Determinants of productivity and technical efficiency of upland rice farming system in Sarangani Province, Philippines

Abstract

This study identified the determinants of productivity and technical efficiency (TE) of upland rice in Sarangani Province, Philippines. Data were taken from 326 randomly identified beneficiaries of the Special Area for Agricultural Development (SAAD) program. Descriptive statistics, cost and return analysis, probit regression and the stochastic production frontier were employed in the analysis. The probit estimation revealed that age, the tribe of the farmers, educational attainment, years in farming, membership in an organization, farm income, number of extension visits, and planted area were found to significantly influence the productivity of upland rice farmers. Concerning stochastic frontier estimation, labor, seeds, nitrogen, phosphorus and two varieties of upland rice seeds were found to be significant factors affecting upland rice productivity. These played an important role in terms of changing their TE score. The mean TE score was 77% indicating that there was a 23% allowance for improving efficiency. Meanwhile, farm and farmers’ characteristics were unable to explain why farms were less technically efficient. With these, farmers should minimize the use of nitrogen application to avoid a possible oversupply of nutrients and expand the utilization of labor, seeds, and phosphorus fertilizer to achieve a higher yield of upland rice.