Rationale
The New Theory is the most distinct and concrete example of the application of the Philosophy of Sufficiency Economy to the agricultural sector. His Majesty King Bhumibol initiated this theory to help Thai farmers who suffer from the impacts of economic crisis, natural disasters and other unproductive natural conditions.
The New Theory suggests that farmers apply the essential principles of the Philosophy of Sufficiency Economy, namely moderation, due consideration and self-immunity to their practice of farming as this would shield them from the risks and impacts of globalization and other uncontrollable factors in their farming.
The Risks and Impacts of Farming
Price fluctuation of agricultural produce and commodities as a result of modern economic development
Unproductive conditions such as dry spells and droughts
Natural disasters such as flooding and epidemics
The patterns of production such as plant diseases and pest problems, lack of manpower, debts, and loss of land