Effects of Risk Behavior on Palay Farmer's Varietal Selection, Productivity and Profitability, Calauan, Laguna, 2019

Date

2019

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Julieta A. Delos Reyes

Committee Member

Antonio Jesus A. Quilloy, Isabelita M. Pabuayon

Abstract

The study surveyed 90 palay farmers in Calauan, Laguna in 2019 to analyze the effects of risk behavior on farmer’s varietal selection, productivity and profitability. Specifically, the study: (1) assessed the risk behavior of palay farmers using different varieties; (2) determined the productivity and profitability of the palay farmers using different varieties; (3) evaluated the association between risk behavior, and productivity and profitability of farmers; and (4) identified the problems encountered in the selection and use of palay seeds and provided recommendations.

Stratified sampling was used to select the respondents from the lists of palay farmers in Calauan, Laguna. Primary data were gathered from 30 respondents for each of the three varieties used in the study area. Data were analyzed using descriptive analysis, cross tabulation, Arrow-Pratt absolute level of risk aversion, Fisher’s exact probability testing, analysis of variance, costs and returns analyses, and return on operating capital.

The study revealed that climate-resilient and pest and disease-resistant varieties users were all risk-averse. On the other hand, all of the farmers using hybrid variety are risk-takers. Based on the computed return on operating capital (ROOC), rice farming using pest and disease-resistant variety was the most profitable. The least profitable was the use of hybrid variety since it required more inputs, thus higher total costs. Production cost is highest for hybrid variety and this is the reason why the ROOC of hybrid variety users was the lowest. Nevertheless, profit of hybrid variety was the highest. There is a negative association between the risk index (risk behavior) and yield as well as the risk index and profit of farmers under the climate-resilient variety and pest and disease-resistant variety. For the hybrid users, the association was found to be negative. This means that as the farmer tends to assume more risk, he/she has the greater tendency to achieve higher yield and also profit.

Since the technical knowledge that the farmers recognized was already outdated, policies should concentrate on giving opportunity and updated information that would encourage the farmers to assume more risk and to properly invest on the variety that would increase their productivity and efficiency. The training programs and seminars of the Department of Agriculture (DA) should target the solutions to the problems encountered by the farmers mainly about proper management of hybrid variety. Another suggestion is to promote the use of the pest and disease-resistant variety since the capital that will be invested in the production of this variety is lower, but it has the highest profitability among the three varieties.

Language

English

LC Subject

Risk behavior, Farmers, Rice

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2019 A14 C37

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS