Analyzing the Return-Benefit on the Use of Modern Agricultural Machinery by Rice Farmers in Nueva Ecija, Philippines Using Modern Portfolio Theory (MPT)

The Philippines is among the leading rice consumers worldwide, and the agricultural industry provides employment for a substantial proportion of the rural populace. Nevertheless, rice production has other obstacles, such as a scarcity of cultivable land, fluctuations in climate, and inefficiencies in production methods. In order to tackle these concerns, the Philippine government and several agricultural organizations have been advocating for the adoption of agricultural mechanization. Hence, this study aims to assess the return benefits for rice farmers resulting from the adoption of modern agricultural machinery, employing the Modern Portfolio Theory (MPT) to analyze the risks associated with capital investment in mechanization. This study utilized a quantitative-descriptive research methodology using statistical tools such as frequency distribution, weighted mean, and Spearman Rho in analyzing the data gathered. The results showed that the adoption of modern agricultural machinery by rice farmers affected the return-benefit of their farming operations in terms of “Initial Cost”, ranked as number one (Strongly Agree), while “Labor Savings” ranked least and was verbally interpreted as (Agree). The result shows that the main concern of the respondents is the cost integrated into repairs and maintenance. Rice farmers are advised to prioritize comprehensive training for modern machinery to improve the adoption of this technology.