EARN MORE CASH IN PLANTING GRAINY GRASS: RICE (Oryza sativa)

‘NSIC RC 134’ VARIETY PRODUCTION IN TANYAG,

CALINTAAN, OCCIDENTAL MINDORO

MICROPROJECT PROPOSAL

Presented to the Faculty of College of Agriculture

OCCIDENTAL MINDORO STATE COLLEGE
Murtha Campus

In Partial Fulfillment of the Requirements for the Degree

BACHELOR OF AGRICULTURAL TECHNOLOGY

ZOREN S. OPINA
MYLA ROSE A. ALEJANDRO
March 2018

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 CHAPTER I

INTRODUCTION

A. Rationale

Rice (Oryza sativa) is staple food consumed daily by Filipinos. It is considered as

the most important commodity and the biggest agribusiness in the country. This is the

primary source of income and livelihood of many farmers and stable business for rice

traders and processors. However, farmers encountered problems of low yield and income

that consequently affect their standard of living (Juliano, 2013).

Moreover, rice production in the Philippines is very important as a food supply in

the country and economy. The total land area devoted to rice production in the Philippines

is about 2.5 million hectares. This area when planted in the wet season can be subdivided

into: 1.2 million hectares upland. During dry season about 1 million hectares (0.8 irrigated

and 0.2 rain fed) are planted to a second cropping of rice. This means a cropping intensity

of 140% the average rice yield is 2.16 tons per hectares which is lower than what are

attainable yield with the use of better technological practices (Rice Achievers

Accomplishment Reports 2013, Office of Provincial Agriculturist, San Jose).

On the other hand, Philippine population currently estimated at over 100 million

and expanding by 2 percent annually. Commercial rice retail prices increased in CY2014.

According to rice milling contracts, as a general rule, retail prices are twice the price of

paddy. The average retail price of commercial regular milled rice in CY2014 was PhP

38.96 ($0.87) per kilo, 16 percent higher than the PhP 33.70 ($0.75) per kilo average price

in CY2013. According to industry contracts, the higher CY2014 prices are likely the result

of the decline in smuggled rice imports, which some analyst believe have become an

integral component of the nation’s rice supply (AgroChart, Philippines. Rice Annual. Mar
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2015).

Therefore, The proponents had chosen rice production as their microproject

because of the decline in smuggled rice imports which someday will become an integral

component of the nation’s rice supply.

B. Brief Description of the Microproject

The Proponents will use 1 bag (50 kg) of NSIC RC 134 variety seeds of rice to a

0.5 hectare rice field which is situated at Tanyag, Calintaan, Occidental Mindoro. For the

basal application the proponents will use bat manure or guano and for the side dressing and

top dressing the proponents will use inorganic fertilizers such as Urea (46-0-0) and

complete fertilizer. Liquid trichoderma technology will also be used as fungicide. The

proponents will borrow an initial capital of PhP 20,000.00 from their parents.

C. Objectives

1. To produce a net income of at least PhP 17,225.00 from 0.5 hectare rice field.

2. To gain 50 cavans of quality rice within one cropping season.

3. To generate an ROI of 55% with noncash and 63% without noncash.

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 CHAPTER II

MARKETING ASPECT

A. Supply and Demand Analysis

Occidental Mindoro is more than 300% self-sufficient on rice but its neighboring

provinces such as Batangas, Laguna depends on our province for rice supply. Hence there

is a big demand of rice in our province.

Our province posted a volume of production 369,647.75 metric tons in irrigated,

150,037.20 in the lowland, and 5,776.42 in the upland in rain fed areas. In the net

production, population is 523,029 while per capita consumption is 62,763.48 metric tons.

Thus the province still had 162,304.59 surplus (OPA, 2015). The surplus production is

therefore exported to nearby provinces, this gives us an opportunity to produce more rice

in our locality.

B. Proposed Marketing Strategies

1. Product

The product will be quality rice from NSIC RC 134 variety seeds. It should have

14% moisture contents and also has a golden yellow grains color then marked as clean rice

seeds available in 50 kg/sack.

2. Price

The product will be sold based on current buying price posted by National Food

Authority (NFA) or other Commercial rice traders estimated at PhP 18.00 per kilogram.

3. Place of Distribution

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 The product will be sold to National Food Authority (NFA) or to other reputable

rice traders in Occidental Mindoro.

4. Promotion

The product will be promoted through giving samples of the product rice seeds to

the National Food Authority (NFA) or to the other Commercial rice traders.

5. Payment Scheme

The harvested product in this microproject will be distributed to the rice traders and

will pay cash upon delivery.

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 CHAPTER III

TECHNICAL ASPECT

A. Proposed Production Technology

1. Product Description

The product is a good quality rice seeds from NSIC RC 134 variety dried at 14%

moisture content. This is a rice variety which is adoptable to wet and dry season. It is also

resistant to pest and diseases and matures within 119 days starting from seed sowing. Its

grain is plenty and milling recovery is good and every sack contains 50 to 53 kilograms.

2. Production Process

a. Site Selection

Site selection will be done before producing the crop. A plain area accessible to the

water and transportation with good water holding capacity soil will be considered.

b. Seedling Establishment

The seedbed area will be plowed, dikes will be made and fixed to facilitate the

harrowing process. Lay-outing and levelling the seedbeds will be done. A 50 kilogram of

chosen variety rice seeds will be soaked for 24 hours and incubated in a clean sack also

within 24 hours for germination process and then will be sown in the drained seedbeds.

c. Land Preparation

The rice field will be plowed and will be harrowed then irrigated at the same time.

Handtractor and carabao drawn will be used to make a puddled soil.

d. Pulling of Seedlings

Prior to the pulling of seedlings, the seedbeds will be irrigated to soften the soil.

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The seedlings will be uprooted carefully to avoid root damage. It will be bundled into

convenient sizes to facilitate easier transporting and transplanting.

e. Transplanting

The seedlings will be transplanted after 15 to 20 days after seed sowing at planting

distance of 15 cm x 15 cm at the rate of 3 to 4 seedlings per hill and with a water depth of

3 to 5 cm as a standard recommendation.

f. Irrigation and Drainage

The rice field will be irrigated frequently as the seeds arise. Being a semi-aquatic

crop, it requires saturated soil condition and should be maintained at non-limiting water

condition. Water will be drained two weeks before harvesting. Rice field must be drained

at the time of harvest.

g. Pest and Diseases Management

Spraying herbicide will be done to minimize competition for nutrients, water, and

space between the weeds and the crops also to minimize some insects living on it. Spraying

insecticide also will be done. Pest and diseases will likewise be prevented and controlled

whenever there are evidences of occurrence.

h. Fertilizer Application

The growing crops will be supplied with organic and inorganic fertilizer as well as

spraying liquid trichoderma during seedling production. It will be done to maximize the

yield of the crop. The recommended rates of fertilizer will be applied.

Table 1 shows the fertilizer application which consist of fertilizer materials used,

the time, the methods, and the rates of this application.

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Table 1. Fertilizer application.
Date Method Kind of Fertilizer Rate of
Application
June 29 Basal application Guano 5 Bags
June 29 Spraying Liquid trichoderma 1 Liter
July 21 Side dressing Urea (46-0-0) 1 Bags
August 3 Top dressing A combination of Urea (46-0-0) 3 Bags
and Complete fertilizer (14-14-14)

i. Harvesting

The rice product matures at 119 days. Combined harvester-thresher will be used to

harvest the matured grains.

j. Drying, Cleaning, and Marketing

Rice grains will be sundried until it attains about 14% moisture content. In this

process 4 to 5 laborers will be hired. After drying, a product will be packed in 50 to 53 kg.

per sack prior to marketing.

3. Facilities, Tools, and Equipment

Table 2 presents the facilities, tools, and equipment that will be used in the

implementation of the microproject. It also shows the quantity, acquisition mode, and the

source.

Table 2. Facilities, tools, and equipment

Items Description Qty. Source Mode of Acquisition

Facilities
Land Plane land 0.5 hectare Argel farm Rent
Irrigation Canal NIA Rent
Tools
Sprayer Steel 1 Piece Mr. Arceo Borrowed
Bolo Steel 1 Piece Mr. Arceo Borrowed
Spade Steel 1 Piece Mr. Arceo Borrowed
Equipment
Handtractor Machine 1 Unit Mr. Alejandro Rent
Harvester Machine 1Unit Mr. Lopez Rent

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4. Raw Materials

Table 3. Raw materials used in implementing rice production.

Items Description Qty. Source Mode of

Acquisition
Rice seeds NSIC RC 134 50 kg DA Purchase
Inorganic Urea 100 kg Agricultural supply Purchase
fertilizer (46-0-0)
Complete 100 kg Agricultural supply Purchase
(14-14-14)
Organic fertilizer Guano 200 kg Mr. Alejandro Purchase
Trichoderma 1L OMSC Agriculture Purchase
Molasses 1 kg OMSC Agriculture Purchase
Insecticide Chemical 0.5 L Sagana Merchandise Purchase
Herbicide Chemical 0.5 L Sagana Merchandise Purchase
Sack 50 Pcs Sagana Merchandise Purchase
Fuel Diesoline 15 L Petron Gas Station Purchase

5. Project Size

A 0.5 hectare piece of lowland rice field will be cultivated for this project. This

lowland area regularly cultivated for rice production.

6. Farm Location

This microproject will be conducted at Tanyag, Calintaan, Occidental Mindoro.

7. Project Schedule

The implementation of this project will be started from June 16, 2018 and will end

on October 27, 2018.

8. Waste Disposal

Rice straw obtained after harvest in the production area will be scattered properly

to the rice field and will allow to decompose to serve as added organic matter for the next

cropping season.

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9. Expected Yield/Output

Table 4. Expected yield and output

Commodity No. of Cavan Estimated Price/kg Total Cost

Weight/Cavan (PhP) (PhP)
Rice (NSIC RC 50 54 18.00 48,600.00
134)

10. Labor Requirements

Table 5. Labor requirements.

Ph Pd Pmd Pad
Activities Cash Non Cash Non Cash Non Cash Non
cash cash cash cash
Seedbed preparation
Plowing 1
Applying organic fertilizer 2
Harrowing 2
Making dikes and irrigating 1
the seedbeds
Soaking of rice seeds 1
Incubating the rice seeds 1
Draining the seedbeds and 2
seed sowing
Spraying liquid trichoderma 1
Irrigating the seedbeds 1
Land preparation
Plowing 1
Basal application of Guano 2
Irrigating the rice field 1
Harrowing 2
Levelling the field 1
Pulling of seedlings 3 1
Broadcasting of the 2
seedlings
Transplanting 9 1
Spraying herbicide 2
Monitoring of water 5
Monitoring 5
Side dressing (Urea) 2
Fixing dikes 2
Top dressing (Urea and 2
Complete)

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 Table 5. Continued.
Spraying insecticide 2
Draining the field 1
Drying 5
Marketing 3
Total 35 20 2 4 3
Legend: Person hour (Ph)= PhP 20.00; Person day (Pd)= PhP 200.00;
Person animal day (Pad)= PhP 250.00; Person machine day (Pmd)= PhP 250.00

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 `B. Proposed Calendar of Activities

Table 6. Calendar of activities.

Input Required
Date Activities Particular Qty. Unit Unit Price Cash Noncash
June Purchasing of supplies and NSIC RC 134 variety seeds 50 Kg 50.00 2,500.00
10 materials Organic fertilizers
Guano 5 Bag 250.00 1,250.00
Trichoderma 1 L 75.00 75.00
Inorganic fertilizers
Urea (46-0-0) 2 Bag 1,100.00 2,200.00
Complete (14-14-14) 2 Bag 1,200.00 2,400.00
Diesoline 15 L 48.00 720.00
Insecticide 0.5 Quart 500.00 250.00
Herbicide 0.5 Quart 500.00 250.00
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Transportation 2 Way 50.00 100.00

16 Seedbeds Preparation
Plowing Labor 1 Pmd 250.00 250.00
17 Applying Organic fertilizer (Guano) Labor 2 Ph 20.00 40.00
18 First harrowing Labor 1 Pmd 250.00 250.00
19 Second harrowing Labor 1 Pmd 250.00 250.00
20 Making dikes and irrigating the Labor 1 Ph 20.00 20.00
seedbeds
21 Soaking of rice seeds Labor 1 Ph 20.00 20.00
22 Incubating rice seeds Labor 1 Ph 20.00 20.00
23 Draining the seedbeds and seed Labor 2 Ph 20.00 40.00
sowing
24 Spraying Liquid Trichoderma Labor 1 Ph 20.00 20.00
26 Irrigating the seedbeds Labor 1 Ph 20.00 20.00
28 Land preparation
Legend: Ph= Person hour; Pd= Person day; Pmd= Person machine day; Pad= Person animal day

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 Table 6. Continued.
Plowing Labor 1 Pmd 250.00 250.00
29 Basal application of Organic Labor 2 Ph 20.00 40.00
fertilizer (Guano)
30 Irrigating the rice field Labor 1 Ph 20.00 20.00
Miscellaneous 80.00
Subtotal 10,825.00 240.00
July 4 First harrowing Labor 1 Pad 250.00 250.00
5 Second harrowing Labor 1 Pad 250.00 250.00
6 Levelling the field Labor 1 Pad 250.00 250.00
10 Pulling of seedlings Labor 4 Pd 200.00 600.00 200.00
11 Broadcasting of the seedlings Labor 2 Ph 20.00 40.00
12 Transplanting Labor 10 Pd 200.00 1,800.00 200.00
13 Spraying herbicide Labor 2 Ph 20.00 40.00
14 Fixing dikes Labor 1 Ph 20.00 20.00
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19 Monitoring Labor 1 Ph 20.00 20.00

21 Side dressing (Urea) Labor 2 Ph 20.00 40.00
22 Monitoring of water Labor 1 Ph 20.00 20.00
25 Monitoring Labor 1 Ph 20.00 20.00
Subtotal 3,150.00 600.00
August Top dressing (Urea and Complete Labor 2 Ph 20.00 40.00
3 fertilizer)
13 Monitoring of water Labor 1 Ph 20.00 20.00
25 Monitoring Labor 1 Ph 20.00 20.00
31 Monitoring of water Labor 1 Ph 20.00 20.00
Subtotal 0.00 100.00
Sept. 3 Monitoring Labor 1 Ph 20.00 20.00
8 Fixing dikes Labor 1 Ph 20.00 20.00
16 Spraying insecticide Labor 2 Ph 20.00 40.00
24 Monitoring of water Labor 1 Ph 20.00 20.00
Legend: Ph= Person hour; Pd= Person day; Pmd= Person machine day; Pad= Person animal day

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 Table 6. Continued.
30 Monitoring Labor 1 Ph 20.00 20.00
Subtotal 0.00 120.00
Oct. 5 Draining the field Labor 1 Ph 20.00 20.00
13 Monitoring Labor 1 Ph 20.00 20.00
20 Purchasing of sacks Sacks 50 Pieces 10.00 500.00
23 Harvesting Rent By 5,000.00
contract
25-26 Drying Labor 5 Pd 200.00 800.00 200.00
27 Marketing Labor 3 Pd 200.00 400.00 200.00
Transportation 900.00
Miscellaneous 1,500.00
Carabao rent 4 days 200.00 800.00
Handtractor rent 1 Croppi 1,000.00
13

ng (0.5
ha)
Land rent 1 Croppi 5,000.00
ng (0.5
ha)
Subtotal 15,900.00 440.00
Grandtotal 29,875.00 1,500.00
Legend: Ph= Person hour; Pd= Person day; Pmd= Person machine day; Pad= Person animal day

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 CHAPTER IV

FINANCIAL ASPECT

A. Proposed Production Cost

Table 7. Production cost.

Cost Item Cash Noncash
NSIC RC 134 Rice seeds 2,500.00
Inorganic fertilizer
Urea (46-0-0) 2,200.00
Complete (14-14-14) 2,400.00
Organic fertilizer
Guano 1,250.00
Trichoderma 75.00
Diesoline 720.00
Insecticide 250.00
Herbicide 250.00
Labor 5,350.00 1,500.00
Transportation 1,000.00
Miscellaneous 1,580.00
Sacks 500.00
Harvester rent 5,000.00
Carabao rent 800.00
Handtractor rent 1,000.00
Land rent 5,000.00
Subtotal 29,875.00 1,500.00
GRANDTOTAL 31,375.00

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B. Proposed Cash Flow Statement

Table 8. Proposed cash flow statement.

Cash Flow June July August September October
Cash Inflow
Owners Capital 20,000.00
Sales
Sales of rice in 2,700 48,600.00
kgs @PhP 18.00
Total Cash Inflow (A) 20,000.00 0.00 0.00 0.00 48,600.00
Cash Outflow
Rice seeds 2,500.00
Inorganic fertilizer
Urea (46-0-0) 2,200.00
Complete (14-14-14) 2,400.00
Organic fertilizer
Guano 1,250.00
Trichoderma 75.00
Diesoline 720.00
Insecticide 250.00
Herbicide 250.00
Labor 1,000.00 3,150.00 1,200.00
Transportation 100.00 900.00
Miscellaneous 80.00 1,500.00
Sacks 500.00
Harvester rent 5,000.00
Carabao rent 800.00
Handtractor rent 1,000.00
Land rent 5,000.00
Owners capital 20,000.00
Total Cash Outflow 10,825.00 3,150.00 0.00 0.00 35,900.00
(B)
Cash Surplus (A-B) 9,175.00 (3,150.00) 0.00 0.00 12,700.00
Opening Balance 0.00 9,175.00 6,025.00 6,025.00 6,025.00
Closing Balance 9,175.00 6,025.00 6,025.00 6,025.00 18,725.00

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C. Proposed Cost and Return Analysis

Table 9. Cost and return analysis.

Item Value
Cash
Sales
Sales of rice in 2,700 kgs @ PhP 18.00 48,600.00
A. Total Cash Return 48,600.00
B. Total Noncash Return 0.00
C. Total Return (A+B) 48,600.00
Cash Cost
Rice Seeds 2,500.00
Organic fertilizers
Guano 1,250.00
Trichoderma 75.00
Inorganic fertilizers
Urea (46-0-0) 2,200.00
Complete (14-14-14) 2,400.00
Diesoline 720.00
Insecticide 250.00
Herbicide 250.00
Labor 5,350.00
Transportation 1,000.00
Miscellaneous 1,580.00
Sacks 500.00
Harvester rent 5,000.00
Carabao rent 800.00
Handtractor rent 1,000.00
Land rent 5,000.00
D. Total Cash Cost 29,875.00
Noncash Cost
Labor 1,500.00
E. Total Noncash Cost 1,500.00
F. Total Cost (D+E) 31,375.00
G. Return Above Cash Cost (C-D) 18,700.00
H. Return Above Noncash Cost (C-E) 47,100.00
I. Net Noncash Return (B-E) (1,500.00)
J. Net Cash Return (A-D) 18,725.00
K. Net Profit (C-F) 17,225.00

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D. Proposed Average Production Cost

Total Expenses
Total Yield (kg)

= PhP 31,375.00
2,700 kgs

= PhP 11.62/kg

E. Proposed Break Even Yield/kg

Total Cost
Proposed Selling Price

= PhP 31,375.00
PhP18.00

= 1,743.06 kg

F. Proposed Return on Investment (ROI)

Net Income x 100%

Total Expenses

With Noncash Without Noncash

ROI = PhP 17,225.00 x 100% ROI = PhP 18,725.00 x 100%

PhP 31,375.00 PhP 29,875.00

= 55 % = 63%

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References

AgroChart, Philippines. Rice Annual. Mar (2015).

Juliano, B. G., (2013). Rice Chemistry and Quantity. Phil Rice. Maligaya. Science City of
Munoz, Nueva Ecija.

Rice Achievers Accomplishment Report (2013), Office of Provincial Agriculturist, San

Jose.

OPA, (2015) Office of Provincial Agriculturist.

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