rice yield and cost in relation to factors of production

Evidence from Regular Monitoring of

Rice-Based Farm Household Survey

(RBFHS) 2011-2012

Mary Grace C. Lapurga

Flordeliza H. Bordey

SED Staff

RICE YIELD AND COST

In Relation to Factors

of Production

Objectives

Costs and returns of

Rice Production

Relate rice yield and cost to

factors affecting production

Present costs and returns of

rice production in 2011WS-

2012DS

Demonstrate yield and cost

variations across provinces

and seasons

Regular Monitoring of Rice-Based Farm Households Survey (2011WS – 2012DS)

Rice Yield (t/ha)

Production

cost Social

characteristics

Spatial

distribution

Costs and Returns

of Rice Production

Factors


Part I Part II

Part III

Conclusion

Outline of presentation

RBFHS 2011-2012 Data

Costs and returns of

Rice Production


2011 WS Harvest

(Jul – Dec 2011)

2012 DS Harvest

(Jan – Jun 2012)

n = 2,399

n = 2,051

Temporarily

stopped farming

Crop failure

Missing data


Rice Yield

5


2011WS = 3.67 t/ha 2012DS = 4.13 t/ha

5.4 t/ha

6.3 t/ha

Water source

5


Out of 13 typhoons that

visited the country between

July-December 2011, three of

those traversed Nueva Ecija.

http://www.pagasa.dost.gov.ph/index.php/tropical-cyclone-information/25-tropical-cyclones/33-annual-tropical-cyclone-tracks#2011

http://www.pagasa.dost.gov.ph/index.php/tropical-cyclone-information/25-tropical-cyclones/33-annual-tropical-cyclone-tracks


















Provinces with no color

indicate that there was

no farmer with rainfed

rice parcel.

Irrigated = 4.15 t/ha Rainfed = 2.90 t/ha

5.43 t/ha 5.32 t/ha

4.1

3.7 3.3

3.0

4.8

4.1 3.7

2.8

0.0

1.0

2.0

3.0

4.0

5.0

NIS/CIS SSIS Natural source Rain only

2011WS 2012DS


Water source Yield in relation to

4.7 4.4

3.9 3.7

3.3

5.8

4.5 4.5

3.8 3.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Hybrid Registered Certified Good seeds Farmer's seeds

2011WS 2012DS


Seed class Yield in relation to

3.8 3.4

4.2 3.9

0.0

1.0

2.0

3.0

4.0

5.0

Transplanted Direct-seeded

Yield (t/ha)

2011WS 2012DS


Crop establishment Yield in Relation to

Nitrogen level

2.9

3.6 4.1

4.4

3.1

3.9

4.8

5.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0-40 kg/ha >40-80 kg/ha >80-120 kg/ha >120 kg/ha

Yield (t/ha)

2011WS 2012DS


Yield in relation to

3.5 3.9

4.3 4.2

3.7

4.6 4.9

5.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

<20 kg/ha 20-30 kg/ha >30-40 kg/ha >40 kg/ha

Yield (t/ha) 2011WS 2012DS


Phosphate (P2O5) level


3.50

4.17 4.45 4.26

3.86

4.69 4.84

5.78

0.0

1.0

2.0

3.0

4.0

5.0

6.0

<20 kg/ha 20-30 kg/ha >30-40 kg/ha >40 kg/ha

Yield (t/ha) 2011WS 2012DS


Potassium oxide (K2O) level



3.44 3.68

3.47 3.44 3.85 3.69

4.10 3.86

0.0

1.0

2.0

3.0

4.0

5.0

Weeds Insects Diseases Oth Pests

No Chem Control W/ Chem Control

2011 Wet season

Pests management Yield in relation to

Observed pests


3.7 3.5 3.6

3.4

4.3 4.1

4.6 4.3

0.0

1.0

2.0

3.0

4.0

5.0

Weeds Insects Diseases Other Pests

No Chemical Control With Chemical Control

2012 Dry Season

Pests management Yield in relation to

Observed pests


4.1 3.7

0.0

1.0

2.0

3.0

4.0

5.0

With training Without training

Training participation


Education


Education Yield in relation to

3.74 4.01

0.0

1.0

2.0

3.0

4.0

5.0

No education - Elementary High school - college


Rice Yield (t/ha) Seed class

Fertilizer

Pesticide

Ecosystem

Education

Training

Season

WHAT IF?

Rice Yield (t/ha) = All possible factors

affecting yield

YIELD FUNCTION


** Significant at 10%

***Significant at 5%

Yield Coefficient

N 0.0052 *** P2O5 -0.0001

K2O 0.0021 *** Herbicide 0.0028 ***

Insecticide -0.0028 *** Fungicide 0.0028 ***

Other pesticides -0.0013 ** Man-day 0.3446 ***

Machine-day 0.0090 *** Seeds quantity 0.1197 *** NIS/CIS (1=yes) 0.2610 ***

SSIS/natural (1=yes) 0.1396 *** Hybrid (1=yes) 0.3945 ***

RS/CS (1=yes) 0.0879 *** Education (1=HS and up) 0.0013

Training (1=yes) 0.0278 *** Season (1=DS) 0.1213 ***

Farming experience (1= >15yrs) 0.0196

>> indicates 0.005% increase in

yield for every 1% increase in

nitrogen (kg/ha)

>> indicates that yield is 48%

higher for hybrid seeds users

relative to non-users

indicates that yield is 30%

higher for NIS/CIS users



Production Cost

42% 45%

5 5

14% 13%

5 4

25% 23%

2 3

6 5

2 2

0

10

20

30

40

50

60

70

80

90

100

2011 WS 2012 DS

% Cost share

Fertilizer

Labor & power

Land rent


>seeds

>pesticides

>interest

>other inputs

>irrigation & drainage

2011WS = PhP 42,201 2012DS = PhP 44,908


2011WS = Php11.49/kg 2012DS = Php10.88/kg

PhP8.22 PhP9.05

43% 45%

5 5

14% 11%

4 5

24% 25%

0

10

20

30

40

50

60

70

80

90

100

Irrigated Rainfed

% Cost share

Fertilizer

Labor & power

Land rent


>seeds

>pesticides

>interest

>other inputs >irrigation & drainage

Irrigated = PhP 46,029 Rainfed = PhP 33,978

Water source


Irrigated = PhP11.09/kg Rainfed = PhP11.73/kg

PhP8.47

PhP8.65


COST FUNCTION Cost/kg Coefficient Yield -0.679 ***

Seed price 0.054 *** N price 0.012 **

P2O5 price -0.008 K2O price 0.022 ***

Herbicide price -0.003 Other pesticides price -0.002

Insecticide price -0.009 *** Fungicide 0.003 Man-day price 0.098 ***

Machine-day price -0.009 *** NIS/CIS (1=yes) 0.145 ***

SSIS/natural (1=yes) 0.085 *** Hybrid (1=yes) -0.079 ***

RSCS (1=yes) 0.002

Education (1= HS and up) 0.005

Training (1=yes) 0.004 Season (1=DS) 0.017 ***

Farming experience (1= >15yrs) -0.005 _cons 7.311 ***

indicates 0.679% decrease

in cost/kg for every 1%

increase in yield

0.009% decrease in cost/kg

for every 1% increase in

machine-day price >>

>>

cost/kg is 7.6% lower for

hybrid seeds users


>>

** Significant at 10%

***Significant at 5%


Nueva Ecija

Nueva

Ecija

Cost/kg

Yield

(t/ha) Davao Oriental

Ilocos Norte

Cagayan

Mindoro Oriental

Tarlac

Zamboanga del Sur

Bohol

Camarines Sur

Leyte

Maguindanao

Northern Samar

Bulacan

Compostela Valley Davao del Norte

Davao del Sur Mindoro Occidental

South Cotabato Zamboanga Sibugay

Agusan del Norte

Agusan del Sur

Albay

Bukidnon

Iloilo Isabela Laguna

North Cotabato Pampanga

Quezon

Sultan Kudarat

Pangasinan Zamboanga del Norte

Aurora


Costs & Returns from Rice Production

Returns from Rice Production by season

Water source


ITEMS 2011 WS 2012 DS

Yield (kg/ha) 3,673 4,129

Price per kg (PhP/kg) 13.23 14.23

Gross Revenue (PhP/ha) 48,582 58,777

Total Production Cost (PhP/ha) 42,201 44,908

Net profit

from Rice Farming (PhP/ha) 6,381 13,868 from Rice Farming + Returns to Own Labor, Land, and Capital (PhP/ha) 20,788 29,116

Returns from Rice Production by ecosystem

Water source


ITEMS Irrigated Rainfed

Yield (kg/ha) 4,152 2,896

Price per kg (PhP/kg) 13.78 13.38

Gross Revenue (PhP/ha) 57,206 38,740

Total Production Cost (PhP/ha) 46,029 33,978

Net profit

from Rice Farming (PhP/ha) 11,177 4,762 from Rice Farming + Returns to Own Labor, Land, and Capital (PhP/ha) 26,576 17,339

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

22.00

24.00

0 2 4 6 8 10 12 14 16

2011 Wet season

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

22.00

24.00

0 2 4 6 8 10 12 14 16

2012 Dry season

Cost/kg)

Yield (t/ha)

0.6%

1.4%

40.5%

50.0%

0.1%

0.1%

48.5%

58.8%


SUMMARY & CONCLUSION


Summary

Yield Enhancing Cost Reducing

Use of high quality seeds

N & P2O5 fertilizer

application

Pesticide (except

insecticide) application

Access to irrigation

Training

Season

Higher yield

Machine-day price

Use of hybrid seeds

Insecticide AI price


Conclusion

The use of high quality seeds is still a significant factor

(across season) that can further improve the yield.

Sufficient water supply also contributes to a significant

increase in yield.

Efficient pests management, nutrient management and

farmer’s knowledge can also improve the yield.

Reducing labor cost, particularly harvesting and

threshing, can lead to lower unit cost.

Given that farmers are spending this much for rice

farming, increasing their yield is still a good strategy that

can result to lower cost/kg.


Thank you.

rice yield and cost in relation to factors of production

Documents