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Assessing the Impact of Sugarcane Block Farming in the Philippines: Evidence from Province of Batangas

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Document pages: 18 pages

Abstract: Sugarcane Regulatory Administration (SRA) began to implement Sugarcane Block Farming (SBF) in 2012 to increase farm productivity and sugarcane yield. SBF is the operation consolidation using multi-purpose cooperatives. Since SRA launched SBF 7 years ago, there have been few empirical studies on SBF in terms of its economic performance. Our primary purposes are as follows: First, to describe the differences in characteristics between enrollees and dis-enrollees: Second, to estimate average treatment effects on the treated by SBF participation: Third, to determine the relationship of input variables and sugarcane production for enrollees and dis-enrollees. To answer these purposes, we used primary data from the household survey in Province of Batangas, Philippines, in September 2019. The respondents comprise 165 farmers. The results indicated that differences in gender among household heads might influence SBF participation. Also, statistically positive and significant factors affecting sugarcane production are inputs of fertilizer and planted land size for both enrollees and dis-enrollees, and enrollees have higher input elasticities of sugarcane production than dis-enrollees. We recommend that smallholder farmers use inputs of fertilizer and planted land size for best sugarcane production so that they would get more sugarcane production and reduce more cost of agricultural input.

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