Factors Related to Succession Preparedness among Sugarcane Farms in Negros Occidental

Date

12-2019

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Nohreen Ethel P. Manipol

Committee Member

Dinah Pura T. Depositario, Melodee Marciana E. De Castro, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

Sugarcane is one of the country’s major crops and contributes a big amount to the economic wealth of the country as it is largest employer in the country having 700,000 workers that depend on this industry for livelihood and income. Negros Occidental is known as the sugar bowl of the country as it has always been providing the country with sugar produce since the arrival of Spaniards. It has the largest production in the Philippines having 17 operational mills and 55% of its land is utilized for planting sugarcane. However, there is a continuous decline of production of sugarcane in the country and one of the underlying causes is the declining youth engagement in the farm which could affect succession in the longer run.

The study aimed to analyse the factors that influence the business succession preparedness among sugarcane farms in Negros Occidental. The location of the study included the areas with the most number sugarcane farms in Negros Occidental, specifically Bago City, La Carlota City and Municipalities of La Castellana and Pontevedra. The sampling design used for this study was the stratified random sampling as to give emphasis on the land size of the farms then a proportional allocation was utilized to determine the sample size. The researcher interviewed five large and medium-scale enterprises, 10 farms belonging to the category of small B and the greatest number was under small A which reached up to 55 farms. In total, this study covered 75 landowners with their prospective successors. Thirty-four of the latter were interviewed.

This study used a descriptive research design to evaluate and demonstrate the relevant factors that will aid in solving the research problem. Statistical tools like Pearson’s chi square test and Spearman correlation coefficient were used to identify the significant factors associated with a successful succession. The Pearson’s Chi-Square Test was used to analyse data that showed normality while the Spearman Correlation Coefficient was used to assess ordinal data or data that showed ranking.

The study was also able to deduce the problems faced by the landowners in different land categories. For large and medium farms, majority had internal problems during succession process such as sibling rivalry or conflicts among family members. Small-scaled farms, on the other hand, showed that the children of the landowners sought job opportunities outside farming.

It was revealed that significant factors among the landowners included membership in cooperations/organizations, farm location, and form of acquisition while education and farm size showed moderate positive liner relationship with the succession preparedness. On the other hand, the successor’s significant factors include working experience and sufficiency in knowledge.

Therefore, it is best recommended for landowners and successor to change their mindset when it comes to farming. This will be achieved by constant communication of family members. The process of exchanging of ideas, opinions, and information will not only improve the farm operations and management but also, facilitate a smooth succession. Also, empowering the potential successor via training programs, seminars and group discussion activities will expand their knowledge and enhance their interest in the field of agriculture. This will also be made possible by coordinating with in coordination with the Sangguniang Kabataaan. With this, the potential successor will be more open to agricultural opportunities since it is viewed as a promising endeavor. The role of science and technology, on the other hand, will enhance the succession process since previous landowners can turn over the farm management to their potential successor with less difficulties hence, ensuring good productivity. In addition, the landowners should educate themselves with the best farm practices as this will not only ensure profitability but also sustainability of the enterprise through the help of the Municipal Agricultural Office and Sugar Regulatory Administration. Lastly, initiatives from sugarcane associations would address the underlying problems in finances, farm operations, and marketing.

Language

English

LC Subject

Sugarcane industry--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2019 M17 S87

Notes

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Document Type

Thesis

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