The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Santi Sanglestsawai,

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The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Santi Sanglestsawai, North Carolina State U Roderick M. Rejesus, North Carolina State U Jose M. Yorobe, Jr. University of the Philippines- Los Banos

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Introduction Chemical pesticides have been used extensively in developing countries like the Philippines. Chemical (mis-)use have caused serious problems to ecosystem and human health. Integrated pest management (IPM) is an alternative option to reduce the use of pesticides.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Objectives Examine the impact of IPM-FFS on yields, pesticide expenditures, labor expenditures, herbicide expenditures, fertilizer expenditures, profit, and farmer’s self-reported health status, with a focus on onion production in the Philippines.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines As reported before, initial FFS impact assessments in the Phil. used the before-after and with-without comparisons, not controlling for endogeneity and/or selection bias. In our report last year (published in an international journal), we used instrumental variables on cross section data to control for the bias. The results revealed a significant reduction in pesticide expenditures (more than P5,000/ha)..

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Other studies using other methods to control for the bias have generated conflicting results. For this study, impacts on inputs and output have been included as outcome variables – yield, fertilize use, labor use, herbicide use, profit and health. Propensity Score Matching and regression based method were used to control for the bias – serve also as robustness check of our earlier IV method.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Data We used the same data as in our IV paper before coming from the farm-level survey in 2009. 197 (69 IPM-FFS and 128 non-IPM) onion growers were selected randomly from 8 major onion locations in Nueva Ecija, 4 where IPM training has been conducted and 4 where IPM training has not been conducted.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Fig. 1. Location of Study Sites, Philippines

The Impacts of Integrated Pest Management (IPM) Farmer Field School on Inputs and Output: Evidence from Onion Farmers in the Philippines Propensity Score Matching Matching non-IPM farmers and IPM farmers that have similar propensity score (probability to adopt) given set of observed variables X. This controls for the “selection on observables” bias The “Rosenbaum bounds” is used to test the effect of “selection on unobservables” bias.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines The regression-based method This method based on the function: The parameters of this function are estimated by OLS. The procedure by Altonji et al. (2005) was used to see the impact of the “selection on the unobservables”

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result First Stage Probit Result for the PSM Approach. Variable Parameter Estimate P-value   Sex 0.271 0.324 Age of Farmers 0.005 0.634 Farm Area -0.056 0.581 Onion farming Experiences -0.009 0.389 Income other than Onion Farming 0.007 0.210 Distance to Pesticide Suppliers -0.074 0.009 Distance to Nearest Extension Office -0.047 0.006 Degree of Pest Infestation 0.003 0.607 Town 0.014 0.954 Intercept 0.168 0.767 Log-Likelihood -113.341 Pseudo-R-squared 0.112

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result Comparison of means of the observable variables between IPM-FFS and Non-IPM-FFS farmers. Variables IPM-FFS Non-IPM-FFS P-value Unmatched Sample (n=197: IPM-FFS = 69, Non-IPM-FFS = 128)   Sex 0.855 0.805 0.380 Age of Farmers 47.043 47.281 0.896 Farm Area 1.173 1.243 0.638 Onion farming Experiences 17.739 19.789 0.208 Income other than Onion Farming 18.302 14.438 0.121 Distance to Pesticide Suppliers 6.486 8.898 <0.001 Distance to Nearest Extension Office 5.462 9.071 Degree of Pest Infestation 12.783 11.664 0.672 Town 0.449 0.578 0.085

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result Comparison of means of the observable variables between IPM-FFS and Non-IPM-FFS farmers (continued). Variables IPM-FFS Non-IPM-FFS P-value 1-to-1 Nearest Neighbor Matched Sample (n=124: IPM-FFS = 62, Non-IPM-FFS = 62)   Sex 0.855 1.000 Age of Farmers 47.323 45.065 0.292 Farm Area 1.163 1.182 0.911 Onion farming Experiences 17.903 18.258 0.854 Income other than Onion Farming 14.973 16.867 0.523 Distance to Pesticide Suppliers 6.968 7.210 0.729 Distance to Nearest Extension Office 5.910 6.502 0.537 Degree of Pest Infestation 11.403 13.129 0.596 Town 0.435 0.419 0.857

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result Comparison of means of the observable variables between IPM-FFS and Non-IPM-FFS farmers (continued). Variables IPM-FFS Non-IPM-FFS P-value 10-to-1 Nearest Neighbor Matched Sample (n=188: IPM-FFS = 62, Non-IPM-FFS = 126)   Sex 0.855 0.874 0.756 Age of Farmers 47.323 47.115 0.921 Farm Area 1.163 1.159 0.978 Onion farming Experiences 17.903 18.753 0.658 Income other than Onion Farming 14.973 18.774 0.291 Distance to Pesticide Suppliers 6.968 7.263 0.677 Distance to Nearest Extension Office 5.910 6.559 0.504 Degree of Pest Infestation 11.403 12.373 0.758 Town 0.435 0.431 0.957

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result Comparison of means of the observable variables between IPM-FFS and Non-IPM-FFS farmers (continued). Variables IPM-FFS Non-IPM-FFS P-value Kernel Matched Sample (n=190: IPM-FFS = 62, Non-IPM-FFS = 128)   Sex 0.855 0.872 0.783 Age of Farmers 47.323 46.748 0.782 Farm Area 1.163 1.148 0.928 Onion farming Experiences 17.903 17.776 0.946 Income other than Onion Farming 14.973 16.977 0.478 Distance to Pesticide Suppliers 6.968 7.122 0.827 Distance to Nearest Extension Office 5.910 6.316 0.680 Degree of Pest Infestation 11.403 11.828 0.888 Town 0.435 0.437 0.990

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result The impacts of IPM-FFS : PSM Approach. Variables IPM –FFS mean Non-IPM-FFS mean Difference p-value Unmatched Sample   Yield 9.927 8.470 1.457 0.172 Insecticide Expenditures 3.058 4.897 -1.839 0.002 Labor Expenditures 18.343 19.363 -1.020 0.524 Herbicide Expenditures 3.817 3.032 0.785 0.120 Fertilizer Expenditures 20.622 20.343 0.279 0.873 Profit 178.603 128.361 50.242 0.028 Farmer’s health 4.203 4.266 -0.063 0.637

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result The impacts of IPM-FFS : PSM Approach (continued). Variables IPM –FFS mean Non-IPM-FFS mean Difference p-value 1-to-1 Nearest Neighbor Matched Sample   Yield 9.564 7.960 1.605 0.174 Insecticide Expenditures 3.184 4.822 -1.638 0.017 Labor Expenditures 18.623 19.354 -0.732 0.672 Herbicide Expenditures 3.732 3.278 0.454 0.539 Fertilizer Expenditures 21.111 20.754 0.357 0.881 Profit 170.843 121.284 49.559 0.078 Farmer’s health 4.194 4.323 -0.129 0.434

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result The impacts of IPM-FFS : PSM Approach (continued). Variables IPM –FFS mean Non-IPM-FFS mean Difference p-value 10-to-1 Nearest Neighbor Matched Sample   Yield 9.564 8.706 0.858 0.493 Insecticide Expenditures 3.184 5.221 -2.037 0.005 Labor Expenditures 18.623 20.292 -1.669 0.363 Herbicide Expenditures 3.732 3.331 0.400 0.582 Fertilizer Expenditures 21.111 21.004 0.107 0.962 Profit 170.843 129.914 40.929 0.156 Farmer’s health 4.194 4.268 -0.074 0.638

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result The impacts of IPM-FFS : PSM Approach (continued). Variables IPM –FFS mean Non-IPM-FFS mean Difference p-value Kernel Matched Sample   Yield 9.564 8.427 1.137 0.360 Insecticide Expenditures 3.184 5.020 -1.834 0.005 Labor Expenditures 18.623 19.046 -0.424 0.807 Herbicide Expenditures 3.732 3.284 0.448 0.545 Fertilizer Expenditures 21.111 20.320 0.791 0.704 Profit 170.843 126.600 44.242 0.128 Farmer’s health 4.194 4.267 -0.073 0.626

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result Parameter Estimates from the Regression-based Method. Variables Yield Insecticide Expenditures Labor Expenditures Herbicide Expenditures Fertilizer Expenditures Profit Farmers’ Health Farmer Characteristics   IPM-FFS 1.619 -1.711*** -0.653 0.604 1.274 40.518* -0.009 Sex 2.933* 0.796 0.920 0.517 1.305 52.467 -0.148 Age of Farmers -0.034 -0.027 -0.127 0.012 -0.070 -0.857 -0.014* Farm Area -0.279 -0.348 -1.162 -0.005 -2.668*** 2.192 0.032 Onion farming Experiences 0.024 -0.008 0.105 -0.019 -0.119 0.308 0.004 Income other than Onion Farming 0.013 0.006 -0.023 -0.001 0.069 0.473 0.002 Distance to Pesticide Suppliers -0.033 0.111 0.158 -0.029 0.310 3.294 Distance to Nearest Extension Office 0.080 0.035 -0.059 0.982 -0.021 Degree of Pest Infestation -0.048 0.017 -0.020 -0.010 0.040 -1.116 0.000 Town 3.441*** -2.387 -0.518 1.009 -30.275 0.169 Constant 7.345** 6.145*** 24.260*** 2.802* 24.002*** 103.323 5.048***

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result The ATT impacts of IPM-FFS: Regression- based Method. Outcomes ATT impacts of IPM-FFS P-value Yield 1.632 0.174 Insecticide Expenditures -1.854 0.005 Labor Expenditures -0.663 0.716 Herbicide Expenditures 0.727 0.185 Fertilizer Expenditures 0.120 0.950 Profit 55.194 0.025 Farmer’s health -0.128 0.386  

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result Parameter Estimates from the Regression-based Method using the Instrumental Variables (IV) technique. Variables Yield Insecticide Expenditures Labor Expenditures Herbicide Expenditures Fertilizer Expenditures Profit Farmers’ Health Farmer Characteristics   IPM-FFS -3.060 -5.932*** -6.072 1.444 -10.114 -19.241 0.375 Sex 3.149 -3.070 -4.301 1.629 0.587 112.702 0.086 Age of Farmers -0.087 0.041 -0.266 -0.029 0.169 -1.335 -0.005 Farm Area 0.171 -0.294 0.370 -0.124 -2.653 40.711 -0.110 Onion farming Experiences 0.017 0.045 0.508** 0.074 -0.469** -1.264 -0.009 Income other than Onion Farming -0.001 0.020 0.100 -0.011 0.055 0.213 0.008 Degree of Pest Infestation -0.072 -0.023 -0.015 0.001 -0.062 -1.265 0.003 Town -4.178 -4.110** -4.719 -0.585 1.100 -48.988 Constant 14.542** 8.675** 28.372*** 2.006 26.943** 139.001 4.392***

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Result The ATT impacts of IPM-FFS: Regression-based Method using the Instrumental Variables (IV) technique. Outcomes ATT impacts of IPM-FFS P-value Yield -3.692 0.375 Insecticide Expenditures -5.812 0.012 Labor Expenditures -5.243 0.396 Herbicide Expenditures 1.701 0.380 Fertilizer Expenditures -10.625 0.110 Profit -22.169 0.801 Farmer’s health 0.158 0.760  

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Conclusion The IPM-FFS significantly reduces the level of insecticide use of participating farmers. No strong evidence that IPM-FFS farmers receive higher profits than non-IPM-FFS farmers. The PSM and regression-based results are consistent with our previous IV results.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Future Plans Need a better measure of health status. Coordinate with the Philrice IPM-CRSP group for the next study using panel data or randomization Study the inclusion on the impact of IPM-FFS on the environment.

The Impacts of Integrated Pest Management (IPM) Farmer Field Schools on Inputs and Output: Evidence from Onion Farmers in the Philippines Thank You