The study endeavoured to : (1) determine the present levels of input resources and the corresponding output and income of Moluccan Sau tree farms at PICOP; (2) obtain statistical estimates of the productivities of the different factors of production in these tree farms; (3) determine the optimum allocation of single resources for a given factor product price ratios, and (4) suggest policy measures that can help improve the levels of output of these tree farms. A random sample of 148 Moluccan Sau tree farms in the provinces of Agusan del Sur, DAvao del Norte and Surigao del Sur, were included in the analysis.