Financial Viability of Coconut Intercropping in Candelaria, Quezon Province, 2019

Date

7-2020

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Christian Paul L. Fang

Committee Member

Christian Paul L. Fang, Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

This study assessed the financial viability of coconut intercropping in Candelaria, Quezon Province. Specifically, the study aimed to: 1) describe the socio-demographic and farm characteristics, and credit profile of coconut monocropping and intercropping farmers; 2) determine the sources and amount of costs and returns incurred by coconut monocropping farmers; 3) determine the sources and amount of costs and returns incurred by coconut intercropping farmers; 4) estimate the capital and credit requirements in adopting coconut intercropping; and 5) identify the problems encountered by farmers in their production and credit availment, and provide policy recommendations.

Purposive sampling was done in choosing the 25 coconut farmers. The respondents were categorized based on the crops being cultivated: coconut monocropping, coconut intercropped with rambutan and farm seeds inputs, coconut intercropped with Ian.zones and farm seeds inputs, coconut intercropped with citrus and farm seeds inputs, and coconut intercropped with farm seeds inputs. Descriptive statistics was used to describe the socio­demographic characteristics, farm profile, credit profile, and the problems encountered in farm production and credit availment. Meanwhile, the costs and returns analysis, farm investment analysis, and sensitivity analysis were employed to determine the amount of costs and returns of the farmers, and to estimate the capital and credit requirements in adopting intercropping.

The results showed that coconut intercropping farmers incurred higher net farm income than coconut monocropping farmers. Moreover, the computed net present values (NPV), benefit-cost ratios (BCR), internal rates of return (IRR) revealed that all the intercropping combinations were financially viable. For coconut intercropped with rambutan and farm seeds inputs, coconut intercropped with Ian.zones and farm seeds inputs, coconut intercropped with citrus and farm seeds inputs, and coconut intercropped with farm seeds inputs, the maximum percent increase in labor and fertilizer costs before NPV becomes zero are 52.6%, 57.7%, 46.5% and 46.1%, respectively. Meanwhile, the maximum percent decrease in volume of sales before the NPV becomes zero are 44.3%, 45.6%, 43.4%, and 53.2%, respectively. Intercropping coconut with rambutan and farm seeds inputs yields the highest capital requirement, while intercropping coconut with farm seeds inputs has the lowest capital requirement. All the respondents were availing credit in-kind, specifically fertilizer, from informal sources such as raw material suppliers, family and friends, and sari-sari stores. The respondents encountered problems in availing of loans wherein 60 percent said that the preferred credit source was far.

Based on the results, the coconut monocropping farmers are thus encouraged to adopt intercropping. The municipal government is also advised to provide financial assistance program as well as subsidized fertilizers and pesticides to coconut monocropping farmers. Lastly, researchers and policymakers should assess the financial viability of other intercropping combinations in Candelaria.

Language

English

LC Subject

Agriculture

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2020 A14 L33

Document Type

Thesis

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