SEED CAPITALFUND MODALITY APPLICATION FORM

Vegetable Farming
(Vegetable Production & Distribution)

ASSOCIATION ENTERPRISE

I. SUMMARY OF THE SCF

Amount requested for Seed Capital Fund: Php ₱225,000.00

Location of Microenterprise: Lupao, Nueva Ecija

II. INFORMATION OF THE SLPA

Name of SLPA: Rural Improvement Clan SLPA

SLPA President’s Name: JULIET M. PADIGOS

III. LIST OF NAMES OF SLPA MEMBERS

Names Position / Title Home Address

1. LUIZEL R. REMOBLAS Auditor Zone 3, Brgy. Namulandayan, Lupao, Nueva Ecija

2. ELVIRA V. LADIA Member Purok 4, Brgy. Namulandayan, Lupao, Nueva Ecija

3. ELIZA N. GANTE Member Purok 2, Brgy. Namulandayan, Lupao, Nueva Ecija

4. RUBENEL S. MARTINEZ Member Purok 3, Brgy. Namulandayan, Lupao, Nueva Ecija

5. JONA-BELL V. ANDRES Member Purok 4, Brgy. Namulandayan, Lupao, Nueva Ecija
6. ROSALY M. PADIGOS Member Purok 3, Brgy. Namulandayan, Lupao, Nueva Ecija

7. ELIZABETH O. VASQUEZ Member Zone 4, Brgy. Namulandayan, Lupao, Nueva Ecija

8. DAHLIA L. BERONIA Member Purok 6, Brgy. Namulandayan, Lupao, Nueva Ecija

9. ROWENA G. MENDIORO Member Purok 6, Brgy. Namulandayan, Lupao, Nueva Ecija

10. SOLEDAD L. CABILES Member Purok 5, Brgy. Namulandayan, Lupao, Nueva Ecija

11. MARITES C. CABANGON Member Purok 6, Brgy. Namulandayan, Lupao, Nueva Ecija

12. ROSALINDA L. CABE Member Purok 6, Brgy. Namulandayan, Lupao, Nueva Ecija

13. MARILOU L. ANTOLIN Member Purok 6, Brgy. Namulandayan, Lupao, Nueva Ecija

14. ROBERTO M. RAMOS Member Purok 2, Brgy. Namulandayan, Lupao, Nueva Ecija

15. JANICE V. TUAZON Member Zone 7, Brgy. Namulandayan, Lupao, Nueva Ecija

IV. RATIONALE OF THE PROPOSED SEED CAPITAL FUND

Page 1 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Namulandayan is located in the eastern part of Lupao, a 3rd class municipality in Nueva Ecija, situated
in and over the Caraballo Mountain. The main source of income of the people comes from agriculture like crop
production with rice and vegetables comprising the majority and livestock, with swine and goat as the most
appropriate. It is a part of Barangay Namulandayan, and in this area lies the historic Pinsal Falls which is now
considered and reserved by the government as a tourist attraction and still under development. The road here
from the main highway was under development by the DPWH with almost 95 percent completed. People from
various places flocked here during summer and the weekends. It is a vast, hilly and underdeveloped agricultural
land with over 5 large private farms (poultry) existing. For now, the major source of employment and livelihood
primarily depends on agriculture and tourism is being eyed in the near future since it is under development. But
one great benefit from this is an improved road to transfer crop produce, reducing time and costs. There are
abundant water sources in the area, one atop Pinsal falls and the other from a mini dam located 2km away from
the falls in the northern direction. Small irrigation or flow systems were readily constructed to supply the
farming areas.
Discussing with the group participants in the area, important details were laid, reviewed and followed.
The emphasis of this project is on making the best possible use of the land for food production and not to detract
from the participants’ ability to grow food crops. This is why it is their top most choice. What they aim for is
enough additional capital to help them level up their capacity to rent/borrow a larger portion of land than they
usually can because of insufficient capital, avail good quality of seeds, fertilizers and pesticides and other farm
inputs necessary for a good harvest. So they found it best to form a group and combine their efforts and
resources to take advantage of the benefits of being a group over individual actions. It should be noted that the
members of the SLPA are also engaged in other economic activities whenever and wherever they can. And that
this project is, in majority, aimed to suffice their family’s daily needs. Other association members will be
engaging in trading or distribution of vegetables through small rolling carts/kiosk.
The participants in this project do not own any land of their own including the land were their houses
were built. It is interesting to note that land leasors do not own the land being leased by the farmers. They only
own the rights. The running trend here is that farmers lease the land on a “by-cropping” basis. Meaning, rent per
cycle of cropping. The amount of rent does not depend on the size of the land but rather depends on the amount
of seeds for particular crops. Because according to the participants, the amount of seeds will determine the size
of land need to cover for the crops. Some of the common rental costs are: per small can of Ampalaya seeds –
₱2,000, per two (2) small cans of Pechay seeds - ₱2,000, per kilogram of String/Pole Beans - ₱2,000 and for a
can of Okra - ₱1000. The rental rates are for a period of one cropping cycle regardless if the cycle is 1 month, 2
months, 6 months, 8 months, etc.. But if a cropping cycle will exceed a year, like in the case of “Siling Tagalog”
which can extend up to 2 years, another payment is needed. There are also other land leasor who lent their land
for ₱12,000 per year. But the usual trend is as stated previously. This land leasing from “RIGHTS” owners are
also common in some parts of Nueva Ecija like Carranglan, Pantabangan and Rizal. The participants agreed to
engage in the production of ampalaya, pechay, , Sitao and Okra. As these are the most sought after food crops
by vegetable dealers/traders coming to the area during harvest season. It is interesting to note that there are
many agents, dealers/traders and direct buyers visiting the area. Do not forget the other four members of the
association who will also be purchasing the produce if applicable. The products of the people in the Barangay
are either sold to the market of Lupao or transported to other places like San Jose City, Muñoz, Umingan,
Isabela, Bulacan, NCR and Pangasinan.
The area is not flood prone and not landslide prone. But just to be sure, another way to deal with the
unexpected, the group can be referred to institutions like the Philippine Crop Insurance Corporation when
applicable (subject to terms and conditions).

Every cropping period, the participants will set aside a portion or percentage of their profit as savings
and another for capital build-up as agreed upon by the members. It was also agreed upon that each member will
equally work and contribute to labor requirements of the crop production from preparation to harvest with an
Page 2 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

agreed amount of ₱150. The subgroups will be in rotation working in the management of the farm – pre, post
and in-between major farm labor phases. Micro-enterprise management and related aspects will not be allotted
wages since the group will administer their enterprise as also agreed. The group also agreed that they will not be
purchasing any machineries or farm equipment, since their working capital may not be enough. They will be
renting equipment and it is also important to note that it is the norm or practice that the owner of the farm
equipment bears the cost for fuel and not the one renting.
Lastly, the participants agreed to only produce the food crops and not to engage in seed production and
management since this will require additional amount of work and necessary storage which they don’t currently
have. They have tried producing seeds before and end up buying from suppliers. Therefore, they find
impractical compared to buying certified seeds from certified dealers.

V. BUSINESS PROFITABILITY ASSESSMENT

A. TARGET MARKET
Mark your answer with a (✔) (Punan ng tsek (✔) ang kahon ng iyong napiling sagot)

Question Yes No
Is there a clear demand and market for the products and/or services to be produced / ✔
developed? (Mayroon bang mamimili na tiyak na tatangkilik sa produkto o serbisyo?)
Is the location of the microenterprise accessible? (Malapit ba ang lugar ng pagtatayuan ng ✔
negosyo sa mga mamimili?
Is there an identified consumer to regularly purchase from the microenterprise? (Mayroon ✔
bang tukoy na konsumer na regular na tatangkilik sa produkto o serbisyo?)
Are there effective distribution channels to the market? (Mayroon na bang epektibong ✔
paraan ng distribusyon ng mga produkto o serbisyo sa merkado?)

Target Market: What is interesting with crop production such as vegetables, in this area, is that there are
agents, traders and direct buyers who are picking up the farmers produce directly. In fact, some traders/dealers
make contract with the farmers to buy their produce even if the vegetables were still being planted or not been
planted yet. Traders/Dealers here ship products to destinations like Bulacan, NCR, Pangasinan and Isabela.

B. MICROENTERPRISE MANAGEMENT

The following cost computations are separated by crop product such as Ampalaya, Pechay, String/Pole (Sitao)
Beans and Okra. There are many agri-supply businesses in the area and even in nearby municipalities which
are very accessible. There are also certified seeds sellers where the participants can choose from. Farm
machine rental is a common business for equipment owners in the area. There are plenty of owners to choose
from and an opportunity of lower price rental is possible. Amount of labor requirements is measured in a Man-Day
basis. The participants allotted an amount of ₱150 per Man-Day. The trend in the area is around ₱100 to ₱150.

1. AMPALAYA

Page 3 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Computations for Ampalaya is based on a 0.5 Ha of land. Production Cycle is 6 Months. Preparation,
Planting, and Management is 65-80 days and Harvesting also last up to 3 months. Harvest is done every 3 days
interval up to 3 months’ time. Based from the participants’ experience 4 small can seed can yield up to 2000
kilos. Double the sow and reap double, 4000 kilos. Available literature and the Municipal Agriculture Office
dictates that ampalaya on a 1 Ha of land can yield 10 to 20 tons of harvest. 20 tons is approximately 18,100
kilograms. It is safe to approximate that 0.5 Ha of land can yield half, about 5 to 10 tons. 5 tons is equivalent to
4535.92 kilos. The running price which is per Bundle (10 kilos) of crop came from the participants themselves
and is the running price during the revision the proposal drafted, August 2018.

Raw Materials

Raw Material Quantity Unit Unit Price Frequency Total Cost

Certified Seeds 8 small can ₱1,400.00 6 Months ₱11,200.00
Organic Fertilizer 20 bag ₱225.00 6 Months ₱4,500.00
Inorganic Fertilizer 10 sack ₱1,000.00 6 Months ₱10,000.00
Plastic Mulch 2 roll (medium) ₱650.00 6 Months ₱1,300.00
Twisted Synthetic Rope 8 roll ₱100.00 6 Months ₱800.00
Jute Sacks 65 piece ₱12.00 6 Months ₱780.00
Fungicide 4 liter ₱750.00 6 Months ₱3,000.00
Insecticide 12 bottle ₱450.00 6 Months ₱5,400.00
Insecticide (another type) 6 piece ₱750.00 6 Months ₱4,500.00
TOTAL ₱41,480.00

Manpower available and labor required

Name of Workers Specific Task Wage

Farm Management
All members Rotation (115 Man-Days, 125 ₱17,250.00
per Man-Day)
All members Harvest (40 Man-Days, ₱6,000.00
125 per Man-Day)
Total ₱23,250.00
A man-day is a measure of the amount of work needed for a man to finish a job in a specific period of time.

Equipment
Life
Production Depreciation
Tool/Equipment Quantity Unit Unit Price Total Cost Spa
Cycle Cost
n
Trellis 1 meters ₱8,600.00 ₱8,600.00 2.00 6 ₱2,150.00
GRAND TOTAL       ₱8,600.00     ₱2,150.00

Other Expenses (Ampalaya)

Regular Operational Expense Frequency Total Cost

Page 4 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Land Rental Per Cycle ₱16,000.00

Machine Rental Per Cycle ₱4,000.00
Transportation Per Cycle ₱2,400.00
Total ₱22,400.00

Gross sales per production cycle (Ampalaya)

The assumption is that 330 bundles were produced in 3 months harvest from 0.5 Ha land and 8 small cans of
seeds (1 small can = 250g). This is a modest assumption since as described previously, 0.5 Ha land can yield
about 5-10 tons. Taking the least, 5 tons = 4535.92 kilos. A bundle of food crop is equal to 10 kilos. Therefore,
350 bundles is 3500 kilos. This is so modest that it is 1035.92 lower than the LOW expected output and 1000
less than what the beneficiaries said as stated from previous sections.

Sale Price per

Quantity Unit Total Sales
Product unit
Ampalaya fruit 330 Bundle ₱400.00 ₱132,000.00

Net profit per production cycle (Ampalaya)

Items Cost
Gross Sales ₱132,000.00
LESS: Raw Materials ₱41,480.00
Gross Profit ₱90,520.00
Depreciation ₱2,150.00
Manpower ₱23,250.00
Other Expenses  
Land Rental ₱16,000.00
Machine Rental ₱4,000.00
Transportation ₱2,400.00
Total Operating Expenses ₱47,800.00
Gross profit after operating expense ₱42,720.00
Less: Mandatory saving of the association (25%) ₱10,680.00
Less: Capital Buildup (10%) ₱4,272.00
Net Profit ₱27,768.00

2. PECHAY

Computations for PECHAY is based on a 0.5 Ha of land. Production Cycle is approximately 2 Months.
Though the cycle for pechay is 2 months and can be done all year round, the participants are only choosing
seasons or months when to plant this green leafy veggie. They usually do only 3 cycles per year. Preparation,
Planting, and Management is approximately 2-3 weeks and Harvesting follows immediately after a month.
Harvest is done only once. Cost of labor is based on a Man-Day requirement. Less work is done compared to
Ampalaya production. Example, planting is done only in the afternoon around 3:00PM to 5:00PM. Based
from the participants’ explanation and experience, available literature and the Municipal Agriculture Office,

Page 5 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Pechay on a 1 Ha of land can yield (low assumption) up to 20,000 kg of harvest. Thus a 0.5 Ha can yield
around 10,000 kg.
Raw Materials (Pechay)
Raw Material Unit Quantity Unit Price Frequency Total Cost
Pechay Seeds small can 8 ₱450.00 2 months ₱3,600.00
Organic Fertilizer bag 20 ₱225.00 2 months ₱4,500.00
Inorganic Fertilizer sack 10 ₱1,000.00 2 months ₱10,000.00
Herbicide bottle 3 ₱1,200.00 2 months ₱3,600.00
Insecticide (for pechay) bottle 6 ₱1,000.00 2 months ₱6,000.00
Plastic Packaging pack 3 ₱400.00 2 months ₱1,200.00
Total ₱28,900.00

Manpower available and labor required

Name of Workers Specific Task Wage

All members Farm Management (50 Man-Days, 125 per Man-Day) ₱7,500.00

All members Harvest, Cleaning & packaging (10 Man-Days, 125 per ₱1,500.00
Man-Day)
Total ₱9,000.00
A man-day is a measure of the amount of work needed for a man to finish a job in a specific period of time.

Machine and Equipment

Unit Life Production Depreciation

Tool/Equipment Quantity Unit Total Cost
Price Span Cycle Cost
N/A N/A N/A N/A N/A N/A N/A N/A

GRAND TOTAL            

Other Expenses (Pechay)

Regular Operational Expense Frequency Total Cost

Land Rental Per Cycle ₱8,000.00
Machine Rental Per Cycle ₱4,000.00
Transportation Per Cycle ₱2,200.00
Total ₱14,200.00

Page 6 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Gross sales per production cycle (Pechay)

The assumption is that 340 bundles were produced in full harvest from 0.5 Ha land and 8 small cans of seeds
(1 small can = 250g). Another modest assumption compared to the expected 10,000 kg.

Product Quantity Unit Sale Price per unit Total Sales

Pechay 340 Bundle ₱250.00 ₱85,000.00

Net profit per production cycle (Pechay)

Items Cost
Gross Sales ₱85,000.00
LESS: Raw Materials ₱28,900.00
Gross Profit ₱56,100.00
LESS:  
Manpower ₱9,000.00
Other Expenses:  
Land Rental ₱8,000.00
Machine Rental ₱4,000.00
Transportation ₱2,200.00
Total Operating Expenses ₱23,200.00
Gross profit after operating expenses ₱32,900.00
Less: Mandatory saving of the association (25%) ₱8,225.00
Less: Capital Buildup (10%) ₱3,290.00
Net Profit ₱21,385.00

3. POLE/STRING BEANS (SITAO)

Computations for Sitao is based on a 1/4 Ha of land. Production Cycle is 5 Months. Preparation, Planting,
Management, Harvest and most requirements are the same with Baguio beans but with little or lesser Seed
requirements per hectare. Cost of labor is based on a Man-Day requirement. Less work is done compared to
Ampalaya production. Based from the participants’ explanation and experience, available literature and the
Municipal Agriculture Office, Sitao depending on variety, on a 1 Ha of land yields 13.3 tons to 24.2 tons.
Therefore in ¼ Ha, a safe assumption is 3.325 tons which is equal to 3016.3893 kilos.
Raw Materials (Sitao)
Raw Material Quantity Unit Unit Price Frequency Total Cost
String Beans Seeds 3 kg ₱1,600.00 every cycle ₱4,800.00
Page 7 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Organic Fertilizer 10 bag ₱225.00 every cycle ₱2,250.00

Inorganic Fertilizer 4 sack ₱1,000.00 every cycle ₱4,000.00
Plastic Mulch 1 roll (medium) ₱650.00 every cycle ₱650.00
Twisted Synthetic Rope 4 roll ₱100.00 every cycle ₱400.00
Plastic Packaging 1 pack ₱400.00 every cycle ₱400.00
Fungicide 2 liter ₱750.00 every cycle ₱1,500.00
Insecticide 6 bottle ₱450.00 every cycle ₱2,700.00
Insecticide (another type) 3 piece ₱750.00 every cycle ₱2,250.00
TOTAL ₱18,950.00

Manpower available and labor required (Sitao)

Name of Workers Specific Task Wage

Farm Management (40
All members Rotation Man-Days, 125 per ₱6,000.00
Man-Day)
All members Harvest (20 Man-Days, ₱3,000.00
125 per Man-Day)
Total ₱9,000.00

Machine and Equipment (Sitao)

Tool/Equipmen Quantit Unit Life Production Depreciatio
Unit Total Cost
t y Price Span Cycle n Cost
₱4,220.0
Trellis 1 meters ₱4,220.00 2.00 5 ₱879.17
0
               
GRAND TOTAL       ₱4,220.00     ₱879.17

Other Expenses (Sitao)

Regular Operational Expense Frequency Total Cost

Land Rental Per Cycle ₱6,000.00
Machine Rental Per Cycle ₱2,000.00
Transportation   ₱1,500.00
Total ₱9,500.00

Gross sales per production cycle

Page 8 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

The assumption is 270 bundles were produced in full harvest from ¼ Ha land. 270 bundles is equal to 2,700
kilos. Another modest assumption compared to the expected low yield of 3016.3893 kg as stated previously.

Product Quantity Unit Sale Price per unit Total Sales

Sitao 270 Bundle ₱320.00 ₱86,400.00

Net profit per production cycle (Sitao)

Items Cost
Gross Sales ₱86,400.00
LESS: Raw Materials: ₱18,950.00
Gross Profit ₱67,450.00
LESS:  
Depreciation ₱879.17
Manpower ₱9,000.00
Other Expenses:  
Land Rental ₱6,000.00
Machine Rental ₱2,000.00
Transportation ₱1,500.00
Total Operating Expenses ₱19,379.17
   
Gross profit after operating expenses ₱48,070.83
Less: Mandatory saving of the association (25%) ₱12,017.71
Less: Capital Buildup (10%) ₱4,807.08
Net Profit ₱31,246.04

4. OKRA

Computations for okra is based on a 1/4 Ha of land. Production Cycle is up to 4 Months. Preparation,
Planting, and Management is approximately 1 month depending on variety and Harvesting follows
immediately after that and can last up to 4 months production. Cost of labor is based on a Man-Day duration.
Based from resources, Okra on a 1 Ha of land can yield up to 30000 kg of harvest. Safe to say in a 4-month
time of harvest for a ¼ Ha of land is 7500 kg. From participants’ experience, on a little less than 0.1 Ha of
land, they were able to harvest around 18 kilos for a twice a week harvest.

Raw Materials (Okra)

Raw Material Quantity Unit Unit Price Frequency Total Cost

Page 9 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

Okra Seeds 6 can ₱600.00 4-Months ₱3,600.00

Organic Fertilizer 12 bag ₱225.00 4-Months ₱2,700.00
Inorganic Fertilizer 5 sack ₱1,000.00 4-Months ₱5,000.00
Fungicide 2 liter ₱750.00 4-Months ₱1,500.00
Insecticide 7 bottle ₱450.00 4-Months ₱3,150.00
Plastic Mulch 1 roll (medium) ₱650.00 4-Months ₱650.00
Plastic Packaging 4 pack ₱400.00 4-Months ₱1,600.00
Total ₱18,200.00

Manpower available and labor required (Okra)

Name of Workers Specific Task Wage

Farm Management (50 Man-Days, 125 per
All members ₱3,900.00
Man-Day)

All members Harvest, Cleaning & packaging (10 Man-Days, ₱1,500.00

125 per Man-Day)
Total ₱5,400.00

Machine and Equipment (Okra)

Unit Life Production Depreciation
Tool/Equipment Quantity Unit Total Cost
Price Span Cycle Cost
N/A N/A N/A N/A N/A N/A N/A N/A

               
GRAND TOTAL            

Other Expenses (Okra)

Regular Operational Expense Frequency Total Cost
Land Rental 4-Months ₱6,000.00
Machine Rental 4-Months ₱4,000.00
Transportation 4-Months ₱1,900.00
Total ₱11,900.00

Gross sales per production cycle (Okra)

The assumption is a decent 280 bundles were produced in full harvest from ¼ Ha land. 280 bundles is equal to
2800 kilos. This is also a modest assumption compared to the one expressed by the participants from their
experience.
Product Quantity Unit Sale Price per Total Sales
Page 10 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

unit
Okra 280 Bundle ₱240.00 ₱67,200.00

Net profit per production cycle (Okra)

Items Cost
Gross Sales ₱67,200.00
LESS: Raw Materials ₱18,200.00
Gross Profit ₱49,000.00
LESS:  
Manpower ₱5,400.00
Other Expenses:  
Land Rental ₱6,000.00
Machine Rental ₱4,000.00
Transportation ₱1,900.00
Total Operating Expenses ₱17,300.00
   
Gross profit after operating expenses ₱31,700.00
Less: Mandatory saving of the association (25%) ₱7,925.00
Less: Capital Buildup (10%) ₱3,170.00
Net Profit ₱20,605.00

Projected Cash in two (2) years

The following computations assumes that the costs stated in the previous sections remains unaffected and
constant and regardless if the members claimed their share/dividends or not. The projection of cash for 2 years
will be as follows and include cash either on hand or has passed the participants’ hand:

Total Number of cropping in 2 years

Ampalaya 4 cycles
Pechay 6 cycles (participants do only 3 cycles each year)
Sitao 4 cycles
Okra 6 cycles

Accumulated Amount in 2 years

Cycles in 2 Capital
Produce Savings
years in 2 years Buildup in 2 years Net Profit in 2 years

Page 11 of 13
 SEED CAPITALFUND MODALITY APPLICATION FORM

₱27,768.0
4
Ampalaya ₱10,680.00 ₱42,720.00 ₱4,272.00 ₱17,088.00 0 ₱111,072.00
₱21,385.0
Pechay 6
₱8,225.00 ₱49,350.00 ₱3,290.00 ₱19,740.00 0 ₱128,310.00
₱31,246.0
Sitao
4 ₱12,017.71 ₱48,070.83 ₱4,807.08 ₱19,228.33 4 ₱124,984.17
₱20,605.0
Okra
6 ₱7,925.00 ₱47,550.00 ₱3,170.00 ₱19,020.00 0 ₱123,630.00
Total   ₱38,847.71 ₱187,690.83 ₱15,539.08 ₱75,076.33   ₱487,996.17
Grand Total of ₱750,763.33 in two years

Accumulated Manpower (Labor) Cost Paid to members

  Labor Cost per Cycle Cycles in 2 years Total

Ampalaya ₱23,250.00 4 ₱93,000.00
Pechay ₱9,000.00 6 ₱54,000.00
Sitao ₱9,000.00 4 ₱36,000.00
Okra ₱5,400.00 6 ₱32,400.00
Total ₱215,400.00

Page 12 of 13
SEED CAPITALFUND MODALITY APPLICATION FORM

Signature over Printed Name of IPDO

Page 13 of 13