Rice Farm Business in the
Philippines:
Analysis of Food and Agriculture
Organization (FAO) Data in 1998
TIME: 4
months cropping season
FARM
SIZE: 3 hectares
HARVEST
PER HECTARE: 4 tons or 4,000 kg/hectare
TOTAL
HARVEST: 12,000 kg
ILIK
(rice paddy) average cost: $0.21/kg
GROSS
ILIK VALUE: $0.21/kg x 12,000 kg = $2520
PRODUCTION
COST: $359 per hectare
TOTAL
PRODUCTION COST: $359/hectare x 3 = $1077
NET
PROFIT PER SEASON: $2520 - $1077 =
$1443
NET
PROFIT PER YEAR (assuming all-year-round, 3 cropping seasons per year):
NET PROFIT
PER YEAR (ALL-YEAR-ROUND): $1443 x 3 = $4329
NET
PROFIT PER YEAR PER 1 HECTARE:
$4329/3 = $1443
NET
PROFIT PER YEAR PER 1/2 HECTARE: $1443/2
= $722
NET
PROFIT PER YEAR PER 1/4 HECTARE: $1443/4
= $360
2017 EQUIVALENT (inflation adjusted):
$1 in 1998 = $1.50 in 2017
ILIK
(rice paddy) average cost: $0.21/kg x
1.5 = $0.32/kg --- 16 pesos/kg ($1=50 Php)
ONE CAVAN
or 50 kg RICE PADDY price: 16 x 50 = Php
800 pesos
GROSS
ILIK VALUE: $0.32/kg x 12,000 kg = $3800
PRODUCTION COST:
$359 per hectare x 1.5 = $540
TOTAL
PRODUCTION COST: $540/hectare x 3 = $1600
NET
PROFIT PER SEASON: $3800 - $1600 =
$2200
NET
PROFIT PER YEAR (assuming all-year-round, 3 cropping seasons per year):
NET PROFIT
PER YEAR (ALL-YEAR-ROUND): $2200 x 3 = $6600
NET
PROFIT PER YEAR PER 1 HECTARE:
$6600/3 = $2200
NET
PROFIT PER YEAR PER 1/2 HECTARE: $2200/2
= $1100
NET
PROFIT PER YEAR PER 1/4 HECTARE: $2200/4
= $550
Converting
to Pesos: $1 USD = 50 pesos or PHP
PHP NET
PROFIT PER YEAR PER 1 HECTARE:
$2200 x 50 = Php 110,000
PHP NET
PROFIT PER YEAR PER 1/2 HECTARE: $1100 x
50 = Php 55,000
PHP
PROFIT PER YEAR PER 1/4 HECTARE: $550 x
50 = Php 27,500
Price of
1 Cavan or 50 kg Rice: Php 2000 pesos to
Php 2400 pesos
Price of
Rice per kilo (Feb 2017): Php 48 pesos
Price of
Rice paddy per kilo: Php 16 pesos
Ratio of
Rice paddy/Rice price: 16/48 = 1/3
Cost of Rice Farm Lands in the
Philippines (June 2017):
1.
Kalibo, Aklan - 4,256 sq.m. --- PHP 6.5 M
Php 1500 pesos per square meter: Php 15 million per hectare
irrigated, harvest 3 times per year, 28
sacks of rice total harvest
2. Sta.
Lucia, Ilocos Sur
8,000 sq.m. --- PHP 7.2 M
VERY CHEAP price of Php 900 per square
meter (Php 9 million pesos per hectare)
Rice land, 2 rice crops per year
3. Pila,
Laguna
1 hectare --- PHP 3 Million (Php 300/sq m) --- Php 3 million per hectare
irrigated rice farm land located along the
concrete barangay road
80 cavan of rice harvests per cropping ---
80 cavan x 50 kg/cavan = 4,000 kg
4. San
Fabian, Pangasinan
Average price of rice farm land = Php 500
pesos/square meter
1 hectare rice farm land --- Php 5 million per hectare
1/2 hectare --- Php 2.5 million
1/4 hectare --- Php 1.25 million
Rice Prices per Kilo as of Feb. 13, 2017
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Types of Rice
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Lowest Price
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Highest Price
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Php peso
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Php peso
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Regular Milled Rice
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33
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40
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Well Milled Rice
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40
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48
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Premium Rice
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42
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55
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Fancy Rice
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50
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65
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