TECHNICAL PROPOSAL

I. Proposal Information Sheet

A .Title of Project : Corn Production/ Demonstration Farm

B. Proponent : Maguindanao Peoples Multi-Purpose Cooperative

C. Collaborating Agengies/ : Department of Agrarian Reform

Local Government Unit/
Mindanao State University-Lanao del Norte Agricultural
College

D. Contact Person : Mr. Vicente Dinawanao/Leonidas R. Lumayag

E. Address : Maguindanao, SND,Lanao del Norte/DARPO

Lanao Builder Bldg.Tubod Iligan City

F. Contact Number : 09207157139/063-223-3333

G. Project Duration : To start on the first week of February 2011 up

to 2014

H. Area of Implementation : This project will be implemented within RAKIM ARC,

: SND, Lanao del Norte by farmers who are members

Of Maguindanao Peoples MPC.

I.No. of Beneficiaries : 1,186 ARC households

J. Budgetary Requirement : ARISP III-P 62,040.00

And Funds Sources Collaborating Agencies /PO: P51,480.00
II. Technical Description

A. Brief Description of the Project

Corn is second to rice as the most important crops in the Philippines. In spite of the
fact that almost 3 million hectares are devoted to the cultivation of this crop annually,
current production is not enough to meet the local needs, in fact, since five years ago, corn
importation of the Philippines has been on the increasing trend.

In RAKIM ARC, corn is one of the major crops grown by the farmers in the area. With
the increasing local demands of corn as the major feed component of swine and poultry
raisers in the region, corn production has been identified by the farmers in the ARC as one
potential enterprise that can increase their productivity and household income. This was
based from barangay workshop consultations conducted in the ARC and subsequently from
their ARC development plan.

The project will be implemented through the convergence effort of different

stakeholders in the ARC and the subject cooperative. The Department of Agrarian Reform,
Local Government Unit, Local-Based Partner Institution and other CARP Implementing
Agencies (CIAs) instrumental in the development of the ARC will have their individual
commitment and assistance to ensure the smooth implementation of the project and
eventually achieve its project goal. As such, cost sharing for the funding of the project is
being required.

The project is considered as participatory and community based since consultations

in the community were done particularly from the members of the cooperative, starting
from the identification of the project down to project sustainability measures. Since this is
new enterprise of the cooperative, they have formulated policy, systems and procedures for
the implementation and operationalization of this project. This includes the identification of
farmers, data base preparation, conduct of appropriate technology training on corn
production and establishment of demonstration farm by farmer leaders/cooperators who
will serve as the documenter, critique, observer, and disseminators of such technology.

B. Importance / Significance of the Proposal

With the road rehabilitation project of the major farm to market road network of
the ARC, agricultural productivity in the area is expected to increase as a result of the access
of such infrastructure support.

This could open opportunities for new investors coming into the ARC due to its
accessibility especially to those areas in the ARC where production sites are located. Since
corn is one of the major crop in the ARC, and with the presence of corn traders in
Kapatagan, Pagadian more farmers can maximize their farm lands in corn production and
eventually increase their productivity and household income.
 C. Objectives of the Project

Generally, the proposed project aims to improve farm productivity and increase
farmers’ income. Specifically, the project aims to:

1. To provide farmers with appropriate knowledge and skills in corn production;

2. To establish a demonstration farm as a show window to corns growers of 100 hectares
corn land;
3. To maximize farmers’ income;
4. To institutionalize corn production in the ARC;
5. To strengthen and mobilize coop members;
6. To institutionalize proper coop management of different economic activities through
enforcement of PSPs;
7. To enhance marketing activities of the cooperative and the ARC as a whole.

D. Project Coverage

The proposed project will be implemented in RAKIM ARC in SND, LDN through the
Maguindanao Peoples MPC.

E. Features of the Project

E.1. Distinctive Features of the Project

The cooperative through farmer leaders/cooperators will implement the demonstration

farm based on the PSP formulated and approved by the General Assembly. This includes the
criteria on the selection of beneficiaries for replication, monitoring and marketing of the
product. This project adopts the roll over scheme principle. Proceeds of this project will be
awarded to the next in line beneficiaries for the purchase of seeds and fertilizers, and such
beneficiaries will in turn pay the cooperative the corresponding amount given to them after
marketing of their produce. The cooperative will again award the proceeds to succeeding
beneficiaries until all members of the cooperative have availed such assistance. The income
of this project will be part of the cooperatives net worth.

E.2. Marketing Aspects

The current buying price of corn by local buyers in the ARC is 10.00 per kilo, dried corn. The
cooperative have agreed to purchase the dried produce of its members at 8.00 per kilo, less shelling
and drying fees. With the provision of the PHF, it would be easy for the cooperative to consolidate
the corn products of the farmers of the ARC during harvest time and eventually sell it to Kapatagan
corn traders, or to any prospective market outlet in the future in volume. Based on the National
Food Authority buying price of corn which is 10.00 per kilo.

E.3. Technical Aspects

E.3.a. Appropriate Technology

The appropriate technology that will be introduced by the Department of Agriculture and MSU-
LNAC of the demonstration farm will be white corn production technology. This could include the
adoption of Integration of 50% organic and 50% inorganic fertilizer to reduce production cost and
increase in yield.

E.3.b. Output Projection

It is projected that hybrid corn technology could produce 30% higher than the best conventional
varieties, depending on the climatic condition of the area. In areas where rainfall is abundant like
Bukidnon and Claveria, hybrid corn yield could reach as high as 7 tons per hectare. In lowland areas
like RAKIM ARC hybrid corn could reach an average yield of 3.5 to 5 tons per hectare.

E.3.c. Cost Recovery

The total production cost for hybrid corn technology is much higher compared to conventional
varieties. However, cost and return analysis for hybrid corn indicates that it has better Return of
Investment (ROI) of thirty six percent (39%) compared to conventional varieties.

E.3.d. Plans for Implementation and Operation

The project has three phases of implementation. First phase is the acquisition of knowledge and
skills. This includes the identification of farmers who would undergo the project, establishing data
base of the farmers and area of study, assessment of needs, action planning, technology training,
demonstration farm establishment, field trip to farms practicing the technology they studied, and
analyzing data generated out of the technology applied. Linkaging and networking activities are also
undertaken under this stage. The Department of Agriculture, Local Government Unit, and MSU-
LNAC will be tapped to spearhead the technology transfer.

The training will be conducted in one (1) batch to be participated by 30 corn growers who are
targeted to develop their respective areas within the first year of project implementation. This will
be held in the ARC proper in three (3) days. The first two days will be allotted for lectures and
exercises while the last day will be used for field trip. Since planting season will start on the month
of March, land preparation will start on the 2nd week of February at the same time establish the data
base or profiling. The first batch of technology training will then be conducted on the 1 st week of
March. Other batches of technology trainings however, which the coop finds necessary in the
implementation of the project replication, will be facilitated by the Coop itself including its financial
requirements.
 The establishment of the demonstration farm will start on the 2nd week of February. This will be
an individual-managed type utilizing three (3) hectares of land in three strategic areas at 1 hectare
per barangay within the ARC.

Phase II is the acquired knowledge enhancement through cluster experimentation. This includes
continuation or development of the technology applied in Phase I with further evaluation and
innovations of the farmers. This time, they will try to experiment on using alternative pest and
management practice to further reduce production cost without affecting its yield. Five cooperators
or farmer leaders will be selected to serve as regular documenters, critique and observers of the
series of sessions and demonstration farm activities to be conducted.

Phase III which is the empowerment of family-based livelihood programs includes

institutionalizing the appropriate technology learned by way of replication. The training and the
demonstration farm will be replicated but this time the technicians will acts as supervisor or
consultants. The farmer leaders will be the facilitator, disseminator, negotiator and researchers.

Recipient-cooperators are obliged to pay the cost of production inputs given to them by the
cooperative in kind. The first batch of recipients will not be changed of interest. Interest rate for the
production inputs will be obliged to the second and succeeding recipients. Corn will be given to the
cooperative equivalent to the amount incurred of said inputs. By so doing, the PHF will be utilized by
the cooperative. The proceeds then from the demonstration farms should be used for the purchase
of another production inputs needed by the next batch of cooperators. The project cycle should
continue until all qualified members have put up the project. Under this stage, business enterprise
of corn and other corn-based livelihood projects will be undertaken. MSU-LNAC will help the farmer
cooperators in adequate cultural management practices of corn production. Throughout the three
phases, farmer leaders will coordinate with the M & E Committee for reports.

E.4. Financial Aspects

The following is the cost and return analysis of the one (1) Hectare Hybrid corn project. This
analysis is based only to be minimum yield of 4 metric tons instead of using 4.2 tons to
approximately get the actual production income for the first cropping period since the area is newly
cultivated for the crop.
 Estimated Budgetary Requirement

ESTIMATED COST OF PRODUCTION PER HECTARE

HYBRID CORN
ACTIVITIES MD MAD TOTAL
P100/day P160/day
A. Labor
1. Land preparation
a. Plowing (2x) 800
b. Harrowing (2x) contract 700.00
2. Furrowing 2 200.00
3. Basal fertilizer application 2 320.00
4. Planting 8 640.00
5. 1st spraying contract 360.00
6. Off-baring 2 320.00
7. Weeding 20 2,000.00
8. Side dressing 4 400.00
9. Hiling-up 5 800.00
10. 2nd spraying 4 320.00
11. Harvesting 20 2,000.00
12. Post Harvest Operations
a. Farm Hauling P0.25/kg. x 4 tons 1000.00
b. Shelling P0.45/kg. x 4 tons 1800.00
c. Drying P0.25/kg. x 4 tons 1000.00
Sub-total 12,660.00

B. Material Cost
1. 1. Seeds – 18 kgms(Pioneer3DW) 3,800.00
2. 2. Fertilizer – 2 bags 16-20-0 @P910/bag 1,820.00
– 4 bags organic @ P300/bag 1,200.00
- 3 bags 17-0-17@980 / bag 2,940.00
- 2 bags 46-0-0@ 960.00/bag 1,920.00
3. 3. Chemicals-
4. – insecticide 1500.00
5. 4. Empty sacks – 100 pcs. @ P10.00/piece 1,000.00
Sub-total 14,180.00

C. Total Production Cost 26,840.00

Gross Income-4tons @ P10.00/kilo 40,000.00

NET INCOME 13,160.00

ROI 36%
 Basic Considerations:

1. Spraying could be opted using trichogramma @ P1.00/card

2. Land rental could be opted if the farmer is the owner.
3. Prices of material inputs changes from time to time.

Matrix of Cost and Return

Hybrid Corn

Gross Net
Year Income Expenses Income
0 10,000 (10,000)
1 40,000.00 26,840.00 13,160.00
2 44,000.00 29,524.00 14,476.00
3 48,400.00 32,476.4 15,923.6
4 53,240.00 35,724.04 17,515.96
5 58,564.00 39,296.44 19,267.56

*Assumption: gross Income and expenses increased by 10%

Cost-Sharing Scheme (F und Source)

MaguindanaoPMPC/
Project/Activity ARISP III LGU Coordinator Total

A. Training
Foods
30 pax @ 200.00/pax X 3 days P18,000.00 P18,000.00
Supplies
30 pax @ 50.00/pax P1,500.00 P1,500.00
Transportation
30 pax @ 300.00/pax P9,000.00 P9,000.00
Honorarium P4,500.00 P4,500.00

B. Demo Farm Land (no amnt.)

Prod. Inputs (3 Has) P42,540.00 P42,060.00
Labor(3 has) 37,980.00 P37,980.00
Total P62,040.00 P13,500.00 P37,980.00 P113,520.00
Percentage 55% 12% 33% 100%
E.5 Management and Organizational Aspects

The organizational structure of the cooperative in implementing the project involves Credit
Committee, Monitoring and Evaluation Committee, BOD, Agricultural Development & PHF Committee,
Audit and Inventory Committee, and the Management Staff. As a whole, the general assembly will be
the approving body of any policies, systems, and procedures that have had formulated and to be
formulated by the cooperative. To specifically delineate roles and responsibilities, the following are
functions of collaborating group of the coop, to wit:

A. Board of Directors

1. Sign Production Contract with the recipient of the project;

2. Firmed-up the plans of project operation;
3. Review and firmed-up policies, systems and procedures needed in the implementation of
the demonstration farm to include the roll-over scheme and replication which will be
approved by the General Assembly;
4. Determine management staff qualifications;
5. Direct plan implementation based on the approved project proposal;
6. Provide safeguard/control of the project;
7. Review and ensure PSPs implementation;
8. Oversee the over-all activities of the core management team who are implementing the
project;
9. Review and finalize the analysis made by the Agriculture Development & PHF (ADPHF)
Committee of the M&E Committee reports regarding the project implementation;
10. Finalize recommendations made by the ADPHF Committee regarding project
implementation that needs improvement;
11. Attend monthly ARISP II Implementing Team meeting and render reports for the reports for
the status of project implementation.

B. Credit Committee

1. Helps BOD formulate PSPs related to credit program of the cooperative;

2. Screens and prioritizes cooperator who could avail agricultural development support and
credit services of the coop;
3. Approves or disapproves application of cooperators who will avail the demonstration farms
and replication of said projects.
C. Monitoring and Evaluation Committee

1. Conducts monitoring and evaluation of project’s status, how cooperators adopt technology
and how cooperators follow PSPs imposed by the cooperative, and
2. Prepares and submits reports to the BOD, Agricultural Development and PHF Committee,
DF, and PPMO.

D. Audit and Inventory Committee

1. Conducts audit and inventory of financial, production inputs, and other supply and materials
to the Agr’l. Dev’t. Management Staff every quarter;
2. Prepares and submits report to the BOD and ADPHF Committee after the conduct of audit
and inventory; and
3. Gives feedback to the BOD and ADPHF Committee with the result of the inventory.

E. Agricultural Development & PHF Committee

1. Prepares plan for the operation of the project. This will include strategies to intervene
lapses based on the progress reports and actual field investigation. Plan then will be
submitted to the BOD for finalization.
2. Formulates additional PSPs which necessary and endorse them to BOD for review;
3. Conducts actual monthly evaluation and assessment of project implementation;
4. Prepares an analysis of reports submitted by the M& E Committed and makes
recommendation when necessary for intervention;
5. Submits recommendations and analysis of project implementation to the BOD;
6. Makes analysis and recommendations on the report of Audit and Inventory Committee;

a. Determines the cause of failure of the project whenever happen;

b. Coordinates agencies or institutions instrumental to carry out activities needed in
agricultural development;
c. Finds more market outlets for formal marketing agreement; and
d. Spearhead review of the implementation or operation of replication and roll-over
scheme.

Though BOD is basically the policy making body of the cooperative, it is necessary to create
the Agricultural Development & PHF Committee since this project is new to the cooperative that
needs special attention for proper implementation. The BOD is concerned with the whole operation
of the coop. with the creation of said committee, the implementation of agricultural development
component will become more manageable, the committee will be created with its chairman from
BOD member. It will compose of three (3), having a member of two from the outside the BOD.
Creation of said committee and other additional teams will be done before the start of agricultural
development activities.

F. Agricultural Development & PHF Management Staff

1. The front-liner of the operation;

2. Receive and keep supplies and materials/production inputs from the sponsoring institutions;
3. Release supplies and materials or production inputs to the cooperator – recipients of the
project;
4. Collect payment of the production inputs in kind from recipients;
5. Install proper recording system;
6. Manage and operate the corn production project in accordance with the approved PSPs;
7. Manage PHF operation and maintenance;’ and
8. Manage and operate marketing activities.

The aforementioned groups will manage and operate the agricultural development project
with their respective functions in part time basis. Honorarium will be given to BOD, Credit
Committee, General Manager, and Agri. Dev’t and Management Staff in which amount to be
determined and approved by the General Assembly. However, when the coop could already
access its capital and go into a full operation of marketing and trading, the compensation of
COMAT of this project will be considered.

Meantime, since highly educated personnel demand high compensation and the coop
cannot afford to give enough compensation to the management staff, said working force will
not really require high qualification standard. The coop will only hire at least the most basic
required qualification to carry out the task. Member in good standing, honest, basic knowledge
and commitment are some of the requirements needed by the coop to the staff to be installed.

Hereunder is the qualification of the Agricultural Development Management Staff who

will be installed for the operation.

1. Manager - male or female

- College level
- Member in good standing of the cooperative
- 35 to 55 years old
2. Cashier - 25-50 years old
- female
- College level
 - Member in good standing of the cooperative

3. Bookkeeper - 25-50 years old

- female
- College level
- Member in good standing of the cooperative

4. Collector - 25-50 years old

- male
- At least high school graduate
- member of the coop in good standing

Prepared by: Recommending Approval:

LEONIDAS R. LUMAYAG ENGR.ALISOOD B.HADJSOCOR AL HADJ

AAD Coordinator ARISP III

Approved by

MITTAMAN T. ARUMPAC AL HADJ

ARISP III Provincial Project Manager