Farm Modelling of High Value Crops for Sustainable Livelihood Project Tender, Philippines - 25831463

Procurement Summary

Country : Philippines

Summary : Farm Modelling of High Value Crops for Sustainable Livelihood Project

Deadline : 17 Aug 2018

Other Information

Notice Type : Tender

TOT Ref.No.: 25831463

Document Ref. No. : GEPS-2018-08-002

Competition : ICB

Financier : Self Financed

Purchaser Ownership : -

Tender Value : Refer Document

Purchaser's Detail

Purchaser : DEPARTMENT OF AGRARIAN REFORM - NUEVA VIZCAYA PROV'L OFFICE
Vicente Galiza Natividad
COMPUTER PROGRAMMER II
Sgt. LB Perez St., Don Mariano Perez
Bayombong, Nueva Vizcaya
Bayombong
Nueva Vizcaya
Philippines 3700
63-78-3212412
63-78-3212499
pmeu_nv@yahoo.com.ph
Philippines
Email :pmeu_nv@yahoo.com.ph

Tender Details

Farm Modelling of High Value Crops for Sustainable Livelihood Project

PROJECT PROPOSAL

I.Title of Project:Farm Modelling of High Value Crops for

Sustainable Livelihood Project

II. Proponent :



Name of ARBO :TiblacLangak Farmers Association, Inc.

Contact Person : Alfredo A. Annu-ay

Position :President

Contact No : 09051239078

Location : Tiblac, Ambaguio, Nueva Vizcaya



III. PROJECT DESCRIPTION



The project involves the procurement of power tiller(diesel), grass cutter, power sprayerwith accessoriesand tools. It shall provide appropriate farm facilities/equipment to ensure unimpaired farming activities of the farmers to lessen intensive labor. Reduce risk of heat stroke because of climate change and make work easier and faster to lessen time and labor cost. It will include employment of technical staff and man power to run the business.The equipment will be rented by small farmers/ARB new members at minimal rentals to facilitate efficient farming operations.



The project also involves the conduct of trainings with technology demonstration farms. The mode of implementation will be discussed by the Board of Directors of the association.

IV. RATIONALE:

a. ARBO Profile



The CARP was instituted not only to promote social justice through land tenure improvement but the provision of appropriate program interventions in support of the development and productivity of the lands awarded to ARBs. In line with this, one of the new program of DAR under the ARBDSP is the sustainable livelihood project for new ARB members of ARBOs. In order that these ARBs avail these programs, they must join ARBOs in the ARCs.



Among the ARBOs in Ambaguio Special ARC is TiblacLangak Farmers Association, Inc. soon to be Cooperative with office address atTiblac, Ambaguio Nueva Vizcaya is a beneficiary of Agricultural Extension Services (1, 000 Coffee seedlings).



It has a total members of One Hundred Seventy Eight (178) with sixty (60) Agrarian Reform Beneficiaries(ARB) members (40 Male & 20 Female). The projects and service manage by organization are Coffee Production, Coffee processing and marketing of processed coffee. High value vegetable production is the major activities of farmers in AMAGUIO SARC.

b. Area of tillage of farmers/crop in the ARC



Commodity/Major Crop Area Planted (has.) No. of Farmers

Coffee 300.0000 200

High value Crops 1, 119.0000 295

corn 25.0000 95

Rice 35.0000 35



c. Project Situation



ARBO is located at Barangay Tiblac, Ambaguio, Nueva Vizcaya. Covered under Ambaguio Special ARC wherein it is an agricultural area. The amazing performance of the cooperative when it comes to Information Technology enabled Maturity Assessment(ITeMA) 2016 although it is a new organization subjected to ITeMA has garnered a maturity level of 2, and ITeMA2017 garnereda maturity level of 3. With this project proposal, they will be motivated and inspired to exert more effort to earn more income and boost them to upgrade their level of maturity. Majority, the occupation of the members is farming. The area cultivated and planted with Coffeeas major crop is 300.0000 has. and 121, 000 has. for their coffee plantation expansion, for High Value Crops is 1, 119has., 25 has. for corn and 35 has. for rice production as shown in the table.

c.aThe purpose for the provision of the machine to the organization is to enhance farm mechanization and increase agricultural productivity. The introduction of farm machinery in the locality has generated consideration which is a necessary element for agricultural modernization because machinery can perform heavy tasks, carry out these operations fasters than animals or men.



c.b The proposal aims to develop the agricultural areas of the members. Consequently, land preparation is a major expense in coffee, rice, vegetable production. Moreover, it is argued that, in areas having labor shortages during the peak land preparation period, land preparation and transplanting are often delayed, thus reducing crop yield. There is no power tiller in the business of the members. Therefore, the need of a machinery to the Organization will be of great help to the members of the Association.The unpredicted weather condition due to climate change in the area farmers could no longer stay longer under the heat of the sun. The use of power tiller- climate mitigation for land preparation and for transport of inputs and crops.



The utilization of agricultural equipment must take advantage of the economies of scale to gain profit. This can be illustrated by the experience of farmers- association which operate and manage custom hiring services for large machines and small machinery such power tiller, grass cutter, power spray, tractors, hand tractors, planters and harvesters.

V. OBJECTIVES:

1. To procure for power tiller(Diesel), grass cutter, power sprayerfor Farm modeling on coffee and high Value Crop productions

2. To train farmers of at least 30 ARBs onintegrated Coffeeand vegetable production.

3. Encourage at least 30 ARBs-non-members to become members of

the Association.



VI. TECHNICAL STUDY

a. Specification:

Brand New Power Tiller(Diesel), Power Spray, and brush Cutter

b. Operation and Management:





The equipment will be treated rentals at reasonable cost to facilitate efficient farming operations. The Organization technician will supervise this project to ensure the safety of the equipment. During project operationalization, specific guideline and policies will be formulated. This will ease small farmers from buying/procuring farm equipment which is one of costly part of farming. The Department of Agrarian Reform in partnership with the Municipal Agriculture office will conduct technology trainings for the farmer cooperators.



The TiblacLangak Farmers Association management and staff will be responsible in the promulgation of the project to make sure that members/coffee and HVC growers are following the proposed technology for best result. Coffee and HVC growers are generally responsible for financing production inputs like fuel/lubricants.



The Organization would generate income and employment for the operation of these on-farm coffee production facilities and equipment. An increase of the farmer member-s income and immediate rice production facility services would be fully benefitted by the members and other farmers of nearby barangays.



VII. FINANCIAL STUDY



The total project cost is P250, 000.00 which will be charged to Climate Resilient Farm Productivity Support Fund. The project has two (2) component. The hard component shall be the procurement of power tiller with accessories, power sprayer, grass cutter in the amount of P237, 200.00 and the soft component which is the conduct of technology trainings with techno Demo amounting to P12, 800.00.



Particulars Materials/ Equipment unit Unit Cost Total Cost Economic Life DepreciationCost (10%)

1. Procurement of Power Tiller with tools Power Tiller(Diesel) with Tools 2 P26, 000.00 52, 000.00 5 yrs. 5, 200.00

2. Procurement of Power Sprayer with 100 mtrs. Hose Power Spray, Honda engine (2.5HP) 2 24, 000.00 48, 000.00 5 yrs. 4, 800.00

3. Procurement of Grass Cutter Brand New Grass Cutter 2 24, 000.00 48, 000.00 5 yrs. 4, 800.00

4. Trainings

Integrated coffee and vegetable production

-c Meals & snacks 30 pax 200.00 6, 000.00

-c Supplies & Materials 42-urea (46-0-0) bags 1, 050.00 44, 100.00

41-complete fertilizer (14-14-14) bags

1, 100.00 45, 100.00

-c Transportation Fuel 800.00

Good Agriculture Practices Training 30 pax 6, 000.00

Total project Cost P250, 000.00





Charge to: 4.1.1 AES



Training & Seminar Expense 12, 800.00

Subsidies & Donation expense 237, 200.00

Total project Cost 250, 000.00





VIII. PROJECTED INCOME FOR THE COOPERATIVE



It is assumed there are 40 new ARB users shall utilize the power tillers, power sprayers & grass cutters.

REVENUES YEAR 1 YEAR 2 YEAR 3

Rentals

power tillers @ P600.00/day x 40 ARBs 24, 000.00 x 2 cropping season = 48, 000.00 x 2 units = 96, 000.00 105, 600.00 116, 160.00

power sprayer @ P500.00/day x 40 ARBs (2 units x 2 cropping) 80, 000.00 88, 000.00 96, 800.00

grass cutter @P300.00/day x 40 ARBs (2 units x 2 cropping) 48, 000.00 52, 800.00 58, 080.00

Gross Income from rentals 224, 000.00 246, 400.00 271, 040.00

Less: Operating Expenses

Salary of Operator @300.00/day @40ARBs, 2 Cropping (power tiller) 24, 000.00 26, 400.00 29, 040.00

Fuel -Replenishment

Engine 0il: Assume:

power tiller 2 liters/ha. =25, 000.00 25, 000.00 27, 500.00 30, 250.00

power sprayer, 2 ltr.ha.=25, 600.00 25, 600.00 28, 160.00 30, 976.00

grass cutter, 2ltr./ha.=25, 600.00 25, 600.00 28, 160.00 30, 976.00

Depreciation Cost (148, 000.00/5 years)using St. Line- Method = 5-year Economic Life 29, 600.00 32, 560.00 35, 816.00





2 units power tiller 10, 400.00 10, 400.00 10, 400.00

2 units power sprayer 9, 600.00 9, 600.00 9, 600.00

brush cutter 9, 600.00 9, 600.00 9, 600.00

Maintenance Cost (148, 000.00 x 1.5% 2, 220.00 2, 475.00 2, 722.00

Garage @ 3m X 5m(Galvanized Roof & Wood Post with concrete floor 5, 000.00 5, 000.00 - -

Garage -Depreciation Cost = 5 yrs. =Eco. Life 1, 000.00 P1, 000.00

Total Operating Expenses 137, 020.00 146, 255.00 160, 780.00

Net Income 86, 980.00 100, 145.00 110, 260.00

Annual return of Investment=Net Income/Investment Cost 63% 68% 69%

The Proposal be charge to Sustainable Livelihood Fund.



IX. SOCIO ECONOMIC ASPECTS

-c The Association would generate income and employment for the operation of these on integrated coffee and vegetable production facilities and equipment. An increase of the farmers- income and immediate vegetable production facility service would be fully benefitted by the members and other farmers from nearby location.

-c Farmers/ARBs will be encouraged to participate in Association activities.

-c Learning on new farming technologies will provide avenue for their economic development.



X. MARKETING PLAN



Farm productivity is one of the thrusts of Philippine Government. The Government shouldplan and think of measures to cope up with the changes and expected expansion in the field of agriculture. With this venture, the power tiller, power sprayer, grass cutter with accessories will cater to the needs of the Tiblac-Langak Farmers Association, Inc. with One Hundred Seventy-Seven (177) memberswhich excludes farmers in the neighboring barangays who will also be serviced by the Equipment.



The proposed project aim to mitigate the problem on high cost of farm activities like land preparation, harrowing.



XI. Rentals/Fees



Rental/Fees shall be: Power Tiller 600.00; power sprayer 500.00 and grass cutter 300.00/ha. for memberswith discount andno discount for non-members.



XII. Project Management:

The Manager will oversee the implementation andmonitoring activities of the project. The Tiblac-Langak Farmers Association, Inc. will hire one (1) skilled operator to ensure the safety and profitability of the project. He will collect fees for maintenance and operation of the machinery. A separate book of account should be maintained for the purpose to keep track of the utilization of the equipment.





Prepared by:

Reviewed by:



ELENA A. SANCHEZ EDWIN C. ALGERIA

ARPO 1 ARPO II



Endorsing Approval by:



ENGR. CHERRY N. MAGNO

CARPO-PPBDD



Recommending Approval:





ZENY G. BALAUAG

OIC-CAO



Fund Availability:



CHRISTINE R. JOROLAN MARY ANN P. QUIAMBAO

Admin. Officer III Accountant II





Approved by:



PRIMO C. LARA

PARO II





Line Items

Item No.Product/Service NameDescriptionQuantityUOMBudget (PHP)

1Power Tiller with ToolsPower Tiller with Tools Diesel2Unit52, 000.00

Closing Date : 2018-08-17

Documents

 Tender Notice