Factors affecting the adoption and profitability of coconut-based farm systems in Laguna, 2010

Date

2011

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

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Abstract

The study determined the factors that affect the adoption and profitability of coconut-based farming systems of coconut farmers in Laguna. Specifically, was

conducted to: determine the socio-demographic characteristics of adopters and non- adopters of CBFS that affect CBFS adoption; determine the economic and also the

institutional factors that affect CBFS adoption; and compare the productivity and profitability of coconut farms adopting CBFS with farms that are not using CBFS. A total of 60 coconut farmers were randomly selected in San Pablo City, Nagcarlan, and Alaminos and were personally interviewed using an interview schedule,

30 of them were CBFS (coconut + lanzones) adoptors while the other 30 were non- adoptors. Descriptive statistics such as summations, frequency counts, means and

percentages were used. Logistic regression analysis was employed to identify the significant factors that affect CBFS adoption and to determine the marginal effects of these factors. Costs and returns analysis was used to determine the net farm income per hectare to compare their profitability. Productivity of both types of respondents was also compared. The results of the study showed that the significant factors that affect CBFS adoption of the respondents were age of farmers, length of years in farming, educational attainment, farm size, and net farm income per hectare. Using also the logit model, the marginal effect of each factor to the probability of CBFS adoption was estimated. Results showed that increases in age of a farmer, educational attainment, and having access to institutions decreases the probability of CBFS adoption. On the other hand, increases in length of years in farming, farm size, net farm income per hectare, being a farmer-owner, and having acess to CBFS inputs (seedlings) increases the probability of CBFS adoption. In the costs and returns analysis of coconut farms, it was found out that there were significant differences in average expenses, average receipts, and also average net farm incomes per hectare between CBFS adoptors and non-adoptors. In comparing the productivity and profitability, there were also significant differences between the two types of respondents. It was found out that problems in coconut production were the same for both CBFS adoptors and non-adoptors. Problems encountered were natural calamities, pests and diseases, theft losses, low crop production, and illegal logging. Problems faced by CBFS adoptors in lanzones production were identified as natural calamities, pests and diseases, theft losses. Coconut farmers who are older, have less years in farming, more educational attainment, less farm size, and less net farm income should therefore be targeted by policy-makers in promoting CBFS. Contrary to the hypotheses, it was also revealed that increase in educational attainment and having access to institutions decreases the probability of CBFS adoption. Further study is recommended to validate the effect of educational attainment as a factor in adopting CBFS while it is proposed that strengthening linkages between coconut farmers and institutions will help in verifying whether having access to institutions will affect the probability of CBFS adoption or not.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Document Type

Thesis

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