Description

This paper assesses the factors determining the adoption of tree crops on low-income farms in the Philippines. The author applies regression analysis to evaluate the influence of prices, price uncertainty and individual farm characteristics on decisions to plant mango on hillside farms, using data spanning 1981 to 1994. The quantified analysis revealed a positive correlation between tree planting and mango prices, and a negative correlation between mango tree planting and the prices of other crops. Farm size and relative price uncertainty are also significant determinants in tree planting decisions. The author also discusses policies that may encourage tree planting.