Analysis of the Profitability and Productivity of the Use of Rice Combine Harvester in Calapan City, Oriental Mindoro, 2022

Date

6-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jayson S. Cabral

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

Rice combine harvesters are widely used in Mindoro. Farmers have been introduced to the convenience of mechanization and have preferred using farm machinery in their farm operations. They stated that man-labor for farm operations has diminished throughout the years, thus, making machinery adoption the only option for farms in the city. Rice combine harvesters are the most used machine in the city, and farmers use them by availing of custom hiring services. Despite this, there have been limited studies regarding the use of combine rice harvesters by farmers in Oriental Mindoro. According to the Provincial Report Officer from the Department of Agriculture in Oriental Mindoro, they have yet to conduct a census regarding the level of adoption of agricultural mechanization in the province. In line with this, this study will investigate the performance of the use of rice combine harvester in terms of profitability and productivity among rice farmers. It aimed to analyze the profitability and productivity of the use of rice combine harvesters in rice production in Calapan City, Oriental Mindoro. Specifically, it intended to: determine the profitability of the use of rice combine harvesters; assess the level of productivity of rice farming; determine the problems encountered by farmers who adopt rice combine harvesters; and determine the policy implications of the results of the study. Primary data was collected from 58 randomly selected rice farmer-respondents. The profitability of rice farmers was analyzed through cost and returns analysis and partial budget analysis while the stochastic frontier production function analysis was employed to analyze the productivity.

Results from the stochastic frontier production function analysis revealed that the mean technical efficiency level of adopters of rice combine harvesters was 89 percent. Years of education, farm size, and the use of communal irrigation systems were found to be significant at ten percent level. They were observed to be inversely related to technical efficiency. On the other hand, credit availment was found to be significant at a ten percent level and was observed to have a direct relation with technical efficiency.

The study recommended that cost-efficient training initiatives from the government are needed to improve rice production productivity. Farmers are also encouraged to avail of credit as it is also found to be a significant determinant of technical efficiency. Lastly, there is also a need to intensify the provision of rice combine harvesters in Calapan City due to its high demand. Furthermore, amendments to the requirements for the provision of subsidy of the machinery are recommended to address the problem faced by farmer organizations in the city.

Language

English

LC Subject

Rice trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 A85

Notes

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Document Type

Thesis

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