Needs Analysis Report Outline

Working Paper No. 2014-07

Boosting Agricultural Mechanization in Irrigated Rice-Based Farms in Selected Barangays in Ibaan,

Batangas: A Needs and Design Assessment

Agnes R. Chupungco, Cristeta A. Foronda and Susan S. Guiaya

Center for Strategic Planning and Policy Studies (formerly Center for Policy and Development Studies) College of Public Affairs and Development University of the Philippines Los Baños College, Laguna 4031 Philippines

Telephone: (63-049) 536-3455 Fax: (63-049) 536-3637 Homepage: www.uplb.edu.ph

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The Director Center for Strategic Planning & Policy Studies (formerly CPDS) College of Public Affairs University of the Philippines Los Baños College, Laguna 4031 Philippines Email: [email protected]

Executive Summary

This research involves a needs assessment of the six Agrarian Reform Beneficiaries Organizations (ARBOs) and their immediate communities, and a design assessment of the proposed partial mechanization of farming operations in irrigated rice-based farms in selected barangays in Ibaan, Batangas.

The main objective is to improve palay production, farming efficiency, and the income of farmers in the 180 ha of irrigated areas managed by six farmers associations in the six barangays in the Municipality of Ibaan, Batangas, through the provision of hand tractors for land preparation, threshers, and one Elf Truck drop side for easy transfer of the machineries to the different barangays.

Under the project, the six farmers’ associations will be formed into one business unit. A business development services (BDS) provider will be tapped to manage the operation of the machineries and to install necessary business systems and procedures to eventually develop a viable agro-based enterprise. The business unit will be managed by the BDS for three years and during that period, coaching and mentoring sessions for the key officers of the business unit will be done so that the management and operation of the business can be efficiently handled by the farmers associations afterwards.

The organizations’ strengths and weaknesses in adopting and implementing the proposed projects were assessed thru the current profiles of the members of the organizations, existing services and capacities as well as the financial standing of the organizations. Focus group discussions among officers and members of ARBOs, as well as non- members of ARBOs were done. Using SWOT analysis, resources in the community and natural surroundings, institutional arrangements and livelihood opportunities were examined as they could aid in the effectiveness of the projects. It was also used to assess the design of the project and identify the areas of intervention. Findings revealed that boosting agricultural mechanization in the study area, by providing four hand tractors, three mechanical threshers and one elf truck drop side together with the BDS provider to manage the entire project for three years, is very much acceptable to all the ARBOs.

With the provision of agricultural machineries, the rental fee for use of hand tractor and mechanical thresher would decrease; land preparation and threshing would not be delayed; the quality of palay harvested would be higher as farmers do not have to wait long for the use of thresher; renting out to other farmers of the hand tractor and thresher would be a source of income for the ARBOs; and thus, income of farmers would increase due to reduction in cost of production and better quality of palay produced.

Provision of the tractor will also benefit their upland farmers as it is needed in their upland areas. In addition, as most of the farmers produce during the wet season become

rotten and spoiled, and become discoloured or blackish (and some palay harvested just fed to poultry), especially if not threshed immediately after harvest, the provision of thresher will increase the farmers' income considerably during the wet season. Hence, provision of the hand tractors and threshers will boost rice production, and improve the well-being of the farmers and the communities as well.

However, the ARBOs need to be trained on recording, bookkeeping, accounting, auditing, database/information management, and reporting. This could be done by the project implementers or a group that would manage the Common Service Facilities (CSF). The BDS provider and the ARBOs have also to agree on where to locate the motor pool strategically, how much should be the rental fees for the farm machineries considering the economic life span of the hand tractor (about 10 years) and the thresher (about 7 years).

For easy maintenance and management, the ARBOs in barangays Sabang and Matala suggested giving one hand tractor and thresher for each of the six barangays. There is no need for an elf truck as its maintenance is costly, aside from registration costs that need to be funded. This way, it would be more economical, less headache in terms of management, and farmers in all the six barangays concerned would be happier as they can schedule their land preparation and planting much easier. Long waiting time for others to finish in the use of the machineries could also be avoided. Although this option could be considered by DAR, it would still be best to provide the six ARBOs 4 hand tractors, 3 threshers, and 1 elf truck drop side. Furthermore, each ARBO would also need a vehicle to transport the farm machineries to the rice farms.

As most of the farmers finished high school and elementary, for better understanding of the farmers, the training modules must be in Filipino language, and conducted in each of the barangays, to ensure good attendance among the farmers concerned.

Given the experiences in renting out hand tractors and threshers of its President and success in implementing projects, the Matala Irrigators’ Association can be tapped in the management of the business enterprise envisioned to be put up. The Association can handle the management of the business operations of the CSF efficiently and effectively, as one-third of its members are college graduates. Another option is to select the best officers from the six ARBOs and let them manage the CSF. The President of the ARBO in barangay Sabang is also good in business management.

It should be borne in mind though that transparency in the operations, good management, providing the training needs, agri-extension and financing support, and cooperation among the BDS provider, the ARBO members, and other members of the community, and institutions/agencies involved are keys for the successful implementation of the proposed project. Likewise, the problems on contaminated irrigation water and damaged canals must be addressed to ensure good production and increased income of the farmers. The problems of ARBs with regard to land ownership documents and land payments also need to be resolved.

Likewise, DAR needs to update its records regarding the ARBs' status and their families, as many ARBs have transferred their farmlands to one or more children or nephews/nieces. The records should include among others, their financial status in terms of payments to the landowner or to the bank, and land status, e.g., conversion as some or portion of the farmlands have already been converted to residential and other purposes. This is important in planning and policy formulations and efficient program implementation.

This research funded by Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) of the Department of Agrarian Reform, has been requested by Congressman Eulogio Magsaysay of AVE Partylist. It would be implemented in partnership with the Local Government Unit of Ibaan through the Municipal Agricultural Office and the Department of Agriculture - Regional Field Unit. The DA and the LGU shall provide extension services on updated technologies in rice-based farming system management and techniques to ensure increased production of palay, and maximum use of the farm machineries. The machineries will also be rented out to other palay producing areas in the municipality but the farmer-members of the six farmers’ associations will be prioritized.

TABLE OF CONTENTS

Page I. Introduction ...... 1 II. Conceptual framework ...... 2 III. Methodology ...... 4 IV. Brief Description of the Project ...... 4 V. Findings ...... 7 VI. Proposed Work Breakdown Structure ...... 21 VII. Conclusions and Recommendations ...... 24

List of Tables Page

Table 1. Year organized and registered and number of members by ARBO, Ibaan, Batangas, 2012. 27 Table 2. Problems in the Community, Ibaan,Batangas, 2012. 28 Table 3.Community needs, Ibaan, Batangas, 2012 29 Table 4. Months covered by cropping season and varieties planted by barangay 30 Table 5. Area planted to palay, yield per hectare, and farm price of palay by barangay, Ibaan, Batangas, 2012. 30 Table 6. Estimated average costs and returns of palay production, per hectare 31 Table 7. Number of hand tractors, mechanical thresher, and mechanical dryer 31 Table 8. Number of days and costs involved in plowing per hactare by barangay, Ibaan Batangas, 2012. 32 Table 9. Sources of Credit by Barangay, Ibaan, Batangas, 2012 33 Table 10. SWOT analysis for the proposed partial agricultural mechanization of irrigated rice farms in selected barangays in Ibaan, Batangas, 2012. 34

List of figures Page

Figure 1. Conceptual Framework of ARCESS Project 3 Figure 2. Proposed work breakdown structure. 21

Boosting Agricultural Mechanization in Irrigated Rice-Based Farms in Selected Barangays in Ibaan, Batangas: A Needs and Design Assessment Agnes R. Chupungco, Cristeta A. Foronda and Susan S. Guiaya

I. Introduction The Department of Agrarian Reform (DAR) is the lead government agency in the implementation of the Comprehensive Agrarian Reform Program (CARP). The program has three components, namely, land tenure improvement, agrarian justice, and coordinated delivery of essential support services to farmer-beneficiaries. In line with this, the Department is tasked to help improve the overall socio-economic well-being of agrarian reform beneficiaries (ARBs) and other smallholder farmers through the provision of support services to exploit agricultural opportunities and maximize the utilization of their land.

As part of the extension of the appropriate support services, DAR has continuously implemented special projects nationwide, one of which is the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) Project which was conceptualized and designed by the DAR as a government-led initiative to tap intersectoral (public-social-private) partnership. It aims to provide sustainable livelihood through the organization of competitive agricultural enterprise thereby transforming ARBs into viable entrepreneurs by providing support services that will consequently increase their household incomes and improve their farming capabilities. Through ARCCESS, DAR, together with other partner agencies will teach new agricultural technologies and business development and management to farmer organizations and provide farm equipment and machinery to improve and increase their yield. The ARCCESS is initially designed to be implemented for a maximum period of three years.

Proposals for the identified entrepreneurial sub-projects had already been prepared. However, the DAR felt the importance of conducting a Needs Assessment as a systematic approach to identify the nature and scope of the social problem being addressed as well as the reasons that are causing the undesirable outcomes, to definethe target population to be served, and to determine the services needed to meet the problem. Moreover, the DAR also further sought the conduct of a Design Assessmentto model the theory behind the ARCCESS Project and present a plausible and feasible plan for improving the target social condition. The objective is to ensure that the goals and assumptions are reasonable and to assess how well the theory meets the targeted needs of the target population so that there is greater prospect that the Project will be effective. Hence, this Needs and Design Assessment of the proposed ARCCESS sub-project was done.

The ARCCESS project of DAR aims to increase the income of the ARBs. Enhanced agri-productivity, better farming efficiency and increased value of their crops are viewed to be the means to augment their income.

A. Objectives of the Study

Generally, this research undertaking intended to conduct a needs assessment of the six Agrarian Reform Beneficiaries Organizations (ARBOs) and their immediate communities, and a design assessment of the proposed partial mechanization of the farming operation in irrigated rice-based farms in selected barangays in Ibaan, Batangas. Specifically, this study sought to:

1. Characterize the six ARBOs, the communities, and the resource base in their respective communities in selected barangays in Ibaan, Batangas through environmental scanning; 2. Identify areas of intervention to improve the proposed project based on the existing resources and capability of the ARBOs and the communities concerned; and 3. Develop a work breakdown structure in the implementation of the proposed project.

II. Conceptual framework

Figure 1 presents the conceptual framework of the Needs and Design Assessment of the proposed ARCCESS projects. In order to make these ARCCESS projects thrive and eventually effective, the proposed projects were reviewed, including their designs so that the embodied components and activities matched the needs and strengths of the target organizations and beneficiaries. The design review involved identifying the appropriate areas of interventions as well as the priority sequence of these interventions. The work breakdown underscores the order of interventions to facilitate project implementation.

Environmental Scan

Characteristics of the ARBOs

(Situational Analysis) Characteristics Characteristics Organizational Profile of the Resource of the Base Community Services Kinds of Local Capacity Building Institutional Resources Arrangements Financial Status Resource Livelihood Degradation/ System Improvement

ARCCESS Project Design Review SWOT Areas of Intervention (Priority/Degree)

Work Breakdown

Figure 1. Conceptual Framework of ARCESS Project

Corollary to the design review is the assessment of needs that can be done through an environmental scan describing the organizations, the communities and their corresponding resource bases. The characterization of the organizations is imperative in assessing their strengths and weaknesses in adopting and implementing the proposed projects. This included the current profile, existing services and capacities as well as the financial standing of these target organizations. An examination of the resources, both community and natural surroundings will aid in furthering the effectiveness of the projects. This entailed appraising the present institutional arrangements and livelihood opportunities coupled with the types of resources and their conditions, among others. This has the end view of identifying and subsequently providing the complementary and supplementary means to achieve project success. A SWOT analysis becomes a requisite in these assessments.

III. Methodology A. Needs Assessment Primarily, the Focussed Group Discussions (FGDs) were conducted to gather primary data pertaining to the ARBOs and the communities where they subsist. Separate FGDs were held in the six barangays of the Municipality of Ibaan, Batangas. The FGD participants were the officers and members of the associations. To compliment the data gathered from the FGDs, a survey of 58 palay farmers (35 members of ARBOs and 23 non-members of ARBOs) was conducted. Forty percent of the ARBO members and 30% of the non-members of ARBOs interviewed were ARBs. Needs of the ARBOs were assessed and categorized into: human, social, physical, financial, and natural capital. Livelihood analysis was undertaken to further determine the sources of income of the members of the ARBOs and the concerned communities as a whole.

B. Design Assessment The SWOT analysis was utilized to assess the design of the project and identify the areas of intervention. The work breakdown structure was also drawn to determine prioritization of activities towards the attainment of objectives.

IV. Brief Description of the Project The Project entitled “Boosting Agricultural Mechanization in Irrigated Rice- Based Farms in Selected Barangays in Ibaan, Batangas” involves the partial mechanization of the farming operation by providing four hand tractors (to be used in land preparation), three threshers, and one Elf Truck drop side. The Elf Truck is needed for easy transfer of the machineries to the different barangays.

The main objective of the project is to improve palay production, farming efficiency, and the income of farmers in the 180 ha of irrigated areas managed by six farmers associations in the six barangays in the Municipality of Ibaan. Aside from resulting in timeliness of farming activities, the use of pre- and post-harvest facilities may lower production costs or offset increased costs of draft animals or labor.

Under the project, the six farmers’ associations will be formed into one business unit. A business development services (BDS) provider will be tapped to manage the operation of the machineries and to install necessary business systems and procedures to eventually develop a viable agro-based enterprise. The business unit will be managed by the BDS for a period of three years and during that period, coaching and mentoring sessions for the key officers of the business unit will be done so that after the three year period, the management and operation of the business can be efficiently handled by the farmers associations.

The project which is requested by Congressman Eulogio Magsaysay of AVE Partylist will be implemented in partnership with the Local Government Unit (LGU) of Ibaan through the Municipal Agricultural Office (MAO) and the Department of Agriculture - Regional Field Unit (DA-RFU). The DA and the LGU shall provide extension services related to the updated technology in rice-based farming system management and techniques to ensure that the average production of palay will increase. The improvement on yield of palay will contribute to the maximum usage of the farm machineries. The farm machineries will also be rented out to other palay producing areas in the municipality but the farmer-members of the six farmers’ associations will be prioritized.

Expected project benefits and outcomes would be realized through the following: a. Viable production support enterprise owned and managed by ARBs; b. Stronger position of the farmers’ cooperatives through increased ARB/small farmers’ membership and improved capacity in managing the agribusiness enterprise; c. Improved crop yield of palay; and d. Increased profitability through efficient land preparation to postharvest handling of farm operations.

The major project components as lifted from the proposal made by DAR Provincial Office (DARPO) in Batangas (undated), are as follows:

A. Provision of farm machineries. This includes the provision of four farm tractors and three threshers to the business unit composed of six farmers 5

associations. An Elf truck shall also be given for easy transfer of the machineries from one barangay to another. This shall provide production-level support to palay production and at the same time serve as the resource base for the business/enterprise. These farm machineries shall be procured by DAR and given to the farmers’ associations as a grant. The machineries, however, will be operated as a business enterprise. To attain this, it will be utilized with fee by the small farmers to generate funds to sustain its operation and maintenance. The area to be serviced by of these Common Service Facilities (CSF) are primarily the 183 ha irrigated rice farms of the six farmers’ associations. The remaining 95 ha of irrigated and upland rice lands in neighboring barangays within the municipality of Ibaan shall be the potential market for farm machinery rental.

The municipality of Ibaan has 5,143 ha of agricultural area, 278 ha of which are irrigated and rainfed farms and harvested by a total of 238 farmers (DARPO, undated). Yield per hectare is about 3.5 metric tons in irrigated lands. Net income of farmers planting palay in irrigated lands is P20,000/ha/cropping season.

B. Provision of business development services. This involves deployment of an Area Supervisor and a Community-Based Enterprise Organizer (CBEO) who will manage the business unit. Empowerment and capacity building of the farmers’ associations in pre- and post-harvest industry to ensure the eventual takeover and management of the business by the farmers associations will be a major concern in this component. The DAR will contract out and provide salaries to the CBEO and Area Supervisor.

C. Provision of agri-extension and financing. The DA and LGU through the MAO will provide trainings on updated technologies in rice production. Technical assistance will also be provided to ensure attainment of higher yield and eventually bigger income for the farmers. Complementary to this, an orientation on financing facilities will be conducted to provide farmers with access to the needed capital for farm production.

D. Agribusiness development. This involves application of the technology transfer provided by DA and LGU- MAO in the 183 ha of irrigated ricelands in the six barangays. The production inputs will form part of the equity of the farmers.

V. Findings A. The Agrarian Reform Beneficiary-Organizations (ARBOs)

The six (6) ARBOs, were organized anytime in the 1950s to 2008 (Table 1). The Matala Irrigators’ Association, Incorporated was registered with the Securities and Exchange Commission (SEC) in 1987; and Sabang Farmers’ Association, Pangao- Talaibon Irrigators’ Association and the Talaibon Farmers’ Association with the Department of Labor and Employment (DOLE) in 2012. The two others, the Balanga Farmers Association and the Quilo Farmers Association were not registered yet.

As of 2012, the number of members of these ARBOs range from 17 to 35. A large number (total of 96%) of the members are active in their respective organizations.

1. Major Livelihood of Members

Almost all members are palay farmers. A few farmers have shifted to raising livestock (especially hogs) and vegetable farming because of the low income derived from rice farming. Some farms were also planted to sugarcane.

Aside from rice farming, major livelihood of members of the ARBOs as well as the other members of the community are livestock raising, vegetable farming, and sugarcane farming. Another source of livelihood is selling mats, mosquito nets, bed sheets, and “kakanin” such as rice cakes, “suman”, “sinukmani, and “sinaing na tulingan”. Other residents are factory workers in other municipalities of Batangas and Laguna. In one barangay, Sabang, many of the residents (about one-third of the population) work overseas.

2. Knowledge and Awareness About the Proposed Project

The ARBOs are aware of the proposed project. The proposed project was conceptualized in consultation by the DARPO with them. Likewise, a general meeting with regard to forming an association consisting of officers coming from the six ARBOs, was held in May 2012 in preparation for the implementation of the project. The proposed project was acceptable to all members and officers of the ARBOs, even though a few business-minded officers who have been renting out hand tractors and threshers would be affected to some extent. Two ARBOs, namely, the Matala Irrigators’ Association, Inc. and the Sabang Farmers’ Association, however, have some suggestions. They thought that it would be better for all six ARBOs if they would each be given a hand tractor and a thresher together with the management of these farm machineries. In this case, it would be alright not to grant them anymore the Elf truck. It would be costly to maintain the Elf truck because of the fuel and later on, repairs that would be needed to sustain its operations. Another option, according to the Matala Irrigators’ Association, Inc. is for the government to grant each ARBO P500,000 which would be used not only in the purchase of agricultural machineries but also in loaning out production inputs or some amount of money to members at low interest rates.

Next to thresher and tractor, the ARBOs would like to have good quality seeds and the implementation again of the 50% government subsidy on certified seeds. They also expressed their desire to have transplanter, sprayer, and harvester. Adequate and non- contaminated irrigation water and sources of credit with low interest rates were also mentioned as priority needs.

3. Potential Benefits from the Project

The FGD participants claimed that if the partial agricultural mechanization project would push through, the following advantages can be achieved:

 Lower rental fee for use of hand tractor and mechanical thresher.  On-time land preparation and threshing activities thus improving the quality of palay harvested.  The hand tractor and thresher could be rented out to other farmers and this would be a source of income for the ARBOs.  Hence, income of farmers would likely be higher due to reduction in cost of production and better quality of palay produced.

In addition, the ARBOs would be capacitated to manage their own agribusiness enterprise. Farmer cooperatives in the area could then have a stronger position through increased farmers’ membership. Other impacts of the proposed project would be improved yield of palay and increased profitability of palay farming through efficient land preparation and better post-harvest handling operations.

B. Environmental Scan

1. About the Respondents

Average age was 54 for all respondents, 51 for the spouses, and 22 for the children. Considering all household head, most are elementary undergraduates (38%), High School graduates (19%), and elementary graduates (8%). Of the spouses, 25% each are only high school graduates and elementary graduates and 23% are elementary undergraduates. It is interesting to note that of the children, most (24%) are college graduates.

All the farmers interviewed were palay farmers, 88% of whom consider palay farming as their primary occupation. Aside from palay, only one farmer planted another crop, bittergourd. Majority (69%) did not have any secondary occupation; 12% of the farmers, however were also employed as hired farm workers. Of the spouses, 43% were

plain housewives; 10%, farmer/ farm workers; 16%, sales workers and a few others were service workers, vendors, retired teacher, and barangay workers. Of the children, 38% were students while 10% had no occupation or were still young to be students; most or 15% were Overseas Filipino Workers (OFWs); and 12%, non-farm laborers. Only 5% of the children worked in the farms.

Average household expenses in 2011 by the palay farmers was PhP180,342, food expenses of which was 24%; electricity and water, 10%; fuel, 3%; other grocery items, 5%; education of children, 12%; and health and medical care, 7%. Since average total income of the household was estimated at PhP199,196 (PhP160,227 from non-farm income, PhP9,358 from off-farm income, and PhP29,611 from on-farm income), palay farming household had savings of PhP18,854.

On crop production problems, 67% asserted that they did not have crop production problems. The 33% of farmers who mentioned having problems on rice production identified black bug (54%) and golden snail or “kuhol” (41%) as their major problems. Other problems cited were other insect pests (19%); lack of capital (18%); contaminated irrigation water (13%); lack of irrigation water (10%); weed (5%), rat (3%); seeds not good (3%), tungro (3%), birds (1%) and climate change (1%).

Market outlets for palay were mostly the traders/middlemen (51%) and the rice millers (45%). The remaining 4% sold their commodity in the public market. Majority (81%) did not mentioned any problem in marketing palay/rice. The farmers who stated marketing problems mentioned low farm prices and limited marketing outlets.

Forty-eight percent of farmers surveyed experienced being participants of trainings in agricultural production. Of these farmers who attended trainings, topics were mostly on rice farming (46%) and control of insect pests and pesticide use (29%). Other topics were on farm management, fertilizer use, techno-demo, organic farming, compost making, livestock production and vegetable production. Sixty-eight percent of those who attended trainings had adopted the technologies learned from the training. Some farmers said they were used to old ways of planting palay. A few farmers suggested that other topics that should be included, in trainings/seminars are information management, organic farming, how to control pests without using chemical pesticides, and how to access capital for production purposes. Types of assistance already availed of by farmers were on seeds subsidy or provided for multiplication purposes (20%), farm-to-market roads (7%), fertilizer subsidy (3%), and granting of hand tractor (2%).

Majority (52) of palay farmers had already availed of loans. Of these farmers, sources of credit were cooperative (23%), bank (20%), relatives (17%), lending investor (13%), friends (10%), traders and SSS (7% each), and agricultural supply dealer (3%). No one reported of any problem in credit availment.

One-third of the respondents said that there are no problems in the community. Problems in the community as cited by the other respondents include unemployment

(14%); wastes (10%); financial and drug addiction (5% each); other were lack of certified seeds, credit non-repayment, damage irrigation canal and lack of irrigation water; insect pest, robbers, typhoon, drunkards, electricity, lack of livelihood programs, high price of farm inputs, high price of other commodities, need for parking space in the public market, lack of threshers, politics, high cost of education, and delinquent teenagers (Table 2). With regard to community needs, farm machineries including hand tractor and thresher was the major need identified with 29% followed by job opportunities and livelihood projects with 17% each; financial assistance (16%); road repair (10%); street lights (9%); and new knowledge in farming with 7% (Table 3). Other concerns were on high-yielding seed varieties, low price of production inputs, and high price of palay.

2. Social Capital

This refers to the networks, groups, and institutions from which the association may seek for assistance and support, among others. For the ARBOs, there are a number of institutions/agencies/other organizations that can provide assistance for the success of the proposed project. These are DAR, especially the DARPO and the local DAR office; the DA Provincial Office and the MAO of Ibaan for giving seminars/trainings and updating farmers on modern technologies; the National Irrigation Authority (NIA) with regard to problems on irrigation water and the farmers’ cooperative and Bangko Kabayan, a rural bank for credit facilities.

All the ARBOs stressed that they do not have conflict among the members within the organization and among the ARBOs. They have trust and confidence on their leaders. They intend to help one another in managing the proposed project as it is for the good of the farmers in particular, and the community, in general.

3. Human Capital

This includes the skills, knowledge, ability to work, and good health which are necessary in the pursuit of livelihood and other productive activities. The educational attainment of most of the officers and members of the ARBOs may not be that impressive as majority have not reached college; but they are willing to cooperate with the project implementers, the LGU, other government agencies that would be involved, and the whole community on whatever aspects of farming and extension-related activities that would help them in any way in improving their skills and knowledge and even managing and running the CSF.

The ARBOs leave to the project implementers on how the training needs of the ARBOs or of the association or group who would eventually take good care and manage the project would be provided. Nevertheless, the ARBOs officers and members need to be trained on the following:

 Operation of hand tractor and mechanical thresher;

 Maintenance and minor repairs of farm machineries (and where to bring them for major repair);  Accounting principles, record-keeping, bookkeeping auditing, data bank/information management, reporting ; and  Modern technologies in palay farming and business.

DA, DAR and their local counterparts in the LGU including private companies engaged in the fertilizer and pesticides business, and private trainers could facilitate and provide the above trainings. The BDS provider must have good management abilities which should be handed down to the associations of the six ARBOS after three years. Transparency in managing the agribusiness enterprise is also important in gaining the trust and respect of everyone. This would then help bring out the best in all the concerned individuals in their livelihood and productive activities.

4. Physical Capital, Natural Capital and Other Farm Resources/Infrastructure

Physical capital refers to the basic infrastructure such as transport, energy, communication and production equipment which enable people to pursue their livelihood. Natural capital, on the other hand, refers to all natural resources useful for livelihood like land and water. At present, farm to market roads, transportation, electricity and communication are not much of a problem to the farmers and the community in the study sites.

There are two cropping seasons for palay per year. Dry season runs usually from November/December/January to February/March/April/May while wet season is usually from May/June/August/September to September/October/November/December (Table 4). The most popular variety planted was RC 18. Total area planted to palay ranged from 25 to 45 ha in the barangay and from 25 to 40 ha for the ARBOs (Table 5). Average yield was from 3,375 to 4,032 kg during the dry season; and from 2,000 to 3,200 kg during the wet season. Farm prices were higher during the dry season harvest at PhP14-P16/kg; it was PhP11-P14/kg during the wet season harvest. From the FGDs, it was gathered that average palay production cost per hectare varied from PhP20,000 to P30,000 while net income varied from PhP6,000 to P25,000 per cropping season. Considering both FGDs and the survey of farmers, average total production cost per cropping season was estimated at PhP26,499 while net returns was estimated at PhP15,535. Average yield per hectare was 3,057 kg with average farm price of PhP13.75 (Table 6). If yield would increase and production cost will decrease and quality of palay would be higher due to availability of hand tractor and thresher then, net income derived from farming would be a lot higher.

Among the six barangays, it was only in Balanga where the farmers do not use hand tractor as they are not available. Carabaos are still being used in plowing and harrowing. For the other five barangays, the number of hand tractors available for rent to 11

farmers is from one to four. The number of mechanical threshers available for rent in the 6 barangays is from one to four (Table 7).

At present plowing costs from PhP2,500 to PhP8,400 per ha with the use of carabao only; and PhP2,840 to PhP5,400/ha with the use of both carabao and hand tractor (Table 8). Harrowing, on the other hand, costs from PhP1,800 to PhP2,400 with the use of carabao only; PhP1,800 to PhP3,360 with use of tractor only; and PhP2,640 to PhP4,750 with the use of both carabao and tractor.

Seeds. At present seeds used by palay farmers come mostly from their own seeds and exchanged seeds with co-farmers. From 2008 until early 2011, farmers enjoyed the 50% government subsidy on certified seeds wherein instead of PhP1,200.00 price of these seeds per sack of 40 kgs., they pay only PhP600.00.

Last May 2012, two to three farmers from each ARBO received 2 kg each of registered seeds and these are supposed to be grown for seed purposes. Some of these farmers got also 2 kg each in December 2011. One negative comment, however, was the poor eating quality of the rice variety distributed.

Fertilizer and Pesticides. Farmer did not encounter any problem with regard to availability of production inputs such as fertilizer and pesticides. These production inputs are always available in the dealer of these agricultural supplies within the municipalities of Ibaan and Rosario in the province of Batangas. According to the farmers the constraint is where to get the money to buy these inputs as well as the money to pay for hand tractor rental. Dealers of agricultural supplies would not let them get the inputs on loan except to some of their relatives. They have no problem in paying for the use of thresher at harvest time as they pay the owner of the thresher in palay.

Irrigation. In general, farmers complained of the irrigation water being contaminated by feces of hogs or hog and poultry wastes especially during the rainy season. According to them, this could lower down the palay yield by 50%.

In Talaibon, part of the irrigation culvert needs repair. In Balanga, farmers were complaining that some of their farms are not well irrigated that is, the volume of irrigation water reaching the farms is not adequate.

Drying. There are no mechanical dryers in the barangays except in Sabang wherein the ARBO was awarded a flash dryer in Dec. 2011 but has not used yet because of the long dry spell. Moreover, the fuel for the dryer is gasoline and the members were reluctant to use it because of the high drying cost per sack of palay that would be incurred.

Palay is dried on the multi-purpose solar pavement or on the road. In general, famers do not see the need for a mechanical dryer as harvesting is not done at the same time and volume of production is not that large. If ever they would be given a mechanical dryer, some ARBOs stressed that the space for the dryer would be a problem.

5. Sources of Credit

Majority of the farmers avail of loans for production purposes, particularly to pay for labor in land preparation and to buy fertilizer and pesticides. For irrigation fees and payment for threshing, these are paid mostly in terms of palay; thus, farmers normally pay this on time.

One common source of credit in the barangays is “papasong” wherein for every P1000 loan, the farmer has to pay as interest 22 to 33 kgs of palay after harvest (Table 9). Only the ARBOs from Talaibon availed of credit from the Banco Kabayan Rural Bank in Ibaan, Batangas. In Sabang, there is also the Sabang Multipurpose Cooperative where members can borrow fertilizers and pestcides. Other sources of credit in the barangays are relatives, other private money lenders and the owner of the livestock being raised by the farmers.

6. Marketing

Marketing of palay is still being done individually. Apparently it would be difficult for the farmers to sell the palay as a group or they do not do harvesting at the same time. In addition, the quantity sold is not that large. Some farmers sell their palay immediately after harvest as they need cash. Others sell milled rice. Up to 10 cavans of palay per cropping season are usually stored by farmers for home consumption.

There are private traders of palay from the municipality of Rosario, Batangas, adjacent to Ibaan who buy the newly harvested palay of farmers. No palay farmer sells palay to the National Food Authority(NFA), located in Balagtas, Batangas City. Major reasons cited are the small volume of palay for sale, the stringent requirements of NFA, the longer process involved and the need for outright cash by farmers. Other harvests are being dried and stored before being milled at the rice mill in Ibaan to get a higher income.

The farmer asserted that they do not need any institutional or organized support to market their palay. All they need is to be able to thresh the palay immediately after harvest so the quality would not suffer and hence, they would be able to get a higher price for their palay. They accept the prevailing market price which is easily known by word of mouth.

C. Problems Encountered by Farmers

1. ARBs’ lack of knowledge on ownership documents and land payments 13

Most of the original ARBs are already old. In fact, some are already dead and have transferred their farms to their children. A few have transferred to nephew or nieces just like in barangay Pangao. However, those who were interviewed (who inherited the lands) do not know or are not aware of the status of payments to the bank or the landowners. They also do not know what kind of tenurial arrangement their parents possess, whether Emancipation Patent (EP), or Certificate of Land Ownership (CLOA) or Leasehold Contract or Mother CLOA. Based on the document the Senior Agrarian Reform Technologist has shown, some of them should be paying their amortizations to the Land Bank of the Philippines.

To clarify these, DAR needs to educate the ARBs and their children or relatives who now till the lands on these important matters to clear their obligations and responsibilities related to land payments. Some of the farmers may have already paid fully their lands, and therefore, could be entitled to receive title of ownership to the lands they till. In cases like this, ownership documents need to be facilitated or given by appropriate and concerned agencies to the farmers.

Likewise, it is important for DAR to update its records regarding the ARBs' status and their families, as many ARBs have transferred their farmlands to one or more children or nephews/nieces. The records should include among others, their financial status in terms of payments to the landowner or to the bank, and land status, e.g., conversion as some or portion of the farmlands have already been converted to residential and other purposes. This is important in planning and policy formulations and efficient program implementation.

2. Contaminated irrigation and damaged canals

Almost all the barangays mentioned that one of their major problems is contaminated irrigation water (aside from inadequate irrigation water) as it greatly reduces their production to about 50%, as mentioned by farmers in Pangao. Contamination comes from livestock (piggeries and poultry) and domestic wastes and this has been a problem for a long time already. Many farmers and residents in the area, especially in Pangao and Talaibon have commercial-scale piggeries.

Likewise, in barangay Quilo, their major problem for 10 years already is the contaminated and reddish- blackish irrigation water from San Jose which is about eight to 10 kilometers away from the barangay. Contamination comes from poultry. The farmers have been reporting this to the DA during their meetings.

On the other hand, in barangay Talaibon the irrigation canals that used to be privately-owned need repairs for three years now. They have requested NIA to help them. NIA is now repairing and cementing their irrigation canals. But another problem has 14

cropped up. The culvert along the road where irrigation passes thru is always clogged with wastes and is already damaged. They already reported it to the MAO but they do not know what agency is responsible in addressing the problem. When the waterway is clogged, they are all affected and do not have any irrigation water. The culvert is along the road in Ibaan going to Lipa.

Farmers in all the barangays are the ones cleaning the canals daily, and this is laborious and cumbersome.

The same is true in barangay Balanga. Their main problem for more than 10 years now is polluted irrigation canal. The farmers explained that pollution comes from hog wastes from Pangao. This results to pagdapa ng palay due to increase in the height of the palay plants (dadahon lang at di uuhay) decreasing their production substantially.

Also, NIA has visited the irrigation system in Balanga in 2009, but it is too expensive to address the problem so no action has been done since then, according to the farmers. The provincial government has required piggeries to have bio-gas digester. As piggery owners do not have an association, this could be a constraint in the effective implementation of the regulation. Of the many big-scale piggeries in barangay Pangao, it was reported that only two piggeries have bio-gas digester in the area.

This problem on polluted irrigation water and damaged canals have been reported to the MAO, and other concerned authorities repeatedly for long years already but no action has been done till now.

In barangay Sabang, their main concern is the bridge passing through their irrigation canal which was damaged last May 7, 2011. The Sabang Farmers Association (from the PhP300 irrigation fee/ha/season collection from farmers by the President and deposited to a bank for the Sabang Irrigators Association) has spent some P20 thousand already for the repair of the bridge. It was estimated that they still need about P35 thousand (which they hope to fund using this ARBO’s savings and collectibles) to complete the bridge construction before its use for the next cropping season this 2012.

3. Spoilage of harvests

Another problem raised by the farmers was that during wet season, their harvests become spoiled and blackish in color because of delays in threshing when the thresher is unavailable. This happens in most of the barangays, especially in Talaibon, as the two threshers being used in the barangay is not enough to service all the farmers. They receive low price for discolored palay. Sometimes, the farmers' harvests rot due to long time of waiting for the thresher. Farmers claimed that eight days after harvesting and the

palay has not yet been threshed, the palay would start to germinate and would be used as feeds for chicken and ducks, instead.

According to the farmers there is already a mechanized harvester in Talaibon- Pangao and rental is PhP200/hr. It takes 5-6 hours/ ha to harvest palay using a mechanized harvester. But with manual harvesting, it takes 10 persons/ha for 12 hours or 1.5 days. The mechanized harvester can be used when palay is upright but it is no longer applicable when the palay is “dapa”.

4. Financial problem

Aside from inadequate capital to pay for labor and land preparation and to buy production inputs, the farmers indicated that they have no funds to buy fuel for the machineries, especially for the elf planned to be given to them. Also, with the elf, they also worry about the registration expenses and expensive maintenance cost. This was mentioned by some of the farmers. In fact, they have to borrow from private money lenders, locally known as “papasong” especially when there was blackbug infestation in the area. Many farmers (33% - 85%) borrow as much as P1,000 – 3,000 from “papasong” with interest rate as high as 50% in four months time.

5. Declining ricelands and conversion

Because many farmers incur losses in rice production, many farmers have stopped palay production and shifted to livestock and vegetable production. Some have stopped farming totally, while some have leased their farms to others for sugarcane production. Fifteen hectares have been idle since 2010, according to farmers in Talaibon. This area has been sold in 2012 and farmers heard it will be used as a place for military retirees.

6. Farmers' limited education

Since majority of the farmers finished only elementary and high school education, it may take extensive training and enormous willpower on the part of extension workers and LGUs in building their capability to see farming as a business enterprise. There are a few farmers who finished college who can be tapped in handling the business operations of the proposed business enterprise that will take care of the management of the proposed partial mechanization program in its initial years of implementation.

7. Other problems

Related to pests, the farmers concerns were “kuhol” or snails, which entail high cost in chemical application, and blackbug infestations that caused one cropping season failure last year for some farmers. It is also important to note that in Talaibon, during the

wet season, some farmers have to plant twice as their first planting is wiped out by “kuhol”.

Unavailability of seeds is another problem indicated by the farmers. Unlike before, they were able to buy subsidized seeds. But recently only two to three farmers per barangay got only 2 kg of seeds from the Department of Agriculture which are intended for multiplication. In one barangay, the seed variety given to them last year produced rice which was not good to eat because it was hard, not soft, so not highly saleable, so they did not multiply it.

Farmers in Balanga expressed that no extension worker from the DA visits them, although the DA is located only about two to three km away from the barangay.

D. SWOT Analysis

The strengths and weaknesses of the six ARBOs and the opportunities and threats to the communities and the barangays with regard to the implementation of the partial mechanization project are shown in Table 10.

1. Strengths and Weaknesses

Matala Irrigators’ Association Inc. and Sabang Farmers’ Association. Of the six ARBOs, the officers of the Matala Irrigators’ Association Inc. and the Sabang Farmers’ Association apparently are qualified to manage the CSF. The presidents of these ARBOs on their individual capacities, have been in the business of renting out hand tractors and threshers.

Of the two ARBOs, the Matala Irrigators Association can lead in the management of the CSF. Another strength of the Matala Irrigators Association, Inc. is that one-third of its members are college graduates (one sixth are high school graduates and the rest have reached only the elementary level of education). Among the six ARBOs, it is the only ARBO with the most number of college graduates. The current president, Mr. Menandro Dalisay is a civil engineer. He has been renting out hand tractors for 15 years now and mechanical thresher for five years now. Repayment rate was estimated at 80% in renting out hand tractors. In renting out mechanical thresher, repayment rate was 100% as payment is a portion of palay threshed.

With regard to undertaking projects, the Matala Irrigators Association, Inc. was successful in submitting their proposal to NIA 10 years ago regarding the construction of open canal for irrigation water. In September 2011, this irrigation project was completed. This ARBO now is in-charge of collecting irrigation fees (before 2012, irrigation fee was PhP650/ha/cropping season; effective 2012, irrigation fee is 2 sacks of palay (45 kg/sack 17

during dry season and 42 kg/sack during wet season). This 2012, collection is much better as irrigation fee is paid in palay every harvest time.

Only one member of the Sabang Farmers Association, its President reached college (first year college). Majority (79%) of the members reached high school while 17% reached elementary level of education. Barangay Sabang has two hand tractors and 3 threshers for rent which was said to be enough for use of all palay farmers in the area. There are three other tractors owned by farmers but not for rent. Another strength of this ARBO in Sabang is that most members are also members of the Sabang Multi-purpose Cooperative which sells fertilizers and pesticides at prices lower than the prices offered by other dealers in the municipality.

Talaibon Farmers Association. The President of Talaibon Farmers Association is also the current President of the Samahang Kababaihan of the barangay since 2005. She was also the former Secretary of the Pangao-Talaibon Irrigators’ Association when her husband was still the president of this ARBO.

The Talaibon Farmers’ Association was given a hand tractor through a grant from the LGU of Batangas. According to the members, the former Municipal Agriculturist of Ibaan , Mrs. Lydia Perez should be credited for this grant.

The hand tractor was rented out for four cropping seasons until two years ago when it bogged down. A member owes the association PhP5,000 for renting the tractor since two years ago. The association has been waiting for this member to pay them so the tractor could be repaired. Another problem though is that they said they did not know where to bring the tractor for repair.

The Talaibon Farmers’ Association had likewise some experience lending money to members for five months in 2010-2011. The maximum amount loaned out was P2,000. If a good payee, the interest is 5%/mo.; if not, interest rate is 10%/mo. Two members availed of the lower interest rate while another member was charged the higher rate. Payment was done after harvest and repayment rate was said to be 50%. The association stopped extending loans to members because of the difficulty of collecting payment from debtors.

In 2010, they had total funds of PhP7,000. This was reduced to PhP4,000 in 2012. Total outstanding balance that needs to be collected from debtors is PhP5,000 as of 2012.

While the President of this ARBO in Talaibon was active as top officer of several organizations in the community where she belongs, the Talaibon Farmers Association has failed to some extent in undertaking some of its projects, namely, the renting out of the

hand tractor awarded to them by the LGU of Batangas as well as in extending credit to their members. It is also worth noting that while some of the 8 officers of this ARBO are barangay officials, the members are mostly high school graduates. There are no college graduates. One completed a vocational course in electronics.

Balanga Farmers’ Association. The Balanga Farmers Association has total funds amounting to P3,000. It has not undertaken any projects yet except the cleaning of the irrigation canals. Apparently, the members are not qualified to manage the CSF. The association has only one college graduate and he is already 70 years old. One member is a high school graduate and all the other members have completed grade VI. Hence, they suggest that qualified children of the members handle the financial aspect of the CSF.

Quilo Farmers Association. Eighty percent of the members of the Quilo Farmers Association have reached only elementary. The remaining 20% are high school graduates. Farmers mentioned they have no capability yet to manage their association. Another concern is that some of the officers in their organization are not farming, e.g., one is a midwife; so they will have to change the set of officers of the organization.

This ARBO does not have any funds at present and has not yet undertaken any project. On the other hand,50% of the members of the Pangao-Talaibon Irrigators’ Association are high school graduates. The other 50% reached only elementary level of education. There are no college graduates. There are not much projects undertaken by this ARBO to their credit.

2. Opportunities

If the proposed project would materialize, there will be an opportunity for the ARBO members and even non-members to gain from the use of the hand tractors and mechanical threshers. There will be timely operation for land preparation and threshing which then would lead to more crop yield and better quality of palay produced. Rental fees would most likely be reduced also. Consequently, the income of farmers would go up. If incomes of rice farmers would rise, then other farmers and other people in the community would be enticed to engage also in palay farming which in turn would lead to expansion of areas for palay production.

Another opportunity is for the ARBO officers and members to be trained in managing the CSF. They will be capacitated in terms of trainings to be provided by concerned agencies in the different aspects of operating the agribusiness enterprise.

3. Threats

One threat is that the CSF would have negative impact on the business of the owners of the hand tractors and threshers for rent. Another threat posed is when

management of the CSF fails and when conflicts on the use of the farm machineries arise. This could be resolved though by choosing trustworthy and competent officers to manage the CSF.

Another threat could be the shift by farmers from palay farming to farming other crops and the conversion of rice lands to be residential, commercial, and industrial purposes, if they deem this more profitable. In case this happens, the use of the farm machineries would be limited.

E. Areas of intervention to build capacities of ARBOs to operate an agribusiness enterprise The ARBOs have limited knowledge and skills to run and manage the agribusiness enterprise. Hence, the necessary training needs (e.g., recording, bookkeeping, accounting, auditing, database, information management, and reporting) have to be provided. The BDS provider could help them through the coaching and mentoring sessions for the officers who will eventually handle and manage the CSF. It is important that organizational business processes, resource competencies, and building partnership/linkages be imparted to them.

The ARBOs also need to be updated on modern agricultural technologies such as use of HYVs, or better seed varieties, pest and disease management, and composting. It is suggested, however, that training modules should be in Filipino and that the venue for the trainings and seminars should be accessible to farmers. Farmers should be informed immediately of government programs in rice production such as seed subsidy, Integrated Pest Management, and others. Construction of feeder roads to lower hauling cost for palay harvested likewise needs attention of DPWH with the help of the LGU. As indicated in Table 10, agrarian reform concerns and problems with regard to availability and adequacy of irrigation water need to be addressed.

The ARBOs likewise need knowledge and experience in enterprise management. They need to be trained on; bookkeeping and records management; teambuilding; organizational operation and management; and creating network.

With the partial mechanization project, development of potential palay production areas can now easily be done. Even upland farmers expressed their need for hand tractors. Resource mobilization and provision of funds for the effective and efficient implementation of the project are, however, important considerations.

VI. Proposed Work Breakdown Structure

Figure 2. Proposed work breakdown structure.

Partial MechanizationION of Palay Production in Ibaan, Batangas

Component 1: Component 2: Agri-extension & Component 3: Agri business

Project Innovation Financing Development

Activity 1:Provision of farm Activity 1: Capacity-building on Activity 1: Preparation of machineries by DAR agri-extension business plan  4 hand tractors  Training on updated/modern  Organizational  3 threshers technologies in rice review/assessment workshop  1 elf truck production  Consultation with POs, ARBOs, - High-yielding LGUs, DARPO/DARMO, MAO, varieties/better seed & other project partners varieties  Research/data collection Activity 2: Provision of lot & - Composting of agricultural (production & household construction of garage/ wastes income of palay farmers) warehouse - Pest & disease  Identification of site for management garage/warehouse - Irrigation-related matters  Acquisition of lot  Timely dissemination of Activity 2: Securing/license/legal  Construction of government programs in rice requirement garage/warehouse production  Signing of MOA/ deed of donation 21

Activity 2: Capability- building  Coordinating with concerned on financial management agencies on licensing Activity 3: Provision of business  Training on record-keeping, development services book-keeping, accounting,  1 Area Supervisor auditing, data-base  1 Community-based information management, enterprise organizer to be accessing credit, resource Activity 3: Coaching/mentoring contracted & given salaries by mobilization, financial/credit services DAR management  Technical assistance on  Management staff operations & management of Empowerment & capacity- CSF building of ARBO which will  Financial/credit management manage the business  Data base/information management

Activity 4: Project management Activity 4: Installation of  Establishment & update of appropriate control system farm production & household  Manual of policies income baseline data  Computerization of data base  Technical assistance on operations & management of CSF Activity 5: Establishment of  Quarterly monitoring, partnership/linkage reporting & evaluation  Consultation meetings with  Project assessment & partner agencies sustainability plans  MOA signing/documentation Building Partnership with: *DAR/DARMO & LGUs on agrarian reform concerns; * NIA on availability & adequacy of irrigation water; * DA, DAR & LGUs & other organizations on training needs of ARBOs & other palay farmers; * DPWH regarding construction of feeder roads; and * input suppliers & marketing partners

Activity 6: Development of Rice 22

Production Access

Activity 7: Regular monitoring, reporting & evaluation  Review/monitor implementation of policies Prepare, project assessment & sustainability plan

The work breakdown structure presented on Figure 2 was designed using data collected from members and non-members of the ARBOs during the FGDs and the household survey of palay farmers, as well as from list of activities for the proposed project on partial agricultural mechanization as cited in their proposal (DARPO, undated).

VII. Conclusions and Recommendations

All the ARBOs were one in saying that boosting agricultural mechanization in irrigated rice-based farms in selected barangays in Ibaan, Batangas is very much acceptable to them. The provision of four hand tractors, three mechanical threshers and one elf truck drop side together with the BDS provider to manage the entire project for three years is thought of as a welcome treat.

The FGD participants claimed that if the partial agricultural mechanization project would be pursued, the rental fee for use of hand tractor and mechanical thresher would possibly go down; land preparation and threshing would not be delayed; the quality of palay harvested would be higher as farmers do not have to wait long for the use of thresher; renting out to other farmers the hand tractor and thresher would be a source of income for the ARBOs; and thus, income of farmers would likely be higher due to reduction in cost of production and better quality of palay produced.

Provision of the tractor will also benefit their upland farmers as they expressed the need for a tractor in their upland areas. In addition, as most of the farmers produce during the wet season become rotten and spoiled, and become discoloured or blackish (and some palay harvested just fed to poultry), especially if not threshed immediately after harvest, the provision of thresher will increase the farmers' income considerably during the wet season. Hence, provision of the hand tractors and threshers will boost rice production, and improve the well-being of the farmers and the communities as well.

The training needs of the ARBOs on recording, bookkeeping, accounting, auditing, database/information management, and reporting were identified. The ARBOs, however, leave to the project implementers the training needs of the ARBOs or of the association or group who would eventually take good care and manage the project to be provided. The BDS provider and the ARBOs have also to agree on where to locate the motor pool strategically, how much should be the rental fees for the farm machineries considering the economic life span of the hand tractor (about 10 years) and the thresher (about 7 years).

For easy maintenance and management the ARBOs in Sabang and Matala suggested the other option of giving one hand tractor and thresher for each of the six barangays. There is no need for an elf truck as its maintenance is costly, aside from registration costs that need to be funded. This way, it would be more economical, less headache in terms of management, and farmers in all the six barangays concerned would be happier as they can schedule their land preparation and planting much easier. Long waiting time for others to finish in the use of the machineries could also be avoided.

Although this option could be considered by DAR, it would still be best to provide the six ARBOs the CSF consisting of 4 hand tractors, 3 threshers, and 1 elf truck drop side. Some of the ARBOs were not that good at implementing projects. Furthermore, each ARBO would also need a vehicle to transport the farm machineries to the rice farms.

Most of the farmers have finished high school and elementary. Hence, for better understanding of the farmers, the training modules must be done in Filipino language, and conducted in each of the barangays, to ensure good attendance among the farmers concerned.

With its background, the Matala Irrigators’ Association can be tapped in the management of the business enterprise envisioned to be put up to handle the management of the business operations of the machineries either initially or after the three-year implementation of the project. The notable experiences in renting out hand tractors and threshers of its President and success in implementing projects by this ARBO can be utilized in managing the CSF efficiently and effectively. One-third of its members being college graduates can also be of help in managing the CSF. Another option is to select the best officers from the six ARBOs and let them manage the CSF. The President of the ARBO in Sabang apparently is also good in business management.

To clarify these, DAR needs to educate the ARBs and their children or relatives who now till the lands on these important matters to clear their obligations and responsibilities related to land payments. Farmers who have already paid fully their lands are entitled to receive title of ownership to the lands they till. Ownership documents need to be facilitated or given by appropriate and concerned agencies to the farmers.

and other purposes. This is important in planning and policy formulations and efficient program implementation.

Reference:

DAR Provincial Office of Batangas. Undated. Boosting Agricultural Mechanization in Irrigated Rice-Based Farms in Selected Barangays in Ibaan, Batangas. A Proposal submitted to the Department of Agrarian Reform.

Table 1.Year organized and registered and number of members by ARBO, Ibaan, Batangas,2012.

Number of Members Name of Year Year Where Total ARB NON-ARB No. of ARBOs Organized Registered Register Palay ed Activ Non- Active Non- Farmers in e Active Activ the e Barangay Balanga 1984 Not - 18 0 1* 17 0 18 Farmers’ registered Association Quilo Farmers 1950s; in Not - 37 26 0 11 0 42 Association 2011 registered reorganized by NIA Matala 1987 1987 SEC 27 6** 0 21 0 27 Irrigators’ Association, Inc. Sabang 1977 2012 DOLE 29 16 0 13 0 29 Farmers’ Association Pangao- 1978 1978 SEC 38 12*** 0 26 38 Talaibon Irrigators’ Association Talaibon 2008 2012 DOLE 35 4 0 25 6**** 54 Farmers’ Association

* The former lone ARB member died 10 years ago; wife is 70 years old and could not walk anymore. ** Originally 4 ARBs; includes heirs *** Originally 5 ARBs; includes heirs **** Now members of the Pangao-Talaibon Irrigators’ Association

Table 2. Problems in the Community, Ibaan,Batangas, 2012.

Problems ARBO Member Non-Member ALL ARB NON-ARB ALL ARB NON-ARB ALL N % N % N % N % N % N % N=58 % None 5 36 6 29 11 31 2 29 6 38 8 35 19 33 Waste 6 43 6 29 12 34 1 14 0 - 1 4 13 10 Typhoon 1 7 0 - 1 3 0 1 0 1 0 - 1 2 Robbers 1 7 0 - 1 3 0 - 0 - 0 - 1 2 Insects Pest 0 - 1 5 1 3 0 - 0 - 0 - 1 2 Lack of Irrigation Water 1 7 1 5 2 6 0 - 0 - 0 - 2 3 Drunkards 1 7 0 - 1 3 0 - 0 - 0 - 2 3 Credit non repayment 0 - 0 - 0 - 0 - 2 12 2 9 2 3 Damaged Irrigation Canal 0 - 2 10 2 6 0 - 0 - 0 - 2 3 Electricity 0 - 1 5 1 3 0 - 0 - 0 - 1 2 Unemployment 3 21 0 - 3 9 2 29 3 19 5 22 8 14 Drug Addiction 1 7 0 - 1 3 2 29 0 - 2 9 3 5 Financial 2 14 0 - 2 6 0 - 1 6 1 4 3 5

Lack of Certified seeds 0 - 1 5 1 3 0 - 1 6 1 4 2 3 Lack of Livelihood Programs 1 7 0 - 1 3 0 - 0 - 0 - 1 2 Lack of Threshers 1 7 0 - 1 3 0 - 0 - 0 - 1 2 High Price of Farm Inputs 0 - 0 - 0 - 1 14 0 - 1 4 1 2 Delinquent Teenagers 1 7 0 - 1 3 0 - 0 - 0 - 1 2 Parking Space in Public Market 1 7 0 - 1 3 0 - 0 - 0 - 1 2 High Price of Commodities 0 - 1 5 1 3 0 - 0 - 0 - 1 2 High Cost of Education 0 - 0 - 0 - 0 - 1 6 1 4 1 2 Politics 1 7 1 5 2 6 0 - 0 - 0 - 2 3

Table 3.Community needs, Ibaan, Batangas, 2012

Table 4. Months covered by cropping season and varieties planted by barangay Ibaan, Batangas, 2012. Barangay Dry Season Wet Season Variety Planted

Balanga Dec/Jan.-Mar./April September-December RC 160, IR 26, RC 18, Dinorado, C 4

Quilo Jan./Feb.-April/May June-October RC 18, RC 222, RC 238, Sinandomeng

Matala November-February May-September RC 18, NS 128, Sinandomeng

Sabang Nov./Dec.-March/April May/June-Sept./Oct. RC 18, NSIC 152, NSIC 216, NSIC222, NSIC 160

Talaibon December-March June, July to October RC 18, RC 58

Pangao Jan./Feb.-April/May May/June-Sept./Oct. RC 18, RC 216, and IRRI varieties

Table 5. Area planted to palay, yield per hectare, and farm price of palay by barangay, Ibaan, Batangas, 2012.

Area Planted to Palay (ha) Ave. Yield of Palay/ha (kg) Farm Price/kg of Palay (in pesos) Barangay Total ARBO Non- Dry Season Wet Dry Season Wet Season Area memb ARBO Season er

Balanga 30.25 30.25 0 3,440 2,000 16.00 13-14

Quilo 27 25 2 3,375 2,700 15.00 12.00

Matala 25 25 0 3,375 2,940 14-16 12-14

Sabang 28 28 90 3,375 1,760 15.00 11.00

Talaibon 45 32 13 3,825 3,200 14-16 12-14

Pangao 40 40 0 4,032 2,660 15.00 11-12

Table 6. Estimated average costs and returns of palay production, per hectare per cropping season, Ibaan, Batangas, 2011-2012. Farm Operation Amount Costs (in pesos): Land preparation 7,638 Seeds 500 – 1,250 Planting/transplanting 1,750 Fertilizers 2,800 Pesticides 4,000 Irrigation 0 -650 Other Labor 1,000 Harvesting and threshing 8,406 Total 26,499 Yield (kg) 3,057 Farm price/kg (in pesos) 13.75 Gross income (in pesos) 42,034 Net returns (in pesos) 15,535

Table 7. Number of hand tractors, mechanical thresher, and mechanical dryer available by barangay, Ibaan, Batangas, 2012. Name of No. Of Hand Tractor Mechanical Thresher Mechanical Barangay Not for Rent For Rent Not for Rent For Rent Dryer Balanga - 0 - 1 0 Quilo 4 1 3 1 0 Matala - 3* 4**** 0 Sabang - 4 3 1 Talaibon 3** 2*** 0 Pangao 2 2*** 0 *1 each from Matala, Talaibon and Pangao ** fromTalaibon *** fromMarilag, Rosario ****2 from Matala, 1 from Balanga, and 1 from Rosario, Batangas

Table 8. Number of days and costs involved in plowing per hactare by barangay, Ibaan Batangas, 2012.

Plowing Harrowing Name of Baranga y Carabao Only Carabao and Hand Carabao Only Carabao and Hand Hand Tractor Only Tractor Tractor No. of Cost No. of Cost No. of Cost No. of Cost No. of Cost Days (in pesos) Days/hrs (in days (in Days/hrs (in Days/ (in pesos) pesos) pesos) hr pesos)

Batanga 6 2,700 - - 4 1,800 - - 6-7 1800- s hrs 1950 Quilo 5-6 3,000- 8 hrs- 2,240* 4 2,400 3 hrs-tractor 840 9 hrs 2,540 3,500 tractor 600 days 3 days- 1,800 8 hrs- carabao carabao Matala 5-6 2,500- 0 - 0 - 15 hrs- 3,750 0 0 3,000 tractor 1000 2 days- carabao Sabang 14 8,400 10 hrs- 2,800 0 - 9 hrs-tractor 2,520 0 - tractor 600 3 days- 1,800 8 hrs- carabao carabao Talaibo 4 4,000 0 0 0 - 0 - 14 hrs 3,360 n Pangao 5 days 2,500 20 hrs- 5,400 0 - 12 hrs- 3,340 0 - tractor 1,000 tractor 500 2 days- 1 day- carabao carabao Note: In Talaibon, plowing can be finished in 8 days only 1 carabao/person at P500/day; if 2 carabaos/person will be used plowing will be finished in 4 days. In Pangao, 90% of farmers use only carabao in plowing and handtractor and carabao (for finishing) for harrowing.

Table 9. Sources of Credit by Barangay, Ibaan, Batangas, 2012

Name of Sources of Credit Loanable amount Interest Rate Loan Repayment Barangays (PhP) Requirement rate Balanga “Papasong”-private 1,000-3,000 4% - No requirement money lender 12%/mo. Quilo Private money Up to 10,000 4% - - 90% lender; Consumers 3,000-5,000 12%/mo. coop; and Fertilizer (consumers goods) dealer Matala Private money 2,400 4% - Should sell the 75-100% lender; “Papasong”; Max. Of P10,000 12%/mo. farmers produce trader Max. Of. to the traders from Provincial LGU; 20,000/ha.season who give loans P1,200 fertilizer dealer Sabang Sabang Multi- 50% of member’s 1st mo- 0 Must be member - purpose coop. shares; now interest of the maximum of 2nd mo. cooperative Papasong-private P40,000 1.5%/mo. money lender Talaibon Private Money lender 5000-10,000 10-20%/mo. - 10% Talaibon Irrigators Max. Of P2,000 5-10%/mo - Association Up to P20,000 3%/mo. Banco Kabayan No collateral; but 100% Rural Bank (for 10 barangay captain ARBO members) and ARBO and ARBO president as co-member Pangao Private Money Max. Of P5,000 4-12% - Not able to Lenders; pay during Max. Of P3,000 No interest black bug Owner of livestock - infestation being cared for Paid when thelivestock is sold

Table 10. SWOT analysis for the proposed partial agricultural mechanization of irrigated rice farms in selected barangays in Ibaan, Batangas, 2012.

Strengths Weaknesses Intervention Needed Internal Environment: ARBOs CLOA holders and farmers are organized. Non-monitoring of ARBs' status in terms of DAR, DARPO and LGUs to land payments and unawareness of ARBs' address this concern beneficiaries who now till the land, of tenurial instruments possessed by deceased ARBs, leading to conflicts w/ landowners and their heirs; and High interest rates that may have accumulated due to non- payment of bligations to the LBP. Officers and members are united, they trust ARBOs in some barangays (especially and have confidence on the ARBOs' leaders Balanga & Quilo) have no funds.In Quilo and Balanga, farmers have no capability to manage their association. Of the 6 ARBOs, the officers of the Matala Most of the farmers have no experience in Necessary training needs Irrigators’ Association & Sabang Farmers’ operating/ managing an enterprise. should be provided by DA, Association are qualified to manage the CSF. DAR and LGUs concerned, The presidents of these ARBOs have been in & other organizations/ the business of renting out tractors & associations that could be threshers. These ARBOs are successful in of implementing projects. For instance, the help. Matala rrigators Association was successful in proposing to NIA the construction of open canals for irrigation water. The officers of this ARBO has also devised a payment scheme for 100% payment of farmers for irrigation fees. Willingness to be trained; Some want to Most of the farmers are old, and are Training modules should be include their children in the training. Some elementary graduates to high school in Filipino. farmers are graduates Venue for trainings should knowledgeable in organic farming, be accessible to farmers. especially the President of Sabang who had a formal training at IRRI. One-third of the member-farmers of ARBO in Limited education of most farmers Training modules should be barangay Matala are college graduates, while in Filipino. Venue for 1/6 finished high school. trainings should be accessible to farmers. Most farmers in Sabang are members of a High interest rates (50% in 4 months, or Good management; cooperative, the Sabang Multi-purpose Coop after harvest) imposed by “papasong” or Availability of credit sources that gives low interest rate to farmers; and private money lenders with low interest rates; sells fertilizers & pesticides at lower costs Farmers should be given compared to other dealers in the municipality training on timely repayment of loans

Opportunities Threats Interventions Needed External Environment: Community/Barangay Farmers will be trained to manage the Mismanagement of the CSF that could The CSF should be run by a good CSF & learn to see farming as a result to non-maintenance and non- and capable manager and set of business. repair of the machineries when officers needed; and staff; Conflicts on the use of farm Another option is to provide a machineries may arise; and tractor and one thresher for each of Unavailability of repair and service the 6 center for the machineries ARBOs, instead of the proposed 4 If the tractors will be shared among tractors, 3 threshers, and one elf barangays, it is difficult to deal with truck. many farmers of 6 barangays. DA, DAR, LGU, & private companies Pest infestations e.g., snails which Trainings, seminars on modern engaged in seeds, fertilizers & pesticides force some farmers to plant 2 times technologies to update farmers, marketing & distribution can conduct during the wet season as the 1st and training for the farmers; planting has gone to waste; and proper pesticide handling for Barangay hall or day care centers can blackbug infestation which could wipe safety and health purposes should serve as venue for the farmers' meetings out the whole crop; be conducted. and trainings Unavailability of HYV seeds HYV seeds should be made available at all times. Government subsidy on seeds is still needed by the farmers. Irrigation system is available Clogging of irrigation canals with Livestock/poultry growers should in all the barangays; livestock/poultry & domestic wastes; be trained well on proper disposal NIA helps improve Damaged culverts and bridge of irrigation canals in where irrigation water passes livestock/poultry wastes. barangay Matala; and through; and Conduct training on how to make Availability of another site Inadequate irrigation water compost out of livestock & poultry near the boundary of wastes. Train the farmers, livestock Talibon and Pangao for & poultry growers how to put up a drilling and pump business on organic fertilizer installation as a source of derived from manure. non-polluted irrigation NIA to have regular meetings with water farmers using irrigation water to know their problems. Presence of Banco Kabayan, a rural bank Banks impose many documents& other Availability of credit sources with requirements that discourage farmers less stringent requirements and low from interest rates; borrowing; Training of farmers on timely Non-willingness of the officers of the repayment of loans. ARBOs to serve as guarantors, thereby farmers could not avail of loans even if they want to loan

The provincial LGU has required livestock Big livestock growers disposing huge Strict enforcement of government growers to put up bio-digesters. wastes that pollute irrigation canals; rules and regulations on Unorganized livestock growers; Non- environment management. compliance among livestock growers to put up bio- digesters; Lack of monitoring and police power to implement policies & regulations. Addressing waste clogging of irrigation canals is a driving force that would enable LGUs to work together to increase their capability on waste& environmental management.

Use of tractors and threshers will facilitate Lack of funds for fuel, repair & Transparency in the management faster and timely land preparation and maintenance of the agricultural especially, financial operations of the threshing, avoiding spoilage of harvest, thus, machineries; CSF and fund generation campaign of reducing production costs and improving No site to locate the machineries; the ARBOs; quality of produce leading to increased Negative impact on farmers who have Look for strategic location for the farmers' income and well-being. tractors and threshers for rent to others; machineries. During busy times when 3 tractors & 4 threshers are not enough to service the needs of all the farmers, those renting out tractors & threshers can do their business. Good paved roads in the main roads passing Lack of feeder roads along the farms MAO to bring the need for construction through the town and the barangays within the brgy leading to costly hauling of of feeder roads to LGU and DPWH farmers' produce (even 'paragos' or carabao sled cannot pass thru) Existence of sugarcane & vegetable production Shifting of farmers from palay to other If farmers would see more gains from especially in Matala, as alternative crops for crop production; palay production than conversion of increased income . Conversion of rice lands to residential, palay farm to non-agricultural uses, commercial and industrial purposes (large then they would stay in palay farming. conversion though may not be so in the next Farmers should be given incentives for 10 years). them to stay in farming. In the project implementation, LGUs, DAR, Lack of budget in providing the necessary Funds for effective and efficient DA, NIA and other concerned agencies/ infrastructure (for the de-clogging, implementation of the projects need to organizations & farmers associations could improvement &/or construction of be provided. have strong partnership and bond in irrigation canals, drying facilities, & repair increasing rice production, farmers' income of bridge passing over irrigation in and well-being, leading to better communities. Sabang); and Inadequate funds to conduct training for the farmers; No extension services provided to farmers. Development of palay production areas