Using a case study approach, this article explores why the smallholding rice farmers in the Philippines receive low profit which is even as less as the minimum wage when the retail price of rice is significantly higher in comparison to those of nearby countries.
In the Calumpit municipality of Bulacan province of the Philippines, the study uses mixed design with both qualitative and quantitative tools. It is a general perception that presence of middlemen in the rice value chain minimizes the profitability of the farmers but in Philippines, the scenario is not the same.
This study explains how the limited or almost no access to the factors of production can make the smallholding farmers dependant on the other actors who eventually extracts the major profit share from the value chain. It also emphasizes on the promotion of multi-cropping by making water and other inputs available for farming, which eventually can make smallholding farming profitable in the study area.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- METHODOLOGY
- Study area
- Sample size and tools of the study
- Scenario analysis of rice production in Philippines
- Value chain analysis of rice at Calumpit municipality
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This article investigates the reasons behind low profit margins for smallholding rice farmers in the Philippines, despite high retail rice prices. It uses a case study approach in Calumpit municipality, employing mixed qualitative and quantitative methods. The study aims to understand the factors contributing to farmers' low profitability and explore potential solutions for improving their economic situation.
- Low profitability of smallholding rice farmers despite high rice prices.
- The role of access to factors of production in farmer dependency.
- Analysis of the rice value chain in the Philippines.
- Impact of government policies on rice production and pricing.
- Potential solutions for increasing the profitability of smallholding rice farming.
Zusammenfassung der Kapitel (Chapter Summaries)
INTRODUCTION: This introductory chapter sets the stage by highlighting the paradox of the Philippines, the birthplace of the International Rice Research Institute (IRRI), becoming a net importer of rice. It discusses the significance of rice in the Philippine economy and food security, noting the crucial role of smallholding farmers. The chapter then explores the historical context of rice production in the Philippines, tracing its evolution from self-sufficiency to import dependency. It points to several contributing factors, including agricultural price policies, rising production costs, and the country's accession to the World Trade Organization (WTO). The chapter concludes by framing the research question: why do smallholding rice farmers receive low profit margins despite high farmgate and retail prices? This introduction lays a strong foundation for the subsequent chapters by establishing the problem and its historical context.
METHODOLOGY: This chapter details the research methodology employed in the study. It begins by describing the study area, the Calumpit municipality in Bulacan province, Philippines, emphasizing its suitability for rice cultivation due to its geographical features and soil composition. The chapter then outlines the research design, a mixed-methods approach combining quantitative and qualitative data collection. Quantitative data was collected via a stratified random sample survey of 50 smallholding rice farmers, focusing on production costs and farmgate prices. Qualitative data was gathered through semi-structured interviews with barangay captains and focus group discussions (FGDs) with villagers. The methodology section clarifies the research approach and the data collection techniques used to investigate the central research problem.
Scenario analysis of rice production in Philippines: This section presents a macroeconomic overview of rice production in the Philippines. It examines trends in harvested area, total rice production, and farm harvest prices over a decade. The analysis reveals a steady increase in both harvested area and total rice production, yet the growth rate of rice production has been slower than population growth. The data also reveals that while farm harvest prices have risen, this increase has been offset by inflation, resulting in limited real income growth for farmers. This analysis provides a broad context for understanding the challenges faced by rice farmers within the larger national economy.
Schlüsselwörter (Keywords)
Agriculture, smallholding farmers, rice farmers, poverty, profit, middlemen, Philippines, rice production, value chain, food security, agricultural policies, production costs, farmgate price, retail price, mixed methods, case study.
Frequently Asked Questions: Analysis of Low Profit Margins for Smallholding Rice Farmers in the Philippines
What is the main focus of this research?
This research investigates why smallholding rice farmers in the Philippines have low profit margins despite high retail rice prices. It uses a case study in Calumpit municipality, employing both qualitative and quantitative methods.
What are the key themes explored in the study?
The study explores several key themes: low profitability of smallholding rice farmers, the role of access to production factors, analysis of the rice value chain, the impact of government policies, and potential solutions for improving farmer profitability.
What methodology was used in this research?
The study uses a mixed-methods approach. Quantitative data was gathered through a survey of 50 smallholding rice farmers in Calumpit, focusing on production costs and farmgate prices. Qualitative data was collected through interviews with barangay captains and focus group discussions with villagers.
What is the significance of Calumpit municipality in this study?
Calumpit municipality in Bulacan province was chosen as the study area due to its suitability for rice cultivation based on its geographical features and soil composition. It serves as a case study to understand the challenges faced by smallholding rice farmers in the region.
What are the key findings regarding rice production in the Philippines?
The study reveals a steady increase in both harvested area and total rice production in the Philippines. However, the growth rate of rice production is slower than population growth. While farm harvest prices have increased, this increase has been offset by inflation, resulting in limited real income growth for farmers.
What is the historical context of rice production in the Philippines?
The introduction highlights the paradox of the Philippines, despite being the birthplace of IRRI, becoming a net importer of rice. It traces the evolution from self-sufficiency to import dependency, highlighting factors such as agricultural price policies, rising production costs, and the country's WTO accession.
What are the potential solutions explored or suggested in the study?
While not explicitly detailed in the provided summaries, the study aims to explore and potentially suggest solutions for increasing the profitability of smallholding rice farming. This would likely involve addressing the challenges identified through the value chain analysis and investigation of contributing factors to low profitability.
What are the keywords associated with this research?
Agriculture, smallholding farmers, rice farmers, poverty, profit, middlemen, Philippines, rice production, value chain, food security, agricultural policies, production costs, farmgate price, retail price, mixed methods, case study.
What chapters are included in the study?
The study includes an Introduction, a Methodology chapter detailing the research approach, a section on scenario analysis of rice production in the Philippines, and a value chain analysis of rice in Calumpit municipality.
- Citar trabajo
- M. Mizanur Rahman (Autor), Tasfi Sal-sabil (Autor), 2016, You reap what you sow? Reasons for low profit margins among smallholding rice farmers in the Philippines, Múnich, GRIN Verlag, https://www.grin.com/document/321326
