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Apayao MESS FA Agri-Enterprise earns Php 175k

APAYAO – The Malekkeg, Emiliana, San Carlos, San Antonio (MESS) Farmer’s Association with 42 members in Sta. Marcela accumulated a gross income of Php 1,634,620.00 with a net income of Php 175,153.00 during the five rice cropping seasons (2018 to 2020) using the rice combine harvester provided by the Special Area for Agricultural Development (SAAD) Program funded under FY 2016.

MESS Farmer’s Association was registered at the Department of Labor and Employment (DOLE) on June 13, 2017 as a cooperative for rural workers, specifically for the underemployed and home-based workers in the community with identified capability to engage in entrepreneurial activities.

“Iti determinasyon mi a kas association, haan kami lang nga makaurnong iti pagbiyag mi nu di kitdin makatulong kami iti production iti rice dituy ili mi,” [With our determination as an association, we are not only earning for our daily living but we are also contributing to the rice production in our municipality] said Mr. Andres Froilan, the association president.

As Service Provider

According to Mr. Froilan, the following services were provided by the association using the combine harvester equipment:

  1. Reaping – cutting the mature panicle and straw above ground;
  2. Threshing – separating paddy grain from the cut crop;
  3. Cleaning – removing immature unfilled, non-grain material;
  4. Bagging- putting the threshed grain in bags for transport and storage; and
  5. Hauling – moving the cut crop to the threshing location.

Mr. Froilan said that the machinery makes the harvesting process easier by providing gathering, reaping, threshing, cleaning, bagging, and transporting services altogether. He added that the adaptation of technology in agriculture gives comfort and efficiency from being a service provider until the hauling process.

Table 1. Gross Income from the Combine Harvester
Year Total rice area cultivated during dry season
(ha)
Total income during dry season
(Php 5,200/ha)
Total rice area cultivated during wet season
(ha)
Total income during wet season
(Php 5,200/ha)
Gross Total Income
(b+d)
a b c d e
2018 72.05 374,660.00 58.75 305,500.00 680,160.00
2019 70.18 364,936.00 63.72 331,344.00 696,280.00
2020 49.65 258,180.00 258,180.00
Total 191.88 997,776.00 122.47 636,844.00 1,634,620.00

The combine harvester is rented at Php 5,200 per hectare which allows the group to earn Php 997,776.00 for the 191.88 hectares of rice area served during the dry seasons in 2018 until 2020. The same amount is charged per hectare during the wet seasons and the group earned Php 636,844.00 for 122.47 hectares of rice area harvested in 2018 and 2019. With this, the group has a total gross income of Php 1,634,620.00.

Mr. Froilan also shared that cost per hectare is not fixed all the time since it depends on the agreement between them as a service provider and the landowners. He added that the combine harvester can also be rented at a bracket of Php 4,500 – 5,900 per hectare including the wage of the operator, gas, and oil.

“Nu addo iti umay ag offer iti reaper, nu sinu kababaan isu nukwa ti mas biruken iti agpatalon isu haan nga fixed iti presyo,” [If competency level is high, we bid for a lower price because people demand for affordable rate] shared Mr. Froilan.

Table 2. Operation and Maintenance Cost of the Combine Harvester
Rice Cropping Season
Maintenance Cost
(Php)
a
Labor cost
(Php)
b
Total Expenses
(a+b)
Dry Season
2018 282,630.00 86,460.00 369,090.00
2019 172,825.00 84,225.00 257,050.00
2020 144,880.00 55,082.00 199,962.00
Wet Season
2018 268,807.00 70,500.00 339,307.00
2019 209,761.00 84,297.00 294,058.00
Total Expenses 1,078,903.00 380,564.00 1,459,467.00

From 2018 to 2020, the total expense for the maintenance of the machinery is Php 1,078,903.00, which includes fuel, oil filter, oil change, and replacement of destroyed machine parts. The regular inspection and maintenance are done every cropping season to prevent further damages. For the labor cost, they have a total expense of Php 380,564.00.

From their old savings, the group was able to purchase a garage shed worth Php 44,305.00 in 2018, a water pump worth Php 5,700.00 as means of moving water to maintain cleanliness of the machinery and a pre-owned jeepney worth Php 80,000 for logistic purposes in 2019 using the savings they have set aside since the operation of combine harvester.

Mr. Froilan expressed how grateful they are to be part of the program. He said that this kind of opportunity is rare, so, when you find one, you should embrace it.

“Haan nga agnanayun nga ada opurtunidad. Thank you SAAD, dakkel iti naitulong iti SAAD program kadakami nu panggep iti pagbirukan iti agserbi pamilya mi a kas farmers” [Opportunity is not always around. Thank you SAAD Program for this has helped us farmers and our families], he said.

Table 3. MESS FAs Net Income
Rice Cropping Season         Total Gross Income Total Expenses Net Income
Dry Season    
2018 374,660.00 369,090.00 5,570.00
2019 364,936.00 257,050.00 107,886.00
2020 258,180.00 199,962.00 58,218.00
Subtotal 171,674.00
Wet Season  
2018 305,500.00 339,307.00 -33,807.00
2019 331,344.00 294,058.00 37,286.00
Subtotal     3,479.00
Total Net Income     175,153.00

Table 3 shows the net income per season in a year, wherein the total expenses are deducted from the total gross income. This made the group accumulate a total net income of Php 175,153.00.

Problems Encountered

In May 2018, the association constructed a garage shed for the machinery but was later destroyed by typhoon Ompong in September 2018. However, the said unpredictable calamity encouraged the association members to work harder. It’s just a typhoon and they will be doing even better to construct another station.

“Tay bagyong Ompong ket dakel iti I mpact na. Malagip ko pelang tay layos, kinapigsa tudu na kin tay kinaado nga pinsala iti pagbyag. Ngem para kadami nga farmer, pagsyaatan lata iti adda panunut mi. Nu adda panakabalin na, agpatakder kami tu metlang sukat na etay napardi nga garahe tuy machinery,” [Typhoon Ompong had a great impact. I can still remember the typhoon, strong rains and its damage to the livelihood of the community. For us farmers, we are always thinking of the betterment. As we move forward, we are planning to construct another garage shed for the machinery] Mr. Froilan expressed.

Association Policy

Based on the agreed policy of the association, the accumulated income per cropping season will be divided into three: 35% will be allotted for the maintenance of the machinery, 30% for labor costs, and the remaining 35% will be deposited to the association’s savings account.

In each machine operation, the labor cost is subdivided into six people: the combine harvester operator, jeepney driver, and 4 palay baggers.

Meanwhile, other members of the association are getting incentives worth Php 1.00 per sack for every cropping season. Mr. Froilan also shared that the members of the association also benefit from the 1% discount for every 10 sacks of rice for reaping.

Plans

As of October 31, 2020, the total savings of the association is Php 120,000.00 deposited in their bank account. According to Mr. Froilan, they are planning to purchase an additional truck for hauling. ###

 

Writer: Kathleen Faye Agonoy, Information Officer I, SAAD Apayao
Copy Editor: Jennifer A. Valcobero, SAAD NPMO Public Relation and Comms Officer

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Special Area for Agricultural Development (SAAD) Program Online ISSN: 2718-9791
Published by the SAAD National Program Management Office Editorial Board

Contact | Follow @da.saadprogram

President Rodrigo Roa Duterte
Republic of the Philippines

William D. Dar, Ph. D.
Secretary, Department of Agriculture

Myer G. Mula, Ph. D.
Program Director

                  

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