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Economic assessment by farmers of the multifunctional outputs of rice farms in Leyte, Philippines
Thesis Abstract:
This study provided an assessment of the economic values, in monetary terms, of the multifunctional outputs of rice farms from the point of view of farmers in Leyte. The multifunctional outputs identified, verified, and assessed by the farmers included economic outputs (provision of food or rice commodity, rural economic viability, enhanced food self-sufficiency, and security); sociocultural outputs (local cultural heritage, rural landscape and open-space amenities, and sustainability of the benefits of rice farms for future generations); and environmental outputs (groundwater recharge, soil conservation, flood prevention, and biodiversity).
The total economic value of the multifunctional outputs of the 80 sampled rice farms in Leyte for the May–October 2009 cropping period which was derived by summing up the estimated value of the rice commodity and the bundle of NCOs, ranged from PHP 50,464/ha to PHP 61,640/ha. The estimated market value of the rice commodity was obtained by multiplying the average rice output of the farmer respondents with their average farm gate selling price. The economic value of the bundle of NCOs was obtained by asking the farmer-respondents of their estimates of the monetary value of the NCOs that they perceive to be jointly and proportionately produced and consumed by themselves (value of own consumption or VOC) with 1 kg of rice and the monetary value of the NCOs that they perceive to be jointly and proportionately produced by them with 1 kg of rice but which are being consumed by others (value of external consumption or VEC).
The large divergence between the estimated values of the rice commodity and the bundle of NCOs was attributed to the farmers’ poor socioeconomic status and low level of knowledge about the multifunctionality of rice farms. It was also noted that the economic outputs of rice farms were perceived more highly than outputs with sociocultural and environmental contributions.
The physical characteristics of rice farms, the socioeconomic and demographic profile of the farmers and their farm management practices either increased or decreased the value of the rice commodity and the bundle of NCOs. Factors which relate to the farmers’ ability to pay positively affected the market value of the rice commodity and the farmers’ valuation of VOC. Factors which relate to the human capital accumulation of farmers positively affected the farmers’ valuation of VOC and negatively affected the farmers’ valuation of VEC.