Technical efficiency of organic rice farms in Central Luzon and Southern Tagalog Regions, Philippines

Issue Date

12-2016

Abstract

This study analyzes the technical efficiency of organic rice producers in Central Luzon and Southern Tagalog regions, Philippines. Organic rice farms are classified as high (HPF) and low (LPF) performers using a hurdle yield of 3.74 mt/ha (mean yield of the Magsasaka at Siyentipiko Para sa Pag-Unlad ng Bayan - MASIPAG - organic production). A stochastic frontier production function, using the maximum likelihood estimation (MLE) method was employed to estimate the technical efficiency. The MLE results reveal that organic farm inputs comprising of seeds, fertilizers, and labor are the major determinants of organic rice production. The overall technical efficiency ranges from 63% to 68% indicating the potential to increase organic rice production by way of efficiency improvement. The estimates further reveal that HPFs show technical efficiency advantage over their LPF counterparts by as musch as 40 percentage points. The adoption of HPF farm practices by the LPF becomes imperative since the former's practice results to greater technical change in organic rice farming.

Source or Periodical Title

Journal of Economics, Management and Agricultural Development

ISSN

2449-4585

Volume

2

Issue

2

Page

67-78

Document Type

Article

College

College of Economics and Management (CEM)

Frequency

semi-annually

Physical Description

tables

Language

English

Subject

organic rice; farm productivity; technical efficiency; stochastic frontier production function

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