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The economics of timeliness in the crop intensification of rainfed farms in Iloilo, Central Philippines

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Roxas, Nicanor Magpantay

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Canberra, ACT : The Australian National University

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The main purpose of this study has been to investigate the role of timeliness in the crop intensification of rainfed farms in Iloilo, Central Philippines. Specifically, it undertakes an economic evaluation of reducing the delay in crop establishment by comparatively estimating the additional benefits between power tiller use and carabao in land preparation. A simulation model of rice crop growth is used to predict yield estimates by incorporating established functional growth relationships, local environmental determinants (landscape positions of field), and management criteria given 31 years' annual rainfall data to account for variability. The simulated yields are then economically evaluated to determine the level of profitability (additional returns) by using time and partial budgeting techniques. In general, yields were higher and stable in lower field positions using a shorter turn-around period (TAP) of crop establishment. The inverse relationship between grain yield and TAP, grain yield and landscape position (LP) was mainly due to (i) Water availability in the field, and (ii) Timeliness of crop establishment. Specification of the cropping strategy, i.e. TAP's of 5,10,20 and 30 days, showed that the shorter the TAP, the higher the additional returns in using carabao. To compare the power tillers (7 TAP), Additional Returns were better than 10,20 and 30 but lower than 5 TAP of carabao. This suggests that the time saved in reducing the delay in TAP, compensated for the cost of using both 5 TAP and power tillers, in terms of higher AR. Moreover, the ratio of AR and additional costs (AC) indicated that extra investments were substantially compensated for by the extra returns, particularly in the shorter TAP. The profitability of 3 cropping patterns was evaluated by TAP and landscape position. Again, better returns were obtained in the lower landscape positions and shorter turn-around period. The Dry Seeded Rice - Transplanted Rice-Mung (DSR-TPR-Mung) pattern appeared to be more profitable using the measures of higher AR and higher AR/AC ratio. The (Wet Seeded Rice) WSR-TPR-Mung and WSR-WSR-Mung followed in that order, which implied that there were two important reasons for the differences. One is the length of time the pattern was standing on the field and secondly, the possibility of early establishment and harvesting of the crops in the sequence. The most profitable pattern can be established and harvested early and stayed in the field for considerably shorter period compared to the other two patterns. Riskiness in crop intensification was initially investigated to partly explore the variability, both in terms of yield given 31 rainfall years and the probability of getting the specified level of AR assumed to help explains the farmers' adoption. Finally, the overall conclusion of the study suggests that timeliness in crop intensification of rainfed farms in Iloilo is a critical and important element of the farmers' cropping strategy which can significantly affect both the crop performance and eventually the income of the farmers.

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