This study analyzed the determinants and impacts of FO types and FO participation levels on farm outcomes of rice farming households in the Philippines. Using cross-sectional data from 420 rice farmers, the study employed the multinomial endogenous switching regression (MESR) to account for the endogeneity associated with the choice of FO memberships. The results revealed that joining any type of FO and participating in multiple groups contribute to improving yield, sales, and income. Results also showed that access to credit, training, market information, and extension are key drivers of the type of membership, while number of extension contact, training attendance, and distance to the extension office are vital to a higher level of group participation. The findings suggest that development interventions should place emphasis on strengthening and expanding farmers’ access to training and relevant market information, as well as conducting regular extension visits to farmers. The results also highlight the importance of increasing collaborative efforts to encourage farmers to join and increase participation in these farmer organizations. Policy formulation on further promotion, development, and support to FOs is recommended.
Mina et al. (Tue,) studied this question.