Authors : Alcantara, Joyce Ann; Alejandro, Xyran Aerielle; Alquiroz, Jake Ernan; Ansela, Luz Clarita; Antonio, Mikee; Balanza, Gia Vanessa; Bauat, Jhosalyn; Begino, Maricar; Sitchon, Kristel

Volume/Issue : Volume 10 - 2025, Issue 12 - December

Google Scholar : https://tinyurl.com/rzxt288p

Scribd : https://tinyurl.com/5n6b9x2f

DOI : https://doi.org/10.38124/ijisrt/25dec656

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Abstract : Rice farming plays a crucial role in the Philippine economy, especially in Nueva Ecija, the country’s “Rice Granary,” yet many farmers continue to struggle financially due to rising input costs, unstable farmgate prices, climate risks, and the effects of the Rice Tariffication Law. This study aims to analyze the income levels of rice paddy farmers in the province by examining their short-run and long-run production costs, determining their break-even points (BEP), and evaluating profitability through financial ratios. Using a mixed-method design, data were gathered from 20 purposively selected farmers across 12 municipalities through a validated questionnaire that captured demographic profiles, farm characteristics, and detailed cost and revenue information. Analysis involved computing average fixed and variable costs, BEP in peso and per kilogram of palay, and profitability indicators such as gross profit margin, net profit margin, ROA, and ROI. Findings suggest that farmers incur high variable costs—particularly fertilizer, labor, and mechanization—which push many smallholders close to the break-even point, making them vulnerable to price fluctuations and input price increases. However, access to mechanization, irrigation, and improved seed varieties appears to lower per-unit production costs and improve profitability in the long run. Overall, the study highlights that while Nueva Ecija remains highly productive, the economic sustainability of rice farmers depends on cost efficiency, access to technology, and supportive government programs. The results emphasize the need for strengthened policy interventions, enhanced financial literacy, and better resource management strategies to help farmers improve income stability and long-term viability.

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