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An Analysis of Resources Productivity and Credits Needs of Coconut Farms in Southern Tagalog
Thesis Abstract:
The study attempted to determine the levels of input resources and the corresponding output and income of coconut farms, analyze some economic factors of coconut production and farm income, obtain statistical estimates of the productivities of the different prodction factors, and find out the employment of credit relative to the amount needed.for more efficient resources use on coconut farms.
The stud included 343 coconut farms in four major coconut producing provinces in Southern tagalog (Quezon, Batangas ,Laguna and Oriental Mindoro). Data were obtained through personal interview conducted by Bureau of Agriculture Economics in May 1974.
Findings revealed that the average farm area was 3.40 ha; cropland area 3.36 ha; and effectively crop area, 3,40 ha. Land comprised 87% of the total farm capital, with the landlord supplying 37% of the total investment.
Coconut production per farm was 8,131 nuts valued at P4,378. Cash variable cost amounted to P408 and noncash varialble cost, P2,173. Hired labor comprised 95% of cash variable cost. Gross margin averaged P1,797. Simple rate of return on operator's capital was 27%.
Coconut production and gross farm income were found positively and significantly related to coconut or crop area and man -labor. Variations in the five explanatory variables were associated with more than 50% of farm income variations in all provinces, except in Quezon. Increasing the number of work animals appeared not to affect farm income, and the desired man labor level seemed twice that found in the study.
Only 14% of the farms used credit, and 45% of nonborrowers avoided in debtedness. Most of the borrowers loans were obtained loans from non-institutional sources, but more than 60% of total loans were obtained from banks. Average loan of the borrowers was p1,567. Agricultural or production loans comprised 85% of total loans; consumption or personal loans, 9% and educational loans, 6%
Estimated additonal maintrenance cost required to purchase desired level of inputs is P536 per farm for all provinces.
