Research on World Agricultural Economy

Analyzing the Return-Benefit on the Use of Modern Agricultural Machinery by Rice Farmers in Nueva Ecija, Philippines Using Modern Portfolio Theory (MPT)

Fhrizz De Jesus

College of Management and Business Technology, Nueva Ecija University of Science and Technology, Nueva Ecija 3100, Philippines

Shirley S. Pascual

College of Management and Business Technology, Nueva Ecija University of Science and Technology, Nueva Ecija 3100, Philippines

Billie Jack Passion

College of Industrial Technology, Nueva Ecija University of Science and Technology, Nueva Ecija 3100, Philippines

Cecilia Franco

College of Agriculture, Nueva Ecija University of Science and Technology, Nueva Ecija 3100, Philippines

Ma. Remedios Mallari

College of Agriculture, Nueva Ecija University of Science and Technology, Nueva Ecija 3100, Philippines

DOI: https://doi.org/10.36956/rwae.v6i1.1431

Received: 29 October 2024 | Revised: 10 December 2024 | Accepted: 11 December 2024 | Published Online: 24 January 2025

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Abstract

The Philippines is among the leading rice consumers worldwide, and the agricultural industry provides employment for a substantial proportion of the rural populace. Nevertheless, rice production has other obstacles, such as a scarcity of cultivable land, fluctuations in climate, and inefficiencies in production methods. In order to tackle these concerns, the Philippine government and several agricultural organizations have been advocating for the adoption of agricultural mechanization. Hence, this study aims to assess the return benefits for rice farmers resulting from the adoption of modern agricultural machinery, employing the Modern Portfolio Theory (MPT) to analyze the risks associated with capital investment in mechanization. This study utilized a quantitative-descriptive research methodology using statistical tools such as frequency distribution, weighted mean, and Spearman Rho in analyzing the data gathered. The results showed that the adoption of modern agricultural machinery by rice farmers affected the return-benefit of their farming operations in terms of “Initial Cost”, ranked as number one (Strongly Agree), while “Labor Savings” ranked least and was verbally interpreted as (Agree). The result shows that the main concern of the respondents is the cost integrated into repairs and maintenance. Rice farmers are advised to prioritize comprehensive training for modern machinery to improve the adoption of this technology.

Keywords: Modern Agricultural Machinery; Mechanization; Rice Farmers; Return‑Benefit; Modern Portfolio Theory

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