Assessment of the effects of the Agrarian Reform Community Development Project 2 (ARCDP 2) on the technical efficiency, farm productivity and income distribution of selected farmer-beneficiaries in Polangui, Albay, 2016

Date

6-2016

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Roberto F. Rañola Jr.

Abstract

The study assessed the effects of the Agrarian Reform Community Development Project 2 (ARCDP 2) support services on the technical efficiency, farm productivity and income distribution. A total of 60 sample respondents were selected using simple sample matching in Polangui, Albay. The respondents were interviewed using a pre-tested questionnaire. Among the data gathered from the respondents were socio-economic information, palay yield, farm production costs and net farm income. A with or without analysis was used in order to evaluate the effects of the support services in comparison with non-beneficiaries. Descriptive statistics such as mean, percentages and summations was used in the study to describe the socio-economic as well as the farm specific attributes of the respondents. In determining the technical efficiency, the Stochastic Frontier Approach specifically Cobb-Douglas production function was estimated using Frontier 4.1 software. On the other hand, farm productivity was used to determine the average farm yield. Cost and returns analysis was also used to determine the net farm income. In terms of income inequality and distribution, Lorenz curve and Gini coefficient ratio were used. A paired sample t-test was employed to determine whether the ARCDP 2 beneficiaries have significant difference in terms of technical efficiency, farm productivity, net income, as compared to non-beneficiaries. Results showed that the farmers who use land, fertilizer and labor significantly increase productivity. Given the soil type is loamy and an increase in the household size, technical efficiency improves. On the other hand, the mean technical efficiency levels of beneficiaries and non-beneficiaries were 81.16 and 77.23 percent, respectively. On farm productivity, the annual farm yield of ARCDP 2 beneficiaries was 7,677.17 kgs/ha which is higher than that of non-beneficiaries with only 7,244.82 kgs/ha. Same behavior was shown on the net revenue as well as on the net income of the respondents. The ARCDP 2 beneficiaries have net revenue of Php 45,468.30 compared to Php 43,895.46 of non-beneficiaries. Regarding net income, it was found out that the average net income of ARCDP 2 beneficiaries was Php 57,744.74 while the non-beneficiaries was Php 55,761.87. In terms of income equality and distribution, it was shown that the Lorenz curve of the ARCDP 2 beneficiaries was nearer the Line of Equality compared to that of non-beneficiaries. On the other hand, it was also found out that the Gini coefficient ratio of the beneficiaries was closer to zero. This behavior of the Lorenz curve and Gini coefficient ratio of beneficiaries implies that income is equally distributed among them. These observed results imply that ARCDP 2 was successful in attaining its objectives. Despite the positive effects of the ARCDP 2 support services on its beneficiaries, this study recommended that the project must be restructured to strengthen its services especially on trainings and seminars, and credit support. Moreover, active participation and technical knowledge application on rice farming practices were also suggested.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

Thesis

Document Type

Thesis

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