The sugarcane production can also be prepared in a variety of locations depending on, the objectives and resources of the specialized mills which are the guarantors of milled sugarcane price and knowledgeable among small-scale sugarcane growers throughout the country. According the selection of econometric models and the price flexible characteristics of the crops were analyzed. This study examined sugarcane yields by estimating the supply response in Thailand from 1997 to 2011. An adopted Nerlovian adjustment model for supply responses was introduced. The main research question of this paper is to identify determinants for the comparison each of the three estimations indicates that the government policies providing the economic benefit for Thai sugar industry. The results using GMM estimators are expected to help policy makers to decide whether or not the promotion of contracted farming in sugarcane production can be farmed in a variety of locations. the average value of the state to pay benefit to farmers with the Thailand 9th NESDP which was introduced three policies applied to other agricultural policies. The value of applying payment decreased on Thailand 8th NESDP. In the Thailand 10th NESDP the value of benefit has extremely increased from the last period. Even through the implementation of these policies adapt continuously. The benefit of the government to pay benefit based on productivity at three scenario. The value of producer surplus is likely to increase.
Producers Surplus, dynamic panel data (DPD), GMM estimator, Price support.