Farm Business Accounting PDF

FARM BUSINESS ACCOUNTING (Elauria, M. M., 2000) Patrick C. De Leon, DPA Associate Professor UP Diliman Extension Program in Pampanga  INTRODUCTION ▪ Keeping records is not a popular practice among farmers in the Philippines. ▪ They find keeping...

FARM BUSINESS ACCOUNTING (Elauria, M. M., 2000) Patrick C. De Leon, DPA Associate Professor UP Diliman Extension Program in Pampanga  INTRODUCTION ▪ Keeping records is not a popular practice among farmers in the Philippines. ▪ They find keeping records not worthwhile because of the smallness of their enterprise.  INTRODUCTION ▪ As their enterprise enlarges and becomes more market- oriented, they find it necessary to have a system of records (1) to keep track of costs and resource use, and (2) for purposes of planning and budgeting.  INTRODUCTION ▪ The primary purpose of keeping records is to provide financial and physical information that can be helpful in decision-making. ▪ A set of records of past performances can help answer questions like: which crops are earning money? which ones should be kept and expanded? which ones should be dropped?  FARM ACCOUNTING AND THE NATURE OF AGRICULTURE ▪ Accounting is a means of communicating the results of economic transactions to those taking part in the transactions. ▪ As a special field, farm accounting encompasses farm bookkeeping, cost studies, and farm cost accounting, and in so doing, calls upon all the analytical techniques of accounting (Stoen, J. A., 1968).  FARM ACCOUNTING AND THE NATURE OF AGRICULTURE ▪ While farm management requires the same clear, concise, and accurate accounting information that management in other business ventures requires, it has special needs and limitations that make the practice of accounting elsewhere inapplicable to farming ventures.  FARM ACCOUNTING AND THE NATURE OF AGRICULTURE ▪ Majority of farms are small enterprises such that the economic transactions of each firm are too few and highly influenced by the personal objectives of the family unit. ▪ Crops harvested or livestock kept are sold only when the family needs money in order to meet their obligations. ▪ On the other hand, selling outputs is a programmed activity in other commercial ventures.  FARM ACCOUNTING AND THE NATURE OF AGRICULTURE ▪ Physical resources employed for agricultural production are subject to climatic variation, and pests and diseases. ▪ Agricultural production processes once began cannot be changed in order to effect higher output to meet additional market demand or slow it down when there is a sudden decrease in demand.  FARM ACCOUNTING AND THE NATURE OF AGRICULTURE ▪ In farming, a greater bulk of the investment is on fixed items. ▪ It is not easy to adjust production levels once the resources have already been committed. ▪ Capital resources in farming are usually provided by the operator out of his own resources. ▪ Hence, they are not pressured to set up a careful accounting of what is happening in their business, as they are not answerable to anyone.  FARM ACCOUNTING AND THE NATURE OF AGRICULTURE ▪ The farmer has no control over the physical as well as the economic environment especially in less developed countries where the farmers are not united to the extent of being a force to reckon with in policy making. ▪ He can exercise control only over his production costs or in resource allocation ▪ Most farmers are not aware that accounting permits an evaluation of production methods to help him judge the merits and demerits of alternative technologies in order to know which one will be most profitable.  THE PHASES OF ACCOUNTING Phase Description Measuring and Involves valuation of properties owned and Arraying Economic owed by a firm and setting up a record Data system The results of record-keeping are Communicating Results summarized, analyzed, and communicated to to Interested Parties interested parties  ACCOUNTING CONVENTIONS Accounting Convention Description The owner of the business is separate Accounting Entity and distinct from the business he owns. Transactions are treated as historical Historical Record Convention events. The life of a business is divided into Accounting Period arbitrary time periods. It is assumed that the enterprise will exist indefinitely; Depreciation charges are recorded to show that a portion of Continuity the asset has been used up during a period and whatever is left can still be used in future operations.  ACCOUNTING CONVENTIONS Accounting Convention Description Values are expressed in monetary terms Monetary Convention making money as a common denominator. All laws affecting the enterprise must be Rule of Law followed. Accounting Equation Assets = Liabilities + Equity  ACCOUNTING DOCTRINES Accounting Doctrine Description Each accounting convention must be observed in a consistent manner in all Consistency accounting periods. If one system is adopted it should not be changed after some time. A full statement of significant information as well as complete honesty and objectivity in Disclosure reporting the accounts are observed. Nothing of importance is concealed.  ACCOUNTING DOCTRINES Accounting Doctrine Description The accountant makes adequate provisions Conservatism and reserves against likely losses. All important pieces of information should Materiality be as much as possible quantified and included in the accounts.  OPERATIONS INVOLVED IN ACCOUNTING 1. Recording of transactions in chronological order 2. Classifying or sorting of transactions in a systematic manner 3. Summarizing - bringing accounting data together in a manner such that the business worth is known and other pertinent questions are answered  DEBIT AND CREDIT FOR BALANCE SHEET ACCOUNTS Debit means: Credit means: ▪ Increase in asset ▪ Decrease in asset ▪ Decrease in liability ▪ Increase in liability ▪ Decrease in proprietorship ▪ Increase in proprietorship  DEBIT AND CREDIT FOR INCOME STATEMENT ACCOUNTS Income Accounts: Expense Accounts: ▪ Debit (-) ▪ Debit (+) ▪ Credit (+) ▪ Credit (-)  DEBIT AND CREDIT FOR REAL AND NOMINAL ACCOUNTS Assets + Expenses = Liabilities + Proprietorship + Revenues Debit increases Credit increases Credit decreases Debit decreases TYPES OF ACCOUNT AND THEIR NORMAL BALANCES Account Normal Balance Asset Debit Liability Credit Proprietorship Credit Income Credit Expense Debit  SAMPLE TRANSACTIONS 1. Mr. Cruz established his poultry farm by investing P10,000 in cash, bought P3,000 worth of equipment and P2,000 worth of supplies. 2. He paid land rent at the end of the month amounting to P500. 3. He bought chicks for P2,500 on credit. 4. He paid the chicks. 5. He purchased poultry feeds in cash amounting to P1,000. 6. He sold poultry amounting to P3,000. THAT’S ALL FOR NOW … THANK YOU! The Impact of Technology on Family Income and Employment of Small Rice Farmers by Ernesto P. Abarientos (1972) Dr. Patrick C. De Leon Associate Professor UP Diliman Extension Program in Pampanga  Outline of Presentation 1. The Author 2. Background 3. Purpose and Method of Analysis 4. The Farmer-Cooperators and the Data 5. Hypotheses 6. Summary and Conclusion  The Author ▪ Ernesto P Abarientos ▪ Department of Agricultural Economics ▪ University of the Philippines Los Baños ▪ Workshop on Manpower and Human Resources, October 13-15, 1972  Background Context ▪ agricultural economy ▪ inequitable distribution of income ▪ surplus agricultural labor ▪ new technology – use of improved varieties and accompanying input requirements  Background Farm Record Keeping Project (FRKP) ▪ Department of Agricultural Economics, UP College of Agriculture ▪ Intent: to develop a farm record book that farmers could use in planning and operating farms ▪ Through weekly visits these records were updated and became the basis of information for the paper  Purpose and Method of Analysis ▪ Show changes that occurred in family incomes and employment as affected by the changes on resource use and productivity on the farm ▪ Crop years under consideration: Pre-HYV (from 1962-1963 to 1965-1966); Post-HYV (from 1966-1967 to 1969-1970)  Purpose and Method of Analysis ▪ Method of discussion: case to case basis ▪ Clear picture of the changes in each farm ▪ Avoid statistical bias on non- randomness of samples ▪ Averages of all famer cooperators may result in distortion  The Farmer-Cooperators and the Data No. of No. of Cooperators Province Municipality Cooperators per per Municipality Province Cabuyao 4 Calauan 5 Laguna 35 Lumban 18 Pila 8 Tanauan 1 Batangas 3 Sto. Tomas 2 Total 38  The Farmer-Cooperators and the Data Scope and Limitations ▪ 16 cooperators from Laguna ▪ 15 cooperators during 1962- 1970 ▪ 1 cooperator during 1962-1969 ▪ All 16 cooperators operated lowland irrigated rice farms  Hypotheses 1. Higher yield is brought about by the increased use of fertilizer and agricultural chemicals. 2. Because of highly specialized farm chores, the need for hired labor increases more rapidly than the need for family labor. 3. Increased use of fertilizer and other inputs brings about the increase in cash costs of operation. 4. The use of HYV increases the net share of the farmer. 5. If hypothesis no. 2 is true, then it is possible that family labor brings about the increase in other incomes.  Summary and Conclusion ▪ 12/16 or 75% of farms: high correlation between crop yield and use of fertilizer and agricultural chemicals ▪ 4/16 or 25% of farms: use of fertilizer and agricultural chemicals brought about little or no effect on crop yield ▪ 12/16 or 75% of farms: the need for hired labor increased more rapidly than the need for family labor ▪ 4/16 or 25% of farms: use of family labor was greater than the use of hired labor ▪ 16/16 or 100% of farms: cash costs of operation increased during the post-HYV period (biggest increase: fertilizers, herbicides, and insecticides)  Summary and Conclusion ▪ 16/16 or 100% of farmers had several odd jobs which were the sources of additional income ▪ 13/16 or 81% of farmers received better income from other sources as a result of the contraction of family labor on these odd jobs WHY DOES POVERTY PERSIST IN THE PHILIPPINES? by Dr. Arsenio M. Balisacan (2007) Dr. Patrick C. De Leon Associate Professor UP Diliman Extension Program in Pampanga  Outline of Presentation 1. Introduction 2. The Growth-Poverty Nexus 3. Sharpening the Response of Poverty to Local Economic Growth 4. The Other Big but Neglected Problem – Rapid Population Growth 5. Concluding Remarks  Introduction Addressing the widespread poverty problem is the single most important policy challenge facing the Philippines. Proposals peddled to address the poverty problem are plenty – and keep growing.  Introduction At one end of the spectrum are proposals contending that the root of the problem is simply the lack of a responsible economic growth. Putting the economy on a high-growth path is prescribed as all that is needed to lick the poverty problem.  Introduction At the other end are proposals asserting that the poverty problem is nothing but a concrete manifestation of gross economic and social inequities. Redistributing wealth and opportunities is viewed as the key to winning the war on poverty.  Introduction Between these extremes are views that consider economic growth as a necessary condition for poverty reduction and recognize that reform measures have to be put in place to enhance the participation of the poor in growth processes.  Introduction How do these proposals or This paper attempts to answer views stand in relation to these questions. evidence and policy research? It does this by examining the What are facts and what are Philippine experience in fancies? poverty reduction from an What policy levers can be international perspective. expected to generate high returns in terms of poverty reduction?  The Growth-Poverty Nexus Recent development Viewed from a medium- to experience presents a clear long-term perspective, there is evidence: every country that an almost one-for-one has chalked up significant correspondence between achievements in poverty growth in the incomes of the reduction has also done quite poor and the country’s average well in securing long-term income growth. economic growth.  The Growth-Poverty Nexus This correlation is not unexpected: economic growth is an essential condition for the generation of resources needed to sustain investments in health, education, infrastructure, and good governance (e.g. law enforcement, regulation), among others.  The Growth-Poverty Nexus While economic growth in most East and Southeast Asian countries has been rapid during the past 25 years, the same cannot be said for the Philippines (see Table 1). The country’s economic growth has been quite anemic, barely exceeding the population growth rate, which has continued to expand rapidly at 2.3 percent a year for most of the past two decades.  The Growth-Poverty Nexus The country’s dismal economic record shows up even more vividly in the poverty front. Poverty reduction in the Philippines lagged far behind those of its East Asian neighbors, particularly Indonesia, Thailand, Vietnam, and China (see Figure 1).  The Growth-Poverty Nexus Both China and Vietnam started with higher levels of poverty incidence than did the Philippines during the early 1980s, but their absolute poverty soon dwindled and became much lower than the Philippines’ during the early 2000s. The Growth-Poverty Nexus  The Growth-Poverty Nexus Both Malaysia and Thailand also had virtually eliminated absolute poverty in the past 20 years. While the average income in the Philippines in the mid- 2000s (PPP $4,381) was much higher than in Vietnam (PPP $2,683) and Indonesia (PPP $3,402), its absolute poverty was actually much higher than in either of the latter countries. The Growth-Poverty Nexus  The Growth-Poverty Nexus The unenviable performance of the Philippines in poverty reduction has to do largely with its inability to achieve and sustain an income growth substantially higher than its population growth.  The Growth-Poverty Nexus The poor performance of the Philippines in economic growth and poverty reduction has often been attributed in part to the relatively large variation in access to infrastructure and social services across regions and island groups.  The Growth-Poverty Nexus Development efforts have favored Luzon and discriminated against the Visayas and especially Mindanao. This development pattern has led to substantial regional differences in access to economic opportunities, in rates of poverty reduction, and in the incidence of armed conflict.  The Growth-Poverty Nexus Given the regions’ very diverse growth records (see the last column of Table 2), considerable variations occurred across regions. However, Metro Manila consistently had the lowest poverty while Bicol, Western Mindanao, and the Visayas, the highest.  Sharpening the Response of Poverty to Local Economic Growth Both theory and evidence suggest a strong connection between agricultural and rural development and poverty reduction. Investments in health and education, particularly in rural areas, have high payoffs in terms of poverty reduction.  Sharpening the Response of Poverty to Local Economic Growth There is a need to address the country’s rapid population growth, since there is a strong link between economic performance and poverty reduction.  Sharpening the Response of Poverty to Local Economic Growth Poverty in the Philippines is largely a rural phenomenon. Two of every three poor persons in the country are located in rural areas and are dependent on agricultural employment and incomes.  Sharpening the Response of Poverty to Local Economic Growth Even poverty in urban areas is largely a consequence of low productivity and slow expansion of employment opportunities in rural areas. Extreme poverty in rural areas induces rural-urban migration.  Sharpening the Response of Poverty to Local Economic Growth Recent development experience demonstrates that rural development fueled by rapid productivity growth in the agricultural sector holds the key to sustained poverty reduction. In developing countries where agricultural growth was rapid, sustained, and broadly based, growth of farm incomes was sustained despite farm price declines in world markets, domestic food prices remained low, rural employment diversification was enhanced, and consequently, poverty reduction was robust.  Sharpening the Response of Poverty to Local Economic Growth Prior to the country’s accession to the WTO in 1995, the performance of the agriculture sector was quite poor compared with those in other Asian countries. During the period 1980-1994, Philippine agriculture grew at a measly 1.5 percent a year, the lowest among the major developing Asian countries (see Table 3).  Sharpening the Response of Poverty to Local Economic Growth The growth was even less than the rate of population growth then (averaging about 2.4 percent a year). In the period following the country’s accession to the WTO, the country’s agricultural growth improved to 2.4 percent a year, though this still paled in comparison with the averages for China (3.5%) and Vietnam (4.2%), two of the most aggressive globalizers in the Asian region (see Table 3).  Sharpening the Response of Poverty to Local Economic Growth Contrary to popular claims, especially by many NGOs, the country’s accession to the WTO could not be a compelling reason for the comparatively poor performance of agriculture in recent years. All the other major developing countries in the Asian region operated in a similar global trading environment as the Philippines but had significantly higher agriculture and overall economic growth rates than those achieved by the Philippines.  Sharpening the Response of Poverty to Local Economic Growth Production growth could come from either expansion of the cultivated area or from increases in output per unit area. The former is no longer a practical option for the Philippines mainly due to conversion of land to non- agricultural purposes.  Sharpening the Response of Poverty to Local Economic Growth Hence, output growth would have to come from productivity growth through sustained technological improvements. A comprehensive measure of productivity growth is total factor productivity (TFP) growth. This measure represents output growth net of the growth in all production inputs. It is thus an appropriate indicator of efficiency improvement.  Sharpening the Response of Poverty to Local Economic Growth The available TFP data for the 1970s suggests that the Philippines at that time fared comparably with Thailand and Indonesia (see Table 4). However, the succeeding two decades saw productivity stagnating in the Philippines (0.2% a year) but continuing to grow in Thailand (1.0% a year) and Indonesia (1.5% a year).  The Other Big but Neglected Problem – Rapid Population Growth One particular feature of Philippine society is its failure to achieve a demographic transition similar to what its Southeast and East Asian neighbors went through during the past three decades. Demographic transition is a change from a situation of high fertility and high mortality to one of low fertility and low mortality. This change results to sizable changes in the age distribution of the population. The change can create a demographic dividend (e.g. increases in per capita income as the bulge in the age pyramid moves, over time, from young people to prime age for productive work and savings.  The Other Big but Neglected Problem – Rapid Population Growth In the Philippines, the population issue remains highly contentious. At the center of the debate is whether population growth has any bearing on economic development and poverty reduction. At one extreme is the Catholic Church’s strong opposition to any reference to population growth as a contributory factor to the country’s transformation to a basket case.  Concluding Remarks The persistence of poverty in the Philippines has to do largely with its inability to achieve and sustain income growth substantially higher than its population growth. While economic growth is good for the poor, it is not good enough.  Concluding Remarks The response of poverty reduction to income growth in the Philippines has been quite muted by international standards, especially in comparison with the country’s neighbors. Hence, the Philippines’ unenviable record in poverty reduction in recent years is the outcome not only of its comparatively low per capita GDP growth rate but also of its weakness in transforming any rate of income growth into poverty reduction.  Concluding Remarks The quality of economic growth has to be improved to enhance the benefits of growth to the poor. There are wide avenues for improving the response of poverty to overall income growth. There is strong connection between agricultural and rural development and poverty reduction.  Concluding Remarks Investments in health and education especially in rural areas have high payoffs in terms of poverty reduction. There is a need to address the country’s rapid population growth, since a strong connection exists between economic performance, on the one hand, and economic growth and poverty reduction, on the other. It has been a pleasure serving as your STS professor this semester. Thank you! GOVERNANCE ISSUES AND CONCERNS OF THE CLARK AETAS Dr. Patrick C. De Leon Associate Professor UP Diliman Extension Program in Pampanga  OUTLINE OF PRESENTATION 1. Introduction 2. Materials and Methods 3. Results and Discussion 4. Conclusions and Recommendations  INTRODUCTION Interesting Facts About the Clark Aetas: ▪ Live in Calumpang, Macapagal, and Marcos ▪ Face a land dispute with a locator in the CFZ (Navales 2013) ▪ Part of the aboriginal population of the Philippines (Seitz 2004) ▪ Had sufficient resources before the eruption of Mount Pinatubo in 1991 (Reed 1904, Barrato and Benaning 1978, Morales and Monan 1979) ▪ Exhibited flexible resource use and spatial mobility through foraging, farming, hunting, gathering, and fishing (Peterson 1978; Shimizu 1989; Seitz 1998, 2004; Gaillard, 2003)  INTRODUCTION ▪ Openness and adaptability are attributes of their culture (Tima 2005) ▪ Tagalog, Kapampangan, and Sambal cultures can be seen in their daily lives (Salita 2009) ▪ The 1991 eruption of Mount Pinatubo forced them to move to evacuation centers which are mostly inappropriate for them (Shimizu 1992, 2001; LAKAS 1991; Castro, Cabalza, and Gadit 1998; Seitz 1998, 2004; Gaillard 2003) ▪ Limited and contested access to resources is a problem they share with the rest of the IPs of the Philippines (Barrientos 2008, Calde 2011)  INTRODUCTION ▪ Despite the existence of laws on the protection of IPs, their rights were violated (Corpuz and Alcantara 2004) ▪ Programs and projects aimed at helping the Aetas and other IPs have been implemented by the World Bank (Rovillos, Cadiogan, and Alangui 2000), the UNDP (UNDP 2010), the NCIP and the DepEd (Abayao 2011), and the UST (2015) ▪ The success of programs and projects for the Aetas and other IPs depends to a large extent on governance  INTRODUCTION Conceptual Handle Objectives ▪ ADB’s definition of 1. To identify who governs governance: the Clark Aetas “the institutionalization of 2. To describe and analyze a system through which how they are governed citizens, institutions, organizations, and groups 3. To identify and explain in society articulate their their problems, issues, and interests, exercise their concerns rights, and mediate their differences in the pursuit of the collective good” (Brillates, Jr. and Fernandez 2008)  MATERIALS AND METHODS Qualitative Data Required Mixed Methods of Data Collection 1. Names of individuals who 1. Key informant interviews govern the Clark Aetas, 2. Field observations including their positions and 3. Gathering of documents – the organizations they photocopying and taking of represent photographs 2. Descriptions of their (Data were collected from structures and processes of November 2015 to February governance 2016) 3. List of their current problems, (Permission from NCIP Region 3 issues, and concerns was obtained and IKSP Team was constituted on September 4, 2015)  RESULTS AND DISCUSSION Table 1. Demographic and Political Profile of the Clark Aetas Village Sitio Chieftain Population Monicayo Mylene Tolentino 300 Calumpang Quadra none yet 60 Macapagal Pulang Lupa Danilo Sibal 200 Bilad Ruvielane Margarito 300 Marcos Haduan Roy Tanglao 100 Calapi Roque Laxamana 70 Total 1,030 Source: Margarito, Ruvielane S. (2016). Interview at the City Council Office, Mabalacat City Hall, Xevera, Mabalacat City (February 18th).  RESULTS AND DISCUSSION ▪ Governed primarily by MATA Chairman Robert Serrano ▪ Council of Elders still exists but is overshadowed by the MATA ▪ The Aetas in the villages of Macapagal and Marcos articulate interests and settle differences through their chieftains and tribal association chairman ▪ In Calumpang, however, they approach the barangay captain instead. Calumpang Chieftain Mylene Tolentino explained: “Nagagalit kasi ang kapitan namin kapag unang lumapit sa akin o kay Ka-Robert ang mga Aeta. Ayaw ng kapitan na magmukhang mas makapangyarihan pa kami ni Ka-Robert kaysa sa kanya.” (“Our village captain gets angry when the Aetas approach me or Robert Serrano first before him. He does not want us to look more powerful than him.”)  RESULTS AND DISCUSSION Table 2. The Aeta Population in Calumpang, Macapagal, and Marcos Aeta Population as Total Village Aeta Population Percentage of Population Total Population Calumpang 360 792 45 Macapagal 200 2,835 7 Marcos 470 2,733 17 Sources: Office of the City Planning and Development Coordinator and the Office City Zoning Administrator, Mabalacat City Hall, Xevera, Mabalacat City and Margarito, Ruvielane S. (2016). Interview at the City Council Office, Mabalacat City Hall, Xevera, Mabalacat City (February 18th).  RESULTS AND DISCUSSION Problems, Issues, and Concerns Observations 1. Lack of water, medicines, and ▪ The Clark Aetas have ambivalent jobs perceptions of the national and 2. Threats from local politicians local governments, people’s organizations, and religious 3. Loss of ancestral lands organizations. ▪ Their satisfaction or dissatisfaction depend on the amount of basic services they get from these organizations. ▪ Their ambivalence does not stop them from engaging with governmental and organizations. ▪ They view this engagement as a way of solving their problems.  CONCLUSIONS AND RECOMMENDATIONS Conclusions ▪ The Clark Aetas are primarily governed by their tribal association chairman and secondarily by their chieftains. ▪ Their indigenous governance structure – the Council of Elders – still exists and functions but is overshadowed by their tribal association. ▪ They consider their tribal association chairman as their leader – the person that exerts the most power and influence among them, promotes their general welfare, binds them together, provides them financial assistance, and fights for their rights. ▪ The problems, issues, and concerns that they currently face are (1) the lack of water, medicines, and jobs, (2) the threats from local politicians, and (3) the loss of their ancestral land. ▪ They have ambivalent perceptions of governmental and other organizations but engage with them to solve their problems.  CONCLUSIONS AND RECOMMENDATIONS Conclusions ▪ The Clark Aetas rely more on their own leaders (e.g. MATA Chairman Robert Serrano and Sitio Bilad Chieftain and Mabalacat City Councilor Ruvielane Margarito) than on local government officials. ▪ This behavior is consistent with the self-governance concept that is explicitly stated in Section 13, Chapter IV of the IPRA of 1997. ▪ The articulation of their interests, the exercise of their rights, and the mediation of their differences through their chieftains and tribal association chairman, meanwhile, is consistent with the ADB’s governance concept. ▪ Through the guidance of the pluralistic governance concept of the ADB, the study was able to identify the other stakeholders and institutions involved with the Aetas. ▪ These are the Clark Water Corporation, the Mabalacat City Water District, the Rural Health Unit III, the Clark Development Corporation, the City Social Welfare and Development Office, and the Office of the City Agriculturist.  CONCLUSIONS AND RECOMMENDATIONS Recommendations ▪ Despite comprising 45% or nearly half of Calumpang’s population, the Aetas still consider themselves as a minority. They feel they are different and have a lower status vis-à-vis the Unat or the non-Aetas. To help eliminate this feeling of inferiority, the Aetas can form a tribal barangay pursuant to Section 18, Chapter IV of the IPRA of 1997 (otherwise known as Republic Act No. 8371). ▪ The Mabalacat City Water District already has a plan of constructing a dam near Haduan Falls that will supply water to Aeta villages. General Manager Francis Dimaliwat, however, saw the need to declare the area around Haduan as a watershed. Since Sitio Bilad Chieftain Ruvielane Margarito is also a city councilor, she could sponsor the needed ordinance. Merely declaring the area a watershed is certainly not enough. Reforestation efforts must be intensified in order to increase the capacity of the area to hold water.  CONCLUSIONS AND RECOMMENDATIONS Recommendations ▪ The Aetas working at the CDC do not have job security. They are relegated to menial jobs. According to Ronald Antonio of the CDC’s Enterprise Regulations Department, they could not recommend the Aetas to more permanent jobs because they lack the required education and training. To address this problem, the MATA should expand its scholarship program by partnering with higher education institutions in Mabalacat City and Angeles City. ▪ The courses and training programs of these educational institutions should, however, be sensitive to the culture and values of the Aetas. In other words, they should indigenize their courses and programs (Abayao 2011). ▪ Distance education programs such the one offered by the University of Santo Tomas to the Aetas in Bamban, Tarlac should also be offered to the Aetas in Calumpang, Macapagal, Marcos, and Madapdap. Abelardao (2015) has shown that due to the said distance education program, the literacy and numeracy of the Aeta participants have greatly improved.  CONCLUSIONS AND RECOMMENDATIONS Recommendations ▪ But the most serious problem for the Clark Aetas is the loss of their ancestral land. They lost the case they filed because the NCIP found the JMA in its entirety binding between the CDC and the former set of Aeta chieftains. ▪ The new set of chieftains and the MATA chairman can perhaps explore the possibility of amending the JMA provisions which are perceived to be inequitable such as the 80-20 lease sharing scheme in favor of the CDC. ▪ This study cannot overemphasize the importance of land for the Aetas. As long as land is secured, they can easily go back to their previous self-supporting way of life, depending on their own ethics of independence and mutual help (Shimizu 1992, 28).  YOKOHAMA AS AN ECO-TOWN Dr. Patrick Carlos De Leon Associate Professor UP Diliman Extension Program in Pampanga  Topic Outline 1. Introduction 2. Eco-town Concept Defined 3. Context of the Eco-town Realization in Japan 4. Effective, Efficient, and Economical Solid Waste Management as a Salient Feature of the Yokohama Eco-town (with Tsurumi Plant as Centerpiece) 5. Yokohama Eco-town’s Implications on Metro Manila and Other Urban Areas in the Philippines 6. Conclusion  Introduction Yokohama: Capital of Kanagawa Prefecture Located in Kanto Region, Honshu, Japan Japan’s largest city after Tokyo Major commercial hub of Greater Tokyo Area Population of 3.7 million in 2011 Divided into 18 wards  Eco-town Concept Defined Eco-town: Urban area or city that has a government, business sector, and citizenry that proactively and simultaneously tackle pollution and promote a sustainable lifestyle Need not be limited to the geographical confines of a city or urban area; more than just having integrated waste disposal facilities  Context of the Eco-town Realization in Japan Context: Predecessors of two important ministries - MOE and METI - collaborated (circa 2005) to address a chronic waste management crisis METI provided funds to LGUs to jumpstart eco-town projects  Effective, Efficient, and Economical Solid Waste Management as a Salient Feature of the Yokohama Eco-town Tsurumi Plant as Centerpiece:  Effective, Efficient, and Economical Solid Waste Management as a Salient Feature of the Yokohama Eco-town Yokohama’s Solid Waste Management at Tsurumi Plant: Effective because of the 45-percent reduction in solid wastes since the launch of the 3Rs campaign in the early 2000s Except for kitchen wastes, all other types of waste are being reduced at source, re-used by households and industries, and recycled by partner manufacturing firms  Effective, Efficient, and Economical Solid Waste Management as a Salient Feature of the Yokohama Eco-town Yokohama’s Solid Waste Management at Tsurumi Plant: Efficient because at the Tsurumi Plant alone, some 1,200 tons of solid wastes are being processed per day 45-percent reduction in solid wastes generated in the city through the 3Rs campaign now permits the Tsurumi Plant to accept and process solid wastes from outside Yokohama City proper  Effective, Efficient, and Economical Solid Waste Management as a Salient Feature of the Yokohama Eco-town Yokohama’s Solid Waste Management at Tsurumi Plant: Economical because the long-run average cost (LAC) of operating the Tsurumi Plant – a single plant – is being reduced through expansion of the service area (economies of scale) Some 14,000 megawatts of electricity per day are being produced from the waste heat generated during incineration of solid wastes (positive externality) Yokohama Eco-town’s Implications on Metro Manila and Other Urban Areas in the Philippines Implication 1: on public policy formulation and legislation Amend Clean Air Act of 1999 (R.A. No. 8749) to allow construction and use of incineration plants At present, the Metropolitan Manila Development Authority (MMDA) is at the mercy of local government units (LGUs) outside of Metro Manila for the handling of solid wastes generated by the residents and industries of the metropolis Yokohama Eco-town’s Implications on Metro Manila and Other Urban Areas in the Philippines Implication 2: on public policy implementation and law enforcement DENR, MMDA, PNP, and LGUs must strictly enforce environmental laws and ordinances No. of Republic Act Name of Environmental Law 9003 Ecological Solid Waste Management Act of 2000 8749 Clean Air Act of 1999 9513 Renewable Energy Act of 2008 9512 Environmental Awareness and Education Act of 2008 9275 Clean Water Act of 2004 6969 Toxic, Hazardous, and Nuclear Wastes Act of 1990 Yokohama Eco-town’s Implications on Metro Manila and Other Urban Areas in the Philippines Implication 3: on public policy implementation and law enforcement Impose heavier fines on violations of environmental laws and ordinances Yokohama Eco-town’s Implications on Metro Manila and Other Urban Areas in the Philippines Implication 4: on citizen engagement (advocacy and vigilance) Speak out against and fight corruption in all levels of government Develop partnerships with media and CSOs Yokohama Eco-town’s Implications on Metro Manila and Other Urban Areas in the Philippines Implication 5: on citizen engagement (advocacy and vigilance) Practice 3Rs – reduce, re-use, and recycle – everyday Segregate trash at home; have the discipline of the Japanese and Singaporeans Support the “No Plastic Policy” and promote the use of reusable bags Remember a basic lesson in economics – resources are scarce  Conclusion 1. Eco-town is an urban area or city that has a government, business sector, and citizenry that proactively and simultaneously tackle pollution and promote a sustainable lifestyle. 2. The context in which the eco-town concept has been realized in Japan is one where the predecessors of two important ministries – the MOE and the METI – have collaborated in order to address a chronic waste management crisis. 3. An effective, efficient, and economical solid waste management such as the one practiced at the Tsurumi Plant is a salient feature of Yokohama as an eco-town. 4. Implications of the Yokohama eco-town on Metro Manila and other urban areas in the Philippines include amendment of the Clean Air Act of 1999 to allow construction of incineration plants, strict enforcement of environmental laws and ordinances, making penalties on violations of environmental laws heavier, fighting corruption in all levels of government, and most importantly, taking the 3Rs to heart – reducing, re-using, and recycling materials every day. That’s all… Thank you! PROFITABILITY AND SUSTAINABILITY OF FARM TOURISM BUSINESS IN ANGELES CITY AND BACOLOR, PAMPANGA Presented by: Patrick C. De Leon, DPA UP Diliman Extension Program in Pampanga  PROBLEM AND OBJECTIVES Whether farm tourism business in Angeles 1. Compare the business performance of City and Bacolor, Pampanga is profitable farm tourism business before and after and sustainable the COVID-19 pandemic 2. Identify farm tourism practices that are socially and environmentally sustainable  FRAMEWORK Theory of the Firm The assumed objective of the firm is profit maximization, which incorporates cost minimization (Church & Ware, 2000). The theory of the firm is an explanation of how a firm makes cost-minimizing production decisions and how its cost varies with its output (Pindyck & Rubinfeld, 2013).  FRAMEWORK Economic Sustainability – practices or activities promoting economic growth while carefully considering social and environmental impacts Social Sustainability – well-being of individuals and communities Environmental Sustainability – practices that reduce the negative impact on the environment (Ghimire, 2023)  METHODOLOGY Survey research design Farm tourism business as unit of analysis Survey and face-to-face interview of owners/operators of 4 farm tourism businesses in chosen purposively from a consolidated list of tourism businesses identified by the Business Permit and Licensing Division of Bacolor and the Angeles City Tourism Office December 2023 – January 2024  RESULTS AND DISCUSSION Profile of Farms and Their Owners Attribute Farm A Farm B Farm C Farm D Land area (ha) 3.5 2.5 2.5 3.0 Location Santa Barbara, Bacolor Cabalantian, Bacolor San Isidro, Bacolor Cutcut, Angeles Established 2012 2013 2010 2016 CS & Gender Married M & F Married M & F Single F Single F O on farm? Yes Yes Yes Yes HH on farm? Yes No Yes Yes College degree Yes No Yes Yes Motivation Higher income Organic agriculture Higher income Organic agriculture  RESULTS AND DISCUSSION Costs and Returns in 2019 Attribute Farm A Farm B Farm C Farm D Average TR (Php) 5,000,000 510,000 7,560,000 1,840,000 3,727,500 VC (Php) 1,250,000 255,000 1,200,000 840,000 886,250 FC (Php) 1,250,000 21,000 360,000 180,000 452,750 TC (Php) 2,500,000 276,000 1,560,000 1,020,000 1,339,000 Profit (Php) 2,500,000 234,000 6,000,000 820,000 2,338,500 Profit % of TR 50 46 79 45 64 Profit % of TC 100 85 385 80 178  RESULTS AND DISCUSSION Costs and Returns in 2023 Attribute Farm A Farm B Farm C Farm D Average TR (Php) 1,500,000 660,000 5,060,000 1,360,000 2,145,000 VC (Php) 375,000 330,000 1,200,000 840,000 686,250 FC (Php) 375,000 21,000 360,000 180,000 234,000 TC (Php) 750,000 351,000 1,560,000 1,020,000 920,250 Profit (Php) 750,000 309,000 3,500,000 340,000 1,224,750 Profit % of TR 50 47 69 25 57 Profit % of TC 100 88 224 33 133  RESULTS AND DISCUSSION Average Profit as % of TR and TC in 2019 and 2023 Profitability Measure 2019 2023 Average profit as % of TR 64 57 Average profit as % of TC 178 133  RESULTS AND DISCUSSION Socially Sustainable Practices Socially Sustainable Practice Farm A Farm B Farm C Farm D Hiring of local people Yes Yes Yes Yes Allowing a flexible work schedule Yes Yes Yes Yes Providing free housing and food Yes Yes Yes Yes  RESULTS AND DISCUSSION Carrying Capacity per Day Attribute Farm A Farm B Farm C Farm D Average Size (ha) 3.5 2.5 2.5 3.0 2.9 Maximum daily visitors 300 250 200 30 195 Carrying capacity (visitors/ha) 86 100 80 10 69  RESULTS AND DISCUSSION Environmentally Sustainable Practices Environmentally Sustainable Practice Farm A Farm B Farm C Farm D Imposing a carrying capacity Yes Yes Yes Yes Organic farming Yes Yes No Yes Composting Yes Yes Yes No Recycling Yes Yes Yes No  Conclusion Farm tourism business in Angeles City and Bacolor is profitable, with an average profit of Php 2,388,500 in 2019 and Php 1,224,750 in 2023. The average profit as % of TR declined from 64% in 2019 to 57% in 2023 as visitors have just begun going out again after the pandemic. Socially sustainable practices – hiring of local people, allowing a flexible working schedule, and providing free housing and food Environmentally sustainable practices – imposing an average carrying capacity of 69 visitors/ha, organic farming, composting, and recycling  RECOMMENDATIONS Seek expanded financing options for farm improvement and innovation projects instead of merely relying on retained earnings. Limit its role as training venue for TESDA and other organizations to avoid being overwhelmed with tasks beyond their expertise. Farm D should practice composting and recycling since these are compatible with organic agriculture. Farm tourism businesses should adopt integrated farming system for more efficient utilization of farm resources and attainment of family goals. Conduct a wider farm tourism study in Central Luzon that can lead to the adoption of economically, socially, and environmentally sustainable practices. That is all for now. Thank you! SATOYAMA’S DECLINE AND THE RISE OF ECOTOURISM Dr. Patrick Carlos De Leon Associate Professor UP Diliman Extension Program in Pampanga  Topic Outline 1. What is Satoyama? 2. What is happening to Satoyama? 3. What is ecotourism? 4. Rice harvesting as an ecotourism activity 5. The uniqueness of rice farming in Hanno City 6. What is ecotourism doing to Hanno City? 7. What can we conclude about ecotourism?  What is Satoyama? Traditional landscape adjacent to urban centers Made by man in harmony with nature Types of Satoyama ecosystems: woodlands, rice paddies, irrigation ponds and ditches, grasslands  What is happening to Satoyama? On the decline Disappearing species of plants and animals Shrinking work force due to depopulation (aging population, declining birth rate) Abandonment of paddy fields Demise of primary industries – agriculture, fisheries, and forestry  What is ecotourism? No widely accepted definition; at a minimum, involves travel to natural environments (Campbell 1999, Weaver 1998, as cited in Stone and Wall 2003) Stricter definition: environmentally and socially responsible travel; generates funds and support for conservation; and provides benefits to local host communities (Cater 1994, Ceballos-Lascurain 1993, Western 1993, and Whelan 1991, as cited in Stone and Wall 2003) Responsible tourism that offers visitors an opportunity to learn about the regional natural environment, history, culture, while preserving them (Japanese Ecotourism Promotion Council 2011)  Rice harvesting as an ecotourism activity Harvesting rice using a sickle Bundling harvested rice and hanging them on a horizontal bamboo posts  The uniqueness of rice farming in Hanno City Organic – no fertilizers, no pesticides Sustainable  What is ecotourism doing to Hanno City? Idle private lands are now being leased Organic rice faming Generating employment (e.g. part-time nannies as cooks) Local people are regaining their sense of pride People from other places are beginning to appreciate Hanno’s rich cultural heritage Monetary/tangible and nonmonetary/intangible benefits  What can we conclude about ecotourism? Powerful tool in revitalizing Satoyama and other rural-urban communities If and only if there is an enabling environment and governance framework in place: (1) Hanno City Ecotourism Promotion Committee; (2) eco tour conductors or guides; and (3) working citizens’ group/volunteers/NPOs Will not run without fiscal resources That’s all… Thank you! OVERVIEW OF ORGANIC FERTILIZER USE IN RICE IN THE PHILIPPINES By Wilfredo C. Cosico (2010) Dr. Patrick C. De Leon Associate Professor UP Diliman Extension Program in Pampanga  ABSTRACT The use of organic fertilizers on agricultural crops is not a new practice but it has no yet gained wide acceptance, especially among rice farmers. The major reasons for this are (1) the lack of information and (2) misconceptions about what organic materials can or cannot do to the soil and the crop.  ABSTRACT Many farmers tend to expect too much from organic materials and tend to be biased against anything “chemical” as inorganic fertilizers. Organic and inorganic fertilizers have their own merits and drawbacks and the user should decide to make use of what is best in both materials.  ABSTRACT The use of organic materials as fertilizers for rice must be thoroughly studied since the physical, chemical, and microbial characteristics of paddy soil are uniquely different from those of upland soil. Thus, the response of the rice plant to the application of organic materials is very different from that of upland crops.  ABSTRACT There are now various organic materials and techniques of application to which rice responds well. Rice farmers must be made aware of such technologies.  INTRODUCTION Organic materials have been used as fertilizers since time man began to domesticate crops, not by choice, but because they are the ones available. Ancient people observed that dead bodies increased the growth of crops in the battlefields. The ancient Athenians used water with manure to fertilize their vineyards.  INTRODUCTION As agriculture moved to modern times, greater use of mineral fertilizers began, particularly after the German scientist Justus von Liebig (1803-1873), through systematic experimentation, showed the fertilizing value of some minerals. Fertilizer factories sprouted in Europe and America and, along with the Green Revolution, sparked the intensive use of inorganic or chemical fertilizers.  INTRODUCTION Most chemical fertilizers, Type of Ave. Dealer’s Price particularly those sourced from Chemical (Php/sack) in the nitrogen (N), are oil-based and Fertilizer Philippines in Sept. 2017 they tend to follow the vagaries (psa.gov.ph, Oct. 13, 2017) of oil supply and prices. Urea 897 Therefore, the renewed interest Complete 1,087 on organic materials as Ammosul 560 fertilizers is not only due to what some claim to be bad effects of Ammophos 898 chemical fertilizers on the soil and on crops but also to the search for alternative sources of nutrients in the face of escalating prices of chemical fertilizers.  INTRODUCTION What then is the real score about organic fertilizers? Do they really do what they are claimed to do? Are chemical fertilizers really that bad? Some of the claimed benefits from organic fertilizers are true and valid, but some may be based on mere speculation and tend to be exaggerated. Particularly for rice, which grows in a more complex soil environment, the issues related to the use of organic fertilizers become more complex. Since research on organic fertilizers has not kept pace with that on inorganic fertilizers, much less is known about the use organic fertilizers for rice.  INTRODUCTION Many preachers of organic farming equate organic to “natural” and see the word as the opposite of “chemical,” ignoring the fact that organic and chemical fertilizers are both made up of chemical elements. Some even becloud the issues further when they begin to invoke the classical argument that anything chemical is bad. The debate is needless for it may not really be a matter of one being better than the other but of the two being complementary to each other.  ORGANIC VS. CHEMICAL FERTILIZERS Organic materials are derived from plants and animals and thus have a high content of carbon. Chemical fertilizers, on the other hand, are synthesized from minerals or non-living matter. The major distinction stops there.  ORGANIC VS. CHEMICAL FERTILIZERS Both materials serve as a source of nutrients for plants. They differ, however, (1) in form, (2) the amount of N contained, and (3) the rate by which nutrients are released to the plant. The plant root does not discriminate or know the ancestry of the nutrient it is taking up. No matter what the source is, the plant will assimilate the nutrient into the same compounds and structures (Dr. Susanne Bugel, University of Copenhagen)  ORGANIC VS. CHEMICAL FERTILIZERS No evidence exists that the judicious use of mineral fertilizers is injurious to soils or tends to produce crops which are unsatisfactory as feed for animals or food for man. Evidence exists showing clearly that the use of mineral fertilizers on depleted soils promotes the growth of crops which have superior nutritive values (Dr. Emil Truong, as cited by Manchester, 1962).  ORGANIC VS. CHEMICAL FERTILIZERS The positive effects of chemical fertilizers on crop quality are better known and supported by evidence, particularly that of potassium (K). K determines fruit quality of bananas and pineapples, sugar yield of sugarcane, and burning quality of tobacco leaves. Quality of crop is more a function of the nutrient rather than its source.  ORGANIC VS. CHEMICAL FERTILIZERS One of the most common misconceptions about organic farming is the positioning of chemical fertilizers alongside pesticides. Pesticides, by their very nature and purpose, are meant to kill, whereas fertilizers, chemical or organic, are meant to feed living plants and thus support life.  ORGANIC VS. CHEMICAL FERTILIZERS Another misconception is that organic fertilizers improve the texture of the soil and that chemical fertilizers cause soil compaction. Soil texture is the proportion of sand, silt, and clay particles in the soil mass, which makes it sandy loam, clay loam, or clay. It takes thousands of years for the geologic process of weathering to form soils of a particular texture. A few or even tons of organic fertilizers will not do it.  ORGANIC VS. CHEMICAL FERTILIZERS What organic fertilizers do is granulate the soil and improve the structure. With improved structure, the soil becomes more loose, better aerated, and easier to cultivate. This, the chemical fertilizers will not do.  ORGANIC VS. CHEMICAL FERTILIZERS The one chemical that can cause soil compaction is sodium chloride (NaCl), which causes destruction of soil aggregates and dispersion of particles. But NaCl is not even a component of chemical fertilizers.  ORGANIC VS. CHEMICAL FERTILIZERS Organic fertilizers increase soil aggregation, lower bulk density (compaction), and increase porosity, pH, and cat ion exchange capacity. Organic fertilizers also help neutralize aluminum, which is the predominant toxic metal in acid soils.  ORGANIC VS. CHEMICAL FERTILIZERS The deterioration of soil quality in the Philippines is attributed more to other factors than to the use of chemical fertilizers. Erosion, for one, contributes 48%. Others include insufficient replacement of the nutrients removed by the crops and mismanagement.  ORGANIC VS. CHEMICAL FERTILIZERS Some advocates of organic farming repeatedly accuse chemical fertilizer users as being instrumental in the deterioration of soil quality, acidifying and poisoning the soil with toxins and heavy metals, and contributing to global warming through the destruction of the ozone layer.  ORGANIC VS. CHEMICAL FERTILIZERS It is true that N fertilizers cause soil acidity from the following reaction:  ORGANIC VS. CHEMICAL FERTILIZERS However, the NH4+ whose oxidation by soil bacteria to produce H+ ions can also come from organic materials. The only difference is that, since N tends to be applied to soils in higher dosage of chemical fertilizers, the development of acidity is faster. However, soil acidity can be remedied by, among other means, liming.  ORGANIC VS. CHEMICAL FERTILIZERS The use of chemical fertilizers is also blamed for the pollution of surface waters with nitrates and phosphates, causing algal bloom and fish kill. However, the same nitrates and phosphates can also come from organic materials. This implies that the problem is curable and can be mitigated by judicious application of fertilizers.  ORGANIC VS. CHEMICAL FERTILIZERS Heavy metals such as mercury, lead, cadmium, chromium, and zinc are nearly always traced to chemical fertilizers, but only traces of these harmful minerals are in fertilizers whose raw materials are from earth minerals. Nitrogen fertilizers, which are produced from hydrogen and atmospheric nitrogen are practically free from these metals.  ORGANIC VS. CHEMICAL FERTILIZERS Nitrogen fertilizers are used in highest amounts in agriculture. It is in the sludge from industries and from urban garbage where metal pollutants are mostly found.  ORGANIC VS. CHEMICAL FERTILIZERS Both organic and inorganic fertilizers share in their contribution to global warming. In rice soil, in particular, both materials, under anaerobic conditions of the rice field, produce carbon dioxide, methane, and other greenhouse gases.  ORGANIC VS. CHEMICAL FERTILIZERS Hence, it is probably a good move to rest from fault finding in determining which fertilizer is more responsible for the damage to the environment and to start developing and implementing scientific-based strategies for more judicious use of all fertilizer materials to ensure sustainable farm productivity and a cleaner and safer environment.  REACTIONS OF ORGANIC FERTILIZERS IN RICE SOIL The lowland rice field is prepared by saturating it with water, puddling, and submergence. Puddling destroys the soil structure and, together with submergence, creates a thin oxidized layer on the surface and an anaerobic layer below.  REACTIONS OF ORGANIC FERTILIZERS IN RICE SOIL Under dry land conditions, organic materials undergo aerobic decomposition, the major gaseous product of which is CO2. The organic fertilizers are incorporated into the soil in advance of planting (2-3 weeks) to allow for more mineralization or release of nutrients.  REACTIONS OF ORGANIC FERTILIZERS IN RICE SOIL On the other hand, in the wetlands, anaerobic soil decomposition of organic materials releases CH4, mercaptans, hydrogen sulfide, various organic acids including fatty acids, which are toxic to rice. The other significant effect of submergence is the automatic adjustment of pH, with acidic and alkaline soils approaching neutrality or pH values between 6 and 7, which increase the availability of nutrients like phosphorous, molybdenum, and silicon.  REACTIONS OF ORGANIC FERTILIZERS IN RICE SOIL If organic materials, especially those with a high carbon to nitrogen ratio (C/N) – such as rice straw with a C/N of 50 – are incorporated into the soil close to transplanting time, seedlings may die due to toxins produced by anaerobic decay of the organic matter.  REACTIONS OF ORGANIC FERTILIZERS IN RICE SOIL Or even if they survive, they may suffer from temporary N starvation. Organic matter decomposes more slowly under anaerobic than under aerobic condition. Thus, incorporation of organic matter with high C/N must be done well in advance of planting.  TECHNOLOGIES FOR APPLYING ORGANIC FERTILIZERS IN RICE In 2006, De Guzman gave an But for the rice crop, more idea of the extent of organic than 50% of rice farmers used fertilizer use in rice in the only chemical fertilizers. Philippines. Of 200 farmers surveyed in Laguna, Cavite, Bulacan, and Benguet, 42% used chemical fertilizers only and 54% used a combination of chemical and organic fertilizers on various crops.  TECHNOLOGIES FOR APPLYING ORGANIC FERTILIZERS IN RICE Rice Straw Rice straw is one of the most abundant crop residues in the farm. A moderate grain yield of 3 t/ha would give a straw yield of about 4.5 t/ha. This would contain as much as 27 kg N, 6 kg P, 75 kg K, 18 kg Ca, 6 kg Mg, 6 kg S, 510 kg Si, and 1,800 kg C. Thus, if straw is plowed back into the soil, it recycles about ¼ of the recommended amount of N fertilizer for rice, 1/5 of the P, all of the K, and a substantial amount of Si and of C, which are the food of soil organisms.  TECHNOLOGIES FOR APPLYING ORGANIC FERTILIZERS IN RICE Green Manure High-N-containing plants such as azolla and sesbania have been extensively studied, for many years, to serve as organic fertilizers for rice. Their value lies in their having high N content (about 4%), rapid decomposition, and high biomass yield (Cosico, 1985).  TECHNOLOGIES FOR APPLYING ORGANIC FERTILIZERS IN RICE Animal Manure Animal manure may be used in rice fields but only after being composted with rice straw. Chicken manure has the highest N and P contents and the highest Ca if it comes from layers.  TECHNOLOGIES FOR APPLYING ORGANIC FERTILIZERS IN RICE Biofertlizers Biofertilizers are organic fertilizers containing microorganisms or growth- promoting substances that enhance nutrient absorption by the plants. Some examples are Bio-N, Bio- fix, Bio-green, and Vital N.  TECHNOLOGIES FOR APPLYING ORGANIC FERTILIZERS IN RICE Compost and Composting Traditional composting of rice straw involves piling it in some corner of the field and letting nature take its course, which normally takes about three months. When some manure is mixed into the pile of straw, watered, and turned, decomposition is shortened to about two months.  CONCLUSIONS Certain misconceptions about At present, scientific evidence the use of organic and shows the big potential of inorganic fertilizers in rice certain organic fertilizer fields must be cleared up to technologies for rice. appreciate the potential Support from various benefits from organic fertilizers stakeholders in the agricultural and to chart clearer directions sector is needed for the in their use. dissemination and adoption of Many types of organic these technologies. fertilizers, production technologies, and application methods in rice fields still need further validation.  Value-Added Products of Rice and Entrepreneurship in the Philippines by Marissa V. Romero (2008) Dr. Patrick C. De Leon Associate Professor UP Diliman Extension Program in Pampanga  Outline of Presentation 1. Abstract 2. Introduction 3. Traditional Rice-Based Snacks and Desserts 4. Rice Meals 5. Rice-Based Food Products Developed at PhilRice 6. Rice Beverages 7. Rice By-Products 8. Challenges of and Opportunities for Entrepreneurship in Commercialization of Value-Added Rice Products  Abstract ▪ Rice remains the staple food in the Philippines. ▪ The deep fondness of Filipinos for this food is not limited to table rice, as evident in the numerous rice products throughout the country. ▪ Each region boasts of its specialty product. ▪ Traditional rice food products or native kakanin come in different forms and flavors.  Abstract ▪ They are made from either whole rice grain or wet-milled rice flour known as galapong. ▪ Some examples include suman, biko, puto, and bibingka. ▪ This paper gives a brief description of these delectable products and how they are made.  Abstract ▪ Product development and improvement activities of the Philippine Rice Research Institute (PhilRice) have generated several rice-based food products, belonging to the categories baked products, snack items, fortified products, instant products, and others. ▪ Many of these products are made from dry-milled rice flour prepared by the PhilRice flour mill.  Abstract ▪ Rice beverages such as rice wine, rice beer, rice coffee, and rice tea are also described in this paper. ▪ Value-adding of rice is not limited to food; thus uses of its by-products are explained as well. ▪ Business ventures associated with food and nonfood value- added products are also presented. ▪ The paper ends with the opportunities and challenges of entrepreneurship in the commercialization of value- added products.  Introduction ▪ In the Philippines, rice is life, not only because it is the staple food, but also because it is tightly woven into Filipino culture. ▪ Although rice is consumed mainly as table rice in boiled or steamed form, it can be processed into various products. ▪ These value-adding activities enhance the profitability of rice by providing additional income to entrepreneurs.  Introduction ▪ Among the quality parameters of rice, amylose content is probably the most important factor when manufacturing rice-based food products. ▪ Amylose, which is the linear component of the starch molecule, affects both the cooking and eating qualities of the products.  Rice amylose classification and characteristics Suitable Amylose Type Characteristics Rice Varieties Products Absorbs little water; Rice cakes, little volume desserts, R24, IMS2, IMS5, Waxy/glutinous expansion; cooked sweets, puffed Buenkitan, IR65 products are soft and rice, congee sticky Tasty, elastic, and NSIC Rc13 remains soft when (Malagkit 1), NSIC Rice cakes, Very low cooled (commonly Rc15 (Malagkit 2), congee used in place of waxy NSIC Rc17 rice) (Malagkit 3)  Rice amylose classification and characteristics Amylose Characteristics Suitable Products Rice Varieties Type Tends to be moist, PSB Rc52, PSB Rice pudding, bread sticky, and glossy; Rc72H (Mestizo cakes, baby Low gives soft-textured 1), NSIC Rc128 foods/weaning bread crumbs; good (Mabango 1), foods stabilizer NSIC Rc130 Fluffy and soft; Batter, waffle, IR64, PSB Rc34 adequate optimum steamed cake, (Burdagol), PSB Intermediate softness; gives whiter, breakfast cereals, Rc66, NSIC Rc122 harder, crispier expanded molded (Angelica) texture but crumbles rice, baked cakes Has good cooked rice, PSB Rc6, PSB Rc8, High stability but tends to Noodles, rice paper PSB Rc26H have harder texture  Introduction ▪ The by-products of rice production – straw, hull, and bran – also have a number of uses such as animal feeds and organic fertilizer. Traditional Rice-Based Snacks and Desserts Suman – made from glutinous or waxy rice ▪ Suman sa antala – glutinous rice, coconut milk and salt wrapped in wilted banana leaves in a tube-like shape Traditional Rice-Based Snacks and Desserts ▪ When palm or coconut leaves are used for packaging, the product is called suman sa ibos.  Traditional Rice-Based Snacks and Desserts ▪ Instead of coconut milk, lye is added in suman sa lihiya.  Traditional Rice-Based Snacks and Desserts Biko – cooked glutinous rice, coconut milk, and sugar are mixed in a wok for a long time until sticky and all liquid has evaporated; topped with latik or cooked coconut cream; called sinukmane in Laguna  Traditional Rice-Based Snacks and Desserts Tinubong – denotes the use of young bamboo in Ilocano; glutinous rice, coconut milk, and salt are placed inside a bamboo tube, which is then cooked over a fire until the liquid dries up  Traditional Rice-Based Snacks and Desserts Puto – rice cake; comes in different sizes, shapes, colors, and flavors ▪ Biñan, Laguna: big and sliced before serving ▪ Calasiao, Pangasinan: bite-sized pieces  Traditional Rice-Based Snacks and Desserts Bibingka – the Filipino version of hotcake; popular during Christmas season; made from wet-milled rice flour, eggs, sugar, and salt; other ingredients such as cheese, salted egg, and margarine may be added; the mixture is placed in a traditional clay mold lined with banana leaves and cooked with live coal above and underneath; served with grated coconut  Traditional Rice-Based Snacks and Desserts Calamay – made from galapong, coconut milk, and sugar; cooked with constant stirring until the mixture becomes sticky  Traditional Rice-Based Snacks and Desserts Espasol – famous in Laguna and Quezon; made from glutinous rice flour, sugar, and coconut milk; toasted rice flour is added to the boiling sugar and coconut milk and then mixed until dry and sticky; the product is molded into the desired shape and size, and dusted with toasted rice flour  Traditional Rice-Based Snacks and Desserts Puto Bumbong – commonly sold during the Christmas season; the purple glutinous rice is used in this product to provide its distinctive color; wet-milled rice flour is allowed to dry and is then sieved; it is placed in bamboo tubes and cooked in a special steamer; it is then tapped out of the tube, brushed with margarine, and served with grated coconut and sugar  Traditional Rice-Based Snacks and Desserts Sapin-Sapin – originated from Abra; called sapin-sapin because of the layering process involved; one portion of the mixture containing galapong, coconut milk, and sugar is steamed first until firm; another portion of the mixture is layered on top and steamed again; this process is repeated several times, usually to three layers; other ingredients such as ube (purple yam), cheese, macapuno (mutant coconut), and food coloring are added to make it more attractive; topped with toasted grated coconut and latik before serving  Traditional Rice-Based Snacks and Desserts Palitaw – literally to float; drip- dried galapong is formed into balls and flattened before placing into boiling water; they float to the surface when they are already cooked and are immediately dropped in cold water; after draining, they are served with grated coconut and sugar-sesame seed mixture  Traditional Rice-Based Snacks and Desserts Bihon – rice noodles served especially during birthdays, as it is believed to give long life; wet- milled rice flour is drip-dried shaped into balls and cooked in boiling water; the balls are then kneaded and extruded  Rice Meals Rice Porridge – the basic rice porridge composed of rice, water, and salt is known as lugaw and is usually given to babies and sick people; when egg or chicken is added, lugaw becomes egg caldo and arroz caldo; it is called goto when beef stripe is used  Rice Meals Casserole-Type Dishes – due to many ingredients and intricacies involved in the preparation of these dishes, paella and arroz valenciana are usually served only during special occasions; the main difference between the two is the use of ordinary rice in paella and glutinous rice in arroz valenciana; meat, sea food, and vegetables make these products more nutritious and delectable  Rice-Based Food Products Developed at PhilRice Chiffon Cake and Brownies – dry milled rice flour are used in the preparation of chiffon cake and brownies  Rice-Based Food Products Developed at PhilRice Cream Puff – rice flour is used in the preparation of cream puff  Rice-Based Food Products Developed at PhilRice Puto-Pao – combines the goodness of puto and siopao; requires the preparation of asado filling and puto base; for the filling, shredded chicken is sautéed with garlic and onion and seasoned with soy sauce, pepper, and sugar; for the puto base, egg white is beaten and added gradually with sugar until a stiff peak is obtained; a mixture of rice flour, sugar, and water is blended into the egg white using the cut- and-fold technique  Rice-Based Food Products Developed at PhilRice Shangrice – spring roll with ground pork  Rice-Based Food Products Developed at PhilRice Rice Nougat – rice with intermediate amylose, regardless of gelatinization, was found suitable for this product  Rice-Based Food Products Developed at PhilRice Noodles – flat rice noodles fortified with malunggay  Rice-Based Food Products Developed at PhilRice Espasol and Brownies fortified with saluyot, squash, and malunggay  Rice-Based Food Products Developed at PhilRice Instant Rice and Rice-Based Products 1. quick-cooking rice 2. instant rice-based porridges 3. instant casserole-type dishes (e.g. instant paella, instant biringhe, etc.) 4. canned rice 5. sprouted brown rice – sprouting improves the taste and texture of brown rice, and activates dormant enzymes  Rice Beverages Tapuy or Rice Wine Rice Beer  Rice Beverages Rice Coffee Rice Tea  Rice By-Products Rice Straw – used in making rice paper and packaging  Rice By-Products Rice Hull – used as an insulator for blocks of ice, carbonized rice hull (CRH), organic fertilizer, and low-cost open-type carbonizer  Rice By-Products Rice Bran – an important product from rice bran is tiki-tiki, which is rich in B vitamins and is commonly given to infants; it is also used to cure beri-beri (thiamine or vitamin B1 deficiency)  Rice By-Products Rice Bran Oil – because of its high oil content, rice bran is a good source of edible oil  Challenges of and Opportunities for Entrepreneurship in Commercialization of Value-Added Rice Products Major Challenge: Source of Income ▪ Rice self-sufficiency – since ▪ There is always demand for there is not enough rice to feed traditional rice food products the population, the argument or kakanin which are part of against utilizing rice for Filipino culture purposes other than table rice remains  Challenges of and Opportunities for Entrepreneurship in Commercialization of Value-Added Rice Products Serious Concern: ▪ Indigenous materials such as ▪ Stability – since most banana or coconut leaves, traditional food products bamboo, and coconut shells as contain high amounts of packaging materials enhances moisture, they have short shelf the ethnicity of the products lives but do not provide protection ▪ Coconut milk is a common from factors that affect shelf ingredient in these products life, including oxidation, which is prone to rancidity moisture absorption, and (unpleasant odors and flavors microbial contamination in foods resulting from deterioration in the fat or oil portion of a food)  Challenges of and Opportunities for Entrepreneurship in Commercialization of Value-Added Rice Products Recommendation: Conduct Other Problems: Research ▪ Very few institutions embark on ▪ how to prolong shelf life rice research focusing on product development or improvement ▪ standardization of ingredients more hygienic preparation ▪ Limited human and other resources ▪ moisture- or oxygen-absorbent technologies ▪ Research is more geared towards improvements in rice production ▪ effective packaging materials automation or mechanization of ▪ Research on value-added products labor-intensive steps to increase at PhilRice was short lived efficiency and prevent microbial ▪ How to promote stronger contamination collaboration between the public ▪ health benefits of rice and private sectors – how to spin off public initiatives to the private sector for commercialization That’s all for now…thank you! GENETIC MODIFICATION OF CROPS: BT EGGPLANT AND GOLDEN RICE Dr. Patrick C. De Leon Associate Professor 7 UP Diliman Extension Program in Pampanga Are you for or against the genetic modification of crops? Biotechnology Trends: A Threat to Philippine Agriculture? By Dr. Saturnina C. Halos (1989) Dr. Patrick C. De Leon Associate Professor UP Diliman Extension Program in Pampanga  Outline of Presentation 1. Purpose of the Study 2. Plans and Programs on Philippine Agriculture 3. Biotechnology Developments Abroad: A Threat to the Poor 4. Biotechnology Activities in the Philippines: Is There a Pro-Poor Focus? 5. Locally Developed Biotechnologies 6. Research and Strategy Planning 7. National Scientists  Purpose of the Study ▪ Analyze trends in biotechnology R&D in relation to Philippine agriculture ▪ Examine the employment potential, distributional implications and nutritional dimension of the locally developed biotechnologies  Plans and Programs on Philippine Agriculture Goals of the DA ▪ Attain equity and economic recovery ▪ Increase farm family income from $63.57 per month to at least $95.24 per month ▪ Ensure food security ▪ Increase and stabilize earnings from agricultural exports ▪ Reduce dependence on products where there is a comparative advantage  Plans and Programs on Philippine Agriculture Strategies of the DA ▪ Provide a policy environment that will make farming profitable ▪ Improve the delivery of services to famers ▪ Private-sector lead development process ▪ Bottom-up planning ▪ Area-specific and community based (rather than commodity- specific) ▪ Income-oriented (rather than production-oriented)  Plans and Programs on Philippine Agriculture Programs ▪ CARP → unequal distribution of land ▪ Crop diversification → vulnerability of traditional exports (sugar, coffee, and coconut)  Biotechnology Developments Abroad: A Threat to the Poor Increasing Privatization of Biotechnology ▪ To meet the needs of the affluent market ▪ Multinational companies producing improved seeds plus corresponding pesticides ▪ Corn hybrid seed adoption in the Philippines is only 4% despite several subsidized corn production programs  Biotechnology Developments Abroad: A Threat to the Poor ▪ Failure to reach out and cater to the needs of small corn farmers who produce 75% of the country’s corn ▪ Small corn farmers grow corn primarily for subsistence ▪ Prefer open pollinated, white varieties which are more suitable for food and can produce seeds for the next cropping season ▪ Corn technology packages are geared towards the feed market  Biotechnology Developments Abroad: A Threat to the Poor ▪ Without appropriate technologies, Filipino corn farmers cannot compete even in their own market ▪ Thus, it is necessary to maintain corn-breeding programs in public institutions where the benefits in biotechnology can be achieved without depending on genetic engineering  Biotechnology Developments Abroad: A Threat to the Poor Non-Traditional Uses of Crops ▪ Cassava, a root crop that supplies starch for industrial and pharmaceutical use is being eyed as a source of high fructose syrup – a sweetener substitute for sugar ▪ High fructose syrup has eased Philippine sugar out of the US sugar market  Biotechnology Developments Abroad: A Threat to the Poor ▪ Use of enzymatic conversions of plant oils in the production of structured lipids could ease coconut oil out of the market ▪ Only 2% of the oils and fats market is supplied by coconut and the Philippines supplies about 80% of that coconut  Biotechnology Developments Abroad: A Threat to the Poor Health Fads ▪ Low-calorie, sugar-free diet ▪ A privilege of industrialized countries ▪ Philippine coconut oil exports suffer due to cholesterol scare  Biotechnology Developments Abroad: A Threat to the Poor New Production Systems ▪ Adoption of animal hormones to improve productivity is complicated by the need for technical assistance and efficient management abilities by famer-users ▪ Only farmers near agricultural research and extension centers benefit from this technology  Biotechnology Activities in the Philippines: Is There a Pro-Poor Focus? Biotechnology Centers ▪ The creation of centers such as the International Center for Genetic Engineering and Biotechnology is a countermeasure to the privatization of biotechnology. ▪ Biotechnology has been identified as a major area for support by quasi-public institutions and international aid agencies  Biotechnology Activities in the Philippines: Is There a Pro-Poor Focus? BIOTECH ▪ National Institute of Biotechnology and Applied Microbiology ▪ Established in December 1979I ▪ Mandated to harness micro- organisms to transform renewable raw materials into food, fuel, and fertilizer  Locally Developed Biotechnologies ▪ Bio-fertilizers – labor intensive ▪ Tissue-culture – some are expensive (e.g. $23.80 per embryo-rescued mutant coconut planting stock) ▪ Bio-pesticides – saves the environment ▪ Bio-fuels – a lot of potential (e.g. biogas)  Research and Strategy Planning ▪ Biotechnology development ▪ Biotechnology R&D are not abroad adversely affects directed towards problems of Philippine agriculture survival and maintenance of ▪ Philippine agricultural competitive advantage of the development lacks adequate major crops of the Philippines support, direction, and focus ▪ Appropriate and timely ▪ Sugar faces stiff competition technological interventions can from new sweeteners only be made through careful ▪ Coconut vs. simulated oils and planning and through fats evaluation of capabilities and resources ▪ White corn vs. yellow corn  Research and Strategy Planning ▪ Biggest obstacle: pervasive colonial mentality – “incapacity of Filipinos to believe that important advances could come from Filipino scientists”  National Scientists ▪ Francisco M. Fronda, Ph.D. (December 22, 1896 – February 17, 1986) ▪ Graduated from the University of the Philippines College of Agriculture in 1919; His field of specialization was Animal Husbandry; The country’s top expert in poultry husbandry and has earned the distinction of being one of the first five in the world who had doctorate in poultry science; Recognized as “the Father of Poultry Science” in the Philippines for his immense contribution to the poultry and livestock industry.  National Scientists ▪ Dioscoro L. Umali, Ph.D. (November 17, 1917 – July 1, 1992) ▪ He finished Bachelor of Science in Agronomy at the University of the Philippines College of Agriculture in 1939; His field of specialization was Agriculture and Rural Development; His studies on upland agriculture, forestry, and environmental preservation have helped many farmers improve the quality of their crops; Recognized as “the Father of Philippine Plant Breeding”.  National Scientists ▪ Pedro B. Escuro, Ph.D. (August 2, 1923 – September 8, 2000) ▪ Graduated from the University of the Philippines College of Agriculture in 1952, with a degree in Agronomy, magna cum laude; His field of specialization was Genetics and Plant Breeding; He received 18 honors and awards, that includes his outstanding accomplishments in rice improvement and outstanding contribution to rice breeding and genetics; Recognized as the “Father of the Philippine Rice Breeding Program”.  National Scientists ▪ Dolores A. Ramirez, Ph.D. (September 20, 1931) ▪ Graduated from the University of the Philippines College of Agriculture in 1956, with a Bachelor of Science degree in Agriculture, magna cum laude; Her field of specialization was Biochemical Genetics and Cytogenetics; She focused on the cytogenetics of various important Philippine crops; She was known for her research in biochemical genetics and cytogenetics of plants.  National Scientists ▪ Jose R. Velasco, Ph.D. (February 4, 1916 – January 24, 2007) ▪ Graduated from the University of the Philippines College of Agriculture in 1940, with a degree in Agriculture, major in Agriculture Chemistry; His field of specialization was Plant Physiology; He was noted for his research on soil and plant nutrition and on coconut diseases.