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The primary objective of Land Settlement Cooperatives is
to allocate land to farmers who having either no land or
small holding to make use for their living earning. Its
operational scope is the same as that of agricultural cooperatives.
However, land settlement cooperatives put more emphasis
on land development including familiarizing members with
appropriate farming techniques and modern irrigation methods.
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 Backgound
Allocation of land to farmers by cooperative method was first
practiced in 1935 in Lumlookka district, Pathumthani province.
Total farmland of 4,109 rai was purchased from the Ministry of
Finance for allotment in the form of land hire-purchase
cooperative. Later in 1938, by the government's issuance of the
Royal Decree Determining the Forcible Area in Chiengmai province,
the first Land Settlement Cooperative was established in Sansai
district, Chiengmai province, covering the area of 8,913 rai, and
was followed by the establishment of another Land Settlement
Cooperative in the area of 54,798 rai in Muang district,
Samutsakorn province. Another Land Settlement Cooperative type
called Land-tenant Cooperative was established in 1975, in the
deteriorated national forest reserve area in Bang-saparn district,
Prachuab-Kirikhan province, covering the area of 46,974 rai with
initial membership of 1,232 families.
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Objective
As mentioned earlier, land settlement cooperative is organized to
solve the problem of landless farmers or farmers with insufficient
land holdings. It's also aimed to improve tenancy and squatting
condition in public land or forest reserve area by allocation of
land from which they could earn their living through cooperative
system. The major task of the government in developing Land
Settlement Cooperatives is covered two main aspects: arrangement
of land and establishment of cooperative.
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Arrangement of Land
After receiving the land, the Cooperative Promotion Department will
conduct the feasibility study to identify land size, soil series,
rainfall intensity, and water resources. The information is used for
both physical and land use planning. Supporting services such as
irrigation facilities, road, school, health center, and market center
will be then provided in the land settlement cooperatives.
In selection of members, a screening committee, chaired by chief of
the district office and appointed by the Minister of Agriculture and
Cooperatives is responsible for selecting the qualified applicants.
The necessary qualifications of the applicant are:
 1.
Thai nationality and sui juris
2.
Good behavior and willing to follow the regulations set by Cooperative
Promotion Department
3.
Diligent, healthy and able to do farming
4.
Not insane
5.
Landless or has insufficient land for earning living.
The Cooperative Promotion Department will provide the selected farmers
with training on the cooperative principles and practices, and
procedure for cooperative establishment including member rights and
duties. After the farmers completed the said training program they
will, then, allow to work on land assigned by the cooperative
authority . In distributing land to farmers, the respective priorities
are given to
 1. those who have
occupied and utilized land in the project area, but without any legal
document
2. those residing in
the district or province where the project area is located
3. other persons.
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Establishment of Cooperative
After the members have been permitted to occupy and utilize the
land, the Cooperative Promotion Department will help them set up a
cooperative in accordance with the procedure set by the
Department. Following the cooperative principles and practices,
land settlement cooperatives run their business by the board of
directors elected among members at the general assembly and the
manager and staff of the cooperatives employed from qualified
persons. The government assists the cooperatives with advice,
guidance and financial support on business operation ranging from
production, credit, marketing, land ownership, and public services
to the cooperatives.
Types of Land Settlement Cooperative. The source of land received
for allocation determines the type of land settlement cooperative
to be set up.
1. Land
Settlement Cooperatives. When any public vacant land was
classified by the National Land Allocation Executive Committee as
agricultural land, the Cooperative Promotion Department will
acquire the said land for allotment. Farmers who have fulfilled
the cooperative conditions will later be given the right of land
ownership.
2. Land
Hire-purchase Cooperatives. Land may be purchased form private
land owners for allotment if it is considered justify with the
volume of investment and overhead costs. When the farmers have
paid all the installments and fulfilled all the requirements, they
will be granted the right of land ownership.
3. Land Tenant
Cooperatives. Forest reserve area which are extensively squatted
by farmers and cannot be restored to their original condition may
be acquired and rented out to farmers through land tenant
cooperative method. Land ownership, in this regard, will not be
transferred to farmers, but the right of land utilization can be
inherited.
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