Effects of Drought on the Business Performance of Irrigated and Rainfed Rice Farms in Gattaran, Cagayan

Date

5-2017

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Noriza Q. Herrera

Abstract

Drought is a recurring phenomenon in the country affecting rice production. Studies found that the effects of drought were more severe among rainfed farms. Its effect is direct among rainfed farms while irrigated farms were affected through its irrigation source. However, this hazard has not been taken much attention since its effect was not directly evident, unlike typhoons and floods. Considering the effects of drought in both ecosystems is important in determining the appropriate strategies that have to be recommended to rice farmers in the area.

This research focused on assessing the effects of drought on the business performance of irrigated and rainfed rice farms in Gattaran, Cagayan. The objectives of the study were to: 1) present the socio-economic profile of irrigated and rainfed rice farms and farmers in Gattaran , Cagayan; 2) evaluate the effect of drought on the business functions- production, marketing, finance and human resource, of irrigated and rainfed rice farms in Gattaran, Cagayan; 3) compare the effect of drought between the business performance of rainfed and irrigated rice farms; and 4) recommend solutions that would address the issues and challenges faced by irrigated and rainfed rice farms in Gattaran, Cagayan.

The computed sample size which was 94 was determined using the Slovin’s formula. Sixty- one and 33 farmers from irrigated and rainfed ecosystem, respectively, were interviewed

in this study using a semi-structured questionnaire. Simple random sampling was used in identifying the respondents. Secondary data from the Department of Agriculture Region II, Office of the Provincial Agriculturist, Municipal Agriculturist Office, PAG-ASA, journals and books were also utilized. The data obtained were organized and analyzed through descriptive and comparative analysis. Cost and return analysis was also used to analyze the effects of drought on the net income of rice farmers, and t-test was utilized to compare further the factors affecting production yield under normal and drought conditions.

Rice production in the area was dominated by male farmers since it is an intensive work which requires more strength. It was also found that most of the farmers had an average age of 50 years old, and only a few from their family members were involved in farming. Furthermore, rainfed and irrigated farmers operates in an average farm size of 1.56 and 1.72 hectares, respectively.

The results showed that drought directly affects the production aspect of the business wherein production yield decreases and grain quality deteriorates. This effect on production influences other business functions such as marketing, human resources and finance. During drought, irrigated farms experienced a 44.80% decrease in production yield while rainfed farms incurred a 63.73% decrease. Harvested palay in both ecosystems was smaller and some grains were empty. Due to the low quality of produce, it was difficult for the farmers to market it. The selling price among irrigated farms decreased by 7.14% while those in rainfed areas experienced a decrease of 20.69%. This decrease in yield and selling price led to a decrease in sales and net income. Net income of farmers from irrigated and rainfed farms decreased by 114.35 % and 136.95%, respectively, thus they incurred a net loss. Meanwhile, when there was drought, the general supply of labor during harvesting decreased since most laborers did not want to harvest low quality and few produce. Among rainfed farms labor during harvesting decreased by 50% per hectare, while a 32% decreased was experienced by irrigated farms.

This study found that the effects of drought were more severe among rainfed farms since percent decrease was greater than irrigated farms. Rainfed farms were directly affected while irrigated farms were affected through their irrigation source. During drought, there was an increase in competition among users, and reservoirs dried up which stopped water flow in the irrigation canal.

Using t-test, this research also concluded that the effect of drought between inbred and hybrid seeds used by rice farmers in the area did not have a significant difference. This invalidates the belief of some farmers that hybrid seeds were drought-resilient. Hybrid seeds only result to higher yield under normal conditions or during the dry season where water was sufficient.

Furthermore, this study also considered that the socio-demographic and business profile of farmers in both ecosystems can influence the severity of the effects of drought. It can either limit them or give them the ability to respond to opportunities in coping up with the negative effects of drought.

In order to effectively respond to the negative effects of drought, it was recommended that the farmers employ strategies that will sustain their business and livelihood. For the farm enterprise, crop diversification, practice of conservation agriculture for both ecosystems; water-saving technologies such as alternate wetting and drying for irrigated farms, and water storage for rainfed farms were recommended under production. For both ecosystems, record keeping and crop insurance under finance; consolidation of harvested palay in a community and entering into forward agreements under marketing; and utilizing farm labor under human resources were also recommended. For government and non-government institutions, it was recommended that they provide seminars regarding climate action and technology transfer to farmers and research-extension-farmer linkages. Furthermore, saving up during non-drought periods and income diversification were recommended for the household.

Language

English

LC Subject

Rice farming -- Philippines, Business process management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2017 M17 M373

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