OE-NADA [Organization Enterprise-Needs Assessment and Design Assessment] Report : BDCD-DARPO [Beneficiaries Development Coordination Division-Department of Agrarian Reform Provincial Office]/Sitio Ecogan [Brgy. Minapasok, Calatrava, Negros Occidental, Philippines] ARB [Agrarian Reform Beneficiaries] Association

The proposal required for the unit hand tractor, 1 unit rice thresher, 1 unit rice mill with building and 1 unit MPC [multipurpose cooperative] with MPP [multi-purpose pavement] in the operation of the Rice Productivity Processing Support Project which will eventually cater 71 Agrarian Reform Beneficiaries and non-ARBs farming an area of 80 hectares. Target expansion area ranges from 80 to 400 hectares from the adjacent communities. Once the service facilities will be available and installed to operate, the ARBO is expected to generate cash income. Looking at the business side, the MPC is considered a dead investment. Knowing that it is a grant, it was decided not to include it in the profitability assessment. However, it is a necessity to the ARBO in their other activities like meetings and gatherings. The computation presented shows that the proposed CSF [Common Service Facilities] for rice are viable and profitable using the assumptions and basic data. Specifically, the hand tractor or power tiller which can prepare 52 hectares in a year reaches its break-even area of operation on a 61 ha rice farm. Its capital recovery on one hand can be achieved in 1.17 years. With the 160 hectares farm available from the ARBO, only 32.50% of the area can be served by the facility unit per year. Moreover, the assumed life span of 5 years can prepare a total area of 260 which in return can raise an income of PhP 547,250 or ROI [return on investment] of PhP 369,250 (225%). For the thresher, it shows that an income of PhP 38.17/cavan is achievable. To reach the break-even volume of 4401 cavan of palay to be threshed, it needs only 37 days recovery period. Hence, after threshing the 4401 cavans the ARBO can generate income from its own palay production with the expected available volume of 8000 cavans per year. Depending on the condition of the threshing unit or the availability of palay, cases of operation can be preferred based on the number of days of operation which can give an ROI of up to 2885.36%. The rice mill on the other hand can achieve its break-even volume in producing milled rice of 26880 cavans. In 15 years or for its assumed life span, it needs a yearly supply of 3446.15 cavans of thresher-fresh palay which can sufficiently be available from the ARBO production alone. If it will only rely on the volume of palay that can be supplied by the ARBO, its recovery period will reach up to 6.5 years which eventually will operate in 79.2 days/year. On an 8-hr daily mill operation, the payback period will be reached in 569.5 days. The earning capacity in 15 years ranges from 110.71%-160.07% for just milling the palay produced by the ARBO farms. Summing it all, the computed income can provide ROIs of 690.17% (PhP 9,276,000.00) maximum of rice mill, 225% (PhP 379,250.00) for farm tractor, and 2885.36% (PhP 4,847,400.00) maximum for thresher. The volume of palay and the areas of the ARBO plus the potential clients outside are big enough for the CSF making it a viable project. Profitability wise, all 3 CSFs are found to be income generating but the services of thresher earns the most in the event that the enterprise will operate.