Cost structure of palay production in Northern Mindanao, Philippines
2012
Bacho, A.P. | Araos, J. | Valledor, H.G.S. | Regalado, C.M. | Bagay, A.M., Department of Agriculture, A. Luna, Cagayan de Oro City, 9000 Misamis Oriental (Philippines). Regional Office 10
This study seeks to define the social composition and cost structure in the production of palay in Northern Mindanao [Philippines]. Using the stratified sampling design by area harvested in 2009, a total of 453 palay farmers were interviewed. Farmers social composition in the region showed that average age was 49.9 years old, 74.4% male, 91.4% married, 23.9 years old average in farming experience with more than 50% concentration in 10-29 years bracket, and 20.3% graduated in elementary school. Production of palay follows the typical wet and dry season pattern. Planting covers from June to October for the first cropping wet season and from November to january for the second cropping dry season. Seed planting practices was by transplanting (73.9%), 41.79% used certified seeds and 16.91% used commercial seeds, while 81.52% used in-bred and 18.48% used hybrid seeds, and 19.0% preferred RC-158 and RC-18 varieties, respectively. OST structure indicated that to produce a palay, 34.1% was accounted for labor, 24.9% for input cost by which 15.6% was allocated for fertilizer and 6.7% for seed costs, 24.68% for post-harvest labor cost and 14.6% for other farm incidental costs. This resulted to an average unit cost of P9.10 per kilo of palay, with farm net income of P14,944.91 per hectare at 0.4052 peso-per-peso return on cost. Yield average was registered at 4.3 t/ha. Regression model showed that yield was explained (r square=0.981, F-value=5895.0) by final total cost (Beta=0.490, t=55.959), palay unit cost (Beta=0.048, t=-5.673), net income (Beta=0.630, t=44.28), and ROI (Beta=0.042, t=-3.056), indicating that cost influences yield sustainability of palay production in Northern Mindanao.
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