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Chapter 1
THE PROBLEM AND ITS BACKGROUND

Introduction
Agriculture is the refinement of animals, plants, and other life
forms for food, fiber, biofuel, medicinal and other products used to
sustain and enhance human life. Agriculture was the key development
in

the

rise

of sedentary human

of domesticated species

created

civilization,

whereby

food surpluses that

farming

nurtured

the

improvement of civilization.
At the present time, Philippines is still predominantly an
agricultural country. Most citizens still live in rural areas and sustain
themselves through agriculture.

The country's agriculture sector is

made up of 4 sub-sectors: farming, fisheries, livestock, and forestry.

Among the sub-sectors of agriculture, Farming in the Philippines is
widely used due to its vast area of cultivated lands.
Rice is the single most important agricultural crop as it is
considered as the staple food of its inhabitant and is, therefore, a major
source of income for millions of Filipino farmers. It is part of Filipino
culture and is a way of life.

Rice production in the country

of Philippines is important to the food supply in the country and

economy. The Philippines is the 8th largest rice producer in the world.
The Philippines was also the world's largest rice importer.

Farming runs in the blood of most Filipino. We either grew up in

the province and witnessed this profession personally or we ourselves

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were once involved in farming. Maybe our parents are farmers, or some
of our relatives are. Nevertheless, farming is perchance the most
familiar and ironically enough, the most avoided profession in the
Philippines. The cynical stereotypes coupled with the wrong beliefs that
it's not profitable may have caused some of these negativities about
farming.
The pervasive assumption that farming is not profitable is false,
but so is the assumption by many new farmers that its easy to make a
lot of money in farming. The truth is that it will most likely take you
quite a few years of sound business decisions, and development of
good production systems and markets to be that profitable. But, it is
entirely in the realm of possibility that you can make as much money
farming as you can in another profession.

Background of the Study

Laguna shows a prosperous economy. With a population of
2,669,847 (2010 Census), and a total area of 1,760 km2 (680 sq mi) of
land, Laguna produces millions of pesos worth of coconuts, rice, sugar,
citrus fruits, lanzones and other products. Tourists flock to its beauty
spots,

especially Pagsanjan

Falls, Calamba and Los

Baos hot

springs,Mount Makiling, Caliraya Lake and many others. Levels of

development

vary.

The

industrialized

whereas

towns

the

inner

near Metro
towns

Manila have

continue

to

become

engage

in

agricultural production or pursue agri-based industries and cottage and

small-scale industries. Laguna has 60,624 hectares of alienable and

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disposable agricultural land. About 41,253 ha or 23.44% of Lagunas

total land area is forest land.
Laguna is subdivided into 24 municipalities and 6 cities. One of
these cities is the City of Cabuayo which is formerly known as the town
of Tabuko. The municipality's name Cabuyao originated from Kabuyaw a local tree found in the municipality whose fruit was then used as
shampoo. It was changed by a Father Velin, a Franciscan friar, during
the Spanish Era.
The town was located near the corner of a river and the lake of
Ba-i

which

made

bancas

or

raft

as

the

common

means

of

transportation. When the Franciscan priest came to Tabuko, there were

many native females doing their laundry chores near the wharf where
the boat of the Franciscan docked. There were many trees of "Kabuyaw"
growing around the area. So when the priest asked for the name of the
place, the native females readily answered "Kabuyaw" thinking that the
priest was asking for the name of the trees growing around the wharf.
From then on, the priests and other Spanish officials called the town of
Tabuko as Kabuyaw.
Barangay

Butong is

urbanized barangays comprising

one

of
the

the
City

eighteen

(18)

of Cabuyao in

the province of Laguna, Philippines. It lies about 3 kilometers (2 mi)

away from the center of Cabuyao and is in the northern portion of the
city. According to the 2010 Census, it has a population of 12,360
making it 8th largest barangay in Cabuyao in terms of population.

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Theoretical Framework

Conceptual Model

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INPUT

PROCESS

OUTPUT

Profile of the respondents

Age
Gender
Size of operation
Sources of income
Eco system
Irrigated area
Rain fed area

Benefits received given by

the CCLDO

Li0y

Farm Plan and

budget
Irrigation
management
Seed selection
Pest management
Post-harvest
facilities
Technology transfer
through seminars,
trainings, and
demonstration
trials

Data Gathering

Statistical Analysis

Questionnaire

Level of rice production

Quantity
Quality

Profitability of rice
production

FEEDBACK

Fig.1 Conceptual
Paradigm
Conceptual Paradigm of the Study

Determination of
rice production
profitability of
farmers
beneficiaries of
the grain
production
enhancement
program

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Figure 1 shows the conceptual model of the study. The input

data covers the profile of the respondents as perceived by the
registered farmers in terms of age, gender, size of operation, and
sources of income. This is to measure the percentage pertaining to
farmers age, gender, size of operation, and sources of income.

The

perceived eco system in terms of irrigated area, and rain fed area. This
is to measure the capability of the land to produce number of output.
The perceived benefits given by the CCLDO in terms of farm plan and
budget, irrigation management, seed selection, pest management,
post-harvest facilities, and technology transfer through seminars,
trainings, and demonstration trials. This is to measure the effect of rice
production enhancement services conducted by CCLDO to the number
of rice output. The perceived level of rice production by the registered
farmers in terms of the quality and quantity of the rice produced. This is
to measure the level pertaining to rice production of the respondents.
Lastly,

the

perceived

rice

production

profitability

of

farmers

beneficiaries in terms of inputs and outputs of rice produced. This is to

measure the profitability of rice production enhancement services.
These were important factors to consider for the researchers
survey questions. In the process data pertained on how the researchers
have gathered information using survey questionnaires which were

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distributed for the data gathering and statistical analysis. This was very
significant in identifying and solving the research problem. Lastly, the
output box stated Determination of rice production profitability of
farmers beneficiaries of the grain production enhancement program.
These were important factors to consider for the researchers
survey questions. In the process data pertained on how the researchers
have gathered information using survey questionnaires which were
distributed for the data gathering and statistical analysis. This was very
significant in identifying and solving the research problem. Lastly, the
output box stated the determination of rice production profitability of
farmers beneficiaries of the grain production enhancement services as
the output of this pursuit.

Statement of the Problem

This study aims to identify the profitability of the Rice Production
of farmer beneficiaries of the grain production enhancement services
offered by the CCLDO in Brgy Butong.
Specifically, the researchers would like to answer the following
questions:

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SOP 1. What are the Demographic profiles of the Farmer Beneficiaries

of the grain production enhancement services in terms of;
1.1

Socio-economic status

1.1.1 Age
1.1.2 Sex
1.1.3 Size of Operation(H.A)
1.1.4 Sources Of Income
1.2

Ecosystem

1.2.1Irrigated Area(H.A)
1.2.2Rain fed Area(H.A)?
SOP 2. What are the benefits received by the respondents given by the
CCLDO?
2.1 Farm Plan and budget
2.2 Irrigation management
2.3 Seed selection
2.4

Pest management

2.5

Post-harvest facilities

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2.6

Technology transfer through seminars, trainings, and

demonstration trials
SOP 3. What is the level of rice production of the respondents in terms
of;
3.1 Quantity
3.2 Quality?
SOP 4. What is the profitability of the rice production of the
respondents in terms of;
4.1 Inputs
4.2 Outputs?
SOP

5.

Is

there

significant

relationship

between

the

grain

enhancement services of the CCLDO and the improvement in the

profitability of the rice production of the farmers in Barangay Butong,
City of Cabuyao, Laguna?

Statement of Objectives

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1. To identify the demographic profile of the farmer beneficiaries of

the grain production services under socio-economic in term of
their Age, Sex, Size of operation, and Source of income and by
eco-system in terms of Irrigated System (ha), and Rain fed area
(ha);
2. To determine the benefits given by the CCLDO;
3. To identify the level of rice production of the respondents in terms
of Quality and Quantity;
4. To determine the profitability of the rice production of the
respondents in terms of their Inputs and Outputs; and
5. To determine the significant relationship between the grain
enhancement

services

provided

by

the

CCLDO

and

the

improvement in the profitability of the rice production of the

farmers in Barangay Butong, City of Cabuyao, Laguna.

Statement of Hypothesis
Null Hypothesis: There is no significant relationship between the grain
enhancement services of the CCLDO and the improvement in the
profitability of the rice production of the farmers in Barangay Butong,
City of Cabuyao, Laguna.

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Alternative Hypothesis: There is a significant relationship between the

grain enhancement services of the CCLDO and the improvement in the
profitability of the rice production of the farmers in Barangay Butong,
City of Cabuyao, Laguna.

Significance of the Study

The study is significant since it would help to assess if the
services offered by the local government is a probable means in
increasing the production of the farmers. As this study goes, it would
also be useful to the following:
Farmers This study could acquaint them with the knowledge and
profound more to their understandings about the benefits they could
have

in

availing

those

programs

and

services

offered

by

the

government.

Local Government This study could lead them to pursue or improve

their current programs if ever it is beneficial to both parties.
Community This study would extend their awareness about the
assistance of the government by providing the needs of local livelihood.

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Students This study could contribute new facts, ideas, and knowledge
to them regarding the subject matter that could equip them with
additional information concerning this topic.
Future researchers This study could be used as a reference in
conducting a similar matter as they could acquire information from the
results of this research that could serve them as a basis for their study.

Scope and Delimitation

This study covers the rice production of the benefited farmers
from the services offered by the local government of Cabuyao. The
services that are included are determined based on its relatability to the
enhancements of grain, specifically rice. This study is limited only to
Barangay Butong in the City of Cabuyao, Laguna. The respondents of
the study focused only to the farmers that are legally registered to
receive those benefits given. The information will come from the data
ask by the researchers from the knowledgeable persons about the
study, and from the questionnaire that will be distributed, as well as
from the information that will come from the literatures and studies
which had been cited and reviewed. Furthermore, the analysis and

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interpretation of the data is limited only to the extent of the knowledge

and understanding of the researchers

Definition of Terms
Technology It is the services provided by the local government that is
certified to be useful in increasing rice production.
Profitability It is the degree of income at which farmers gain through
the selling of the output they produced reduced by the cost of the
inputs theyve used.
Grain Production Enhancement Services services offered by the local
government regarding to the improvement of crops to assist the
progress of the farmers beneficiaries in their livelihood.
Irrigation Management It is the artificial exploitation and distribution
of water at project level aiming at application of water at field level to
agricultural crops in dry areas of in periods of scarce rainfall to assure
or improve crop production.
Inputs These are raw materials and machineries that are used in the
production of rice.
Outputs These are the outcome produced by the farmers as they
cultivate their lands for the purpose of generating a more sufficient
number of products.
Quantity The number of rice produced

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Quality The gradation of value of certain rice produced in the

agricultural land.

Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
As studied by Diagne et al., (2013), the production and technical
efficiency of rice farmers in the Senegal River Valley. They concluded
that production function is affected positively by land, seed, fertilizer
and services and negatively by labor costs. They obtained technical
efficiency scores in the range of 55% to 60%. They further estimated
that fertilizer, herbicides, bird chasing efforts, use of post-harvest
technologies such as thresher-cleaner affected the technical efficiency
of rice production in Senegal.
Furthermore, the average Filipino rice farmer operates about 1.22
ha ranging farm area from 0.1 to 4.8 hectares, suggesting a significant
variability in farm sizes among rice farmers. The total value of farming
retained by the farmer after harvest is about averagely 109.02 cavans.
With the expectation of higher return from rice farming, Filipinos
farmers spend significant amount of money on fertilizer, about on
10,902 peso per season.
As a result, it shows that the cost of fertilizer is a positive and
statistically significant in explaining rice production in Philippines at
10% significance level. Total acreage is also positive and significant
factor indicating that a 1% increase in acreage increases rice

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production by 0.48%. The coefficient on a dry season, dummy variable,

positive and is significant at the 10% level of significance. Fuel cost as a
part of production function is also significant at the 5% level. The
insignificant coefficient for herbicide use in our result may be due to the
fact that weed and pest control is not a productive input, but
rather a damage abatement input which does not directly affect
productivity, but indirectly through technical efficiency. Technical
efficiency (TE) of a given firm is as the ratio of its mean production to
the corresponding mean production if the firm utilized inputs most
efficiently. In simple words, technical efficiency refers to a firms ability
to achieve maximum output from a given bundle of inputs. The mean
TE score for their sample was 0.548 obtained through the fixed-effects
model and ranged from 46% to 74%. The results showed that farmers in
Philippines can increase production by 46% in the existing technological
conditions.
According to Piedad Moya et al., (2012), input-output data and
management practices for rice are collected by parcel for each sample
farmer. Thus, if one farmer has two or more parcels, information on rice
production processes is collected separately for each parcel. This is on
the

assumption

that

each

parcel

will

have

different

inherent

productivities and farmers may have different practices for each of their
parcels, particularly if they are located in different locations and
ecosystems. This will result in varying yields, input use, and crop
management practices

not

only

inter-households

but also intra

households.
Furthermore, Central Luzon is one of the regions in the Philippines
where there is a distinct wet season and dry season in which the rainfall
during the DS is minimal; without any source of water, the rice crop

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cannot survive. Meanwhile, the DS has an advantage in terms of higher

solar radiation and less pest and insect prevalence, thus allowing higher
yield as long as irrigation water is properly provided. Rainfed farms that
depend on rainwater alone have no DS rice crop. Only irrigated parcels
are planted in the DS; hence, a much smaller sample is obtained than
for the WS.

Chapter 3
RESEARCH METHODOLOGY AND PROCEDURES
This chapter presents a brief discussion of the study and
processing of data are emphasized. This shows the research design,
sources of data, data gathering instruments, data gathering procedures,
and statistical treatment of data used by the proponents in gathering
the necessary information.

Research Design
The researchers used the descriptive method. As stated by
Calderon and Gonzales (2003), it is designed for the researchers to
gather information about present existing conditions needed in the
chosen field of the study. This method entitles the researchers to
interpret the theoretical meaning of the findings and hypothesis
development for further study.

Location of the Study

Respondents of the Study

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The locale of this study was in Brgy. Butong, City of Cabuyao,

Laguna. According to Cabuyao City Agriculturist, the total registered
farmers in Butong as of 2015 is 20.
The respondents of the study were perceived by the farmers of
Brgy. Butong with a number of 20 legally registered farmers.

Sources of Data
The researchers considers primary and secondary data to acquire
sufficient information needed in the study.
Secondary data such as the list of the registered rice farmers was
taken from CCLDO, and the respondents profile and relevant
information will be gathered from the registered farmers of Brgy. Butong
The researchers used books, theses and dissertation, informations
from the internet and City Agriculturist.

Instrumentation and Validation

The research instrument that was used by the researchers to
gather all the information of the respondents was a survey
questionnaire. It was intended to gather relatively large number of
cases. This instrument involved determining information about
variables rather than about individuals. It was the easiest way to gather
data. The questionnaire was believed to be the major instrument in
collecting data for the survey studies. It has consisted of questions or
indicators that could answer the statement of the problem that will be
distributed to all farmers of Brgy. Butong

Validity of the survey questionnaire will be obtained after

being presented to the people with professional expertise. According to
Amin (2005) content and construct validity was determined by expert

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judgment. The researchers referred to references, reading materials,

and an unpublished thesis.
Thereafter, the researchers made a first draft of questionnaire and have
presented to their research adviser, Prof. Wernan P. Peralata and other
people who were concern or qualified to evaluate as definitely reliable
instrument that were used in this study.

Data Gathering Procedure

In this research, the researchers will gather an exact data as
to be perceived by the registered farmers of Brgy. Butong for the
researchers to know the relationship between the grain enhancement
services of the CCA and the improvement in the profitability of the rice
production of the farmers generation gap between the students and
teachers. The researchers will construct a letter containing request to
gather a particular survey that each of the respondents were able to
answer the survey questionnaire honestly and correctly for an accurate
result.

Statistical Treatment of Data

The statistical tools used in the analysis of data and their
corresponding formulas were enumerated as follows:
1 The percent formula is as follows:

frequency

%=

x 100

total no. of respondents

2 The mean formula is as follows:

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fx

x= i=1
N

Where x= weighted mean

= summation
F= frequency
x= weight of the scale
N= total number of cases

3 One way analysis of variance (ANOVA) formula is as follows:

Fcal
=

Mean Square Between

Mean of Square Within

Decision rule:
At 5% of significance, if Fcal is less than Ftab, there is no significance
difference, accept Ho.a

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