Assessment of policies and socio-economic factors affecting pesticide use in the Philippines

A logit model was employed to determine the relative importance of socioeconomic factors influencing the misuse of pesticides on vegetables in Central Luzon, Philippines. The analysis revealed an increase in pesticide misuse associated with the following factors: a high value placed on advice from a chemical company representative; membership in a cooperative, village or farmers' association; and visits by a Department of Agriculture technician to discuss non-pesticide means of controlling vegetable pests. Those factors which reduced pesticide misuse included: increased age and educational attainment; access to integrated pest management training through the Farmer Field School; receiving credit from a cooperative; and agreement with the perception that killing natural enemies could hasten pest infestation.

The effective rate of protection on nine pesticides was calculated to quantify the net effects of pricing and exchange rate policies on the degree of subsidy or tax experienced by pesticide importers. It was found that the effective rate of protection for the nine pesticides was between negative 12 and 25 percent when the exchange rate effects were accounted for. However, the rate of protection became more negative when the equilibrium exchange rate was used indicating that exchange rate overvaluation offset the tax pesticide importers face. In addition, the analysis indicated that pricing and exchange rate policies have created a six to eight percent subsidy on pesticide prices for the years 1989 to 1993. This subsidy on pesticides has increased both consumer and producers welfare and the quantity of pesticides used in the Philippines.