Economic Efficiency of Rice Farmers Under Shallow Tubewell Irrigation in Pila, Laguna, December 2021- May 2022

Date

1-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Antonio Jesus A. Quilloy

Committee Member

Julieta A. Delos Reyes, Ma. Angeles O. Catelo

Abstract

The study aimed to analyze the economic efficiency of shallow tubewell irrigated palay farmers. The study was conducted in the four lakeshore barangays of Pila, Laguna, that solely depend on STW for irrigation. Fifty-six respondents participated in the study under proportional random sampling during the dry season of the crop year 2021-2022. Using the stochastic frontier framework, the study found that STW-irrigated farmers have a substantial degree of economic inefficiency since the average economic efficiency level is 72.44%. The economic efficiency level was calculated by multiplying technical and allocative efficiency estimates.

The technical efficiency of STW-irrigated palay farmers was estimated using stochastic production frontier analysis. The average technical efficiency level of STW- irrigated palay farmers is 80.04%. The analysis suggests that labor used and area planted are the factors that significantly affect the technical efficiency and production of STW irrigated palay farmers. Results show that increasing these inputs will increase farmers' yield and technical efficiency.

Regarding allocative efficiency, it was estimated via stochastic cost frontier analysis and shows that STW-irrigated palay farms also suffer from allocative inefficiency since the average level of allocative efficiency accounts for 89.52%. The analysis suggests that palay output and prices of labor, area planted, and nitrogen significantly affect the production cost and allocative efficiency of STW-irrigated palay farmers.

Furthermore, the cost and return analysis shows that STW-irrigated palay farms experience negative cash income while net income remains positive.

Regarding problems farmers encounter, most are experiencing limited capital, high input prices, low farmgate prices of palay, low machine performance of STW, and high construction, operation, and maintenance costs of STW units.

The study suggests that STW irrigated palay farms in Pila, Laguna, suffer from economic inefficiency, which is 27.56% inefficient. Hence, various policies and programs must be implemented to increase these farms' economic efficiency and further increase the yield and profit of STW palay farmers in the municipality. Such policies include land consolidating efforts, increasing availability of mechanized equipment, and mechanisms that will aid farmers during changes in input prices.

Language

English

LC Subject

Agriculture, Rice farmers, Irrigation

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 A43

Notes

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Document Type

Thesis

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