Prices and Tree Planting on Hillside Farms in Palawan

Abstract

This paper investigates determinants of tree-planting decisions on low-income farms in the Philippines. The analysis quantifies the extent to which agricultural prices, price uncertainty, and farm-specific characteristics help to explain mango-planting decisions on hillside farms. Regression analysis is applied to data on tree planting for 1981–94. Results indicate tree planting is positively correlated with mango prices and negatively correlated with prices of competing crops. Relative price uncertainty and farm size also play important roles in explaining tree-planting patterns. Implications for policies to encourage tree planting are discussed.