Farm Management Practices: A Case Study

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Agriculture is inherent with uncertainties and risks. Despite the wonders of science and technology, the unpredictability of nature still prevails especially in the Philippines where natural disasters are frequent. These, in turn, affect a farmer’s decision on what kind of farm management practices to use and how to allocate and maximize limited resources properly which both have an impact on a farm’s level of production. According to the World Bank’s report on Managing Agricultural Production Risk (2013), producers face production risks mainly caused by biological factors such as pests, diseases, and climatic problems such as drought and floods. These risks increase the possibility of incurring losses and having low returns which is the main …show more content…

In a study by Barham et al. (2014), they have concluded that farmers who are more risk averse adopt GM Corn more than those who are not. Moreover, a study on the factors influencing farmers’ adoption of modern rice technologies and good management practices in the Philippines stated that farmer’s educational attainment, irrigation water supply, capacity-enhancement activities, profit-oriented behavior, and machinery ownership increase the adoption of modern technologies in rice while soil and nutrient deficiencies say otherwise. (Mariano, Villano, & Fleming, 2013) It was also noted that agricultural extension activities affect the decisions of farmers the most in terms of technology adoption. Ayenew, Sauer, & Abate-Kassa (2015) concluded in their study that farmers are more likely to engage on on-farm diversification if they are more risk averse. Other empirical studies also suggest that farmers are relatively more risk averse, however, the study of Livingston & Mishra (2012) on corn and soybean farmers in the USA said that there was a shift in risk preferences from being risk neutral to being risk tolerant in the recent years. They also added that those who earn more are more tolerant to risks than those who do …show more content…

A study conducted by Dejarme-Calalang, Bock, & Colinet (2015) emphasized that white corn production in the Philippines must be given focus as it covers the demand in areas where rice is insufficient. It was also said that the national average yield value of white corn in 2012 is 1.65 ha and the average production cost is Php11.31. According to Oppong et al. (2016), “Technical efficiency analysis is of paramount importance to increase maize productivity and contribute to the attainment of food security and income generation.” Despite the Php92 billion contribution of corn production in 2015 (PSA, 2016), losses are still evident in the production system. Production losses are in fact due to natural disasters such as typhoons, flood, drought, and infestations of pest and diseases (World Bank, 2013) and postharvest losses brought by inefficiency in storage and handling. In this context, farmers prefer quality seeds that would yield varieties that are resistant to these risks. Labios et al. (2016) revealed in their study that farmers prefer corn with medium plant height, good root anchorage, large ear size, heavier weight, and good grain quality. These are the characteristics suitable for efficient corn

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