RICE RATOONING - IRRI books - International Rice Research Institute

ECONOMIC PERSPECTIVES OF RICE RATOONING 21That is, given the data in Table 1, adopt ratooning when(1-h) (Y-R) * P y , 229where Y is yield of the main rice crop,R is yield of the ratoon rice crop,h is the harvester’s share, andP y is the farmer-effective price of paddy rice.The harvesters’ and threshers’ share, h, is included in the equation because, inthe Philippines at least, h is yield dependent. Harvesters demand a larger share of thecrop as payment when yields are low, which often is the case with a ratoon rice crop.The equation is graphed for the full-cost case in Figure 2. For simplicity, h isassumed to be constant at one-sixth of gross yield over all yield levels. At a full-cropyield of 4 t/ha and a rice price of $200/t, the ratoon crop would need to yield at least66% of the main crop (i.e., 2.6 t/ha) to be as profitable as the main crop (assumingthere was no option to plant another crop after the ratoon crop).At ratoon crop yield and price combinations that lie above a yield isoquant,replanting is more profitable; at those combinations that lie below the isoquant,ratooning is advantageous. As main crop yields and rice prices decrease, the breakevenratoon yield also decreases; as main crop yields increase, ratoon yields as apercentage of main crop yields also increase, to generate equal profitability.Table 1. Cultivation costs of a second full duration rice crop and a ratoon rice crop.CostsLaborLand preparationTransplantingCrop maintenance/managementHarvesting/threshingPostharvestSubtotalPowerCarabaoTractorSubtotalOther inputsSeedsN fertilizerP/K fertilizerInsecticideHerbicideFuel and oilRepair/maintenanceSubtotalInterest on cash costsCash cost basisFull cost basisUnit/hadddddc dayst daysCost/unit1.751.351.50a1.503.5015.00Second full durationrice cropRatoonLevel Value ($) Level Value ($)8.519.520.524.03.576.03.04.014263094517052732––13.515.02.030.5kg 0.30 75 23 – –kg 0.47 55 26 30 14kg20 13 – –($)103($)41li0.30 47 14 – –($)3 – –9218%/season20 31 20 5($)28182($)32596a Harvester/thresher’s share is 1/6 of total harvest.Note: Power cost without cost of operator’s labor, fuel, oil, repair and maintenance. Those areincorporated in other cost components.––––2050373––