The plans failed to keep prices from falling as supply continued to surge. Domestic rubber production rose 10% last year. Now, Thailand's agricultural authority says it will subsidize farmers' planting of oil palm trees on some rubber plantations.
May be the compensation to destroy immature rubber trees is linked to the government wanting farmers to switch to palm oil?
The Thai government this month unveiled a plan to offer farmers 21,000 baht ($655) for every 1,600 square meters of rubber trees they chopped down. That is an increase of more than 30% from the offer of 16,000 baht in place since 2011.
Thailand Encourages Rubber Farmers to Switch Crops - WSJ