Effects of Rice Liberalization Law on Rice Production, Farmers’ Wages and Government Budgets

Abstract

This article estimated the effect of Rice Liberalization Law on rice production, farmers' wages, and government budgets in Nueva Ecija, Philippines. The quantitative research design was utilized in this study using the time series data. The results found out that the government budget has a significant role and a positive effect on Philippine rice productions. Finding also suggests that low rice production affects farmers’ wages and income, tantamount to a high price of rice due to the demand and leads to high rice importation. Therefore,it is necessary to increase rice production at a lower cost that will give a positive effect on farmers ' wages and rice market prices. This could result in enticing the younger generation or unemployed citizens to be engaged in farming that will eventually result in to increase in rice production.