Rice Field

[Terpe]

We have an opportunity to buy a rice field in Nueva Ecija. Only a small plot of 1 hectare which is currently just laying 'fallow'

I have spent quite a bit of time recently doing some research into rice farming, and have done the best I can in completing a cost analysis.

This venture will never make me a millionaire, and I have no intention of making out it's a really serious or important business.

I want to do it for a number of reasons, but most importantly that it might provide some small employment and income for my extended
family and at the same time put some food on the table.

My analysis is purely cost/profit based and does not make any effort (as yet) to include the effects of weather, pests etc.

Does anyone here on the forum have any practical experience of this that they feel able to share?

[grahamw48]

A close friend (Brit) who is married to my ex's cousin did buy some rice land.

He rented it out to the relations.
They worked the land and paid he and his wife a few bags of rice 'rent'.

Personally I wouldn't get involved in this way with the extended pamily, as 'problems' can develop.

[Terpe]

Thanks grahamw48 for your comments.
I don't intend to rent the rice field to family, just to have them participate in the labour
needs (if they are interested).
And yes, whatever income they received would be by way of rice. (food on the table)

[Pete/London]

We have had thoughts of owning land or property in the past and had a good offer from my wife`s best friend to own farmland next to the friends family. Took the view that as we have no plans to live there it would be more trouble than its worth and she feared she may lose a friend.
My brother-in laws have both visited and helped me over here and have returned with funds to start a pet supplies shop in Fields Ave, Angeles. It only lasted a year due to interference from their Father and him giving credit to all his hanger ons.
I love my Father-in-law but a business man he is not
Bottom line is ,if your not there to oversee, be careful and, as Graham says, problems can develop.

[fred]

If you just buy the land and leave it fallow it is probably a good long term investment..In regards the rice opportunity you can do all the cost analysis you like but if it does not fit into the caretaker system here then its probably invalid and a complete waste of effort..The locals know what that is and will not vary from it.
Usually the caretaker who is responsible for everything and all costs in crop production gets 75% of total profit from rice sales and you the landowner will get 25%.
You should be able to plan for two crops per year but will need to be there at harvest to make sure you get 100% of your 25%!!!!
If you cannot be there then expect reports of pestilence and disaster and requests for new capital for next years seed....
In a good scenario and being slightly consevative your 25% will be approx 25 sacks of milled rice per year..or about 30.000 Pesos.

[KeithD]

I think Fred deserves some Rep for that

[Pete/London]

I think Fred deserves some Rep for that

Agreed, good info.
Sorry to say my wife cant make a rice pudding like my Mums

[KeithD]

Hmmm.... school rice pudding... I always had 2 slices

[stevewool]

so really is it worth it

[Terpe]

Thanks very much to all those who made comments and contributioned their experience.

Much of Nueva Ecija has a beautiful vista, even though it's rather flat. Much like East Anglia. I always enjoy my visits there.

The lady who will sell the rice field to me has really a lot of rice fields and runs the whole business herself. Some rice fields she rents, she also loans money to the rice farmers to prepare for the next harvest.
She is a very interesting person and has a good sense for life. Never been married (or even boyfriend) and no children. Her parents are still alive and live with her. She is the one in that area who controls/employs all the 'caretakers'.
This is done with the help of her two brothers.

She is a long time friend of my wife and myself and we always visit her and her family whenever we can. It's about 4-5 hours drive from our house in Marikina to her house.

As I mentioned, this is not a business venture.
The land itself would be a potential long investment.
The rice growing would be an additional opportunity if any of my family care to become involved It would be as I indicated one way to put food on the table for all concerned.

I feel comfortable with my cost analysis.

My estimate for yield is 3000kg unmilled per harvest
Total cash cost per harvet is estimated at P20,000
Estimated value of harvest is P40,000 (After deduction of 15% for the 'caretaker')
Based on your comment Fred I will double check this 15% is the max)
So the amount of money involved (P20,000) is not large.
The opportunity for the family in the area is significant.
It would be in their own interests to be sure they maximise their own 'takings'.
I do not believe the owner or her brothers are intent on ripping me off. But OK I do listen to what has been said here and will wait and see, as I said it's not big money.

Hybrid rice appears very well accepted in this area, and I have been told that 3 harvests are possible.

As I said this lady has plenty of rice fields many of which border the roads.

Fred, do you think that there is a chance that any of this land could ever be converted to residential in the short term??

Steve, you can see the numbers. This is not really a business idea for westerners, unless you can meet all the comments made in earlier posts and do it on a much larger scale. But remember, the weather, pests and unforseen losses can wipe out any income.
Fred has made a valuable comment which I totally agree with. Property is the way to go. Just wish I had some rental from my properties!!

[stevewool]

its a dream and a wish of mine to live in the phils oneday , say 8 to 10 years before if possible, after so many marriges i dont have thousands in the bank, but i have work and only 5+ years left on my mortgage, so thats what i have to go on, if emma finds work then thats great , that will help the savings grow, but its the property i have that will be the biggest money maker,facts and figurs i am hoping to save around 40 to 50,000 by then, and either rent out this house so i have a income or sell it , this is my plan and dream so save hard and watch this space

[KeithD]

I had a paddy field once, but the Irish men I planted never grew

[stevewool]

a up keiths woke up with old onejoke i mean

[fred]

Fred, do you think that there is a chance that any of this land could ever be converted to residential in the short term??

Most of the land here on panglao/Dauis and indeed most provinces are listed as agricultural land (tax declaration)..Most of it can be purchased and then converted to titled lots and used for residential purposes..Having said that,please check the lot you are thinking of buying with the towns local DENR and they can advice you exactly what it can or cannot be used for..
If you need info on land purchasing procedure (step by step) dont hesitate to ask!

[baby38]

How much is the land going to cost you please.

[Terpe]

How much is the land going to cost you please.

This is 1.1 Hectare rice field currently fallow.
The price is P160k for us
Others of same size are selling for between P170k - P200k
I don't why why the difference. Depends on how the owner feels or how the purchase will be made.
She normally only sells/rents to people in the immediate area. Plus she ties in her own
ongoing operations.