As a consequence, farm productivity is limited and family incomes stay low. Banks won't lend to farmers without clear land title. Poor farmers are forced to borrow from local money lenders at much higher rates. Without legal recognition of land ownership, the poor cannot be sure that they will be allowed to remain on their land.
Boundary disputes are common.
Over 5.5 million land title deeds have been issued to 2 million rural households in Thailand since the AusAID Land Titling Project began in 1984. One third of the titles have gone to families who were living below the World Bank poverty line. Farmers now have a legal document proving they own their land. Farm productivity grows, family incomes rise, and land values increase. With secure title, farmers can borrow money from banks at much lower interest rates than from private money lenders.