Essay About Rice Production

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Among those in poverty, the agriculture sector is the implied majority. Usually, the primary and only source of livelihood of these farmers is their production of crops, in this case rice. Rice (Oryza sativa) is considered the top staple food of the Philippines, especially in the island of Luzon. The Philippine rice production remains to be the eighth largest in the world. Out of 41.7% of the agricultural land available in the Philippines, 13.8% are used for rice, according to World Bank (2015) and The World Bank Group (2007). From 1993-2004, rice production has been increasing with an average of 4.9% growth despite a 24% decline in 1998 due to an El Nino that hit the country. To solve food security the country needs to import rice. The Philippines is also the top importer of rice in the world. So, various institutions and organizations have been put up to raise rice production to achieve self-sufficiency within…show more content…
Most studies have recommended the need of support services to add in policies to increase the bankability of farmers and the awareness of farmers in their role in the agricultural credit market. Other papers and seminars have suggested that credit policies were created to offset negative effects of other policies. This study aims to review if these credit policies, its objectives, and its assumptions are still relevant today. The lack of information and the acceptance of which has led studies to forget to consider this as a factor upon which the market can fail. This has caused diverse effects such as credit rationing and increasing of interest rates, which lead to the weakened accessibility of credit. It is pertinent that a study like this should be conducted to truly understand the underlying problems of credit policies in the production perspective. In order for agricultural development to ensue, information asymmetry should be

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