An economic analysis of rice farming in three selected municipalities of Laguna, Philippines, 1966 to 1971

Abstract

This study was conducted mainly to obtain information regarding (1) the relationship of the factors of production such as (a) rice variety, (b) amount of fertilizer, insecticide and other inputs used by the farmers, (c) adequacy and reliability of the farmer's water supply, and (d) natural disasters on rice yields; and (2) the efficiency of resource use and potential for increasing productivity through resource adjustment under the existing technology. The municipalities of Binan, Cabuyao, and Calamba in the province of Laguna, Philippines were selected as the study areas. The findings suggest that with adequate water supply, use of new rice varieties and additional operating costs of inputs could have a substantial impact in increasing rice yield. Under the existing technology, however, there is little potential for increasing rice production. There is a possibility of achieving higher rice yields through adjustment of some resources and cultural practices, and adoption of new varieties of rice. But farmers will adjust their use of resources and adopt new rice varieties and practices only if policy makers will direct their policies at reducing risk and uncertainty in rice farming through better supportive services, in order to create conditions which will provide sufficient incentives and inducements to farmers to invest in the future.