Economics of corn grain quality at the farm level in South Cotabato, Philippines, 1993
1996
Apaga, A.R.M.
Results of the study confirm the existence of an informal and subjective grading system at the farm level. The relationship of price with selected physical quality characteristics as perceived by farmers and traders was explicit in the result of hedonic model estimation. However, only moisture content and moldiness revealed significant coefficients. Effects of quality characteristics on corn prices were found to be different across farm level areas. Location was also a significant price determinant. At the terminal market level, only moisture content was found to be the significant price determinant while there was no clear relationship between price and the other quality characteristics. These findings imply that the demand for corn grain quality at the farm level is not directly related to the demand for corn grain quality at the terminal markets. Positive incentives were observed for reducing moisture content to dried levels. Incentives however were observed to be sensitive to moisture content levels that the inability to determine moisture content accurately may despoil potential incentives
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