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I. Introduction
The Philippines is an archipelago in the western part of Pacific Ocean that
consists of 7, 107 islands and has a total area of 299,764 km
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. t has an estimated
population of 101,833,938 as of 2011. ts climate is very conducive for agriculture.
According to Bureau of Agricultural Statistics (BAS), 4,225,393 ha of the total land area
are used for agricultural purposes. The country is generally an agricultural country that
produces subsistence crops like rice, corn, cassava, and sweet potatoes. Rice paddies
and cornfields occupy about half of the arable land of the Philippines. Coconuts are one
of the most important cash crops, and the Philippines is one of the world's leading
exporters of coconut products, including coconut oil and copra (dried coconut). Bananas
and pineapples are also important commercial crops, both of which are grown on large
plantations owned by multinational companies. Other crops include sugarcane, abaca
(Manila hemp), coffee, tobacco, and mangoes. Livestock on farms include carabao
(water buffalo), cattle, chickens, goats, horses, and hogs.
One of the progressive cities in the country is Davao City. t has a land area of
2,443.61 square kilometres. t is divided into 3 congressional districts, which are further
divided into 11 administrative districts containing a total of 184 barangays. Almost 50%
of its total land area is classified as timberland or forest. Agriculture utilizes about 43%.
This is reflective of the fact that agriculture is still the largest economic sector. Big
plantations that produce banana, pineapple, coffee, and coconut eat up a large chunk of
the total land area.
Barangay Riverside is located in Davao City. t is an agricultural barangay with
90.5% of its total area (approximately 533.03 ha) is used for agriculture. t has a
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population of 5, 033 thousand. t consists of thirteen puroks, and belongs to the Calinan
Administrative District of the Third Congressional District. Nine of these puroks are
agriculturally productive. Most of the farmers are small scale which produces rice,
coconut, lanzones, banana, cacao, durian, corn and rambutan; and livestock such as
dairy cattle and poultry.
Many farmers in Barangay Riverside are tenants. These farmers are only renting
the land and paying the landowner a share of the crop being produce. Other farm
workers include seasonal migrant laborers. Farmers also practice intercropping.
According to PAN Germany, intercropping is the cultivation of two or more crops
simultaneously on the same field. t also means the growing of two or more crops on the
same field with the planting of the second crop after the first one has completed its
development. The rationale behind intercropping is that the different crops planted are
unlikely to share the same insect pests and disease-causing pathogens and to conserve
the soil. The reason behind this practice is to have an extra income whenever the fruit
trees wouldn't bear fruits.

II. Statement of the ProbIem
The researchers would like to raise questions such as:
1. What is the significance of this paper to the farmers in Barangay Riverside?
2. How much is the cost of producing the farmer's commodity in farm level?
3. How do they market their produce? s there an agreement between the buyers
and the farmers?
4. How much profit does the farmer gain?
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III. Objectives
The objectives of this study are the following:
O To evaluate the current situation or status of small scale farmers in Barangay
Riverside, Davao City
O To be able to determine the cost of producing their produce
O To compute the net margins for each crops and livestock that are produced by
the small scale farmers in the area
O To address the problems of small scale farmers from planting, harvesting to
marketing their crops.
O To address some issues that may be solved by the government.

IV. Significance of the study
Mindanao is the second largest island in the Philippines and it is also one of the
major producers of agricultural products. t has an advantage to progress compared to
other areas because the island itself is ideal for year-round crop production. t is rich
and abundant with natural resources and is blessed with a good climate which could
cater to different economic opportunities. However, farmers in Mindanao don't progress
because of the unfair treatment by intermediaries, retailers and wholesalers in terms of
the price of the farmers' produce. This study intends to analyze the current situation of
Barangay Riverside farmers and to develop marketing strategies that they can use for
marketing of their produce. t will also broaden the knowledge and computations of the
farmers in determining the cost of production of their products.
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Results of this study can provide information to the readers and future
researchers regarding the situation of farmers in Brgy. Riverside and could be used as a
future reference to those who wishes to continue this study. Moreover, the
recommendations of this study would also help the farmers see what will be the areas to
improve for in order to achieve greater income.

V. Scope and Limitation
The study was conducted at Barangay Riverside, Calinan District, Davao City
where nine farmers were interviewed. The respondents reside in different puroks which
have different crops being planted or livestock being raised. The researcher wasn't able
to acquire recorded data from the farmers, thus the researcher able to obtain the
needed data for the study through verbal conversations. The researchers only take into
account five farmers which gave the researchers their cost structure and other data
needed to compute the net margins. The researchers did not delve deeper in studying
the consumer aspect because this study is focused more on the farmers that we have
interviewed.

VI. MethodoIogy
The data is obtained through farm visits, interviews to the farmers, and from the
internet. There were nine farmers interviewed; and they were identified through the help
of Purok Leaders and based on the size of their farms. Because the land area of Brgy.
Riverside is big, the researchers decided to focus on three setting, highlighting the
major crop being produce, the intercropping practices, and the livestock farms.
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nterview questions for each corresponding key informants will be provided and
designed in such a way that the respondents can give information in a simplest way
possible. Questions asked on each respondent will be solely about farm operation,
costing, profit, etc.

Below is the list of sample questions that will be asked to the respondents.
1. Who are the key players in the industry?
2. What are the issues and problems that affect the production of the
commodities?
3. Are there any support given by the government in terms of marketing of the
produce, and seminars in order for the farmers to gain more knowledge on
what crop to plant or what areas a farmer needs to develop in his farm?
4. Are there any technologies or research development activities that contribute
to the total production of the commodities?

This study used net margin analysis as a way to analyze the net profit that a
farmer can get for their produce. The data will also be analyzed in two aspects, internal
and external. PEST analysis will be used in external analysis; and in the internal
analysis, two methods will be used. These are the SWOT Analysis and SWOT Matrix.
SWOT Analysis is a simple framework for generating strategic alternatives from a
situation analysis and serves as a basis for the development of marketing plans.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
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PEST Analysis deals with the environmental concerns. PEST is an acronym for
the Political [this includes the ecological/environmental issues, the government
interventions, etc.], Economic [this is related to taxation issues, seasonality/ weather
issues], Social [this is consists of the consumers perception], and Technology [it
involves the research developments, information and communications, technological
innovations]

VII. ResuIts and Discussions

A. NET MARGIN ANALYSIS
1. Rice Production
Rice Farmer 1: ArmaIine Marinog; 3/4 hectare of Iand
The table below shows the over-all cost and the net margin of Ms. Marinog. The
cost of the seedlings was a bit expensive, since she is not a member of any cooperative
that may provide cheaper seeds. n their harvesting, unlike any rice farmer, she has this
fixed wage. She pays 130 php. per day for the labor. She said it would be better that
way since it will somehow lessen the cost. The irrigation used in this farm comes from
"tubod, as what she had called it. Tubod is also known as ground water in English. This
source of water doesn't run out. The main problem that she thinks affects the rice
production a lot is the tungro. t is a disease that stops the growth of a plant, thus, it will
lessen the production. According to farmers, the irrigation helps a lot in reducing the
effects of tungro.

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Table 1. The production cost of rice.
Cost item Cost per
cropping season
Percent to
the totaI
cost
Cost per
kiIogram
Seed 1110 0.15 0.63
Labor
PIanting 520 0.07 0.3
Harvesting 1,323 0.18 0.76
FertiIizer
CompIete 1132 0.16 0.65
Urea 963.29 0.13 0.55
Tractor 1,280 0.18 0.73
Thresher 910 0.13 0.52

TotaI Cost 7238.29 100% 4.14
Assumption: 35
sacks per 3/4 ha
times 50 kiIos per
sacks
1,750 kilograms

SeIIing Price Php 14
TotaI VoIume 1,750 kilograms

TotaI Revenue Php 24,500
TotaI Profit Php 17,261.71
Net margin Php 9.86 per kilo


Rice Farmer 2: LoIita Babatuan; 1/2 hectare of farm Iand
The table shows the over-all cost of production and the net margin of Ms.
Babatuan. Her concerns regarding the farm are the same with Ms. Marinog, the tungro.
As can be observed, Ms. Babatuan incurred less cost for seedlings. This is because she
purchases her seed from a cooperative that is supported by the Department of
Agriculture. She also had accounted the wastage with an average volume of 6 kilos per
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sack. Her suppliers' name is Rosa Tan. Ms. Babatuan said that Ms. Tan caters the
transportation and the milling cost of the rice. And she sells her produce for Php 14 per
kilo.
Table 2. The Cost of Producing Rice in one cropping season
Cost item Cost per
cropping
season
Percent to the
totaI cost
Cost per
kiIogram
Seed 600 0.05 0.22
Labor
PIanting 1300 0.12 0.47
Harvesting 2,926 0.26 1.06
FertiIizer
CompIete 2,264 0.2 0.82
Tractor 1,280 0.23 0.95
Thresher 1463 0.13 0.53

TotaI Cost 11,153 100% 4.05
Assumption: 50 sacks
per 2/4 ha times 55
kiIos per sacks
2750 kilograms

SeIIing Price Php 14
TotaI VoIume 2750 kilograms

TotaI Revenue Php 38,500
TotaI Profit Php 27,347
Net margin Php 9.95 per kilo

2. Intercropping
Farmer 1
Asuncion Ginez produces durian and banana at the same time. She's in this
business for 5 years already. At first, she produces rice but then she saw a potential for
durian and banana that's why she converted a part of her land for durian and banana.
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Table 3. The production cost of producing Durian and Banana
Cost item Cost per cropping
season (Banana)
Cost per
kiIogram
Cost per cropping
season (Durian)
Cost per
kiIograms
SeedIings 756 2.7
Pesticides
FoIiar 1000 3.57 1000 5
FertiIizer
Potash 600 2.14 600 3

TotaI cost 2,356 8.41 1600 8

TotaI VoIume 280 kilograms 200 kilograms
SeIIing Price Php 25 Php 28

TotaI Revenue Php 7000 Php 5600
TotaI Profit Php 4644 Php 4000
Net Profit Php 16.59 per kilo Php 20 per kilo

The table shows the over-all cost of production and the net margins of banana
and durian. Ms. Ginez said that intercropping really helped her a lot financially. Because
of her gains in this business, she already bought a thresher. The advantage of this
intercropping is that, she would still earn money at any time of the year, since each fruit
have different season of bearing. Ms. Ginez is also a retailer. She sells her products in
Calinan Public Market. And she prefers that the farmers should sell their products
directly to the market. With this, the profit would be maximized. She also buys the
banana tissues for Php 12.
3. Livestock
Dairy CattIe
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Mr. Victoriano Cano is one of the dairy cattle raisers in Brgy. Riverside. He is a
member of the Federation of Davao Dairy Farmers, located in Malagos, Baguio District.
He has been in the business for 21 years and owned a 1.4 ha of farm land. He is a
graduate of mechanical engineering in Laguna. When his eyes were affected by a
disease, he stopped his engineering career and he decided to settle here in Davao with
his family. He has 14 cows, 9 are females and the other five are males. This
cooperative supplies milk to Dairy Best Corp.
Table 4. The production cost of Victoriano Cano for dairy cattIe.
Cost item Cost per day Percent of the
totaI cost
Cost per
Iiters
Labor 300 0.6 3.75
Feeds
Concentrated 120 0.24 1.5
Mixed
TotaI cost 504 100% 6.3

TotaI VoIume 80 liters
SeIIing Price Php 25

TotaI Revenue Php 1600
TotaI Profit Php 1,096
Net Margin Php 13.7 per
liter


The table shows the production cost and net margin of dairy farming. This is
based on a daily basis. The only problem that he is concern with is the climate change.
t triggers diseases to the cattle. t also lessens the volume of grass in the pasture.
PouItry
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The Fran Poultry Farm is located in Purok 6, Brgy. Riverside. t has a land area
of 1 ha and has 17 workers. t has three buildings that cater 160-170 chicken each. This
farm has a contract growing agreement with San Miguel Corporation. San Miguel
Corporation provides the inputs such as the chicks, broiler feeds and the transportation
cost. The assistants are restricted to give information about the costing of the poultry
farm. Though some information was provided like; there is a total average volume of
production of 900.68 kilograms.

B. PEST anaIysis

PoIiticaI

Government gives support to Riverside farmers through conducting seminars
that could add up to the knowledge of the farmers about their crops and the
improvements they should do to have a high volume of produce which gives way to a
higher profit. Department of Agriculture and Philippine Coconut Association are some of
the departments of government which help the farmers in terms of providing good
quality seedlings for the farmers.

EconomicaI
Most of the farmers solely depend on the income they get in farming for their
daily living. Some have other sources of income such as tricycle driving; making copra
in coconut farm; selling of chicken manures which is used as a fertilizer by some
farmers, etc so as to support their family. Upon harvesting, there are farmers who have
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sure buyers without an agreement. Verbal arrangements is made prior to harvesting or
through 'suki' system. There are also farmers which have contract agreements to its
buyers just like the poultry farm and the dairy cattle farm. The crops are being sold in
markets of Calinan as well as in Davao City.

SociaI


TechnoIogicaI
There are several research developments, seminars, and training that were
conducted in Barangay Riverside. The evident use of technology is in the plowing of rice
paddies.

C. SWOT ANALYSIS
1he SWC1 analysls would focus on Lhe overall producLlon of crops llvesLock and poulLry ln Lhe
barangay
S1kLNG1nS
1hls barangay ls locaLed before Lhe Callnan roper lL ls Lhe gaLeway of Callnan 1hus lL makes lL
easy for Lhe farmers Lo buy maLerlals LhaL are essenLlal for Lhelr buslness MosL of Lhe farmers ln Lhls
barangay pracLlce Lhe pakyawan sLyle ln Lhls sLyle a buyer would buy all Lhe produce of Lhe farmer and
offer blgger amounLs WlLh Lhls Lhe buyer provldes Lhe LransporLaLlon Lhus mlnlmlzlng Lhe cosL And
Lhe hardworklng farmers are very essenLlal for Lhe producLlon of crops here ln 8rgy 8lverslde
1he Lype of soll was also hlghllghLed by Lhe barangay offlclals 1he Lype of soll ln Lhe barangay ls
1ugbok Clay lL ls excellenL for abacca frulL Lrees corn and ramle And also Lhe presence of lrrlgaLlon ls
very helpful for Lhe farmers slnce Lhe lrrlgaLlon ls free And lL seems lL had an abundanL supply of
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waLer ln Lhe barangay Lhere were Lhree ldenLlfled source of waLer Lhe creeks underground waLer and
rlver banks
JLAkNLSSLS
1he markeL sysLem exlsLs ln Lhe barangay ls noL beneflclal As whaL Lhe farmers sald
lnLermedlarles offer small prlces for Lhelr produce and Lhey don'L have any cholce buL Lo sell lL Lo Lhe
lnLermedlarles because lL ls a sure markeL for Lhelr producLs 1hls markeL sysLem hlnders Lhe farmers Lo
sell Lhelr producLs Lo a good buyer and Lo have a good prlce for Lhelr produce lf only farmers would
have Lhe rlghL lnformaLlon on where Lo sell and whaL prlce should Lhey conslder for Lhelr produce We
also see LhaL Lhe governmenL lacks LhaL proper guldance Lo our farmers 1hls lack of governmenL
lnLervenLlon leads Lo Lhe buyers and lnLermedlarles Laklng advanLage over Lhe farmers And lasLly some
of Lhe small scale farmers are flnanclally lncapable WlLh Lhls problem farmers are faced wlLh many
debLs even lf Lhey haven'L sLarLed planLlng yeL 1hls ls also because of Lhe lack of flnanclal supporL from
Lhe governmenL
CCk1UNI1ILS
1echnology had been playlng an lmporLanL role ln human llves nowadays And ln agrlculLure lL
helps ln enhanclng Lhe producLlvlLy of a farmer 1hls would also lessen Lhe work exerLed by Lhe farmer
1hls ls a good opporLunlLy for Lhe farmers buL lL ls somehow expenslve nowadays more llllplnos are
healLh consclous 1he lncrease ln populaLlon of healLhy eaLers lncreases Lhe demand for vegeLable frulLs
and even chlcken meaL And Lhls should be explolLed by Lhe farmers
1nkLA1S
We had been experlenclng an abrupL change of Lhe weaLher nowadays SclenLlsLs had sald lL ls
global warmlng 1hls poses a blg LhreaL Lo Lhe farmers as changes ln cllmaLlc paLLerns dlsrupL Lhe
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growlng cycle of some planLs llvesLock and poulLry 1hls may lessen Lhe producLlvlLy of Lhe farmers
WlLh Lhe currenL Lrend on prlces of dlfferenL facLors of producLlon lL ls rapldly lncreaslng 1hls wouldn'L
help Lhe farmers and Lhe consumers as prlces of facLors would lncrease Lhe prlces of commodlLles
would also lncrease And lasLly Lhe presence of pesL ln farms poses a blg LhreaL as producLlon would
somehow decrease
SUMMAk
51kN61n5
O 1here ls a sure markeL for Lhe produce of Lhe farmers Lhus LransporLaLlon cosL ls less
because lL ls belng provlded by Lhe buyers
O 1he avallablllLy of Lhe facLors ln Lhe producLlon of crops llvesLock and poulLry such as
seeds labor and eLc
O 1he Lype of soll ln 8arangay 8lverslde ls conduclve for agrlculLure 1hus producLlon of
crops ls hlgh
O ardworklng farmers
O resence of free lrrlgaLlon llke" Lubod" rlverbanks or creeks
J4kN555
O ack of lnformaLlon for prlces and markeLs for Lhe produce
O ack of governmenL asslsLance
O ack of flnanclal supporL
O resence of lnLermedlarles
99k1uNl1l5
O lnvesLmenL ln new Lechnology Lo lncrease producLlvlLy
O lgh demand for healLhy foods llke chlcken vegeLables and frulLs
1nk415
O 1here ls an lncrease ln prlces of dlfferenL facLors of producLlon
O CllmaLe Change may affecL producLlon of crops llvesLock and poulLry
O esL lnfesLaLlon llke whaL happened ln Lhe corn flelds of uavao del Sur were affecLed by
raLs

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VIII. Summary and ConcIusion
IX. Recommendation
The researchers recommend