The effect of the import liberalization of fertilizers on rural revenue of rice farmers in Central Luzon and Southern Tagalog
Date
1993-10
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Abstract
This study examined the effects of the 1986 import liberalization of fertilizer grades vital to rice production on farm revenues in Philippine rice bowls, Central Luzon and Southern Tagalog, first by determining its price effects,then through evaluating the price effects on rice area and yield. The hypothesis that a downward movement in fertilizer price shall significantly effect increased yield was confirmed valid, leading to the implication that the farm revenues of rice producers shall increase. However, despite the confirmed positive effect of the import that it liberalization on rural rice revenues, it was unable to tangibly cause the expected was observed increase in output. As a result, the import liberalization policy, in order to be effective, should be constructed in such a manner that it corresponds with policies affecting irrigation infrastructure and the consumption of high yielding varieties. The effects of these other technological innovations on hectare allocation and yield were also described by the model, and contributed to the comprehensive scenario of farm decision-
making.
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Keywords
Import liberalization, Rice farmers