An analysis of production efficiency differentials in the Philippines

In the late seventies and early eighties, policy makers in many developing encouraged extensive research to develop appropriate rice technology for unfavourable rainfed environments. The question addressed in this paper is whether the farmers producing under the non-irrigated rainfed environments are achieving the potential of the technology fully at the farm level. The empirical analysis which concerns the farm-level production behaviour of rainfed rice farmers in the Philippines indicates a wide variation in production efficiencies. Extension advice and credit availability appear to be the two major factors influencing the gap between farmers' actual and potential production levels.