Economic impact of hybrid rice technology in Camarines Sur, Bicol Region, Philippines

Date

1-2025

Abstract

In recent years, the promotion of hybrid rice significantly boosted rice productivity across the country. Studies indicated that adopting Hybrid Rice Technology (HRT) improved profitability, although it often involved higher investment costs.

While research explored factors influencing HRT adoption and its yield benefits, a notable gap remained in understanding its economic impact, particularly regarding profitability when accounting for both explicit monetary and implicit non-monetary costs. This highlighted the need for more comprehensive, region-specific studies to capture the nuanced economic implications of HRT adoption, addressing 1sSues such as self-selection bias and potential endogeneity in seed choice.

In Camarines Sur, a province recognized as the rice granary of the Bicol Region, rice farming is integral to the local economy. This study aimed to bridge knowledge gaps regarding the efficiency of agricultural technologies, specifically HRT, by examining its impact on the profitability and productivity of farmers in the region.

A total of 323 farmers were randomly selected and personally interviewed using a pre- tested questionnaire. The farmers were classified into adopters and non-adopters. Given the likelihood of endogeneity in the choice of hybrid rice variety, the study utilized the Cobb- Douglas stochastic production function, which accounted for inherent variability in production outcomes. Propensity score matching (PSM) procedures were applied to address endogeneity and selection bias, as the study relied on cross-sectional data

The study assessed the effect of HRT on farm financial performance by considering the costs and returns of production. A two-stage econometric model was used, with the first stage involving an adoption decision through the Probit model to determine the likelihood of HRT adoption. The second stage employed PSM to estimate the impact of HRT adoption on yield and net returns. The findings revealed that hybrid rice technology positively impacted both yield and profitability. However, to optimize the efficiency of hybrid rice cultivation, proper input application, effective management practices, and active participation in farmer organizations were crucial. Additionally, enhancing farmers' efficiency could be achieved through targeted education, such as re-orientation and training programs, to improve their knowledge and skills in hybrid rice production.

Document Type

Dissertation

Degree

Doctor of Philosophy in Agricultural Economics

College

Graduate School (GS)

Adviser/Committee Chair

Cesar B. Quicoy

Committee Member

Gideon P. Carnaje, Josefina T. Dizon, Jose M. Yorobe, Jr.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

En – AGROVOC descriptors

ORYZA; HYBRID; CROP PRODUCTION; AGRICULTURAL TECHNOLOGY; ECONOMIC BENEFITS; TECHNOLOGY ADOPTION

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