Economic Efficiency of Rice Production Under Communal and Pump-Assisted Irrigation Systems in Pila, Laguna During the Dry-Season, 2023

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

The main research question driving this study was: What is the difference in economic efficiency between rice farms using communal irrigation systems and those employing additional pump irrigation systems? To address this, the study analyzed the economic efficiency of rice production under communal and pump-assisted irrigation systems in Pila, Laguna, Philippines, with objectives to determine the economic efficiency among rice farms using these irrigation systems, to identify the factors influencing economic efficiency, and to propose policy recommendations based on the results. Data was collected from 66 randomly sampled farmers and analyzed using descriptive statistics, stochastic frontier production function, and Tobit regression analysis.

A Cobb-Douglas production function indicated significant positive influence of area planted and nitrogen fertilizer on production and a negative impact of fuel usage. Factors such as membership in farming organizations, household size, and seed variety negatively affected technical efficiency. The study found an average technical efficiency of 79.15 percent, allocative efficiency of 96.72 percent, and economic efficiency of 77.14 percent, indicating that there is still room for improvement for the technical, allocative, and economic efficiency of the rice farms.

Notably, the study underscored the influence of irrigation systems on efficiency. Farms using pump irrigation systems demonstrated the highest average technical efficiency at 81.84 percent and economic efficiency at 78.95 percent, Conversely, farms employing gravity systems revealed slightly higher average allocative efficiency at around 97.15 percent. Geographical and infrastructural challenges pose efficiency obstacles, especially for gravity-fed irrigation systems. The Tobit regression analysis flagged gravity irrigation, household size, membership in farming organizations, and farm ownership as significant determinants of economic efficiency.

These comprehensive research findings offer valuable insights for boosting efficiency in rice farms situated in Pila, Laguna. Key recommendations include improving and maintaining irrigation systems, encouraging the use of energy-efficient farming equipment, providing financial assistance to farmers for high input costs, and reassessing the role of farming organizations. Promoting farm ownership is also proposed to enhance farming efficiency. Further research is suggested to broaden geographic focus and to explore the impacts of environmental factors and management practices.

Language

English

LC Subject

Irrigation farming, rice trade

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 D86

Notes

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Document Type

Thesis

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