Comparative financial performance of organic and conventional rice production in selected areas in Pangasinan, 2013

Date

7-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Antonio Jesus A. Quilloy

Committee Member

Salvador P. Catelo, Isabelita M. Pabuayon

Abstract

The study was conducted to assess the financial performance of organic rice production in comparison with conventional rice production. The specific objectives of the study were to: (1) measure the capital investment of organic rice production and operating cost requirements of organic and conventional rice production in Mangatarem and San Carlos, Pangasinan, (2) compare and analyze the cost and revenue structure of organic and conventional rice production, (3) assess the financial condition of the conventional farmers and organic farmers, (4) compare and analyze the profitability of conventional rice production and organic rice production, and (5) identify sources of financing for organic and conventional rice production. This study tested the following hypotheses: (1) converting from conventional farming to organic production entails additional capital, (2) organic rice production is more profitable than conventional rice production, and (3) organic farms are more solvent compared to conventional farms. Primary and secondary data were gathered for the study. Secondary data were collected from the municipal agriculture office in Mangatarem, Pangasinan. Primary data were collected from organic and conventional farmers through personal interviews. Descriptive analysis, tabular analysis, financial analyses for solvency, liquidity, and profitability, and the t-test were used in the study. Based on a sample of 25 organic and 30 conventional farms, the study showed that organic farms have higher net income. On average, the yield of organic rice farms is also higher than conventional farms. The average farm gate price of the organic rice (P19) is higher than in conventional rice farms (P20). Total costs of conventional farms are higher than in organic farms with seeds, tractor rental and pesticides as the highest material costs. Furthermore, total cash costs of organic farms’ decrease over time due to improved soil fertility thus requiring fewer fertilizers. Organic farms (16.80) were more liquid than conventional farms (6.98). They are also more solvent with a ratio of 0.95 than in conventional farms which have a ratio of 0.88. Organic rice production is also more profitable (63%) compared to conventional farms (43%). To further improve the rice programs and projects being implemented and to help increase the farmers’ incomes, the following are recommended: (1) encourage the production of Vermicast or own compost,(2) encourage the production of Vermiti or fermented, (3) production of more pest-resistant varieties should be developed, (4) encourage natural methods in pest resistance, (5) review the requirements for organic certification, (6) promote the benefits of organic produce.

Language

English

LC Subject

Rice trade, Finance

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2014 A14 A97

Notes

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Document Type

Thesis

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