Understanding Filipino rice farmer preference heterogeneity for varietal trait improvements: A latent class analysis

Using an experimental methodology based on investment games, we examine whether smallholder rice farmers from Nueva Ecija, Philippines have heterogeneous preferences for improvements in 10 rice varietal traits. We use a latent class cluster approach to identify different segments of rice producing households and their distinct preferences for trait improvements. These clusters were characterised post hoc using household, farm, and marketing characteristics. On average, farmers invested the most in rice varietal trait improvements that offered opportunities to reduce losses caused by lodging, insects and diseases. We found four classes of farmers with distinct preferences for improvements in variety traits. The clusters were significantly different in terms of household and farm characteristics. These findings can guide breeding research in the development of varieties that have the traits farmers identified for improvement, and that will address the unique needs of distinct farmer segments.Rio Maligalig, Matty Demont, Wendy J. Umberger and Alexandra Peralt

Eliciting farmer preferences for rice varietal trait improvements using an experimental methodology based on investment games

Rice value chains are changing rapidly in Asia, partly due to changing consumption patterns, and also as a result of increasingly stringent quality standards imposed on producers. Rice farmers and other value chain actors must now consider rice varieties that are suitable for unique production environments and processing scenarios. Rice breeders face similar trade-offs, as demand for their products (genetics or new varieties of rice) is derived from farmers’ and other value chain actors’ (including consumers’) demand for rice varieties and traits. Ultimately, breeders need to make informed decisions about where to invest and how to allocate increasingly scarce research and development resources. To facilitate successful adoption, it is important that farmers’ preferences and needs are incorporated in the early phases of breeding research to make sure that rice varieties developed are suitable to local conditions and at the same time respond to market requirements. This thesis utilises an innovative experimental Investment Game Application (IGA), which is a newly developed application for eliciting preferences for rice variety traits. The game is designed to simulate an investment market in which farmers can participate in investment decisions for public rice breeding programs. In the IGA, farmers are asked to identify a replacement variety and the traits of this variety that they want to see improved. Farmers are provided with an endowment fund, which they are asked to use to invest in trait improvements. Therefore, using data from the investment games conducted in February 2016 in Nueva Ecija, Philippines, this thesis analyses farmer preferences for rice varietal trait improvements (VTIs). A total of 122 rice-farming households participated in the experiment, with both the husband and wife taking part in activities. The thesis consists of three core chapters, which specifically analyse the following: (i) farmers’ investment preferences for VTIs and the factors that influence these preferences; (ii) farmers’ heterogeneity in preferences for VTIs using a latent class cluster analysis; and (iii) gender and intrahousehold dynamics in the decision-making process regarding investment in VTIs. The results from the analysis of farmers’ investment preferences suggest that Filipino farmers prioritize investment in stress tolerance traits such as lodging tolerance, and disease and insect resistance. This is perhaps not surprising, because, on average, the replacement variety selected for improvement is already accepted in the market, i.e. it has the grain quality traits that Filipino consumers prefer (long and slender). On the other hand, the factors that influence farmers’ decisions to invest in VTIs are related to the cropping season, variety type, and access to land. Filipino rice farmers have significant heterogeneity in investment preferences; with a latent class cluster analysis identifying four distinct farmer segments each with unique preferences for the VTIs. When gender and intrahousehold dynamics in preferences are accounted for in the analysis, results suggest that the replacement variety selected individually and jointly by the couples is the same for most of the household-respondents. Moreover, the wife has more influence on the household’s choice of VTIs when she works on-farm, and/or when she is considering the impact of VTI investment decisions on the household’s future wellbeing. The results of the study can guide breeders and donors to develop more resource efficient and client-oriented rice-breeding programs. Moreover, the novel approach of the methodology can transform the way farmer preferences for variety traits are elicited and can provide an opportunity for farmers to be truly involved in the agricultural research process through participation in resource allocation and priority-setting activities.Thesis (Ph.D.) (Research by Publication) -- University of Adelaide, Centre for Global Food and Resources, 201

Farmers’ preferences for varietal trait improvements: The case of rice farmers in Nueva Ecija, Philippines

Farmers have their own preferences for agricultural technology attributes, which have been found to significantly influence adoption decisions. However, these are not always known nor do they always match with the objectives of the researchers. To understand farmers’ preferences for rice varietal trait improvements (VTIs), we conducted a framed field experiment. The experiment provided the farmers the opportunity to participate early in rice breeding research by expressing their need for trait improvements. In the experiment, farmers were given an endowment fund of 100 Philippine pesos and were asked to invest it among the VTIs they prefer and need using the Investment Game Application (IGA), a newly developed application for eliciting preferences. Farmers were sampled from randomly selected villages in three municipalities in Nueva Ecija, a major rice producing province in the Philippines. In total, 122 households joined the experiment, with both husband and wife participating. We use the fractional multinomial logit model to examine the relationship of the proportion invested to VTIs with various factors that may influence farmers’ preferences. Results indicate that market and climate change information, wet season cropping, hybrid varieties, and farm size are among the factors that influence farmers to invest in trait improvements. Moreover, results of the gender-specific analysis indicate that there are differences in the factors that influence husband and wife in investing in trait improvements. Overall, information from this study can assist breeders in their efforts to make rice breeding more resource efficient and client-oriented, which could help facilitate the adoption of new and improved varieties

Farmers’ preferences for varietal trait improvements: The case of rice farmers in Nueva Ecija, Philippines

Farmers have their own preferences for agricultural technology attributes, which have been found to significantly influence adoption decisions. However, these are not always known nor do they always match with the objectives of the researchers. To understand farmers’ preferences for rice varietal trait improvements (VTIs), we conducted a framed field experiment. The experiment provided the farmers the opportunity to participate early in rice breeding research by expressing their need for trait improvements. In the experiment, farmers were given an endowment fund of 100 Philippine pesos and were asked to invest it among the VTIs they prefer and need using the Investment Game Application (IGA), a newly developed application for eliciting preferences. Farmers were sampled from randomly selected villages in three municipalities in Nueva Ecija, a major rice producing province in the Philippines. In total, 122 households joined the experiment, with both husband and wife participating. We use the fractional multinomial logit model to examine the relationship of the proportion invested to VTIs with various factors that may influence farmers’ preferences. Results indicate that market and climate change information, wet season cropping, hybrid varieties, and farm size are among the factors that influence farmers to invest in trait improvements. Moreover, results of the gender-specific analysis indicate that there are differences in the factors that influence husband and wife in investing in trait improvements. Overall, information from this study can assist breeders in their efforts to make rice breeding more resource efficient and client-oriented, which could help facilitate the adoption of new and improved varieties