Mary Ann M. Caintic and Pedro T. Armenia
For the cropping season covered by the study, the average production of the five rice farmers was 102.72 cavans per hectare. The total net return was P4,285.28. Rice farmers who engaged in the prendes system incurred lower labor cost but allotted one fifth of the produce to the prendes workers. Using the partial budgeting technique, it was found that farm returns with the prendes system decreased in the amount of P507.44. However, the system was found to be beneficial to the farmers because employing contract workers enables them to attend to more economically beneficial tasks such as working on other farms or working in offices.It also benefited the contract workers because it provided them with an exclusive and guaranteed source of employment and income.
Keywords: Prendes system. Rice farmers. Contract workers. Partial budget.
Annals of Tropical Research 8(4):(1986)