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 The CSPPS Working Paper series reports the results of studies by the Institute faculty and staff which have not been reviewed. These are circulated for the purpose of soliciting comments and suggestions. The views expressed in the paper are those of the authors and do not necessarily reflect those of CSPPS, the agency with which the authors are affiliated, and the funding agencies, if applicable. Please send your comments to: 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