Thesis, Undergraduate (BS Agribusiness Economics) -- U.P. Mindanao

Contract growing and lease agreement are present in the Cavendish banana industry. Farmers who are interested in growing Cavendish banana would like to have an overview on the two types of arrangements. The Department of Agrarian Reform enacted the DAR Administrative Order No. 9 of 2006 and DAR Administrative Order No.2 of 2008 to ensure the welfare of contract growers and lessors. Income of contract growers and lessors is calculated. Productivity of the growers and the effect of their socio-demographic profile to their technical efficiency are also calculated. The administrative orders stated are determined if they are being followed. Cost structure is used to compare the growers' and lessors' income. The sections in administrative orders applicable for contract growing and lease is listed in tabular form. The income of growers appeared to be greater than that of the lessors. Age and household size are negatively affecting the growers' technical efficiency. The growers' average age is close to the retirement age. The DAR failed to inspect the land in Barangay Tamayong. There are three companies engaging in lease present in the barangay. Lessors under company 2 did not consider other types of contract arrangements. Two of the companies (1 and 2) are paying a lease rental less than the ideal amount of rental based on DAO No.2. Among the three companies, company 2 has the highest average annual income of lessors. Furthermore, employees under the company receive the right benefits. Due to the deteriorating physical capabilities brought by old age, it is recommended for the growers to pass the responsibilities of managing their lands. The DAR should review the sections of their administrative orders that are not followed in contract growing or lease. The lessors should use their idle time to increase their income.