Comparative Analysis of Farm Productivity and Profitability of Rice Farmer-Borrowers and Non-Borrowers in Nueva Ecija, 2022

Date

1-2023

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaymee A. Cabangbang

Committee Member

Julieta A. Delos Reyes, Agham C. Cuevas

Abstract

Capital constraint has been one of the most challenging problems faced by the rice farmers in the country. Knowing that rice farming relies heavily on capital, the lack of it may result in sub-par use of inputs, hence will cause low productivity and consequently, low profitability. This study made use of the primary data gathered by the Department of Science and Technology - Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST-PCAARRD) and the Department of Agricultural and Applied Economics, College of Economics and Management, University of the Philippines Los Baños (DAAE, CEM, UPLB) from Nueva Ecija, which is known as the "rice granary of the Philippines".

Comparison of means between borrowers and non-borrowers, and formal borrowers and informal borrowers, was conducted to assess whether there are variation in terms of input utilization, farm productivity (yield), and farm profitability of the rice farmers in Nueva Ecija. Probit regression analysis was also conducted to determine the factors that affected the credit availment of the rice farmers in the said province. Lastly, multiple regression analysis was employed to determine if credit had an effect on the farm productivity of the rice farmers in Nueva Ecija.

After analyzing the raw data provided by DOST-PCAARRD and DAAE, CEM, UPLB, out of the 70 respondents, it was found that only 11 percent of the rice farmers in Nueva Ecija opted for formal credit, while 89 percent opted for informal credit. Additionally, most rice farmers only availed a loan amounting to Php 20,000 or less. In terms of input utilization, borrowers and non-borrowers did not significantly differ, while formal and informal borrowers significantly differed in terms of seed usage and herbicide application. Overall, non-borrowers, formal borrowers, and informal borrowers did not significantly differ in terms of farm productivity and farm profitability. After running Probit regression analysis, it was found that educational attainment significantly and inversely affects the probability of credit availment of rice farmers. After running multiple regression analysis, it was found that labor and machine costs directly and significantly affect yield, while it was also found that credit did not significantly affect the farm productivity of the rice farmers in Nueva Ecija.

It was recommended to explore other related topics or survey other areas with more variability among possible study groups as this study's respondents' traits were almost homogenous.

Language

English

LC Subject

Loans, Rice Farmers

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 A14 M46

Notes

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Document Type

Thesis

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