A User Manual for Benefit Cost Analysis Using Microsoft Excel

This manual has been prepared with support provided by the Economy and Environment Programme for South East Asia (EEPSEA) to enhance the capacity of researchers in carrying out practival applications of BCA using spreadsheet modeling and analysis. The framework and analyses presented are based on core concepts and theory of BCA, with applications that relate primarily to environmental and natural resource management. The manual demonstrates approaches and techniques using simple examples and case studies typical of those found in most countries in the South East Asia region. Preliminary versions of the manual have been used in training programs by EEPSEA.benefit cost analysis, excel

Adaptation of community and households to climate - related disaster : the case of storm surge and flooding experience in Ormoc and Cabalian Bay, Philippines

The study examines disaster response to Typhoon Uring in Ormoc City in Leyte, Philippines (1991). Vulnerability regression estimates for flooding showed that households’ vulnerability to flooding increased with house size and decreased with access to grant and credit facilities. Results also suggest that households with higher educational attainment and annual income tended to be less vulnerable to the risks from storm surge/sea level rise. Many households did not understand that sea level rise is a permanent or irreversible process. Similarly, local governments’ efforts appear to have concentrated on disaster relief rather than on long-term strategic planning and pro-active measures

Application of Rapid Climate Decision Analysis in Valuing Seasonal Climate Forecast for Corn Farmers in Albay, Philippines

There have been notable advancements in the capabilities to generate seasonal climate forecasts to the level of generating accurate information in a cost-effective manner. One such tool is the SARAI [Smarter Approaches to Reinvigorate Agriculture as an Industry in the Philippines] Enhanced Agricultural Monitoring System (SEAMS) that can generate climate information using open source software and remotely sensed images from different satellites. Innovations such as SEAMS allow for better access to seasonal climate information by ordinary farmers. This paper aims to determine the economic value of seasonal climate forecasts in a climate-sensitive corn farming decision using the Rapid Climate Decision Analysis (RCDA) tool. Results from the RCDA showed that farmers are worse off by about PhP 6370 per hectare if they continue planting with a very dry forecast. The RCDA results together with the farm and farmer characteristics imply that decision makers could implement campaigns to forego farming during seasons with very dry to severely dry forecasts for similar farmers. Policy implications and recommendations related to improving access and utilization of seasonal climate forecasts are discussed in the paper

Assessing the Value of Seasonal Climate Forecasts on Farm-level Corn Production through Simulation Modeling

Rainfall variability greatly influences corn production. Thus, an accurate forecast is potentially of value to the farmers because it could help them decide whether to grow their corn now or to delay it for the next cropping opportunity. A decision tree analysis was applied in estimating the value of seasonal climate forecast (SCF) information for corn farmers in Isabela. The study aims to estimate the value of SCF to agricultural decisionmakers under climate uncertainty. Historical climatic data of Isabela from 1951 to 2006 from PAGASA and crop management practices of farmers were used in the Decision Support System for Agrotechnology Transfer (DSSAT) to test the potential impact of climate change on corn. The approach is developed for a more accurate SCF and to be able to simulate corn yields for wet and dry seasons under different climatic conditions. While SCF may potentially affect a number of decisions including crop management practices, fertilizer inputs, and variety selection, the focus of the study was on the effect of climate on corn production. Improving SCF will enhance rainfed corn farmers' decisionmaking capacity to minimize losses brought about by variable climate conditions

A Layman’s Guide to Social Capital and the Relevance for Economic Development

The previous paper (Menz, this issue) explored the nexus between agricultural extension and social capital. This chapter spells out the nature of social capital in a more extensive way. Although social capital is a relatively new concept, one of its attractions is that it can accommodate both economic and social science philosophies. An illuminating elucidation of social capital was given by Alejandro Portes: “Whereas economic capital is in people’s bank accounts and human capital is inside their heads, social capital is (inherent) in the structure of their relationships. To possess social capital, a person must be related to others, and it is these others . . . who are the actual source of his or her advantage.” Building social capital can help economic development by reducing the cost of conducting day-to-day business, it facilitates the spread of knowledge and innovation and it promotes cooperation and market-based interaction. From the review of the literature on social capital and economic development, it can be concluded that social capital is strongly linked to economic development. This empirical result supports the positive theoretical and operational linkages between social capital and agricultural extension as outlined previously. Those linkages could reasonably be expected to be particularly important in conflict areas

Preliminary Assessment of the Application of the LIFE Model in Barangay Salman, Ampatuan

This paper contains some initial positive results of farmer surveys assessing lifestyle, economic, and social effects from the application of the model in one case study site—Salman, Ampatuan, Maguindanao. These are interim results rather than final as the project is ongoing within an action research framework. The paper merely aims to describe changes that are occurring in the spirit of making a preliminary judgement about the impact of applying the LIFE extension model that was described in Vock et al. (this issue). If the impact would be found to be negligible or negative, a total rethink of the model would be required. It is not a “final” assessment of the whole project, or even a final assessment of impacts at that particular site. The assessment involved primary data collection through personal farmer interviews. This paper combines economic and sociological parameters. This continues a theme of the project which is to maintain a joint socioeconomic perspective whenever possible. Economic impacts from applying the extension model were found to be positive and these translated strongly into lifestyle changes with respect to matters such as health, education, food, and shelter

Willingness to Pay of Rice Farmers for an Improved Weather and Seasonal Climate Information

This study aims to measure the value of a nonmarketed public good, the improvement of weather and seasonal climate information, using the contingent valuation method. It also determined the factors affecting willingness-to-pay (WTP) of farmers for improved weather and seasonal climate information and drew policy implications and identified strategies to improve weather and seasonal climate information for better risk management in agricultural production. The study applied both parametric and nonparametric methods to estimate the mean WTP of farmers. The payment is in terms of crop harvest, but a monetary equivalent value was computed. Results of the logistic regression showed a WTP of PhP 633 per ha per cropping for an improvement of weather and seasonal climate forecast or a total value of PhP 5,141,745 per cropping. Meanwhile, Turnbull estimation results suggest a lower bound value of PhP 420 per ha per cropping and an upper bound value of PhP 1,086 per ha per cropping or a total value of PhP 3,409,495 to PhP 8,809,200. Farmers’ WTP are significantly influenced by the bid price and socioeconomic variables such as size of the household, attendance in trainings, farm area, and percent of harvest sold in the market. Overall, there is a high value placed by rice farmers in the quality of information received regarding weather and seasonal climate. By estimating the value of a nonmarketed good such as an improvement in weather and seasonal forecast, it can serve as basis for formulating climaterelated policies and strategies to improve the resilience of the agricultural sector

What motivates farmers? : tree growing and land use decisions in the grasslands of Claveria, Philippines

This report investigates which land use system would provide the most economic and environmental benefits to farmers of upland grassland areas in the Philippines. It analyses a number of different land use systems and focuses on the benefits that tree-based systems can bring. It also investigates the main reasons why farmers are reluctant to change from their current unsustainable cropping regimes. It finds that it would make economic and environmental sense for farmers to convert a large percentage of their farms over to tree planting. It also finds that, although this would help halt the current slide into low productivity and environmental ruin, many farmers are reluctant to make the move because of the economic risks involved. In light of this, the report suggest several policies to give farmers the assistance they need to make an environmentally-informed choice about which land use system to adopt

Planting for the Future: Options for Upland Grasslands in the Philippines

This research investigates which land use system would provide the most economic and environmental benefits to farmers of upland grassland areas in the Philippines. It analyses a number of different land-use systems and focuses on the benefits that tree-based systems can bring. It also investigates the main reasons why farmers are reluctant to change from their current unsustainable cropping regimes. It finds that it would make economic and environmental sense for farmers to convert a large percentage of their farms over to tree planting. It also finds that, although this would help halt the current slide into low productivity and environmental ruin, many farmers are reluctant to make the move because of the economic risks involved. In light of this the report suggest several policies to give farmers the assistance they need to make an environmentally-informed choice about which land use system to adopt. Many small farmers in Southeast Asia face an uncertain future as population pressure, climate change and other factors damage the profitability and sustainability of their smallholdings. One way forward may be for these farmers is to change the type of agriculture they practice to one that will guarantee a viable income and also keep the environment in good shape. This report has shown how to assess which land use is best for a certain land type. It also gives advice on how to help farmers make the necessary changes. This report showed that it would make economic and environmental sense for farmers in the country's upland grassland areas to convert a large percentage of their farms over to trees. It also found that, although this would help halt the current slide into low productivity and environmental ruin, many of these farmers were reluctant to make the move because of the economic risks involved. This research therefore suggested a number of policies that would help farmers make the switch.grasslands, Philippines

The Relationship Between Social Capital and Farm Household Consumption Expenditure in Conflict-Vulnerable Areas of Mindanao

The improvement of farm income generating capacity via social capital enhancement is a common goal in many community-based rural development projects. Yet, there are extremely limited studies empirically linking economic benefits and social capital, especially at the level of individual farm households. This paper aims to estimate empirically this relationship using farm household consumption expenditure as a proxy for farm income in the case of conflict-vulnerable areas in Mindanao, Philippines. Social capital enhancement is thought to be especially relevant in such areas, and the results in this paper engender more confidence in such an approach. A reduced-form model was estimated using ordinary least squares method and household survey data of 185 respondents. The model results indicate positive correlation between household social capital and farm household consumption expenditure. Specifically at the current level of consumption expenditure in the study households, social capital was found to have an economic value of PhP 481 per household per month, or 14% of current household consumption expenditure. This finding supports the idea of promoting social capital as a component of livelihood improvement strategies for conflict areas in Mindanao, especially strategies with knowledge transfer orientation like agricultural extension