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Financial Analysis of an Agricultural Extension Initiative in a Conflict-Vulnerable Area of Mindanao


  • Menz, Kenneth M.
  • Predo, Canesio D.


An economic assessment of a pilot agricultural extension initiative relating to vegetable growing in a conflict-vulnerable area of Zamboanga Sibugay, Mindanao was undertaken. There are minimal micro or macro level studies in the literature attempting to measure the economic returns to agricultural extension. Those studies have typically suffered from an attribution problem in relation to the separation of extension costs and benefits from other influencing factors. In conflict vulnerable areas such as reported here, agricultural extension is generally limited or absent. In this example, the application of the extension initiative was the only change affecting farmers’ practices, so the study is somewhat unique in being able to isolate the extension effect. The analysis indicates that the present value of benefits from the extension initiative is 1.6 million pesos while the present value of costs is 1.1 million pesos, with a net benefit of 570 thousand pesos. The benefit cost ratio is 1.54 and the internal rate of return is 34%. These various measures are all significantly positive and lend credibility to the idea that agricultural extension applied to conflict-vulnerable areas can represent an acceptable return on money invested. The research can also be seen as a component of a broader ‘action research’ agenda whereby initial research outcomes are evaluated before progressing to the next step of wider implementation/adaptation.

Suggested Citation

  • Menz, Kenneth M. & Predo, Canesio D., 2019. "Financial Analysis of an Agricultural Extension Initiative in a Conflict-Vulnerable Area of Mindanao," Journal of Economics, Management & Agricultural Development, Journal of Economics, Management & Agricultural Development (JEMAD), vol. 5(1), June.
  • Handle: RePEc:ags:pjemad:309426
    DOI: 10.22004/ag.econ.309426

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    References listed on IDEAS

    1. Birkhaeuser, Dean & Evenson, Robert E & Feder, Gershon, 1991. "The Economic Impact of Agricultural Extension: A Review," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 607-650, April.
    2. Knipscheer, H. C. & Menz, K. M. & Verinumbe, I., 1983. "The evaluation of preliminary farming systems technologies: Zero-tillage systems in West Africa," Agricultural Systems, Elsevier, vol. 11(2), pages 95-103.
    3. Evenson, Robert E., 2001. "Economic impacts of agricultural research and extension," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 11, pages 573-628, Elsevier.
    4. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 44, pages 2343-2378, Elsevier.
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