from here profits will increase so both sides benefit.

If the models of linking scientists and businesses are becoming clearer, banks are the key because both farmers and businesses need capital for production and business. Choosing a bank seems simple, but in reality, in addition to the Bank for Agriculture and Rural Development implementing preferential lending policies for agricultural production (Decree 55 of the Government ), many other banks have also gone to rural areas to find customers. If farmers and businesses choose a bank with low interest rates, they will benefit a lot, but if they do not qualify for a loan at a bank with low interest rates, they will be forced to borrow from a bank with high interest rates and fluctuations will affect profits...

Linking 5 houses to produce and trade in agriculture, especially rice, will create a driving force for sustainable development...

Source: https://baobinhthuan.com.vn/chuyen-lam-an-lam-nong-kieu-5-nha-130047.html