Spatial and Temporal Differences in Philippine Rice Productivity: A Stochastic Metafrontier Approach

We report results of an analysis of spatial and temporal variations in rice productivity in the irrigated and rainfed farming ecosystems in the Philippines from 1996/97 to 2006/07. A stochastic metafrontier, which is a production function that envelops the production frontiers of the two farming ecosystems, is used to compare productivity levels across the two ecosystems and over time. Results indicate that the mean productivity levels differ marginally between the two farming ecosystems, suggesting that farms in the rainfed farming ecosystem achieve productivity levels similar to farms in the irrigated farming ecosystem. Some farmers in both ecosystems were able to achieve the highest possible output with respect to the metafrontier in all seasons under study. The adoption and diffusion of appropriate technologies and knowledge products to farmers can narrow any technology gap that exists between farmers in the two ecosystems. Technical efficiency varies between farms within ecosystems, so there is potential for most producers in both farming ecosystems to improve productivity through better crop management practices. Technological progress is absent, confirming previous evidence of a lack of substantial productivity growth recently. The development of improved rice technologies is needed to shift the metafrontier outwards.