The Thai farmer's ability to adapt to changing market conditions contributed to the country's agricultural success, but even more important was the availability of large areas of virgin land for cultivation. Between 1950 and 1980, agricultural holdings nearly doubled to an estimated 22 million hectares, of which about three-quarters were farmed annually, and much of the rapidly growing population was absorbed in the expansion. By the early 1980s, however, most of the arable land had been occupied, except in the South, and continued growth of the agricultural sector became increasingly dependent on the acceptance of new technologies and the adoption of more intensive cultivation. Observers feared that without these changes growing domestic demand--both from increasing population and from rising expectations--would seriously affect the nation's balance of payments position through the reduction of exportable surpluses of vital major foreign exchange earners, such as rice and sugar.
Agriculture--crops, livestock, forestry, and fisheries-- employed about three-quarters of the labor force, and it was estimated that some four-fifths of the total population was dependent on the sector for its livelihood. During the mid-1980s, agriculture accounted for an average of about 25 percent of GDP, and agricultural commodities accounted annually for over 60 percent of the value of all exports.