CHAPTER I

INTRODUCTION

Despite the fact that the Philippines has 4.80 million hectares of rice fields, the

country's rice business is not as stable or competitive as one might assume. In September

2018, Filipinos paid 45.57 pesos per kilogram of rice, whereas Thailand and Vietnam

paid 25 pesos less per kilogram of rice due to decreased production costs and increased

market efficiency. Our local rice is still unable to compete with that of our neighbors.

Millions of dollars are invested in countries, including international trade

protection and government programs.

Rice tariffication Law reform is heavily debated. However, its possible effects had

not been deeply studied.

Knowing that there are still few studies on the awareness and perceived effects of

Rice Tariffication Law. This study aims to fill this gap on the literature specifically in

Mlang Cotabato as rice farming is their primary occupation.

Filipinos overpaid for rice, while local producers fared poorly. This is when

Republic Law 11203, often known as the Rice Tariffication Law (RTL), takes effect. The

bill liberalized the Philippine rice market and set a 35 percent minimum tax on imported

rice. This indicates that, while rice from other nations is cheaper, the tariffs imposed on it

have enhanced the competitive environment for local producers who are less efficient. A

1
steady supply of rice will also assist to down rice prices for Filipinos. These tariffs fund

the Rice Competitiveness Enhancement Fund (RCEF), which helps farmers raise their

output and income. The output of this study will benefit the rice farmers specifically in

Mlang Cotabato as they will know the state of agriculture in their locality, also for them

to be aware of the incentives that the government will give to them in regards with Rice

Tariffication Law. Moreover, it would benefit the students as it will give them awareness

of the current state of agriculture and also for them to honor and support the rice farmers

for livelihood and sustainability. Having such information, students may engage in

different agriculture related activities that would also help the farmers and community.

Furthermore, this study would also benefit the future researchers as it may serve as their

guide in doing their research related with this topic and find reliable information that may

be beneficial in their study.

2
Objective of the Study

Generally, the study aimed to determine the Effects of Rice Tariffication Law on

the product performance of rice farmers’ in Mlang Cotabato. Specifically, it sought to;1.

determine the socio-demographic profile of the respondents; determine the farm profile

of the respondents; determine the awareness of farmers on Rice Tariffication Law in

Mlang, Cotabato; 2.determine the production performance in terms of yield; and

3.determine if there is a significant association between the awareness of Rice

Tariffication Law and production performance of rice farmers in term of yield.

3
 Scope and Delimitation of the Study

The output of this study were the socio-demographic profile of the respondents;

farm profile of the respondents; farm profile of the respondents; awareness of farmers

on Rice Tariffication Law in Mlang, Cotabato; production performance in terms of

yield and the significant association between the awareness on Rice Tariffication Law

and production performance of rice farmers in terms of yield. This study only focused

on the Effects of Rice Tariffication Law on the production performance of the rice

farmers in Mlang, Cotabato. Furthermore, it includes the socio-demographic profile of

the respondents; farm profile of the respondents; awareness of the respondents on Rice

Tariffication Law in Mlang Cotabato; production performance in term of yields; and

the significant association between the awareness on Rice Tariffication Law and

production performance of rice farmers in terms of yield. The study on the Effects of

Rice Tariffication Law on production performance of rice tariffication Law on the

production performance of rice farmers was conducted in Mlang Cotabato on the

semester of academic year 2022.

4
 Conceptual Framework

The conceptual framework of this study assumes that the effects of Rice Tariffication

Law is influenced by several factors including: socio- demographic factors, farm profile,

awareness on Rice Tariffication Law and the production performance of the rice farmers

Independent Variables Dependent

Variables

Effect of Rice Effects of

Tariffication Law Rice

Tariffication

Law

Figure 1: Schematic Diagram of the Conceptual Framework of the Study

5
 Theoretical Framework

The study's theoretical framework will be based on economics' Production

Theory, which demonstrates the principles by which businesses must make decisions

about how much raw materials to utilize, how much to produce, and how much of each

item to sell. Furthermore, the theory includes some of the most fundamental economic

principles, such as the relationship between commodity prices and the prices of

production factors (such as wages or rents) used to produce commodities, as well as the

relationship between commodity prices and production factors on the one hand, and the

number of these commodities and production factors manufactured or used on the other

(Dorfman, 2016).Furthermore, in the book of Theory of Production by Kurz and

Salvadori (1995), they research economic systems that are characterized by specific

types of primary resources used in the manufacturing process, such as distinct types of

labor and natural resources. These mechanisms, as well as the prices that go with them,

are features of a capitalist market economy. Ideally, they explain the pure logic of the

economic system's link between value and distribution; some chapters deal with price

and income distribution, economic growth, joint production, investment capital, finite

natural resources (renewable and exhaustible), and heterogeneous labor. As a result,

production can be thought of as a one-way road of final expansion, starting with the

execution of fundamental labor and land elements, moving through a sequence of

intermediate products or capital goods, and finally to consumer goods. Production is not

linear or one-way, but cyclical.

6
 Another feature of these economies is that production normally necessitates fixed

capital in addition to circulating capital, and is fully contributed. In relation to this study,

as rice production is one of the most important economic activity, performance of

farmers is very important in agricultural production. Moreover, farmers are familiar of

the newly implemented law which is the Rice Tariffication Law under RA 11203 but

they have few knowledges on its implementation and how it works Vertudes et al.,

(2020). Hence, farmers' varying levels of legal awareness can result in issues affecting

their rice crop success. Furthermore, it will cause them to reduce the amount of

resources they utilize, create, and even sell on the market. Furthermore, rice growers

play an important role in meeting the community's demands.

7
 CHAPTER II

REVIEW OF RELATED LITERATURE

Deaton (1989), stated Thailand's export liberalization initiative has resulted in

improved rice fees. He discovered that middle-profit farmers benefited the most from this

type of charge surprise because their internet income was large in comparison to their

profits. Using a spatial-equilibrium model to simulate the impact of export liberalization

on rice fees in Vietnam. Moreover, Minot and Goletti (1998), confirmed that abolishing

the rice export quota would increase the average retail price of rice by utilizing 19-26

pending at the site. Bakhshoodeh (2010) the effect of the trade in imported rice fees

owing to exchange-price unification on the domestic rice fees of a few families in Iran

was investigated. According to the author, the proportion boom with inside the home rice

fees between 2002 and 2003 was better for the poorest families (39%) than the wealthiest

families (20%) in rural areas.

Awareness of the Rice farmers on Rice Tarrification Law

According to the study of Vertudes, Musa, Cosilet, Sagubang, & Balania,

(2020), the majority of rice farmers are aware of the rice tariffication law, but they are

unfamiliar with how it operates and how it is implemented. They claim they are unaware

of the law and have only received information from other farmers as well as news from

8
television and social media sites. Dr. Glenn B. Gregorio, SEARCA Director, emphasized

that want to make humans extra aware about what the RTL is approximately, particularly

the farmers. Farmers and customers are basically involved with the price of rice and

consequently we want to talk about and decide the "proper charge and the proper rice".

According to Darvin (2019), the medium via way of means of which humans are

knowledgeable approximately the RTL is also of critical significance to make sure that

stakeholders are given the right information approximately the law. Furthermore, a multi-

sector organization questioned President Rodrigo Roa Duterte's sincerity when he

announced the temporary halt of rice importation from within the country. The

organization then demanded that the Rice Liberalization Law's implementation be halted.

According to the group, the President's statement is similar to what happened with the

other promises he made but didn't follow through on. As imported rice swamped the local

marketplace, the President stated that he would deal with the court complaints of farmers

of the drastically low rate of palay via way of means of the Rice Tariffication Law

Feredez (2019) UNTV News. According to NEDA, the International Rice Research

Institute (IRRI) and the International Food Policy Research Institute (IFPRI), the law

aims to accelerate agricultural growth and contribute to changes in economic structure,

with a GDP growth of at least 0.13 percent. More importantly, by 2025, RTL will reduce

the proportion of malnourished children in the country and the population at risk of

hunger by 2.8% and 15.4%, respectively. The extra aware about what the RTL is

approximately, particularly the farmers. Farmers and customers are basically involved

with the price of rice and consequently we want to talk about and decide the "proper

charge and the proper rice". According to Darvin (2019), the medium via way of means

9
of which humans are knowledgeable approximately the RTL is also of critical

significance to make sure that stakeholders are given the right information approximately

the law. Furthermore, a multi-sector organization questioned President Rodrigo Roa

Duterte's sincerity when he announced the temporary halt of rice importation from within

the country. The organization then demanded that the Rice Liberalization Law's

implementation be halted. According to the group, the President's statement is similar to

what happened with the other promises he made but didn't follow through on. As

imported rice swamped the local marketplace, the President stated that he would deal

with the court complaints of farmers of the drastically low rate of palay via way of means

of the Rice Tariffication Law Feredez (2019) UNTV News. According to NEDA, the

International Rice Research Institute (IRRI) and the International Food Policy Research

Institute (IFPRI), the law aims to accelerate agricultural growth and contribute to changes

in economic structure, with a GDP growth of at least 0.13 percent. More importantly, by

2025, RTL will reduce the proportion of malnourished children in the country and the

population at risk of hunger by 2.8% and 15.4%, respectively.

The number of people facing hunger and malnutrition fell by 2.1 million.

Foreseeing the potential adverse effects of this reform, Mr. Cai said that the government

has provided safeguard measures to protect rice farmers during the transition period, such

as the Rice Competitiveness Fund (RCEF), which has a guaranteed budget of 10 billion

pesos per year for a period of 6 years or a total of 60 billion pesos, and implemented the

rice legal roadmap of the Ministry of Agriculture. RCEF also helps to build the capacity

of rice farmers to modernize and innovate. Furthermore, the DA Secretary William Dar

10
stated that, for the first two years of implementation of the Rice Tariffication Law (RTL)

that created the RCEF, farmers are creating additional harvest, averaging 400 kilograms

per hectare (kg/ha) which is equivalent to P7,000 per hectare (DA Communications

Group)

11
Rice Production of Farmers in Terms of Yield

According to the findings of Kamaruddin, Ali, & Saad, (2013), the happiness

and satisfaction of farmers is a very important factor affecting rice production and

efficiency. A study conducted by Dullas and Acoba (2013) and Sarmiento (2011) found

that despite the difficulties of the country's farmers, their enthusiasm and optimism

towards farms made them highly satisfied despite the difficulties and resistance. Family

work and happiness are closely related to income, which is a very important goal for

everyone (Kahnemann & Deaton, 2010). According to Tobias (2019), the RTL of the

Philippines has a negative impact on the income of local rice farmers due to excessive

low-cost supply from overseas. The original main purpose of the law was to expand the

scope of use by Filipinos. Cheap rice avoids the inflationary tone of mainstream supply.

However, one of the spillover effects is the low price of rice farmers' products, which

reduces their income, while the prices of farm inputs have risen over time. Influence,

thereby affecting the productivity of farmers. In fact, Markussen, Fibæk, Tarp, & Tuan,

(2018) show that in addition to income, there are many other economic factors that affect

the satisfaction of rice farmers. Therefore, it is necessary to compare the overall

satisfaction of farmers with various socio-economic and economic factors affecting their

rice production. The annual average rice production and rice harvested are totaled among

five Southeast Asian countries, Vietnam, Thailand, Myanmar, Philippines, and Cambodia

are 128.5 Mt and 32.0 M ha respectively accounting for a respective 17% and 20% of

global total rice production and harvested area. Moreover, the Philippines ranked eighth

in world rice production in 2018. Rice is widely grown in Luzon, Western Visayas,

12
Southern Mindanao and Central Mindanao. The annual -mean of total rice harvested area

in the Philippines is ca. 4.7 M ha and average yield is 3.95 t per harvested ha

(FAOSTAT,2020).

Association between Awareness on Rice Tariffication Law and Rice Production in

terms of Yield

According Montemayor (2021), since the implementation of RTL, the level of

self-sufficiency has decreased. Furthermore, in terms of growth and yield, the rain-fed

area outperformed the irrigated area in 2020. The fact that RTL's support is primarily

focused on prime production areas like irrigated farms looks to be unexpected. In

comparison to the previous year, the overall harvested area increased by 1.7 percent.

Farmers increased their harvest by 64 kg per hectare in 2020 compared to 2019. It means

that productivity increased by 1%. However, it falls short of the RTL target of 2 tons of

output per hectare, which is expected to be achieved through government programs

funded by the RCEF. The Rice Competitiveness Enhancement Fund (RCEF) received

roughly P5 billion from the government, with another P8.5 billion coming through the

Rice Resiliency Program. Farmers produced 626,710 tons more than they did in 2019.

This incremental output would equate to more or less P10 billion at a P16 per kilo

average, which indicates they paid P1.35 to generate every P1 worth of more palay.

However, if prices continue to fall due to excessive imports, there is no guarantee that the

good trend in production will continue in the future. According to the study of Diagne et

al., (2013) seed, fertilizer, and services have a favorable impact on the production

function, but labor costs have a negative impact. They also calculated that fertilizer,

13
pesticides, bird chasing efforts, and the adoption of post-harvest technology like the

thresher-cleaner had an impact on rice farmers' technical efficiency in Senegal.

Furthermore, Tiongco and Dawe (2002) studied the long-term evolution of productivity

in a rice farm in the Philippines. They discovered that long-term productivity in key rice-

growing areas in the Philippines has remained stagnant. They also came to the opinion

that, in order to enhance production and eliminate poverty in the farming sector, crop

genetic yield potential should be prioritized.

The Welfare Impacts of Rice Tariffication Law, in the absence of tariffs, palay

production is expected to expand at a rate of 2.8 percent. With tarrifs, palay production

contracts originally experienced a -5.7 drop through 2024, but then experienced positive

growth from 2025 onwards. Up to 2024, the net difference is an 8.5 percentage point

reduction, and up to 2030, the difference is 0.2 percentage point reduction Briones

(2019).

14
 CHAPTER III

METHODOLOGY

Research Design

The study utilized the descriptive-correlational research design. Descriptive design

will be employed to describe the socio-demographic profile of the respondents; farm

profile of the respondents; awareness of the respondents on Rice Tariffication Law in

Mlang Cotabato; production performance in terms of yield; and correlational research

design was used to determine the significant association between the awareness on Rice

Tariffication Law and production performance of rice farmers in terms of yield.

Respondents of the Study

The respondents of the study use the rice farmers in Mlang Cotabato owning three

hectares and above.

Sampling Procedure

15
 This study will be convenience and respondents were the participants of this

study. quota sampling where 50.

Research Instrument

The research instrument used in collecting data is a questionnaire. Part 1 and 2

will be prepared by the researcher and part 3 was adapted from the study on the Impact of

Rice Tariffication Law in selected Rice Farmers in Nueva Ecija, Philippines (Vertudes,

Musa, Cosilet, Sagubang, & Balania, 2020). The survey questionnaire contained

questions that will be designed to answer needed information. The instrument is

composed of three parts. First part is about the demographic profile of the

respondents. The second part is the farm profile of the respondents. The third part is the

awareness of the respondents on Rice Tariffication Law in Mlang Cotabato.

Data Gathering Procedure

The data gathered by the researchers were primary and secondary data. The primary

data will be the socio-demographic profile of the respondents; farm profile of the

respondents; awareness of the respondents on Rice Tariffication Law in Mlang Cotabato;

and production performance in terms of yield. The secondary data that were the

information from the internet, books, news prints, and journals.The objectives of the

research explained to the respondents in order to gather valid and reliable information.

When the answering of questionnaires was already done, these will be collected and the

data gathered will be analyzed by the researcher.

16
Statistical Analysis

The study will be descriptive statistics such as frequency counts, percentage

distribution and weighted mean. Frequency counts and percentage will be used to

describe the socio-demographic profile of the respondents; farm profile of the

respondents; awareness of the respondents on Rice Tariffication Law in Mlang Cotabato;

production performance in terms of yield. In addition, Spearman Rho Correlation was

used to determine the significant association between the awareness on Rice Tariffication

Law and production performance of rice farmers in terms of yield.

17
 Chapter IV

Results and Discussion

This chapter present the findings, analysis, and interpretation of the data gathered

from the respondents who are the Rice farmers in Mlang Cotabato. The discussion of the

result is presented as to socio-demographic profile of the respondents; farms profile of

the respondent; awareness of the respondents on Rice Tariffication Law in Mlang North

Cotabato; production performance in terms of yield; and the significant association

between the awareness on Rice Tariffication Law and production performance of rice

farmers in terms of yield.

Socio- demographic profile of the respondent

Table 1 shows the distribution of socio- demographic profile of the respondents

such as age, gender, civil status, educational background, tribe, religion, year in farming

and number of households.

Age

The data shows that out of 50 respondents, the highest percentages of 42%

belonged to the bracket of 50-59. The lowest percentages of 26% belonged to 40-49 years

old. It implies that majority of the respondent who are the rice farmers were the older

generation.

Gender

As to the respondent’s gender, the results shows that 78% were male and 22%

18
were female. This indicates that majority of the respondents who are the rice farmers

were male.

Civil Status

In terms of the respondent civil status the highest percentage of 100% were

married. This indicates that most of the respondent who are the rice farmers were

married.

Educational Background

With regards to respondent’s educational background, the highest percentage of

30% were High School level and the lowest percentage of 18% were Elementary level.

This indicates that the greater number of respondents were High School level.

Tribe

As of the respondent of Tribes the highest percentage is 70% which is the Ilonggo

and the lowest percentage is 30% which is the Islam, pertaining to the respondent of

religion 36% is Roman Catholic. Which is the highest and the lowest percentage of 30%

where Islam.

Religion

This indicates that the greater majority of the respondents were roman catholic.

Years of Farming

In terms of the respondents 6-10 years. This implies that the greater number of the

respondents spend longer year in farming.

Number of Family Household

19
 With regards to respondents’ number of households, the highest percentage of

66% had 4-6 household members and the lowest of 14% had 1-3 household members.

This indicates that the greater majority of the respondents had 4-6 household members.

Table 1 Socio- Demographic Profile of Respondents in M’lang Cotabato May 2023

Profile Frequency Percentage

N=50
 Age
30-39 16 32
40-49 13 26
50-59 21 42
 Gender
Male 39 78
Female 11 22
 Civil Status
Single 0
Married 50 100
Widow 0
 Educational
High School Graduate 14 28
High School Level 15 30
Elementary Level 9 18
Elementary Graduate 12 24
 Tribe
Ilonggo 35 70
Muslim 15 30

20
  Religion
Baptist 17 34
Roman Catholic 18 36
Islam 15 30
 Years in farming
11-20 yrs 27 54
21-30 yrs 23 46

 Number of Household
1-3 7 14
4-6 33 66
7 above 10 20

Farm Profile of the Respondents

Table 2 present the farm of profile of the respondent in Mlang Cotabato.

Total Land Area

In terms of respondent’s total land area. All of the respondents have 3 hectares.

Production Practice

As to respondents’ production practice 90% practiced conventional production

and only 10% practiced organic production.

Topography

With regards to the respondents’ topographical description, most of the

respondents have low land irrigated land with 84% and only 16% have low land and rain

fed.

21
Machinery Equipment

As to respondents’ farm machinery equipment and tools and the highest

percentage of 98% of the respondents use bao-bao and the lowest percentage of 2% use

rotavator and tractor, and 2% had warehouse.

Table 2. Farm Profile of the respondent in Mlang Cotabato May 2023

Profile Frequency Percentage

N=50
 Total Land Area
3-3.75 26 52

4-4.75 17 34

5-5.75 7 14
 Production
practice
Conventional 45 90
Organic 5 10
 Topography
Low land 50 100
Rainfed 8 16
Irrigated 42 84
 Farm
machineries,

22
 Equipment’s and
tools
Combine harvester 5 10
Rotavator 1 2
Kuliglig 39 78
Bao-bao 49 98
Thresher 45 90
Ware house 1 2
Tractor 1 2

Table 3 Awareness of Farmers on Rice Tariffication Law in Mlang Cotabato

May 2023.

Statements Frequency Percentage

N=50
1. Are you familiar 45 90
Rice Tariffication
Law?
2. Are you informed 44 88
about the law and
how it will be
implemented?
3. Are you in favor 28 56
of Rice
Tariffication Law?

23
 Statement Frequency Percentage

N=50
1. Do you think the assigned government 44 88
agencies can effectively and efficiently
implemented the RCEF program
2. Do you already experience the effect of Rice 44 88
tariffication Law?
3. Is the effect of the said law being good to you 10 20
live hood?
4. Free usage of rice farm types of machinery 30 60
and equipment given to eligible farmers
association and register rice cooperative.
5. Free certified inbred seeds. 44 88
6. Rice credit assistance with minimal interest 19 38
rates and minimum collateral requirements.
7. Training for skill on rice crop production, 4 8
modern rice farming techniques, seed

24
 production, farm mechanization and
knowledge/technology transfer.
8. Do you think RCEF program will really help 3 6
you to improve you yield and income
9. Do you think we can really complete with 8 16
cheap rice imports?
10. Do you think the law helps in bringing down 8 16
the price of milled rice in the market?
11.Are the government programs under RCEF 8 16
already reached you?

Table 3 present the awareness of the respondents on Rice Tariffication Law.

Based on the gathered data, majority of the respondent with 90% are

familiar with Rice Tariffication Law and 88% said that they have a little knowledge

about the law and how its implementation. According to them they are not well

informed about the law and they only heard the information from television, radios

and other farmers. According to Vertudes et.al., (2020). Farmer are familiar of the

newly implemented law which is the Rice Tariffication Law under RA 11203 but

they have few knowledge on its implementation and how it works. Most of the

farmers with 56% respondent that they were not in favor of the newly enacted law;

as they believe that it was the main reason why price of palay declined. Moreover,

90% of the respondents didn’t agree that the government agencies are effective and

efficient in implementing RCEF program, 94% of them didn’t believe that the

RCEF program will help them to improve their yield in and income. Hence, almost

all of the respondent with 94% believe that it would be hard for them to compete

25
with the cheaper price of imported rice, since imported rice comes cheaper than the

local rice, making hard for Filipino farmers to compete. The results support to the

study of Tobias (2019), that the RTL of the Philippines has a negative impact on the

income of local rice farmers due to excessive low-cost supply from overseas. After

years of the implementation of the RTL, 88% which indicates most of the

respondents, said that they already experience the effects of the law and almost all

of them with 92% responded that it has negative effects on their lives, because of

the low price of palay, but the prices of farm input that they used remains high.

Furthermore, 92% of the respondents believed that the law is not helping in

bringing down the prices of milled rice in market. According to (PSA, 2021), the

monthly average retail price of well milled rice in the first half of 2021 is P42. 73

per kilo, while on 2018, before the implementation of Rice Tariffication Law is

around P45 per kilogram. It implies that the average retail price of well mailed rice

in the Philippines is decreased by 4.04%. Despite the declining prices of palay,

100% which indicates that all of the farmers responded that they will continue

farming rice since it is the major source of income to earn a living their family.

However, the declining farm gate price of palay cab possibly effect the production

performance of the rice farmers and if that happens, there is possibly that it will

affect the supply of local rice in the country. According to Dullas and Acoba (2013)

and Sarmiento (2011), despite the difficulties of the country’s farmers, their

enthusiasm and optimism towards farms made them highly despite the difficulties

and resistance. As to the implementation to the RCEF Programs, rice farms types of

machinery and equipment are given to eligible rice farmers association and

26
registered cooperative. Also, 90% of the respondents said that the program under

RCEF had already reach them. However, as to the implementation of RCEF

programs, only 20% of the respondents have availed the free usage of rice farm

types of machinery and equipment given to the eligible farmers association and

registered rice cooperative. Meanwhile, most of the respondents with 84% already

received free certified inbred seeds, 34% availed rice credit assistance with minimal

interest rate, and 38% already attended trainings to enhance their skills and

knowledge in rice production. According to the DA Secretary William Dar, for the

first two years of implementation of the Rice Tariffication Law (RTL) that created

the RCEF. Farmers are creating additional harvest, averaging 400 kilograms per

hectare (kg/ha) which equivalent to P7,000 per hectare.

Rice Production Performance in Terms of Yield

Table 4 represent the production performance of the respondents in terms of yield

based on 1-hectare land area. In a land area of 1 hectare, the average number of sacks is
73; the average kilos per sack is 62.3 and the average yield is 4,547.9 kg/ha. According to
FAOSTAT (2020), the average yield of rice in the Philippines is 3.95 t/ha, which is
equivalent to 3,950 kg/ha. It indicates that after the implementation of Rice Tariffication
Law, farmers were still performing well in rice farming and even produce more yield
compared to the previous years when RTL is not yet implemented.

Table 4. Production performance of the rice farmers in terms of yield based on

1-hectare land area in Mlang, Cotabato. May 2023.

Land Area Average # of Average Average Yield

(ha) Sacks/ ha Kilos/sack (kg/ha)

27
 1 73 62.3 4,547.9

Association Between the Awareness of the Respondents on Rice Tariffication Law

and Production Performance of Rice Farmers in terms of Yield.

The table 5 represents the results of correlations analysis of the variables

awareness of the respondents on rice tariffication law and production performance of rice

farmers in terms of yield. The result revealed that the two variables were found to have

no significant relationship. In particular, a p-value of 0.969 which is less than the value of

0.05 level of confidence indicates that there is no relationship that can be drawn from the

two variables. Thus, the null hypothesis which state “there is no significant association

between the awareness of the respondent on rice tariffication law and production

performance of rice farmers in terms of yield” is therefore rejected. According to the

study of Diagne et at., and services and negatively by labor cost. Furthermore, according

to the study of briones (2019) on the welfare Impacts of Rice Tariffication Law, in the

absence of tariffs, palay production is expected to expand at a rate of 2.8 percent. With

tariffs, palay production contracts originally experienced a -5.7 a drop through 2024, but

then experienced positive growth from 2025 onwards. and up to 200, the difference is 0.2

percentage point reduction.

Table 5. Association between awareness of the respondents on Rice Tariffication

Law and production

Performance of rice farmers in terms of yield in Mlang, Cotabato. May 2023.

Variables R P-Value Remarks
Awareness of 0.006 0.969 Not Significant
the Respondent

28
 on Rice
Tariffication
Law and
Production
Performance of
Rice Farmers in
terms of Yield.

*Not significant at 0.o5 level

Summary, Conclusion and Recommendation

This study about the Effects or Rice Tariffication Law on the Procedure
Performance of Rice Farmers in M’lang Cotabato. The respondents of the study were the
rice farmers in Mlang Cotabato. This study used convenience and quota sampling were
50 respondents were the participants of the study. The research instruments that was used
in collecting data is a questionnaire. The response gathered were collected, tabulated and
analyzed using frequency count and percentage. The general objective of this study was
to determine the Effect of Rice Tariffication Law on the production performance of rice
farmers in Mlang Cotabato. Specially, it sought to determine the socio- demographic
profile of the respondents; determine the farm profile of the respondents; determine the
awareness of farmers on Rice Tariffication Law in Mlang, Cotabato; determine the
production performance in terms of yield; and determine if there is an association
between the awareness on the Rice Tariffication Law and production performance of rice
farmers on Rice Tariffication Law and production performance of rice farmers in terms of
yield were Roman Catholic Also, in terms of years in farming the greater the number of

29
the respondents spent 21-30 years in farming and the greater majority of the respondents
had 4-6 household members. In terms of the respondents are familiar about the Rice
Tariffication Law but they have few knowledge of how it works and its implementation,
since they were not informed about the law and only heard some information from
television and others farmers. Most of the respondents believed that the law was main
reason why prices of palay declined. Hence, almost all of the respondents believed that it
would be hard for them to compete with the cheaper price of imported rice, since
imported rice comes cheaper than the local rice. Also, most of the respondents, said that
they are already experience the effects of the law and almost all of them said that it has
negative effects on their lives, because of the low price of palay, but the prices of farm
input that they used remains high. Moreover, almost of all respondents believed that the
law is not helping in bringing down the price of milled in the market. However, despite
the declining price of palay, farmers still want to continue farming rice since it is their
major source of income to earn a living for their family. Most of the respondents have
already received support from RCEF programs of the government such as free inbred
seeds availed rice credit assistant with minimal interest rate and attended training to
enhance their skills and knowledge in Rice production. Based on the result of the study,
the researcher concluded that majority of the respondents are aware of Rice Tariffication
Law but aren’t well informed about the law and its implementation. Most of them are not
in favor of the law and they believe it is the reason why farm gate price of palay declined.
Moreover, after the implementation of rice Tariffication Law, farmers were still
performing well in Rice farming and even produce ore yield compare to the previous
years, were RTL is not yet implemented. Furthermore, it is concluded that there is no
significant relationship between the awareness of the respondents. Based on findings and
conclusion of the study the following are recommended:

1. The Department of Agriculture should lead the proper dissemination of

information regarding to the implementation of Rice Tariffication Law.

2. They should also utilize and educate farmers in Mlang in terms of using

high technology tool and equipment.

30
 3. Introduce high quality of seeds with cheap cost.

LITERATURE CITED

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in rural Iran. Food

Policy, 35(1), 12-19

Briones R.M. (2019). Welfare Impacts of Rice Tarrification Law. Discussion Paper

Series No. 2019-16 DA

Communications Group (2021, March 12) RCEF enables rice farmers toproduce and earn

more.

https://www.da.gov.ph/rcef-enables-rice-farmers-to-produce-and-earn-more/

Darvin, B.A. (2019). Agri experts share varying perspective on the Philippine Rice

31
Tarrification Law during SEARCA-led WRC parallel session. Southeast Asian Regional

Center for Graduate Study and Research in Agriculture. (11World Rice Conference).

Makati City, Philippines.

Diagne, Mandiaye, Matty Demont, Papa Abdoulaye Seck, and Amada Diaw

“Selfsufficiency policy and

Irrigated rice productivity in the Senegal River Valley.’’ Food Security 5, no. 1

(2013):55068

Dorfman, R. (2016, April 1). Theory of production. Encyclopedia Britannica.

https://www.brintannica.com/theory-of-production

Dullas, A. R., & Acoba, E.F. (2013) Concept of happiness among Filipino farmers:

A qualitative and quantitative view. LAP Lambert Academic Publishing, Germany.

Feredez, M. (2019, November 20) Multi-sectoral group calls for repeal of rice

liberalization law; doubts Duterte’s sincerity in suspending rice importation

https://www.untvweb.com/news/multi-sectoral

group-calls-for-repeal-of-rice-liberalization-law-doubts-duterters-sincerity-in-

suspending-rice- importation/

House of Representatives. 2019. An act liberalizing the importation, exportation, and

trading of rice, lifting for The Purpose the quantitative import restriction on rice, and for

other purposes.

http://www.congress.gov.ph/legisdocs/ra_17/RA11203.pdfKahnemann, D. & Deaton, A.

(2010). High income improves evaluation of life but not Emotional well-being.

Proceeding of the National Academy of sciences 107(38), 16489-16493

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Retrieved from http://doi.org/10.1073/pnas.1011492107

amaruddin, R., Ali, J. & Saad, N. M. (2013). Happiness and its influencing Factors

Among Paddy Farmersin Granary Area of MADA. Proceedings Book of ICEFMO. PAK

Publishing Group. MalaysiaKruz, H. D. and Salvadori, N. (1995), Theory of Production.

A Long-period Analysis, Cambridge, New YorkAnd Melbourne: Cambridge University

Press.Markussen, T., Fiabaek, M., Tarp, F. & Tuan, N. D. A. (2018). The happy farmer:

SelfEmployment Subjective Well-being in Rural Vietnam. Journal of Happiness

Studies , 19(1), 1613-1636. Doi:10.1007/s10902-017-9899-1Rice production in the

five Southeast Asian countries,Vietnam, Thailand, Myanmar, Philippines and

Cambodhttp://www.yieldgap.org./phillines#:~:text=irrigated%2C%2020200

grown,2018%20(FOASTAT%2C%2020200.RICE TARIFFICATION BENEFITS

ALLFILIPINOS,ENHANCESPRODUCTIVITYANDCOMPETITIVENESSRICESECT

NEDA http://www.neda.gov.ph/rice-tariffication-benefits-all-filipinos-enhances-

productivity-and-competitivesness-of-rice-sector-neda/

Montemayor, R. (2021, January 26) the real story of rice production in 2020

http://business.inquirer.net/16493/the-real-story-of-rice-production-in-2020

The Rice Tariffication Law and how it affects you

http://www.gmanetwork.comnews/lifestyle/food/720331/the-rice-tariffication-law-and-

how-it-affect- you/?amp.Tiongco M., and Dawe D. (2022). Long-term Evolution of

productivity in a Sample of Philippine Rice Farms: Implications for Sustainability and

Future Researcher, World Development, 891-889Tobias, A. M., (2019, May 23) the

Philippines Rice Tariffication Law Implications and issues

33
https://ap.ffc.org.tw/article/1372Updates on Palay, Rice and Corn

Priceshttps://psa.gov.ph/content/updates-palay-rice-and-corn-prices-0Vartudes, M.F.,

Musa, CD., Cosilet, M.A., Sagubang, R., Balania, F., (2020). Impact of rice

tariffication law in selected rice farmers in Nueva Ecija,Philippines International Journal

of advance Engeering, Management and Science (lJEAMS)

34
APPENDICES

35
SURVEY QUESTIONNAIRE

Part I. Socio Demographic Profile:

Instruction: Fill in the information needed. Please check the box that corresponds
your answer.

1. Age: ______

2. Gender:

Female

Male

3. Civil Status

Single Married Widowed Separated

4. Educational Background:

Elementary Level Elementary Graduate

High School Level High School Graduate

College Level College Graduate

Vocational Holder

5. Tribe:

Ilocano Ilonggo Bisaya Muslim

Others (specify) ____________

36
6. Religion:

Roman Catholic Baptist Islam

Others (specify)_____________

7. Years in Farming: ______

8. Number of family household: ______

37
Part II. Farm Profile of the Respondents

1. Total Area(ha) ____________

2. Production practice

Conventional Natural/Organic

3. Topographical Description

Lowland Irrigated land Rainfed

Upland Irrigated land Rainfed

4. List of Farm Machineries, Equipment and Tools

Combine harvester Thresher Rotavator

Mechanical driver Planter Solar Drier

Power sprayer Warehouse Kuliglig

Tractor Bao-bao

5. Number of sacks harvested per cropping. ______

6. Number of kilos per sack. _______

7. Frequency of harvest per year. _______

8. Yield per hectare. _______

38
Part III. Awareness of the Respondents of RTL

YES NO

1. Are you familiar with Rice Tariffication Law?

2. Are you informed about the law and how it will

be implemented?

3. Are you in favor of Rice Tariffication Law?

YES NO

1. Do you think the assigned government agencies

can effectively and efficiently implement the

RCEF programs?

2. Do you already experience the effect of Rice

Tariffication Law?

3. Is the effect of the said law being good to your

livelihood?

4. Free usage of rice farm types of machinery and

equipment given to eligible farmers association

and registered rice cooperative

4. Free certified inbred seeds

39
5. Rice credit assistance with minimal

interest rates& minimum collateral

requirements.

6. Trainings for skills on rice crop

production, modern rice farming

techniques, seed production, farm

mechanization and knowledge/

technology transfer

7. Do you think the RCEF programs

will really help you to improve your

yield and income?

8. Do you think we can really compete

with cheap rice imports?

9. Do you think the law helps in

bringing down the price of milled rice

in the market?

10. Are the government programs

under RCEF already reached you?

40
 Researchers Biodata

Name: Ebrahim A. Ducay

Address: Dungoan Mlang North Cotabato
Contact #: 09463909891
Email address: ebrahimducay@gmail.com
Age: 23
Date of birth: May 20, 2000
Place of birth: Dungoan Mlang North Cotabato
Skills: Playing Volleyball
Motto: Never stop learning because life never stop teaching

Education Attainment
Elementary:
Dungoan Elementary School
2013-2014
Junior High School:
Mlang National High School
2017-2018
Senior High School:
Mlang National High School
2019-2020
Tertiary Education:
Southern Baptist College
Bachelor of Secondary Education- Social Studies
2020 Present

41
Researchers Biodata

Name: Norjiana U. Bulingkig

Address: Dungoan, Mlang, North Cotabato
Contact #: 09653814314
Email address: norjianab@gmail.com
Age: 21
Date of birth: December 15, 2001
Place of birth: Dungoan, Mlang, North Cotabato
Skills: Cooking,Eating,
Motto: Time is Gold

Education Attainment
Elementary:
Dungoan, Elementary School
2013-2014
Junior High School:
M’lang National High School
2017-2018
Senior High School:
M’lang, National High School
2019-2020
Tertiary Education:
Southern Baptist College
Bachelor of Secondary Education- Social Studies
2020 Present

42
 Researchers Biodata

Name: Rahma Z. Umbol

Address: Gaunan Mlang North Cotabato
Contact #: 099077011774
Email address: rahmaumbol@gmail.com
Age: 22
Date of birth: March 16,2001
Place of birth: Gaunan, Mlang North Cotabato
Skills: Eating
Motto: Never give up,life is not about perfection.

Education Attainment
Elementary:
Lepaga Elementary School
2013-2014
Junior High School:
Lepaga, High School
2017-2018
Senior High School:
Southern Baptist College
2019-2020
Tertiary Education:
Southern Baptist College
Bachelor of Secondary Education- Social Studies
2020 Present

43
 Researchers Biodata

Name: Aprille Joy D. Lampon

Address: Buayan, Mlang, North Cotabato
Contact #: 09352719901
Email address: Aprillejoy@gmail.com
Age: 22
Date of birth: April 25,2001
Place of birth: Buayan, Mlang, North Cotabato
Skills: Dancing,Singing
Motto: Be teachable in all time

Education Attainment
Elementary:
Buayan, Elementary School
2013-2014
Junior High School:
Mlang, National High School
2017-2018
Senior High School:
Mlang National High School
2019-2020
Tertiary Education:
Southern Baptist College
Bachelor of Secondary Education- Social Studies
2020 Present

44
45
 Researchers Biodata

Name: Hope Grace Villasor

Address: Inas Mlang North Cotabato
Contact #: 09518259638
Email address:hopegracevillasor@gmail.com
Age: 21
Date of birth: March 25,2002
Place of birth: Inas Mlang North Cotabato
Skills: Dancing
Motto: Try and try until you die

Education Attainment
Elementary:
Inas Elementary School
2013-2014
Junior High School:
Mlang National High School
2017-2018
Senior High School:
Mlang National High School
2019-2020
Tertiary Education:
Southern Baptist College
Bachelor of Secondary Education- Social Studies
2020 Present

46