Productivity in the Rice Sector in Philippine Agriculture

This study determined the sources of productivity in the Philippine rice sector by measuring its productivity indices using the Malmquist total productivity index. The productivity indices were decomposed into technical efficiency change and technical change. Results showed that total factor productivity (TFP) growth for rice was low. TFP growth was largely due to technical change, with little or no efficiency change over time. Some of the determinants of TFP growth in rice were seeds, irrigation, farmer training, credit, post-harvest facilities, and market support.

Since technical change largely accounted for the TFP in rice, increasing research expenditures in the sector is recommended for varietal improvement and seed production. More effective seed distribution strategies are also recommended. Given the low efficiency change, farmer training must be enhanced to achieve efficiency change. Likewise, extension support and administration should be improved in light of this devolution. Rehabilitating irrigation facilities should be prioritized. Accordingly, strong political will is required to implement such productivity-enhancing programs.