Author : Eduardo Firmo Roquino

Summary : This study provided an assessment of the economic values, in monetary terms of the multifunctional output of rice farms from the point of view of farmers in Leyte. The multifunctional outputs identified, verified, and assessed by the farmers included economic outputs (provision of food or rice commodity, rural economic viability, enhanced food self-sufficiency and security); socio-cultural outputs (local cultural heritage , rural landscape and open-space amenities, and sustainability of the benefits of rice farms for future generations); and environmental outputs (groundwater recharge, soil conservation, flood prevention and biodiversity). The total economic value of the multifunctional outputs of the 80 sampled rice farms in Leyte foe the May-October 2009 cropping period, which was derived by summing up the estimated value of the rice commodity and the bundle of NCOs, ranged from Php 50,464/ha to Php 61,640/ha. The estimated market value of the rice commodity was obtained by multiplying the average rice output of the farmer-respondents with their average farmgate selling price. The economic value of the bundle of NCOs was obtained by asking the farmer-respondents of their estimates of the monetary value of the NCOs that they perceived to be jointly and proportionately produced and consumed by themselves (value of own consumption of VOC) with one kilogram of rice (palay) and the monetary value of the NCOs that they perceived to be jointly and proportionately produced by them with one kilogram of rice (palay) but which are being consumed by others (value of external consumption or VEC). The large divergence between the estimated values of the rice commodity and the bundle of NCOs was attributed to the farmers' poor socio-economic status and low level of knowledge about the multifunctionality of rice farms. it was also noted that the economic outputs of rice farms were perceived more highly than outputs with socio-cultural and environmental contributions. The physical characteristics of rice farms, the socio-economic and demographic profile of the farmers and their farm management practices either increased or decreased the value of the rice commodity and the bundle of NCOs. Factors which relate to the farmers' availability to pay positively affected the market value of the rice commodity and the farmers' valuation of VOC. factors which relate to the human capital accumulation of farmers positively affected the farmers' valuation of VOC and negatively affected the farmers' valuation of VEC.