CLARENDON COLLEGE

Odiong, Roxas Oriental Mindoro

THE EFFECT OF RICE PRICE CHANGE TO FARMER’S INCOME OF DANGAY,

ROXAS, ORIENTAL MINDORO

A research presented to the

Faculty of Senior High School

In Partial fulfillment of the requirements for

RESEARCH PROJECT/INQUIRIES, INVESTIGATION AND IMMERSION

In Grade 12 Science, Technology, Engineering

and Mathematics Strand

Nataniel T. Dagatan

Lorenzo Emile F. Gozo

Emelyn Rose A. Maligo

Edren Lley M. Manzano

Rachelle P. Caparic

2021
 CLARENDON COLLEGE

Odiong, Roxas Oriental Mindoro

APPROVAL SHEET

This thesis entitled “THE EFFECT OF RICE PRICE CHANGE TOFARMER’S

INCOME OF DANGAY, ROXAS, ORIENTAL MINDORO.” prepared and
submitted by Dagatan, Nataniel T., Gozo, Lorenzo Emile F.,
Maligo, Emelyn Rose A., Manzano Edren Lley M., and Caparic
Rachelle P. in partial fulfillment of the requirements for the
Senior High School Basic Education Program of Clarendon College
has been examined and recommended for acceptance and approval
for oral examination.

JOSE PAOLO FESTIN

Adviser
------------------------------------------------------
PANEL OF EXAMINERS

Approved by the committee on Oral Examination.

----------------- ----------------
Member Member
----------------
Member

Accepted and Approved in partial fulfillment of the

requirements for the RESEARCH PROJECT/INQUIRIES, INVESTIGATION
AND IMMERSION of Science, Technology, Engineering and
Mathematics.

HAZEL P. PALAPUS, MEng.

Principal
 ACKNOWLEDGEMENT

First and foremost, we would like to express our heartfelt

appreciation to Almighty God who gave us power discernment to make
this research project viable.

The researchers would like to acknowledge our research

teacher, Mr. Jose Paolo Festin, to our class adviser Mrs. Mary
Grachil Bayani-Macabeles, who guided us throughout the process and
exerted their effort to guide us.

To the principal, Ms. Hazel Palapus, thank you for bestowing

us to connect to conduct this study.

We extend our appreciation to our family and friends for

giving us their undying full support and ceaseless encouragement
throughout the procedure of delving and writing this study. This
accomplishment would not have been possible without them.

DEDICATION

Every challenging works needs group-effort as well as the

guidance of the elderly specially those who were very close to our
heart. Our humble effort, we dedicate this to our loving parents,
whose affection, love, encouragement and pray of day and night
make us able to reach such success and honor along with all the
hardworking and respected teachers.

-N.T.D

-L.E.F.G

-E.R.A.M

-E.L.M.M

-R.P.C
 TABLE OF CONTENTS

TITLE PAGE

APPROVAL SHEET

ACKNOWLEDGEMENT

DEDICATION

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

ABSTRACT

CHAPTER I THE PROBLEM AND ITS SETTING

• Introduction

• Objectives of the Study

• Statement of the Problem / Research Questions

• Significance of the Study

• Scope and Limitations

CHAPTER II REVIEW OF RELATED LITERATURE

• Foreign

• Local

• Theoretical Framework

• Conceptual Framework
 • Definition of Key Terms

CHAPTER III RESEARCH METHODOLOGY

• Research Method / Design

• Data Gathering Procedures

• Research Questions

• Statistical Tool Used

CHAPTER IV PRESENTATION ANALYSIS AND INTERPRETATION OF DATA

• Answer to Research Question No. 1

• Answer to Research Question No. 2

• Answer to Research Question No. 3

CHAPTER V SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

• Summary of Findings

• Conclusions

• Recommendations

REFERENCES

APPENDICES

a. Permit to Conduct the Study

b. Questionnaire

CURRICULUM VITAE
 LIST OF TABLES

Table 1: Likert Scale for Questionnaire

Table 2: Ranges of Correlation Coefficient and Degree or

Strength of Relationship

Table 3: The views of Farmer’s in Dangay, Roxas on rice price

change in terms of inflation.

Table 4: The views of Farmer’s in Dangay, Roxas on rice price

change in terms of deflation.

Table 5: The views of Farmer’s in Dangay, Roxas on rice price

change in terms of hyperinflation.

Table 6: The effects of rice price change to the harvest/income

of farmers in terms of production cost.

Table 7: The effect of rice price change to the harvest/income

of farmers in terms of labor.

Table 8: The effect of rice price change to the harvest/income

of farmers in terms of season.

LIST OF FIGURES

Figure 1: Theoretical Framework of the Study

Figure 2: The Conceptual Framework of the Study

 CHAPTER I

THE PROBLEM AND IT’S SETTING

INTRODUCTION

RESEARCH QUESTIONS

1. What are the perception/views of Farmer’s in Dangay, Roxas on

rice price change in terms of:

a. Inflation

b. Deflation

c. Hyperinflation

2. What are the effects of rice price change to the

[harvest/income] of farmers from Dangay, Roxas in terms of:

a. Production Cost

b. Labor

c. Season

3. Is there a significant relationship between farmer’s income and

rice price change?

4. Is there a significant effect in farmer’s income?

OBJECTIVES OF THE STUDY

1. To determine the perception/views of Farmer’s on rice price

change in terms of:

a. Inflation
 b. Deflation

c. Hyperinflation

2. To determine the effects of rice price change to the

harvest/income of farmer’s in terms of:

a. Production Cost

b. Labor

c. Season

3. To determine the significant relationship between farmer’s

income and rice price change.

4. To determine the significant effect in farmer’s income.

SCOPE AND LIMITATION

The general objective of this study is to discuss the

Impact of Rice Price Change in the Farmers Income in Dangay, Roxas,
Oriental Mindoro. Researchers also focused on the insights of
economic determinants of rice price inflation/deflation and also
examine casualty effect of how the farmer’s income
increases/decreases. This study involves the farmers of Dangay,
Roxas, Oriental Mindoro. This study will conduct a survey using a
set of questionnaires to find an accurate data to determine the
impact of rice price changes in the income of rice farmers.

This study was limited to rice farmers of Dangay. The

researcher also encounters problems in gathering information
needed in the study as the study was conducted in the middle of
the COVID-19 pandemic. The researchers were only able to survey 30
rice farmers in Dangay, as the respondents who are knowledgeable
about or has experienced of rice price changes and it impacts to
the farmer’s income.

SIGNIFANCE OF THE STUDY

Farmers- Farmers' observations can serve as a benchmark for

variations in rice prices in Dangay, Roxas, Oriental Mindoro. Due
to fluctuations in rice prices, all farmers may earn a good living
and meet the needs of their rice fields. Farmers require a huge
sum of money in order to sow palay seeds, which yield a productive
harvest and the potential for a large sum of money.

Consumers - Customers may receive considerable benefits, according

to the conclusions of a study on rice changes in Dangay, Roxas,
Oriental Mindoro. Each customer requires high-quality rice at an
affordable price. In today's society, price is more important than
quality; if the rice's quality is good, the consumer will pay a
reasonable price for it, allowing them to purchase it.

Seller- The seller is one of the most beneficial aspects in rice

price modifications. If the palay is of good quality, the rice
will be of good quality as well, and the price of rice would climb.
When the price of palay drops, so does the price of rice. As a
result, in order to attain a price quality, the study's findings
are based on rice quality.

Future Researchers - This study's findings can be used as a

starting point for additional research and as a source of data for
other similar investigations.
 CHAPTER II

REVIEW OF RELATED LITERATURE/STUDIES

FOREIGN

In the study conducted by Irvan and Yuliarmi on 2019,

they found that production costs directly influence productions
that affects the income of farmers through production. This shows
an indirect relationship between production costs with the income
of rice farmers. The decrease in production costs will increase
the income of rice farmers and vice versa. This also reinforced by
the results of research conducted by Zaini (2010), that the
production costs issued a significant effect on the income of rice
farmers. However not all increase in production cost means decrease
on farmer’s income, some increase in production cost results to an
increase of quantity of supply, then increase of farmers income.

The worldwide food crisis of 2008 resulted in an increase

in the price of major agricultural commodities and products, and
the crisis’s global impact prompted responses from many
governments. Several scholars have sought to pinpoint elements
that may have contributed to global food price rise. Economic
factors such as depreciation of world currencies, low interest
rates, high oil prices, rapid income growth in densely populated
countries, high fertilizer prices, low food stocks, domestic
policies such as export restrictions and bans, market structure,
and weather shocks have all been linked to global food prices
(BALTAZER, 2013).

(Nazir et al., 2010) Food costs in Tanzania have remained

high and erratic since 2008 global food prices, despite the drop
in international food prices for maize and rice. The current food
crisis and volatility necessitate bold government policy steps to
improve food security that go beyond the easing of the export
prohibition and the producer subsidy program. Significant efforts
are required to invest in storage facilities and infrastructure
that support market integration, such as the construction and
improvement of primary and secondary markets, market information
systems, strengthening institutions for accurate food price data,
and sustaining road infrastructure improvement to make it passable
all year.

(Minot, 2010) The global food crisis of 2007-2008 was

marked by a sharp increase in the prices of most commodities,
including staple grains in Sub-Saharan Africa.

Meyers, R. (2008) Using threshold auto regression

models, this paper assesses the effectiveness of Malawi’s private
sector maize marketing system. The findings show that spatial price
transmission and seasonal price patterns are generally high in the
private sector of maize markets. 2007 (Ngailo j) This study
surveyed three rice-producing villages in Tanzania’s Maswa
district.

China was blamed for increasing global price volatility

in 2007/2008 for two reasons: its massive demand for agricultural
products and the imposition of export restrictions on certain
agricultural products. While continued attention is focused on the
impact of China’s demand on the global food market, it is also
important to consider how changes in global prices affect the
welfare of food producers and consumers in China. To address these
two issues, it is necessary to examine how China’s agricultural
market integration affects food security for its own people and
for people in other countries. Until the late 1980s, China’s
agricultural market was heavily dominated by the central
government. After several decades of gradual market
liberalization, the domestic market becomes more integrated, and
China’s agricultural and food trade share of total world trade
improves significantly.

Spatial integration at multiple scales: rice markets in

Madagascar (Moser, 2009). The dramatic rise in the price of rice
and other commodities over the last year has piqued new interest
in how these markets function and how they can be improved. This
article examines the extent to which Madagascar’s markets are
integrated across space at various scales of analysis, as well as
some of the factors that limit spatial arbitrage and price
equalization within a single country, using an unusually rich data
set. We examine the extent of market integration at three different
spatial scales using rich price data from the four quarters of

2000-2001, as well as data on transportation costs and

infrastructure availability for nearly 14000 communes in
Madagascar. The findings indicate that markets are fairly well
integrated at the subregional level, with factors such as high
crime rates, remoteness, and a lack of information limiting
competition.

Maize prices in E.S.A. steadily increased between April

2007 and June 2008, which could be attributed to a poor harvest,
poor rainfall, and higher input prices. Maize prices in Uganda
were higher in December 2007 than in any of the selected E.S.A.
countries.

Due to the latter argument, one would expect price relations

between international rice markets to be weak with little price
transmission taking place across different geographical rice
markets. The behavior of international rice prices and trade,
however, would suggest that rice markets must be related to some
extent, at least in contemporary times. Firstly, the huge surge in
international rice prices in 2007-2008 was felt worldwide which
transmitted over to most Asian, African and Latin American domestic
markets (Demeke et al, 2011). Secondly, major rice exporting
nations are competing in some of the same markets, particularly in
Africa and parts of Latin America.

Heady (2011) and Gilbert (2013) both believe such behavior

played a major rale in the huge price hikes seen in international
rice prices and more recently, the perceived unreliability of
international rice markets has led to the promotion of rice self
sufficiency polices in many traditional rice importing countries
under the guise of national food security.

John (2013) found price transmission to be bi-directional,

However, the magnitude and persistence of price transmission based
on the IF results between the two markets was found to vary
substantially, suggesting that although Thailand's paddy pledging
program distorts prices and hinders price transmission between
Thai domestic and export prices in the short-run to some extent,
Thai export price movements eventually transmit through to
domestic prices substantially.

LOCAL

In 1890 Alfred Marshall define producer surplus, is the

total amount that a producer benefits from producing and selling
a quantity of a good at the market price that is higher than the
least that they would be willing to sell for. Producer surplus is
the same as profit as producers would not produce and sell products
if they could not gain profits and if they could not get at least
the marginal cost to produce those products. The total revenue
that a producer receives from selling their goods minus the total
cost of production equals the producer surplus (Total revenue -
total cost = producer surplus). The producer surplus increases as
the market price for the good increases, and decreases as the
market price for the good decreases. However, the increase in the
producer surplus is simply not possible to indefinitely since at
higher prices there might be very little or no demand for goods.

Reyes, Sobrevinas, Bancolita, and de Jesus (2010)

found that large proportion of rice farmers in Philippines, would
benefit (73.7%) from rice price increases, however a significant
proportion (26.3%) is still expected to lose. It is the poorest
farmers who tend to be the most adversely affected by the rice
price increase, poorest farmers refer to small rice farmers who
cultivate a small piece of land and produce a minimal amount of
rice produce. This shows that not all rice farmers benefit from
the increase of rice price.

In the study conducted by Irvan and Yuliarmi on 2019,

they found that production costs directly influence productions
that affects the income of farmers through production. This shows
an indirect relationship between production costs with the income
of rice farmers. The decrease in production costs will increase
the income of rice farmers and vice versa. This also reinforced by
the results of research conducted by Zaini (2010), that the
production costs issued a significant effect on the income of rice
farmers. However not all increase in production cost means decrease
on farmer’s income, some increase in production cost results to an
increase of quantity of supply, then increase of farmers income.

Philippine rice sector in comparison to our Neighbors

Relating to what the founders of the website

asiafoundation.org found. “Since the 1980s a consensus has grown
that rent-seeking and restrictive trade and regulatory policies
have hindered the Philippine rice sector. Filipino consumers were
paying more for a kilogram of rice than any of their ASEAN
neighbors, yet farmers in the Philippines remained the poorest
sector in the country. There were various efforts by international
donors, multilateral agencies, and local leaders to reform the
sector, but none had stellar results.” (King Francis Ocampo and
Kimberly Karen Pobre). The results of the statistics gathered by
these organization clearly shows how different our farmers earn
compared to ASEAN neighbors. These data is important because it
shows how different farmers from different countries compare in
terms of income and rice prices.

Why is the Philippines importing rice?

To know what we should do and what we lack, we compare

ourselves to others so that we would know how and can we do it. A
perpetual question on the minds of many Filipinos is “Why do we
import rice, and why can’t we produce enough of our staple food to
feed ourselves?” Many answers have been given to this question,
many of which injure national pride by alluding to bad politicians,
corruption, incompetence, or laziness. But the real answer is not
so bad: in a word, it is geography. The Philippines imports rice
because it is a nation of islands without any major river deltas
like those in Thailand and Vietnam. The major traditional exporters
are all on the Southeast Asian mainland (Thai- land, Vietnam,
Cambodia, and Myanmar), while the countries that have been
consistently importing rice for more than a hundred years
(Indonesia, the Philippines, Sri Lanka, Japan, Korea, and
Malaysia) are all islands or narrow peninsulas. (David C. Dawe).
The reason why we import is important for it is another aspect
that could affect rice prices. Knowing these shows us what aspect
we lack in compared to other countries.
Rice Price fall Effects

Palay traders are currently on a “buy-and-sell” spree to

evade the possible dip in prices over speculations that more
imported rice is arriving in the country this year. As a result,
palay prices in most provinces have been on an uptrend, allowing
farmers to earn more. (Karl R. Ocampo) Due to a possible dip
farmers went ahead and raised their prices for they might suffer
from it sooner or later. Last year, the Department of Agriculture
announced that we would only need to import 1.6 million metric
tons of rice. This caused the proposal to cut the taxes or tariffs
which then cause the farmers nervousness for it might affect them
greatly. And knowing they can and why the farmers themselves rice
the prices clearly is very important for our research is about
prices and incomes.

Looking through the eyes of Farmers To know everything about

the proposed topic we need to see it through the eyes of the ones
who are mostly involved. “Left with no choice, Donie Roberto, a
farmer in Barangay Bitas here in Cabanatuan City, has to sell his
rice harvest at P15.50 a kilogram, just a little above production
cost. “There’s a profit, but it’s not much,” he told the Inquirer.
Roberto said farmers like him would usually need to sell their
harvest of palay (unhusked rice) for at least P17 a kilo to recover
labor cost.”(A. Galang, K.Ocampo,M. Ramos).This data is important
to our paper because it states what data the farmers see. Farmer’s
cry for help as palay prices drop, from Rice Price fall Effects
Palay traders are currently on a “buy-and-sell” spree to evade the
possible dip in prices over speculations that more imported rice
is arriving in the country this year. As a result, palay prices in
most provinces have been on an uptrend, allowing farmers to earn
more. (Karl R. Ocampo) Due to a possible dip farmers went ahead
and raised their prices for they might suffer from it sooner or
later. Last year, the Department of Agriculture announced that we
would only need to import 1.6 million metric tons of rice. This
caused the proposal to cut the taxes or tariffs which then cause
the farmers nervousness for it might affect them greatly. And
knowing they can and why the farmers themselves rice the prices
clearly is very important for our research is about prices and
incomes.

THEORETICAL FRAMEWORK

The study is anchored to the following theories:

Rational Choice Theory by Adam Smith (1776)

Rational choice theory states that individuals use

rational calculations to make rational choices and achieve
outcomes that are aligned with their own personal objectives.
Rational choice refers to a set of guidelines that help understand
economic and social behavior. The theory postulates that an
individual will perform a cost-benefit analysis to determine
whether an option is right for them. These results are also
associated with maximizing an individual's self-interest. It also
suggests that an individual's self-driven rational actions will
help better the overall economy.

This theory is related to this study because rice farmers

have different perception and behaviors on responding to rice price
changes. Through the use of rational choice theory, farmers are
expected to respond to the rice price changes that will result in
outcomes that provide them great benefits and satisfactions like
increase in income, given the limited option they have.

Law of Supply by Alfred Marshal (1890)

The law of supply is a fundamental principle of economic

theory which states that, keeping other factors constant, an
increase in price results in an increase in quantity supplied. In
other words, there is a direct relationship between price and
quantity: quantities respond in the same direction as price
changes. This means that producers are willing to offer more of a
product for sale on the market at higher prices by increasing
production as a way of increasing profits.

In short, the law of supply is a positive relationship between

quantity supplied and price and is the reason for the upward slope
of the supply curve.

In non-differentiable terms, the law of supply can be expressed

as:

(p − p′ ) (y − y’) ≥ 0

where y is the amount that would be supplied at some price p, and

y' is the amount that would be supplied at some other price p'.
Thus, for example if p > p' then y > y'.

This theory is related to this study because rice farmers

who are also producers. Through law of supply, we will assume that
an increase in rice price resulting to an increase in the quantity
of supply will also result to an increase on farmer’s income,
therefore the increase on the income of rice farmers who are also
producers depends on the quantity of rice they produce and sell on
the market and amount of increase of rice price.
Law of Demand by Alfred Marshal (1890)

In microeconomics, the law of demand is a fundamental

principle of economic theory which states that there is an inverse
relationship between price and quantity demanded. In other words,
"conditional on all else being equal, as the price of a good
increases (↑), quantity demanded will decrease (↓); conversely, as
the price of a good decreases (↓), quantity demanded will increase
(↑)" Demand theory is an economic principle relating to the
relationship between consumer demand for goods and services and
their prices in the market. Demand is simply the quantity of a
good or service that consumers are willing and able to buy at a
given price in a given time period. People demand goods and
services in an economy to satisfy their wants, such as food,
healthcare, clothing, entertainment, shelter, etc. The demand for
a product at a certain price reflects the satisfaction that an
individual expects from consuming the product. This level of
satisfaction is referred to as utility and it differs from consumer
to consumer. The demand for a good or service depends on two
factors: (1) its utility to satisfy a want or need, and (2) the
consumer’s ability to pay for the good or service. In effect, real
demand is when the readiness to satisfy a want is backed up by the
individual’s ability and willingness to pay.

Demand theory is one of the core theories of

microeconomics. It aims to answer basic questions about how badly
people want things, and how demand is impacted by income levels
and satisfaction (utility). Based on the perceived utility of goods
and services by consumers, companies adjust the supply available
and the prices charged.
 This theory is related to this study because demand theory
highlights the role that demand plays in rice price changes or
formation. Through demand theory, we will assume that a changes in
the demand of rice affects the price of rice and will results to
changes on the income of rice farmers.

Figure 1 presents the theoretical framework of the study

summarizing the foregoing theories discussed.

Changes on rice
Farmer’s income
price

Figure 1 Theoretical Framework of the Study

Based on the theories, it may be inferred that changes on

rice price affects farmer’s income.
CONCEPTUAL FRAMEWORK

Based on the theories discussed, the framework shown in Figure 2

is conceptualized.

INDEPENDENT VARIABLE DEPENDENT VARIABLE

The perception/views of The effects of rice
the farmer’s in Dangay, price change to the
Roxas on rice price [harvest/income] of the
change in terms of: farmers of Dangay, Roxas
in terms of:
• Inflation
• Deflation • Production Cost

• Hyperinflation • Labor
• Season

Figure 2. Conceptual Framework of the Study

Figure 2 presents the hypothesized relationship between the

Independent and Dependent Variables of the study. The independent
variables represent the perception of farmer’s on rice price change
in terms of:

a. Inflation, which creates cash flow problems for farmers and

increases the necessity of a high level of operational
management and conservative financial strategies.
b. Deflation, which affects farmers really hard. Most farmers
had to borrow money for seeds and other supplies to pant their
crops. Because money was in short supply, interest rates
began to rise, which increased the amount farmers owed.
c. Hyperinflation, which refers to rapid and unrestrained price
increases in an economy, typically at rates exceeding 50%
each month over time. It can cause a surge in prices for basic
goods—such as food and fuel—as they become scarce.
 The dependent variable represents the effects of rice price
change to the harvest/income of the farmers in terms of Production
Cost, Labor, and Season.

DEFINITION OF KEY TERMS

• Income- is the revenue a business earns from selling its goods

and services or the money an individual receives in compensation
for his or her labor, services, or investments.
• Farmers- is a person engaged in agriculture, raising living
organisms for food or raw materials. The term usually applies
to people who do some combination of raising field crops,
orchards, vineyards, poultry, or other livestock.
• Consumers- is a person that buys a good for consumption. They
don't buy goods to sell them again. The consumer is a person
who pays money needed to buy goods and services produced.
Consumers are important in the economic system of a country.
Without consumer demand, producers don't have a reason to
produce.
• Deflation- is a general decline in prices for goods and
services, typically associated with a contraction in the supply
of money and credit in the economy. During deflation, the
purchasing power of currency rises over time.
• Inflation- is a situation of rising prices in the economy. A
more exact definition of inflation is a sustained increase in
the general price level in an economy. Inflation means an
increase in the cost of living as the price of goods and services
rise.
 CHAPTER III
RESEARCH METHODOLOGY

RESEARCH METHOD/DESIGN

In this research design the researcher used the Causal-

Comparative/Quasi-Experimental Research.

According to Laporga (2011) correlation is about studying

the relationships of the stated variable. Jaichu (2013)
Correlation analysis is used to quantify the degree to which two
variables are related. Trough the correlation analysis, you
evaluate correlation coefficient that tells you how much one
variable change when the other one does. Correlation analysis
provides you with a linear relationship between two variables.
(2021 Causal comparative/quasi-experimental research attempts to
establish cause-effect relationships among the variables. These
types of design are very similar to true experiments, but with
some key differences. Identified control groups exposed to the
treatment variable are studied and compared to groups who are not.

DATA GATHERING PROCEDURES

A letter of request approved by the thesis adviser, Mr.

Jose Paolo Festin, will be sent to Ms. Hazel P. Palapus Principal
of Clarendon College High School Department, to secure permission
to conduct study and distribute questionnaires to farmers of
Dangay, Roxas, Oriental Mindoro.

Questionnaires will be given to the farmers of Dangay to

determine how they are affected by the rice price change.

All the data gathered from the respondents will be organized

tallied tabulated and presented in a series of tables and graphs.
The researcher will also use the internet to gather more
information about the said topic.

RESEARCH INSTRUMENT

In this part, the researcher explains and describe the

details of instrument used in data gathering which are needed and
used in order to solve the problems stated in the study.

The researchers conducted a survey and used a set of

questionnaires as an instrument in gathering data needed in the
study. The questionnaires consist of items that determined the
impact of rice price change in the distribution of farmer income
in Dangay, Roxas, Oriental Mindoro. The kind of questions used in
the questionnaire are close ended questions or a guided response
type of questions. The questioning methods are in checklist form.
According to Survey Monkey questions that are closed-ended are
conclusive in nature as they are designed to create data that is
easily quantifiable. The fact that questions of this type are easy
to code makes them particularly useful when trying to prove the
statistical significance of a survey’s results. Furthermore, the
information gained by closed-ended questions allows researchers to
categorize respondents into groups based on the options they have
selected. To gather more accurate information, respondents are
carefully guided in answering the questionnaires. The set of
questionnaires used in the survey are divided into four different
parts in accordance to the determinants the study contained: Part
1- Perception/views of Farmer's in Dangay, Roxas on rice price
changes; Part 2- Effects of rice price change to the
[harvest/income] of farmers from Dangay, Roxas; Part 3-
Significant relationship between farmer's income and rice price
change; and Part 4-. Is there a significant effect in farmer's
income when rice price changes.

The responses on the questionnaires will be measured using Likert

scale as shown in Table 1.

Table 1.

Likert Scale for the Independent and Dependent Variables

Level of Frequency Scale

Always 5

Often 4

Sometimes 3

Rarely 2

Never 1

STATISTICAL TOOL USED

To analyze the data, the researcher will use statistical tools

such as arithmetic mean, correlation analysis, and hypothesis
testing in the conduct of the study.

1. Arithmetic Mean
The researcher will use arithmetic mean to quantify the
data/response gathered from the respondents using the formula
below:
 Where:
𝑥̅ = arithmetic mean of x

X = scores of the respondents on each question

∑ = summation of scores

n = sample size

∑𝑥
𝑥̅ =
𝑛

2.Correlation Analysis

The strength of the relationship of the independent and dependent

variables was determined using the formula for the correlation
coefficient or Pearson’s r:

Where:

X = score of the students pertaining to the independent variable

y = score of the students pertaining to the dependent variable

n = number of respondents

= sum of all values of x

 = sum of all values of y

= sum of the product of x and y

= sum of the square of x

= sum of the square y

Table 2 below shows the ranges of correlation coefficient

(r) and the degree or strength of relationship.

Table 2

Ranges of Correlation Coefficient and

Degree or Strength of Relationship

Ranges of correlation Degree or strength of relationship

coefficient (r)
± 1.00 Perfect relationship
± 0.90 to ± 0.99 Very strong/Very high
± 0.70 to ± 0.89 Strong/High
± 0.40 to ± 0.69 Moderate/Substantial
± 0.20 to ± 0.39 Weak/Small
± 0.01 to ±0.19 Almost Negligible to Slight
0.00 No Correlation
 3. Hypothesis Testing
To test the significance of the computed correlation
coefficient, the formula below will be used:

𝑛−2
𝑡 = (𝑟 )√
1 − 𝑟2

Where:

t = t- statistic

r = correlation coefficient between the independent variable

(x) and dependent variable (y)

n = number of respondents

The null hypothesis will be rejected if the computed t falls

under the rejection region of the normal distribution curve.
Then, the alternative hypothesis will be accepted. This means
that there is a significant relationship between the independent
and dependent variables.

To test the significance of the difference between the

average MIMAROPA farmers income to the average income of farmers
in Dangay, Roxas, Oriental Mindoro, the researcher will use the
test for the means of paired observation with the given formula:
Where:

t = statistical test for the mean of paired observation

S = standard deviation of the difference of the scores on the

pre-test and post-test

n = sample size

= difference of the mean scores of the paired observation

To compute the standard deviation of the scores and the

difference of the mean scores on the pre-test and post-test
given, the following formulae will be used.

Where:

S = standard deviation of the difference of the scores on

the pre-test and post-test

d = difference of pre-test and post-test scores

n = sample size

= summation of d

= sum of squares of d
Where:

S = standard deviation of the difference of the scores on

the pre-test and post-test

d = difference of pre-test and post-test scores

n = sample size

= summation of d

= sum of squares of d

The null hypothesis will be rejected if the computed t falls

under the rejection region of the normal distribution curve. Then,
the alternative hypothesis will be accepted. This means that the
independent variable has a significant effect on the dependent
variable.
 CHAPTER IV
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
This chapter presents the analysis and interpretation of data

gathered by the researchers based on the specified research

questions in Chapter I.

ANSWER TO RESEARCH QUESTION NO. 1

RESEARCH QUESTION 1: What are the perception/views of Farmer’s in

Dangay, Roxas on rice price change?

Then, the researchers used arithmetic mean to analyze the

gathered data from the respondents through the questionnaire.

Table 3: The views of Farmer’s in Dangay, Roxas on rice price

change in terms of inflation.

Questions Rank Mean Description

1.Does inflation in rice price
increases your income?
2.Does inflation in rice price
affects rice production?
3.Does inflation in rice price a
result of low number of rice
supply?
Total
Table 4: The views of Farmer’s in Dangay, Roxas on rice price
change in terms of deflation.

Questions Rank Mean Description

1.Does deflation in rice price

results to low income?
2.Does deflation in rice price
results to bankruptcy?
3.Does deflation in rice price a
result of high number of rice
supply or produced?
Total

Table 5: The views of Farmer’s in Dangay, Roxas on rice price

change in terms of hyperinflation

Questions Rank Mean Description

1. Does hyperinflation in rice
price benefits you?
2. Does hyperinflation in rice
price always happen?
3.Does hyperinflation in rice
price results to an
importation of rice?
Total
ANSWER TO RESEARCH QUESTION NO. 2

RESEARCH QUESTION 2: What are the effects of rice price change

to the [harvest/income] of farmers from Dangay, Roxas?

Then, the researchers conducted the study to see and

determine the effect of rice price change in the harvest/income
of the farmers.

Table 6: The effects of rice price change to the harvest/income

of farmers in terms of production cost.

Questions Rank Mean Description

1. Does rice price changes
affect your harvest/income
when you spend less on rice
production?
2. Does rice price changes
affect your harvest/income
when you spend more on rice
production?
3.Does change on production
cost affect rice price?
Total
Table 7: The effect of rice price change to the harvest/income
of farmers in terms of labor.

Questions Rank Mean Description

1.Does rice price changes
affect your harvest/income
when you have large numbers of
laborers?
2.Does labor cost change when
rice price changes?
3. Does rice price changes
affect your harvest/income
when you use agricultural
technology in farming instead
of laborers?
Total

Table 8: The effect of rice price change to the harvest/income

of farmers in terms of season.

Questions Rank Mean Description

1. Does rice price changes
during rainy season increases
your harvest/income?
2. Does rice price changes
during dry season decreases
your harvest/income?
3. Does rice price change
depending on the season?
Total
 CHAPTER V

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the summary of findings, conclusions

and recommendations of the study.

Summary of Findings

The findings in Chapter IV are summarized below:

REFERENCES:

• Wikipedia contributors. (2021, August 9). Law of supply. In

Wikipedia, The Free Encyclopedia.
• Wikipedia contributors. (2021, September 24). Rational choice
theory. In Wikipedia, The Free Encyclopedia.
• Wikipedia contributors. (2021, October 17). Law of demand. In
Wikipedia, The Free Encyclopedia
• Wikipedia contributors. (2021, June 25). Economic surplus. In
Wikipedia, The Free Encyclopedia.
• Reyes, Celia & Sobrevinas, Alellie & Bancolita, Joel & Jesus,
Jeremy. (2010). Analysis of the Impact of Changes in the
Prices of Rice and Fuel on Poverty in the Philippines. DLSU
Business & Economics Review. 20. 10.3860/ber.v20i1.1669
• Irvan, I. P., & Yuliarmi, N. N. (2019). Analysis of impact
factors on farmers income. International Research Journal of
 Management, IT and Social Sciences, 6(5), 218-225.
https://doi.org/10.21744/irjmis.v6n5.731
• David Rwanyamugabo (Author)Stephen Mugabi (Author), 2018, The
Analysis of the causes of food price increase and policy
options to enhance food security in Rwanda, Munich, GRIN
Verlag,https://www.grin.com/document/427554
• Demeke M, Pangrazio. G, Maetz M. Country responses to turmoil
in global food marhets, in Safeguarding food securipy in
volatile glabal markets. Edited by Prakash A, Rome: Food and
Agriculture Organization af the United Nations; 2011:183-210.
• Headey D; Rethinking the global food crisis; the rale of
trade-shocks. Food Policy 2011. 36: 136-14G
10,1016/1.foodpal,201010,003
• John A: Price relations between export and domestic rice
markets in Thailand. Food Policy 2011, 42- 48
• Ocampo, K.F., Pobre, K.K (2021). Fighting the Good Fight: The
Case of the Philippine Rice Sector. Retrieved October 27,
2021, from https://asiafoundation.org/2021/04/14/fighting-the-good-fight-the-
case-of-the-philippine-rice-sector/
• Dawe, D.C., Moya P., Casiwan C. (2006). Why Does the
Philippines Import Rice? Meeting the Challenge of Trade
Liberalization. Davao City, Philippines, nt. Rice Res. Inst.
• Ocampo K., (March 05, 2021). Palay prices rising, from
https://business.inquirer.net/318918/palay-prices-rising
APPENDICES

a. Permit to Conduct the Study

REPUBLIC OF THE PHILIPPINES

CLARENDON COLLEGE

Odiong, Roxas, Oriental Mindoro

(date)

Hazel P. Palapus

School Principal

Ma’am:

We, the Grade 12 students, are working our RESEARCH

PROJECT/INQUIRIES, INVESTIGATION AND IMMERSION entitled “THE
EFFECT OF RICE PRICE CHANGE TO FARMER’S INCOME OF DANGAY, ROXAS,
ORIENTAL MINDORO”. In connection with this, we would like to
request your good office to allow us to conduct this activity in
Dangay, Roxas Oriental Mindoro.

The said activity will be conducted on the.

Your approval for the conduct of this activity will be a

great help to the success of our research.

We hope for the favorable response regarding this matter.

Thank You very much and God Bless!
Respectfully yours,

Nataniel T. Dagatan

Lorenzo Emile F. Gozo

Emelyn Rose A. Maligo

Edren Lley M. Manzano

Rachelle P. Caparic

Noted by:

Mr. Jose Paolo Festin and Mrs. Gray Bayani-Macabales

Research Adviser

Approved By:

Hazel P. Palapus, MEng

High School Principal

Questionnaire

Directions: Read each statement carefully. Put a (/) check on the

number corresponding to your answer that best describes your
attitude/feelings/view on the given situation:
5-always 4-often 3-sometimes 2-rarely 1-never

Part 1: The views of Farmer’s in Dangay, 5 4 3 2 1

Roxas on rice price change.

INFLATION
1.Does inflation in rice price increases
your income?
2.Does inflation in rice price affects
rice production?
3.Does inflation in rice price a result of
low number of rice supply?
DEFLATION
1.Does deflation in rice price results to
low income?
2.Does deflation in rice price results to
bankruptcy?
3.Does deflation in rice price a result of
high number of rice supply or produced?
HYPERINFLATION
1. Does hyperinflation in rice price
benefits you?
2. Does hyperinflation in rice price
always happen?
3.Does hyperinflation in rice price
results to an importation of rice?
Part2: The effects of rice price change to 5 4 3 2 1
the [harvest/income] of farmers from
Dangay, Roxas.

PRODUCTION COST
1. Does rice price changes affect your
harvest/income when you spend less on rice
production?
2. Does rice price changes affect your
harvest/income when you spend more on rice
production?
3.Does change on production cost affect
rice price?
LABOR
1.Does rice price changes affect your
harvest/income when you have large numbers
of laborers?
2.Does labor cost change when rice price
changes?
3. Does rice price changes affect your
harvest/income when you use agricultural
technology in farming instead of laborers?
SEASON
1. Does rice price changes during rainy
season increases your harvest/income?
2. Does rice price changes during dry
season decreases your harvest/income?
3. Does rice price change depending on the
season?
 Curriculum Vitae

NAME:

DATE OF BIRTH:

PLACE OF BIRTH:

RELIGION:

CIVIL STATUS:

CITIZENSHIP:

GENDER:

MOTHER:

FATHER:

ADDRESS:

EDUCATIONAL ATTAINMENT:

ELEMENTARY:

SCHOOL YEAR:

JUNIOR HIGH SCHOOL:

SCHOOL YEAR:

SENIOR HIGH SCHOOL:

SCHOOL YEAR:

STRAND:
 Curriculum Vitae

NAME: Lorenzo Emile F. Gozo.

DATE OF BIRTH: January 10, 2004

PLACE OF BIRTH: Noveleta, Cavite

RELIGION: Roman Catholic

CIVIL STATUS: Single

Citizenship: Filipino

Male Mother: Mary Lota L. Fille

Father: Erickson H. Gozo

Address: Odiong, Roxas, Oriental Mindoro

Educational Attainment:

Elementary: Delavida Christian Montessori

School Year: 2013-2015

Junior High School: Clarendon College

School Year: 2016-2020

Senior High School: Clarendon College

School Year: 2020 up to present

Strand: Science, Technology, Engineering, and Mathematics

Curriculum Vitae

Name: Emelyn Rose A. Maligo

Date of Birth: December 7, 2003

Place of Birth: B. Del Mundo, Mansalay, Oriental Mindoro
Religion: Catholic

Civil Status: Single

Citizenship: Filipino

Gender: Female

Mother: Florie Maligo

Father: Jovito Maligo

Address: Landing II, B. Del Mundo, Mansalay, Oriental Mindoro

Educational Attainment

Elementary: Don B Del Mundo Memorial School

School Year: 2010-2016

Junior High School: Fe Del Mundo National High School

School Year: 2016 -2020

Senior High School: Clarendon College

School Year: 2020-2022

Strand: Science, Technology, Engineering, and Mathematics

Curriculum Vitae

NAME: Edren Lley M. Manzano.

DATE OF BIRTH: September 29, 2003

PLACE OF BIRTH: Old Dangay, Roxas, Oriental Mindoro

RELIGION: Church of God

CIVIL STATUS: Single

CITIZENSHIP: Filipino

GENDER: Female

MOTHER: Edna M. Manzano.

FATHER: Renato M. Manzano.

ADDRESS: Old Dangay, Roxas, Oriental Mindoro

EDUCATIONAL ATTAINMENT:

ELEMENTARY: Delavida Christian Montessori

SCHOOL YEAR: 2013-2015

JUNIOR HIGH SCHOOL: Clarendon College

SCHOOL YEAR: 2016-2020

SENIOR HIGH SCHOOL: Clarendon College

SCHOOL YEAR: 2020 up to present

STRAND: Science, Technology, Engineering, and Mathematics

Curriculum Vitae

NAME:

DATE OF BIRTH:

PLACE OF BIRTH:

RELIGION:

CIVIL STATUS:

CITIZENSHIP:

GENDER:
MOTHER:

FATHER:

ADDRESS:

EDUCATIONAL ATTAINMENT:

ELEMENTARY:

SCHOOL YEAR:

JUNIOR HIGH SCHOOL:

SCHOOL YEAR:

SENIOR HIGH SCHOOL:

SCHOOL YEAR:

STRAND: