Evaluation of the potential impact of the Palay Check system on the Philippine rice industry
2008
Castaneda, A. C., Philippine Rice Research Inst., Maligaya, Science City of Munoz, 3119 Nueva Ecija (Philippines)
This study evaluated the overall potential contribution of the Palay Check System to the rice industry. The data used were observed output from pilot tests in farmers' fields conducted by the Philippine Rice Research Institute in 2005 cropping seasons. Descriptive, multiple regression, partial budget, and benefit-cost analysis were used to assess the pre-implementation performance of the Palay Check System. Descriptive results showed that the Palay Check System had enhanced the ability of participating farmers to adopt the recommended best farming practices, hence, higher number of Key Checks were attained. These Palay Check farmers, consequently, obtained relatively higher output than non-Palay Check farmers. A positive relationship between the number of attained Key Checks and yield was also observed. Meanwhile, regression results identified the Key Checks on land preparation, nutrient and harvest management to have significantly affected the yield of Palay Check farmers. Partial budget analysis showed that Palay Check farmers obtained a positive net incremental effect on profit. Moreover, they realized an approximately 46% net profit advantage over the average non-Palay Check farmers, hence, were better off. Economic Analysis showed that, using proxy adoption rates, government investments on the Palay Check System could yield a positive Net Present Value (NPV) and an Internal Rate of Return (IRR) greater than the opportunity cost (15%). With the identified potential benefits that may be derived from the Palay Check System, it is recommended that the two-way communication system, which is one of its strengths, should be maintained through farmers' active participation in meetings and FGDs.
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