Efficiency and Labour Absorption in Irrigated Rice Farms in Nueva Ecija: Philippines
The focus of the study is on the determination of economic efficiency and labour absorption capacity of rice farms operating under the two types of small-scale irrigation systems (gravity type and pump type) in Nueva Ecija , Philippines. Rice farms from both types of irrigation systems were asse...
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| Format: | Thesis |
| Language: | English English |
| Published: |
1990
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8027/1/FEP_1990_2_A.pdf |
| Summary: | The focus of the study is on the determination of economic
efficiency and labour absorption capacity of rice farms
operating under the two types of small-scale irrigation systems (gravity type and pump type) in Nueva Ecija , Philippines.
Rice farms from both types of irrigation systems were
assessed using the normalized restricted profit function . Data from two hundred and sixty two rice farmers, 110 from
Cristamakita Farmer Irrigators' Association (CFIA) comprising
the gravity irrigated farms and 122 from Penaranda Irrigators'
Association (PIA) comprising the pump irrigated rice farms ,
was analysed using the SAS Syslin computer package.
Profitability analysis shows that among the variable
inputs considered, only labour, fertilizer and seeds possess
the correct a priori signs and only fertilizer is significant to farm profit. Land has positive coefficient as expected but
the coefficient is not significant. Land tenure status of the farmers affects farm profit in favour of owner-operators.
Owner-operators have greater income per farm and per hectare
compared to other farmer-groups considered, regardless of farm
proximity to the irrigation canal.
Empirical findings show no difference in relative economic
efficiency between the farmer-groups considered. Both farmer groups
operate on the same level of economic efficiency.
Both farmer-groups failed to maximize prof it in the short
run . Both groups of farmers were not successful in equating
the marginal value products of the variable resources to their
respective prices.
The elasticity of demand for labour with respect to its
price is inelastic (-0.29). This implies that under existing
farm conditions, rice farming is unlikely to absorb excess farm labour without decreasing wage rate. Labour however, is
responsive to output price changes. Fertilizer was found out
to be responsive to its own price (-1.43) and also responsive to output price.
Response of paddy supply to changes in the price of the
variable inputs supports a priori expectations, but all the
coefficients are not significant. Moreover, paddy supply is
more sensitive to seed price compared to the price of labour, fertilizer, pesticides and animal-machine.
Human labour and animal-machine were found to be
complementary inputs. The rest of the inputs considered were
also found to be complementary with each other like labour with
fertilizer, labour with seeds and labour with pesticides. This
shows that decrease in the prices of fertilizer, pesticides and
seeds will encourage increase in their usage hence, will also increase labour demand
Demand for variable input s was not responsive to land, but
responsive to irrigation fee.
The results of the study indicate room for increasing food
supply through improvement of farmers' allocative efficiency. |
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