Socio-economic Profile and Experiences of Peanut Farmers in Enrile, Cagayan Ruth Abegaile B. Guzman Jeanette Angeline B. Madamba Agnes T. Banzon Normito R. Zapata, Jr. Department of Agribusiness Management College of Economics and Management University of the Philippines Los Baños

Presentation Outline • • • • • • • •

Introduction Objectives/Methodology Background of the Area Socio-economic Profile of Peanut Farmers Production Practices and Problems Marketing Practices Conclusion Agenda for Action

Introduction • Mani or peanut- “cash crop” - major source of vegetable oil, oilseed and protein meal in the world • Key producers - Nigeria, United States, China, Myanmar, India and Argentina • World’s main buyers - European Union, Indonesia, Russia and Mexico

• Philippines - net importer of peanuts

Introduction • Local production 2000-2010 - supply of 60000-70000 tons - 50% (about 30000-50000 tons) is imported • Cagayan, an agricultural hotspot in the Philippines • Enrile, Cagayan - main products: peanut, corn, rice - 80% of the population engaged in peanut production • 2007- peak of production - 1,963 tons per hectare - attributed to increase in land area with 1,753 hectares planted to peanuts

Objectives/Methodology Objectives 1. To present and analyze the socio-economic profile and experiences of peanut farmers in the study area 2. To address the production and marketing issues of peanut farming

Methodology Case approach - farmer surveys (75 peanut farmers* from nine barangays) - key informant interviews - secondary sources * identified through sampling fraction and proportional allocation

Background of the Area

Background of the Area • approximately 18,450 hectares (ha) • population: 30,101 people (2010 census) • 233.5 ha (arable land devoted to peanut production) • 2 seasons: -dry season - December to May -wet season- June to November • bounded by the Cagayan River in the east

Socio-Economic Profile Table 1. Gender Distribution of Farmers

Socio-Economic Profile Table 2. Age Range and Area Distribution of Farmers

Socio-Economic Profile Table 3. Educational Level and Area Distribution of Farmers

Socio-Economic Profile • Household Size - 3 members- 7% - 4-6 members- 44% - 7-9 members- 36% - 10 or more members- 13% • Marital Status - 100% were married. • Farm Size - 65% are considered large farms (1.5 ha and above)

Socio-Economic Profile •

Residential Address - Barangay Divisoria- 31% peanut farmers interviewed - Barangay Lanna (22%) - Lemu Sur (13%) - Lemu Norte (12%) - Inga (9%) - Magalalag West (4%) - Magalalag East (3%) - Maracurru (3%) - Alibago (3%)

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Training/ Seminars Attended - 84%- did not attend any training or seminars - 16%- attended training and seminars for free

Socio-Economic Profile Table 4: No. of Years in Peanut Farming

Socio-Economic Profile Table 5 . Form of Land Tenure

Socio-Economic Profile Table 6: Time Devoted to Peanut F arming

Socio-Economic Profile Table 7: Initial Capitalization

Socio-Economic Profile • Source of Capital - All peanut farmers have secondary sources of income. - Around 91% used personal resources as working capital (usually harvest from other crops/agricultural ventures). • Location of Farm - Most farms located in Barangays Divisoria and Lanna

Production Practices and Problems

• Use of only traditional varieties (small-seeded) per request of millers/processors • Traditional farming practices observed • Set aside part of harvest as seed inputs for next crop • Problems: - floods - low productivity - lack of new varieties

Marketing Practices • Three (3) market outlets: traders, assemblerwholesalers, miller-wholesalers who buy small-seeded varieties because existing milling equipment can only handle these varieties • Contract basis vs. no contract • Most sell to traders who go from house to house • Usually cash basis • Marketing-related issues: a) low prices dictated by peanut crop buyers b) no grading system observed

Conclusion • Low agricultural profitability is attributed to some socioeconomic status of farmers. - Over 40% in the older group of the population (56 years old and above) - All were married with fairly large household sizes (44% have 4-6 members) - Most (60%) attained lower levels of education • Majority of peanut farmers have been farming for over 20 years using traditional varieties and farming practices. • An agenda for action is offered to address the production and marketing issues of peanut farmers in the area.

An Agenda for Action • • • •

Reassess viability of current farm location Improve peanut farming practices Expand market reach Nurture the next generation of peanut farmers • Link peanut supply chain players with support institutions