FEA B L

D
BAN FA M NG P OJEC
N B G . MA ANDANG BALA A, C
Amoren, hna Colcol, Er in Dela Cr , Alec andrea D lfo, D lfo
Garcia, Ma. Monina Manalili, Sharmaine Ma ia , Michael Drake Sio, Karen
U , Ma. Tere a
PA 243 FZZ
PROJECT SUMMARY

Project Title: Urban Farming Project

Project Cost: P1,587,161.00

Location: Brgy. Matandang Balara, Quezon City

Project Description: The proposed urban farming project at Brgy.

Matandang Balara is envisioned to help reduce the
cases of malnutrition in the community. Through this
initiative, residents of the barangay are expected to
have access to affordable and nutritious food without
leaving the confines of their own community. At the
same time, it aims to provide additional income to some
members of the community.

Feasibility indicators: Financial Net Present Value (NPV) is at

P3,778,700.65.

Financial Internal Rate of Return (IRR) is at 69%.

Apart from additional income, other benefits of the

study include: 1) Community building, 2) improved
neighborhood, 3) air quality improvement, 4)
agriculture learning experience and appreciation, and
5) direct access to fresh and healthy vegetables.

Recommendation: Considering its tangible and non-tangible benefits, it is

recommended that the officials of Brgy. Matandang
Balara consider the project in its development plan and
eventually undertake it.

In order to obtain funds for the project, it is suggested

that the barangay taps its earlier allocated budget of
P650,000. It may also submit the project proposal and
this feasibility study to 1) local government unit of
Quezon City for coordination and 2) the Department of
Agriculture for consideration on seedling provision.

ii
 TABLE OF CONTENTS

Page

TITLE PAGE i

PROJECT SUMMARY ii

TABLE OF CONTENTS iii

LIST OF TABLES vi

LIST OF FIGURES vii

I. Introduction 1
Background of the Study 1
Significance of the Study 2
Scope and Limitations 2

II. Situational Analysis 3

Problem Tree Analysis 4
Objective Tree Analysis 5
Strategy Tree Analysis 6
Logical Framework Tree 7

III. Market Analysis 11

Demand Analysis 13
Supply Analysis 15

IV. Technical Analysis 17

Alternative 1: Community Farm Production 17
Products 17
Production Process and Schedule 17
Farm Lot Actual Location and Size 18
Lot Size 18
Farm Layout/Summary of Costs 19
Materials, supplies, and equipment 21
Labor requirements 23
Alternative 2: Backyard Gardening 23

iii
 Page

Alternative 3: Container Gardening 25

V. Financial Analysis 27
Budget and accounting system in the Philippine government 27
Assumptions in the Financial Projections 28
Financial Statements 29
Total Cost and Assets 29
Source of Funds 29
Income Statement 30
Cash Flow 31
Balance Sheet 32
Profitability 33

VI. Socio-economic Analysis 34

Intangible Cost-Benefit Analysis 34
Tangible Cost-Benefit Analysis 35
Measurement Tools 36
Net Present Value 36
Internal Rate of Return 37
Benefits-Cost Ratio 38

VII. Risk Assessment 39

VIII. Environmental Impact Analysis 44

Project Description, Location and Area 44
Applicability of PD 1586 45

IX. Organization and Management Analysis 50

Project Ownership 50
Organizational Chart 50
Project Members and Roles and Functions 51
Project Scheduling 53

REFERENCES 55

ANNEXES 58
A. Total Project Cost 58
B. Sources of Funds 62

iv
 Page

C. Income Statement 63
D. Cash Flow 66
E. Balance Sheet 67
F. Profitability 69

DOCUMENTATION 71

v
 LIST OF TABLES

Number Title Page

1 Summary of Scheduled Meetings and Activities 4
2 Logical Framework Tree 8
3 Malnutrition cases in Brgy. Matandang Balara, year 2018 12
4 Malnutrition cases in Brgy. Matandang Balara, year 2019 12
5 Projected number of underweight, stunted, and wasted 12
children in Brgy. Matandang Balara over a five-year period
6 Per capita vegetable consumption in the Philippines 14
7 Projected per capita vegetable consumption in the 14
Philippines (2019-2028)
8 Project annual yield of select vegetables in proposed urban 16
farming project
9 Estimated harvest schedule of select vegetables in 17
community farm production
10 Depreciation Expense for Fixed Assets 33
11 Net Present Value Calculation 37
12 Environmental Management Plan 46
13 Environmental enhancement as a result of the proposed 49
community garden/urban farm
14 Project Team Members and Roles 51
15 Project Scheduling 53

vi
 LIST OF FIGURES

Number Title Page

1 Map of Barangay Matandang Balara 3
2 Problem Tree Analysis 5
3 Objective Tree Analysis 6
4 Strategy Tree Analysis 7
5 Projected number of Malnourished Children in Brgy. 13
Matandang Balara (2020-2024)
6 Projected per capita consumption of select vegetables (2019- 15
2028)
7 Land area of the farm lot in Brgy. Matandang Balara 18
8 Farm floor plan layout 19
9 Office floor plan layout 20
10 Storage room floor plan layout 20
11 Security and monitoring room floor plan layout 20
12 Administration office floor plan layout 21
13 Stock room floor plan layout 21
14 Sample 1: Home garden 24
15 Sample 2: Home garden 24
16 Sample 3: Home garden 25
17 Sample container garden 26

vii
 I. INTRODUCTION

Background of the Study

Malnutrition continues to grapple the Filipino youth nowadays. According to the

United Nations Children's Fund (UNICEF) Philippines, an average of 95 Filipino children
die from malnutrition every day, while 27 out of 1,000 kids in the country do not even
reach the age of five. Meanwhile, one-third of all Filipino children are short for their age,
and when this stunting happens after the age of two, it can be permanent, irreversible
and even fatal (“Child survival”, n.d.).

UNICEF Philippines cites many reasons why malnutrition is highly prevalent in the
Philippines. The organization reported that poor diet, inadequate nutrition, incomplete
immunization, and bad hygiene are among the leading causes of malnutrition. This
problem is exacerbated by poor health-seeking behavior, which causes children to be
more vulnerable to illnesses (“UNICEF: Many children and adolescents in the Philippines
are not growing up healthily”, 2019).

Several measures have put been up which specifically aim to reduce the hunger
and malnutrition. One of which was the recently-enacted Republic Act 1148 or the
“Kalusugan at Nutrisyon ng Mag-nanay Act.” This law primarily aims to strengthen
nutrition intervention programs in the first 1,000 days of a child's life, which covers the
day of conception in the womb until the child turns two years old. It also allocates
sustainable resources to improve the nutritional status of infants from zero to two years
old, as well as of adolescent females, pregnant and lactating, to address their
undernourishment and ensure their growth and development (Colcol, 2018).

In Barangay Matandang Balara, Quezon City, the problem on malnutrition is very

much apparent as in other areas in the country. Barangay officials whom the group has
spoken with admitted that the fight against malnutrition is a battle they continue to wage.
While efforts have been made to address this public health issue in the community, the
lack of sustainability and continuity have prevented them from achieving their desired
outcomes.

Barangay Matandang Balara officials, however, believe that if these malnourished

children and their families have access to nutritious and affordable food within the
community itself, they may actually get the right nutrients to improve their health. This is
possible if the barangay will provide them with an avenue to constantly access their food
without having to spend much and leave the community’s premises.

1
 This study, therefore, explores the viability of a community-based urban farming
project that would specifically target malnourished children in Barangay Matandang
Balara, Quezon City. Aside from aiming to solve malnutrition, this study also intends to
provide the residents of the barangay with a livelihood program which would allow them
to improve their living conditions. The researchers believe that if the residents of
Barangay Matandang Balara are healthy and have plenty of resources, they will become
active and productive members of the community.

Significance of the Study

The aim of the study is to help Barangay Old Balara, Quezon City come up with a
project that will ensure the constant provision of nutritious and affordable food to its
residents to address malnutrition.

With this goal in mind, the researchers employed various tools of analysis to
determine whether such proposal is viable. These tools include situational analysis,
market analysis, technical analysis of proposed alternatives, cost-benefit analysis, risk
analysis and environmental impact analysis.

Upon completion, the barangay officials could adopt its propositions of the
feasibility study and use it as a starting point for their own community-based food
provision project.

Scope and Limitations

While the group recognizes that many areas in Quezon City are also likely to
experience high malnutrition incidence, Barangay Old Balara was chosen as the subject
of the study for these reasons:

1. The barangay’s sheer land area with plenty of public spaces that could be tapped
for a project;
2. Proximity to Quezon City’s government center which allows for easy transport of
necessary documents from the city hall;
3. The barangay officials’ openness to introduce projects to address issues hounding
its community, as exhibited by their reported initiative earlier this year to introduce
frogs in their tributaries in a bid to fight dengue.

2
 I. SITUATIONAL ANALYSIS

Barangay Matandang Balara is considered as one of the biggest barangays in

Quezon City. Most of the residents of this barangay belong to the lower income group. In
view of the land size and the budget allocated for the barangay, it is anticipated that the
barangay perceives major problems specifically in health.

The barangay is situated at approximately 14.6672, 121.0834, in the island of

Luzon. Elevation at these coordinates is estimated at 78.8 meters or 258.5 feet above
mean sea level.

GOOGLE SATELLITE

Figure 1. Map of Barangay Matandang Balara

To identify and analyze problems of the Barangay Matandang Balara, the group
conducted interviews and meetings with barangay officials and other stakeholders. The
table below summarizes the activities and consultations conducted with the Barangay
Matandang Balara:

3
 Activities Dates Conducted
Courtesy Call and Coordination Meeting September 4, 2019
with Barangay Stakeholders Barangay Hall
Coordination with Barangay September – October 2019
Stakeholders
• Barangay Development Plan /
Malnutrition Data
• Problem Tree Analysis/ Objective
Tree Analysis
• Strategy Analysis Tree/ Log
Frame Analysis

Key Informant Interview with November 28, 2019

Barangay Captain Allan P. Franza, Barangay Hall
Kagawad Marilyn Diche,
Dr. Karen Gemma See (District Health
Officer)
Field Visitation November 29, 2019

Table 1. Summary of Scheduled Meetings and Activities

During the meeting with Barangay Captain Allan Franza, he requested the group
to assist their Barangay to craft a feasibility study regarding urban farming for a potential
funding from Ever Gotesco Scholarship.

In doing so, the group analyzed the problem of the barangay using the problem
tree analysis tool. The result showed that the main problems of the barangay are related
to malnutrition, hunger and poverty.

Problem Tree Analysis

Barangay Matandang Balara is facing various health issues and problems.

Barangay officials and medical staff are loaded with issues regarding the sanitation and
malnutrition of the barangay. Analyzing the root causes of the existing problem presented
by Barangay Matandang Balara, the group used the problem tree tool in identifying the
causes, effects and the core problem in relation to malnutrition and food insecurity.

In line with this, considering that 70 to 80% of the total population live in poverty,
the group traced that the core problem in the barangay is the prevalent food and nutrition
insecurity. Identified causes are 1) inadequate sources of healthy food supply, 2)
insufficient nutritious food intake, and 3) poor sanitation and hygiene.

The figure below explained the 3-levelled-causes of the identified core problem
and the cause and effect relationship in terms of malnutrition and hunger.

4
 Figure 2. Problem Tree Analysis

Objective Tree Analysis

In this analysis tool, the group converted all existing negative issues and problems
in the problem tree into achievable, desirable and realistic objectives. The feasibility study
aims to reduce the malnutrition and increase the opportunity of income of the partner
beneficiaries.

The following figure showed the means and ends of the over-all objectives in
Barangay Matandang Balara.

5
 Figure 3. Objective Tree Analysis

Strategy Tree Analysis

The strategies identified based on the Objective Tree are the following:

1. Primary Strategy: Community-Based Urban Farming

This strategy focuses on the establishment of a community-based urban farm in

an open space within the barangay. This strategy includes urban farm trainings and
implementation that can provide opportunities for community members to acquire skills
and knowledge related to agriculture, food production, and nutrition. This will require the
active roles of the barangay and the target beneficiaries in establishing and managing the
community-based urban farm.

2. Secondary Strategy: Proper Nutrition Health Care

This strategy focuses on the implementation of programs, projects and activities

addressing the nutrition health care problem of the barangay. Regular training programs
that are designed to improve the nutritional status of children and contributes to their
optimal growth and development should be implemented.

6
3. Tertiary Strategy: Proper Sanitation Programs

This strategy focuses on orientations and capacity building activities to enhance

the knowledge of the community members on nutrition and proper sanitation and what
are the available programs and projects that the government offers or what are the
services that they can avail to address the issue on insanitary environment.

The following figure summarizes the points stated above.

Figure 4. Strategy Tree Analysis

Logical Framework Tree

The expected impact from achieving the objectives mentioned above are the
improved food security and overall health of residents in Barangay Matandang Balara
and the sustainable livelihood activities for the residents.

The table below shows the devised Logical Framework (logframe) in addressing
malnutrition and food insecurity in Barangay Matandang Balara.

7
Table 2. Logical Framework Tree
OBJECTIVELY
SOURCES OF
INTERVENTION LOGIC VERIFIABLE ASSUMPTIONS
VERIFICATION
INDICATORS
OVERALL • Improved food ● Stable food prices ● DTI suggested X
OBJECTIVE/GOAL security and overall in the market from SRP of basic
health of residents in (time) to (time) necessities and
Barangay Matandang prime commodities
● Food stock
Balara
increased from low ● PSA and DOH
• Sustainable livelihood to normal by statistics analyzed
activities for the (specific time) ex-ante, in-vivo,
residents and ex-post
● Incidence of
hospital
confinement due to
communicable
diseases reduced
from X to Y by
(specific time)

PROJECT PURPOSE Reduced incidence of ● Hunger rate ● PSA data on health ● Access/availabilit
hunger and malnutrition in decreased from X and nutrition y to nutritious and
Barangay Matandang to Y by (specific analyzed quarterly affordable food
Balara time)
● Malnutrition rate
decreased from X
to Y by (specific
time)

8
RESULTS/ 1. Build a community- ● Number of people ● Barangay health ● Barangay
OUTPUTS based urban farm provided with records analyzed residents willing
livelihood programs monthly to attend trainings
a. Household
increased by x to y and seminars on
Farming School health records
by (specific livelihood and
timeline) within the barangay proper nutrition
b. Urban Container
analyzed monthly programs
2. Build regular livelihood ● Body Mass Index
enhancement (BMI) of Barangay ● Household
trainings and nutrition program nutrition improved
programs for the beneficiaries due to increased
residents increased from number of
underweight to residents with
normal by (specific stable income
timeline) and livelihood
● Number of
malnutrition and
sickness incidence
reduced from x to y
by (specific time)

ACTIVITIES 1.1 Conduct Baseline ● Attendance on ● Barangay health ● Availability of

Survey by BNS seminars and records analyzed funds and
training programs monthly qualified health
1.2 Conduct orientation workers/
and planning ● Speed of services ● School health
volunteers
workshop with the on the health records within the
management team clinic/facility barangay analyzed
and beneficiaries monthly
● Number of health
1.3 Conduct training on workers/volunteers
proper farming
procedures

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1.4 Actual farming and ● Availability of food
food production and medical
activities supplies

2.1 Organize a barangay

food security
management team
2.2 Conduct quarterly
seminars regarding
proper nutrition, low-
cost healthy options,
etc.
2.3 Weekly provision of
healthy meals
sponsored by the
barangay and private
partners
2.4 Encourage school
canteens to serve
nutrient-rich food
2.5 Conduct baseline and
endline Surveys

PRECONDITION:
Barangay Matandang
Balara has an
existing Malnutrition
and Barangay
Development Plan

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 II. MARKET ANALYSIS

According to the 2015 Philippine Statistics Authority census (PhilAtlas, n.d.),

Barangay Matandang Balara in Quezon City has a total population of 71,022. Out of this
figure, 1.9% or 1,346 are under one year old, while 7.26% or 5,159 belong to the age of
one to four years old. The group’s consultations with the barangay officials reveal that
malnutrition is one of the major health issues affecting this age group. They admitted that
although there have been projects which the barangay previously implemented to
address malnutrition, including once that the Quezon City Health Office and the
Department of Social Welfare and Development have initiated, cases have not gone down
to less concerning levels in recent years.

This project aims to help address malnutrition in the barangay by through a

community-based urban farming where the residents of the barangay themselves can
plant and harvest vegetables in a communal space. The vegetables to be planted are rich
in vitamins and other nutrients which, if consumed on a regular basis, could improve the
state of health of the beneficiaries. Priority will be given to children who are suffering from
various cases of malnutrition.

In order to determine the target number of beneficiaries for this project envisions,
it is important to find out how many children in the barangay are suffering from
malnutrition.

The group requested data from the branch of the Quezon City Health Department
which covers the barangay. Data from the health office showed among children aged 0
to five years old, a total of 69 have been considered underweight, stunted and wasted in
the year 2018. This number, however, has increased to 125 in the current year.

According to the World Health Organization (2010), underweight children are those
whose weights are less than what is expected of their age. Meanwhile, stunted children
are those who are shorter than their age, while wasted ones are those suffering from
acute undernutrition due to insufficient food intake or high incidence of contagious
disease.

The following table shows the breakdown of the number of children suffering from
various cases of malnutrition for the year 2018:

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 Malnutrition Case Number Percentage
Underweight 28 41%
Stunted 26 38%
Wasted 15 22%
TOTAL 69 100%

Table 3. Malnutrition cases in Brgy. Matandang Balara, year 2018.

Source: QC Health Dept.

Meanwhile, the next table enumerates the number of malnourished children for the
year 2019:

Malnutrition Case Number Percentage

Underweight 39 31%
Stunted 57 46%
Wasted 29 23%
TOTAL 125 100%

Table 4. Malnutrition cases in Brgy. Matandang Balara, year 2019

Source: QC Health Dept.

As shown in the data, Barangay Matandang Balara has a higher incidence of

underweight children than stunted and wasted, although in 2019, the number of stunted
children grew by 119%. This only means that children in the barangay are not being fed
with nutritious food, and their health and well-being eventually suffer.

To compute the projected number of underweight, stunted and wasted children in

Barangay Matandang Balara, the group computed for the average growth rate.
Considering the rate of increase in these case over a two-year period, the following
table shows the projected number of underweight, stunted and wasted children in the
barangay in the next five years.

Case 2020 2021 2022 2023 2024

Underweight 54 76 105 204 285
Stunted 125 274 601 1,317 2,887
Wasted 56 108 210 405 783
TOTAL 235 458 916 1,869 3,874

Table 5. Projected number of underweight, stunted, and wasted children in Brgy.

Matandang Balara over a five-year period. Source: QC Health Dept.

12
 The following chart shows a graphical representation of the project number of
malnourished children in the barangay based on the table above.

Projected Number of Malnourished Children in

Brgy. Matandang Balara (2020-2024)
3500

3000

2500

2000

1500

1000

500

0
2020 2021 2022 2023 2024

Underweight Stunted Wasted

Figure 5. Projected number of Malnourished Children in Brgy. Matandang Balara

(2020-2024)

Clearly, there is a need to address malnutrition affecting children in Barangay

Matandang Balara. If left unaddressed, the number of children suffering from the public
health crisis may even grow to thousands.

Demand analysis

Apart from the number of target beneficiaries, it is also essential to determine the
demand for the products of the proposed community-based urban farming. As
envisioned in the group, a number of nutritious vegetables will be planted in the
gardening area, including radish, okra, eggplant, tomato, among others.

To calculate the demand for these products, the group used existing data from
the Philippine Statistics Office on the per capita consumption of select vegetables per
year. The following table shows the consumption of these products over a period of 10
years. Note that the PSA has no data on per capita vegetable consumption per area, so
the group used the Philippine average.

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 Per Capita Consumption of Select Vegetables (kilogram/year)
Year Radish Okra Eggplant Tomato Ampalaya Sweet Cassava
Potato
2009 0.10 0.26 2.03 1.70 0.87 5.83 2.24
2010 0.10 0.25 2.06 1.71 0.87 5.50 2.30
2011 0.09 0.24 2.02 1.68 0.84 5.15 2.34
2012 0.09 0.22 2.02 1.64 0.83 5.07 2.30
2013 0.09 0.23 2.06 1.65 0.84 5.09 2.43
2014 0.09 0.23 2.08 1.68 0.83 4.93 2.56
2015 0.09 0.24 2.11 1.65 0.81 5.00 2.67
2016 0.08 0.23 2.10 1.59 0.78 4.86 2.67
2017 0.08 0.23 2.12 1.63 0.78 4.85 2.67
2018 0.08 0.22 2.11 1.62 0.75 4.67 2.55

Table 6. Per capita vegetable consumption in the Philippines

Source: PSA

To determine the projected demand for the products in the next 10 years, the
group utilized the arithmetic straight line method. The following table shows the results
of the computation.

Projected Per Capita Consumption of Select Vegetables (kilogram/year)

Year Radish Okra Eggplant Tomato Ampalaya Sweet Cassava
Potato
2019 0.074 0.217 2.127 1.563 0.740 4.473 2.772
2020 0.072 0.212 2.136 1.554 0.726 4.344 2.806
2021 0.069 0.208 2.145 1.545 0.713 4.215 2.840
2022 0.067 0.203 2.154 1.536 0.700 4.086 2.874
2023 0.065 0.199 2.162 1.528 0.686 3.958 2.908
2024 0.063 0.194 2.171 1.519 0.673 3.829 2.942
2025 0.060 0.190 2.180 1.510 0.660 3.700 2.976
2026 0.058 0.185 2.189 1.501 0.646 3.571 3.010
2027 0.056 0.181 2.198 1.492 0.633 3.442 3.044
2028 0.054 0.177 2.207 1.483 0.620 3.313 3.078

Table 7. Projected per capita vegetable consumption in the Philippines (2019-2028)

14
 The following chart will provide a better visualization of these figures.

10-Year Projection of Per Capita Consumption of

Select Vegetables (2019-2028)
7.0

6.0

5.0

4.0
Kg/year

3.0

2.0

1.0

0.0
09

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28
20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20
Year

Radish Okra Eggplant Tomato Ampalaya Sweet Potato Cassava

Figure 6. Projected per capita consumption of select vegetables (2019-2028)

The chart shows that sweet potato, despite its steady decline, will still have the
highest per capita consumption in 2028 among the vegetables to be planted in the
urban gardening area. Meanwhile, cassava will post a stable consumption growth over
the next 10 years. Other vegetables will register no significant movement in terms of per
capita utilization.

This information is essential for determining the number of seedlings to be

planted in the urban gardening site to meet the demand from the barangay residents. In
order for the project to fulfill its objectives, it is important that all the target beneficiaries
are well supplied with the products they need on a regular basis.

Supply analysis

Table 8 shows the projected annual yield of select vegetables of the proposed
urban farming project in Barangay Matandang Balara. This based on a computation of
yield per square meter of land multiplied by the number of harvests per year.

15
 Vegetable Annual Yield
Radish 2,031 bunches
Okra 672 kilograms
Eggplant 1,019 kilograms
Tomato 1,019 kilograms
Ampalaya 611 kilograms
Sweet Potato 353 kilograms
Cassava 710 bunches
Kangkong 1,834 kilograms
Sitao 1,284 kilograms

Table 8. Project annual yield of select vegetables in proposed urban farming project

16
 III. TECHNICAL ANALYSIS

The project seeks to augment the nutritional needs of the residents of Barangay
Matandang Balara, in a bid to further address malnutrition in the village. Given this, the
researchers propose three alternatives for the urban farming project: 1) community farm
production; 2) backyard gardening; and 3) container gardening. Each alternative will be
assessed accordingly to determine their capacity to best address issue.

ALTERNATIVE 1: COMMUNITY FARM PRODUCTION

Products

The project will provide farmer-volunteer with two baskets: (1) Pinakbet basket
(ampalaya, sitao, talong, and okra); and (2) Sinigang basket (upland kangkong, labanos,
and tomato). In addition, other carbohydrate-rich source produces to be gained in the
project include sweet potato, bush sitao, pole sitao and bitter melon.

Production Process and Schedule

Given the varying harvesting time of vegetables produced by the farm, the
manufacturing process of the end-products varies as well. Some plants require very little
time to go from sowing to harvest time. The production cycle of every vegetable is counted
estimating the time from seed sowing to actual harvest, counted by the number of days
after sowing (DAS). In the table below, the estimated harvest schedule for the different
vegetables is presented:

Pinakbet Basket Sinigang Basket Other produce

Vegetable DAS* Vegetable DAS* Produce DAS*
Bittergourd 49-63 Upland 35 Sweet potato 90-120
Kangkong
Eggplant 49-63 Tomato 49-63 Bush sitao 45-50
String 49-63 Radish 49-63 Pole sitao 40-45
beans
Okra 49-63 Bitter melon 84-112

Table 9. Estimated harvest schedule of select vegetables in community farm production

17
Farm Lot Actual Location and Size

Figure 7. Land area of the farm lot in Brgy. Matandang Balara

Lot size

The total lot size for the project is 1,000 square meters (sqm), with the dimension
of 30 meters by 35 meters. The area allotted for the farm is 888 sqm with dimension of
29.6 meters by 30 meters. The farm area will be divided will be divided into 14 plots- 5
plots for Pinakbet basket, 5 plots for Sinigang basket and 4 other produce, with dimension

18
of 3.8 meters x 14 meters per each plot, 0.5 meter for every space between plots as
pathway. There is also 2-meter free space in the middle of the farm to serve as a small
pass-through for heavy equipment, vehicles, etc. On the other hand, there will be rooms
that will serve as the storage room, the security and monitoring room, the administration
room and the stock room. The allotted area for these is 132 sqm, 4.4 meters by 30 meters,
including the 2-meter gate.

Farm Layout/Summary of Costs

Figure 8. Farm floor plan layout

19
 Figure 9. Office floor plan layout

Figure 10. Storage room floor plan layout

The storage room with total area of 62 sqm. This will be a cold storage for the
vegetables to keep them fresh. As soon as fresh produce is harvested from the farm, it
will be put on the storage room and will be subject to inventory.

Figure 11. Security and monitoring room floor plan layout

20
 The security and monitoring room with an area of 21 sqm, more or less, will have
security systems such as wired or wireless security camera and alarms. Aside from its
primary function-to protect against burglars and other potential intruders, this will also
monitor the crops while still on the plots.

Figure 12. Administration office floor plan layout

The administration office with the same area as to the security and monitoring
room, will serves as the space for the staff and visitors. Staff will organize and provide
documents for the project, manage the operations of the project and all personnel
involve, maintain the daily schedules on the farm, etc.

Figure 13. Stock room floor plan layout

The 21-square-meter stock room is where the fertilizers, seeds, planters,

sprayers, and other equipment used in farming are kept.

Materials, supplies, and equipment

Farming inputs, which are any external source put into soil that can help
farmers’ upcoming yield, play a significant role in the program’s success. These inputs

21
include: seeds, fertilizers, pest management materials, polyethylene bags and seedling
trays.

Farmer-volunteers will undergo an eight-week training in Urban Agriculture for

them to gain deeper understanding and skills in this endeavor. The production and
utilization of the farming inputs will be discussed during the training, which are aligned
with organic agricultural practices.

Meanwhile, sets of garden tools which include rake, sprinkler, pick mattock, bolo,
spade, trowel, knapsack sprayer; seedling trays, atomizer, pall, shovel, pruning shears,
popsicle sticks, funnel, net bags, twine containers, sacks, polyethylene grow bags, plastic
pots, and 1.5 liter PET bottles are the inputs needed for the farm construction and the
process of growing vegetables.

The estimate cost for the water consumption for the whole project is P220,000 for
1650 cubic meters of water.

Meanwhile, the barangay hall, which houses a conference room, will serve as
venue for the eight-week agriculture skills training. Wifi and photocopier, among others,
shall be connected to the admin office. The consumption cost of these shall be determined
from the monthly electric bill of the project area.

To obtain the total cost of consumption for the electricity, solve first the hourly cost
of the utility. The formula is:

Cost per hour = Rate x (appliance wattage/1000)

*where Rate = the price per kWh, which is dependent on bill amount

Then, after computing the hourly rate of the specific equipment, compute the
monthly cost. The formula is:

Cost per month = Cost per hour x number of hours used in one month

Therefore, the duration of the usage of the equipment should be logged in order to
monitor the electrical expenses.

For the administrative works, the barangay will provide one computer for the data-
keeping of the inventory of the crop, data of personnel, schedules, financial-related
documents, etc. The minimum computer specification needed in order to run and operate

22
the basic software most end users use has a cost estimate of P20,000. The barangay will
provide its own projector during the eight-week training.

For the security and monitoring works as explained above, the barangay will
provide one TV monitor and at least two security cameras. For a TV Monitor, the minimum
specification intended to keep and restore footage/video has a cost estimate of Php
8,000. For security cameras with at least 64 GB of memory to capture and restore more
footage/videos and is connected thru WIFI, has a cost estimate of P2,000 per unit.

For the usage of electricity, the price of electricity for the eight-week training at the
barangay hall’s conference room is estimated at P5,000. The electricity is needed for the
operation of the computers, and ceiling fans.

Labor Requirements

The project would require at least fifty 50 personnel in-charge with planting and
harvesting, which include watering of the plants and pest management. The farm will
operate for 8 hours a day, from 8 a.m. to 5 p.m., 7 days a week. There will be at least 3
who will do the inventory and 2 who will facilitate the monitoring and security. These
personnel will work for the same working hours and 5 days a week or 20 days a month.

For the construction of rooms for offices, it is estimated to be done within 30 days,
with a total of 60 workers engineers, carpenters, plumber, painter, electrician, etc., helping
together. The labor hours will be 8 hours a day, from 8 a.m. to 5 p.m.

ALTENATIVE 2: BACKYARD GARDENING

For this alternative, barangay officers will identify households with backyards which
could be turned into vegetable gardens. Backyard agriculture will help residents in the
barangay to be self-sufficient, and could aid address the malnutrition issue in the village.

Barangay residents, in this alternative, can grow vegetables, fruit, herbs, spices,
and mushrooms in their backyards. They can recycle empty containers for planters.
Among the recommended plants to be grown are pechay, eggplants and pepper.

Since there is no one-gardening-technique-fits all, space conditions, sun exposure

and plant location, among others, create a unique ecosystem for plants.

23
 Figure 14. Sample 1: Home garden
Photo courtesy of Silver Ciriacruz/WhenInManila

Figure 15. Sample 2: Home garden

Photo from Google

24
 Figure 16. Sample 3: Home garden
Photo from Google

ALTERNATIVE 3: CONTAINER GARDENING

For this alternative, barangay officers will encourage residents in Barangay

Matandang Balara to practice container gardening or pot gardening, a practice of growing
plants in containers instead of planting them in the ground. The container is usually
enclosed, small and portable like hanging baskets or tubs. This type of gardening is
suitable for residents in the barangay, given the limited spaces within neighborhoods.

There are a variety of vegetables that thrive in containers, which include tomatoes
radish, potatoes, and kitchen herbs like oregano and basil. Tomatoes can be grown in
pots or growbags, while radishes are trouble-free and could be harvested in as littles as
a month.

Barangay officials, in this project, will conduct a training-seminar for residents on

the steps of putting up a container garden, which will come in two batches.

25
Figure 17. Sample container garden
Screenshot from YouTube

26
 IV. FINANCIAL ANALYSIS

Budget and accounting system in the Philippine government

Starting FY 2019, the Philippine government shall implement the Annual-Cash
Based Budgeting (ACBB) System. Considered as a dramatic shift from the previous
public financial management system, it requires all government agencies and
instrumentalities to implement all projects and programs within the fiscal year it was
budgeted (Department of Budget and Management, n.d.). The National Budget
Memorandum (No. 131) released by the Department of Budget and Management (DBM)
for the national budget call for FY 2020 supports the ongoing fiscal management
modernization and reforms. It specified the transition process towards the ACBB System
and the consolidation of government funds to the Treasury Single Account (TSA).

Budget preparation of the Local Government Units (LGUs) is guided by the Local
Budget Memorandum no. 78. It specifies the specific guidelines, parameters, and
requirements on the preparation of the FY 2020 annual budget (DBM, 2019).
Specifically, for the case of barangays, the budget shall be prepared following the
prescribed procedures and schedules under Republic Act no. 7160 and the Manual for
Financial Management for Barangays, promulgated by the Commission on Audit (COA)
Circular no. 2015-011 (DBM, 2019 Many 15). As mandated by Section 17(b) of the Local
Government Code of 1991, LGUs shall endeavor to provide agricultural support services
to its constituents. Furthermore, initiatives to boost the agriculture growth has been rolled
out by the Department of Agriculture. These programs are hinged on eight paradigms,
to wit: (1) modernization of agriculture, (2) industrialization of agriculture, (3) promotion
of exports, (4) farm consolidation, (5) roadmap development, (6) infrastructure
development, (7) high budget and investment, and (8) legislative support. It is in this
context that the Community-Based Farming project and the consequent specific
financial details are envisioned.

Budget implementation is guided by the Local Government Code of 1991, the

Budget Operations Manual espoused by the Local Budget Circular no. 112, and relevant
laws, rules, and regulations. Finally, budget accountability is exercised through
submission of receipts and expenditures, and accountability reports and evaluation of
performance of each department/office (DBM, 2016). For the purposes of this study, only
the Local Budget Accountability (LBAc) numbers 4 and 5 are applicable upon project
implementation. Likewise factored in on budget accountability is the Philippine Public
Sector Accounting Standards (PPSAS) and the accounting standards set forth for the
public sector by the COA in pursuit of COA Resolution No. 2014-03 (COA, 2016; Public
Financial Management, 2012). Furthermore, the accrual accounting espoused in the
Philippine Accounting System is hereby considered to identify the financial aspect of the

27
project. The components determined under accrual accounting are as follows: assets,
liabilities, net assets/equity, revenue, and expenses (COA, 2014). Hence financial
requirements were recorded in the required financial documents following these
categories and only the years they are deemed inquired or acquired.

Assumptions in the Financial Projections

In addition to the budget and auditing requirements, standard set forth in relevant
laws, rules and regulations, and the mechanisms established by oversight agencies,
other assumptions that may affect the project in general and the financial projections in
particular should be recognized. Specifically, these are localized components pertaining
to economic, social, physical, and environmental conditions of the barangay:

a. Climate elements are the primary considerations to be recognized. For instance,

dependence on light availability, natural rainfall, air, relative humidity, and
temperature may limit the production to seasonal harvest (Cofie, et. al., 2009;
Geography Revision, 2019, January 24).

b. Physical factors such as soil fertility may affect the production level, and
consequently, the revenue and sustainability of the urban farming project.
Accordingly, related considerations such as harmful insects, pest control, and
diseases also must be considered. In addition, the location being in a highly
urbanized and densely populated area may pose great risks. These include
externalities inimitable to urban areas such as risks of soil and water
contamination (Cofie, et al, 2009; RUAF Foundation, 2017).
c. Economic factors, including the social relationships contained therein, shall also
be considered. Subsidies, commodity prices, labour laws, and transport
requirements ultimately affect the production cost and revenues (Geography
Revision, 2019, January 24). Relations with traders and sellers must likewise be
evaluated to identity the optimal flow of vegetable crops in the market and the
profit.
d. Social elements such as land ownership and type of farming method adopted
affect the produce and, thereby, the profit (Abdalla, 2012; Geography Revision,
2019, January 24; Hagey et. al., 2012).
e. Farm income in urban agriculture is also highly affected by the types of crops
grown. Cultivating highly sensitive vegetables (i.e., highly perishable and
seasonal crops) are particularly tied to the quality of farming performance
(Abdalla, 2012).

28
Financial Statements
To project all required financial resources for the operationalization of the urban
farming project, financial statements presented herein cover five-year financial
requirements. Particularly, the three financial statements were made to identify total
amount of resources needed and determine optimal ways to generate and utilize the
budget. These statements are thus vital inputs in analyzing the relevance, feasibility,
and sustainability of the urban farming project.

All estimates and projection contained herein are based on the most recent data
gathered through interview and document analysis from Barangay Matandang Balara,
the Department of Agriculture (DA), the Philippine Statistics Authority (PSA), the Local
Government of Quezon City, the Food and Agriculture Organization (FAO) of the United
Nations (UN), as well as from the extant empirical literature. The projections for the
second to fifth years are hinged upon the estimated inflation rate by Statistica (2019):
2.25% for 2020, 3.11% for 2021, and 3% for 2022 to 2024.

Highlights of the financial analysis are presented and discussed in this chapter.
For the detailed computations, please see Annex.

Total Cost and Assets

In accounting, cost is defined as the total of cash equivalent or cash amount
necessary to establish or operationalize an asset or a project (Accounting Coach, n.d.).
On the other hand, asset is defined by COA (2014:2) as the “resources controlled by an
entity as a result of past events, and from which future economic benefits or service
potential are expected to flow to the entity” and are classified as either fixed or current.

For the urban farming project, the fixed assets are the equipment and facility that
compose the nursery, namely: the building, storage room, machinery and equipment,
desk computer and the nursery structure. On the other hand, current assets are the
raw materials or the inputs for production, to wit: soil and assorted vegetable seeds (i.e.,
radish, okra, eggplant, tomato). Other small assets are mostly supplies such as rake,
sprinkler, and sprayer. Finally, also counted under current assets are the intangible
assets such as insurance and conduct of the eight-session capacity building programs.

Source of Funds
The Barangay Matandang Balara already allocated a total of 650,000.00 Php for
the project. Still, since the initial allocated and earmarked amount is insufficient for the
sustainability of the project, below are other fund sources that shall be expedited:

29
 • City Planning and Development Office of the Local Government of Quezon City
may provide appropriations for this project, subject to availability of funds.

• Financial support can also be expected from the National Government, specially
the Department of Social Welfare and Development (DSWD). As stated in the
DSWD Memorandum Circular no. 12, s. 2018, the Sustainable Livelihood
Program (SLP) helps to improve socio-economic conditions of marginalized
citizens by providing direct assistance to different levels of potential areas of
implementation, including barangay level.

• In the long run, the annual financial resource requirements of this project can
be supported by the urban agriculture and vertical farming bills filled by Senator
Francis N. Pangilinan on July 31, 2019 and by Hon. Salvador B. Belaro Jr on
April 25, 2018 should they be promulgated into a law. Section 8
(“Appropriations”) of House Bill no. 7526 specifies that an initial amount of
100,000,000.00 Php is allocated for this endeavor. Hence, upon enactment,
Brgy. Matandang Balara could file for financial assistance of the urban farming
project.

Financial Statements

a. Income Statement
The income statement shows the projected financial results from the total revenues
and expenses for the first five years of the urban farming project (COA, 2014). Following
the standards set forth in the PPSAS, revenues are the gross inflows of economic
benefits/services received or to be received during the accounting period. It also includes
decrease in the liabilities of the entity (COA, 2014). For this project, revenue is based on
the urban farm yields. Cost of production such as raw materials and direct labor expenses
are discounted off because they are part of the projected expenses. Moreover, no
opening and closing stocks had been factored in because the objective is to exhaust all
yields, either through selling or through direct consumption. This distribution method shall
be maintained throughout the project implementation as the products are highly
perishable.

On the other hand, gross outflows or expenses covers all forms of “decreases in
economic benefits or service potential during the reporting period in the form of outflows
or consumption of assets or incurrence of liabilities that result in decreases in net
assets/equity, other than those relating to distributions to owners” (COA, 2014:11). This
includes supplies, raw materials, training fees, and maintenance and other operating
expenses such as water, salary of personnel (management staff), and repair.

30
 Here are the important details in understanding the projected five-year expenses:

• Supplies and Materials: Highest expenses is incurred during the first year
because all materials had to be bought. These materials (i.e., garden tools)
shall be properly used, maintained, and stored to prolong their lifespan. The
only supplies that shall be acquired on an annual basis are the vegetable
seeds, net bags, and fertilizer.

• Electricity: Computed based on the electricity consumption during the conduct

of trainings and use of several electric appliances in the office building (i.e.,
computer, air conditioner, lighting) .

• Water: Projections based on the standard estimate of water consumption (in

cubic meter) for irrigation.

• Repairs and Maintenance: All equipment and materials are brand new at the
onset of the project implementation. Hence, there will be no appropriation for
the first year but budget allocation shall increase as shelf-life decreases.

• Delivery Expenses: Transportation expenses is estimated at 1,000.00 Php

per month under the assumption that yields will be delivered to market/s nearby
the farming site. The average production cycle/harvest schedule for the
identified crops is 49-63 days. Thus, delivery of produce to nearby markets is
expected to be every 7-9 weeks.

• Training Expenses: High expenses incurred in the first year because all
farmers and management staff shall be trained.

b. Cash Flow
As a government-funded project, the cash inflow is composed of the annual
subsidy of P1,000,000 from different government agencies and the revenues. Given that
it is a small-scale project intended to sustain a barangay level income, it is not expected
that the project will be financially viable within the five-year implementation period. The
cash flow heavily relies on the subsidy from sponsors as revenues gained will be
insufficient to recoup the starting capital required and the day-to-day operating expenses.
Particularly, the subsidy shall cover the large expenses of the project, to wit: electricity and
water consumption.

31
 c. Balance Statement
The Balance Statement displays the assets and liabilities of the project. As
elaborated in the earlier parts of this chapter, assets are defined as the resources
wherein future economic benefits shall result into. Liabilities, on the other hand, are
defined by the COA (2014: 3) as the “obligations of the entity arising from past events,
the settlement of which is expected to result in an outflow from the entity of resources
embodying economic benefits or service potential”.

To factor in the wear and tear of fixed assets, depreciation is incorporated in the
five-year projections. Based on the COA (2004) guidelines for computing depreciation
expense of government property, plant, and equipment, the computation below was
adopted:

4/,,'.#5 67"8#$ − :*2.;8/& </&8*

!"#$ℎ&' )*+,*-./$."# 01+*#2* =
:*7/.#.#5 =2*>8& ?.>*

Where:
• Carrying Amount: Cost – Accumulated Depreciation

• Residual Value: 10% of the cost

• Remaining Useful Life: Revised Useful Life – Age of the Assets

Expressed in Months
The table below shows the annual projected values for the Fixed Assets:

32
Table 10. Depreciation Expense for Fixed Assets

Fixed Carrying Residual Life Calculated

Asset Amount Value Span Monthly
Depreciation
Expense
Nursery P17,980 P1,798 15 years Year 1: P0.00
or 180 Year 2: P96.32
months Year 3: P103.73
Year 4: P112.38
Year 5: P122.59
Office P1,005,411 P100,541 10 months Year 1: P0.00
Building and .10 or 120 Year 2: P2,501.53
Storage months Year 3: P2,588.20
Year 4: P2,681.07
Year 5: P2780.81
Computer P20,000 P2,000 5 years Year 1: P0.00
or 60 Year 2: P375.00
months Year 3: P500.00
Year 4: P750.00
Year 5: P1500.00

Profitability
In lieu of the aforementioned considerations and projections, the financial analysis
reveals that the urban farming project is only profitable and sustainable when there is
subsidy from the government agencies. The relatively high expense that will be incurred
are primarily due to required fixed assets.

In terms of expenses directly related to the farming operations, the garden tools
that shall be bought prior the operation and the monthly water consumption are the
highest. Hence, if the overhead expenses and the indirect costs will be covered by the
subsidy, the project is viable.

33
 V. SOCIO-ECONOMIC ANALYSIS

Socio-economic analysis is a necessary process in a feasibility study to determine

the socio-economic desirability of the proposed project (DAP, 2007). Unlike
outputs/services by the private sector, government outputs/services place utmost
importance to socio-economic desirability. Specifically, more than the projected profit,
socio-economic analysis puts premium in the ultimate effect of the project to the
beneficiaries.

As such, this chapter will comprehensively discuss the costs and benefits of the
urban farming project in the perspective of its beneficiaries—the barangay itself. It will
also present the economic benefits in terms of employment, wages and salaries, supply
and demand for materials, and revenues. The net present value (NPV), internal rate of
return (IRR), benefit-cost ratio (BC Ratio) and the cash payback shall be employed to
determine the project’s socio-economic desirability.

Intangible Cost-Benefit Analysis (CBA)

Non-quantitative information is vital for decision-making since not all costs and
benefits can be monetized (Buckley and Peterson, n.d.). Presenting the intangible aspect
of the project is required to fully assess the feasibility of the project. Consequently, “the
more intangible the non-monetized benefits are, the bigger the quantitative benefit-cost
ratio should be” (Buckley and Peterson, n.d.:8).

Intangible Benefits:

a. Community Building – Urban farming like this can revitalize neighborhoods by

increased social bonds and networks between and among neighbors and people
who participate in the urban farming project (Plumer, 2016).

b. Improved Neighborhood – Several studies also show that urban farming also
“improved neighborhood aesthetics, reduced crime, and community cohesion”
(Plumer, 2016).

c. Air Quality Improvement – Quality of air of the immediate environment is

improved as plants reduce carbon dioxide and produce oxygen. They also improve
air quality by lessening negative effects of contaminates (BStone, 2010).

d. Agriculture learning experience and appreciation – The urban farming project

also serves as a great opportunity for the beneficiaries to learn and experience

34
 firsthand urban farming. Consequently, it also allows them to appreciate the value
of farming and its overall contribution to the Philippine society.

e. Direct Access to Fresh and Healthy Vegetables – The barangay shall have
direct real-time access to the freshly harvested vegetables thereby consuming
vegetables with their optimum level of freshness and nutrition.

Intangible Costs:

No intangible cost is identified for this project.

Tangible CBA

Tangible CBA, or just CBA, is an approach that allows organizations/communities

to maximize the combined or aggregate welfare of all its members (Iglesias, 2001).
Subtracting monetary values of all estimated costs and benefits is the object of analysis
(Kenton, 2019; Iglesias, 2001). For the purposes of this feasibility study, tangible CBA
shall be conducted through the adoption of three measurement tools discussed in the
next section of this chapter. Nonetheless, it is imperative to recognize the costs and
benefits that shall be considered.

Tangible Benefits:

a. Revenue from yields – Revenue from the yields shall be used to sustain the
operation of the urban farming project.

b. Additional source of income – The urban farming project also serves as a

stable source of income to participating barangay members.

Tangible Costs:

a. Sunk Cost – Cost incurred prior the official start of project implementation. It
includes all costs acquired in this feasibility study such as printing cost and
those involve in site inspection.

b. Capital Cost – Cost for development and preparing the site for the urban
farming project. These are fixed costs such as those involve in the construction
of the nursery.

c. Maintenance and Other Operating Expenses – Includes all costs involve in

order to sustain the day-to-day operations of the project such as materials,

35
 labor, electricity, water, and other monitoring and evaluation costs.

Measurement Tools

a. Net Present Value

The Net Present Value (NPV) is used to determine the economic desirability of the
project because it provides the net or difference between the present values of cash
inflows and outflows. It is primarily used in capital budgeting to identify and analyze the
economic profitability of an invested or project. Factoring in the present value of future
total benefits and cost, its basic principle is that a zero and positive net indicates project
earnings/investment vis-à-vis the anticipated costs while a negative indicates that total
costs exceeds the benefits. For the purposes of this socio-economic analysis, 15%
discount rate that shall be employed, which is the standard used by the National
Economic and Development Authority (NEDA).

The aim of any project/investment is to gain positive net or for the first years, even
to just breakeven. Hence, a positive NPV is required to ensure that the project is
profitable. To compute for the NPV, the annual benefits and costs shall be identified based
on the computed values in the financial analysis. Subsequently, all costs and benefits will
be discounted using:

discount factor (df ) = 1/(1+r)n

Where df = discount factor

r = discount rate
n = No. of years over which a future value is being
discounted

Then, calculate the Present Value (PV) using the formula:

PV = FV x df

Where PV = Present Value

FV = Future Value
df = discount factor

Lastly, compute the NPV using the formula:

NPV = ∑ [(B – df) - ∑(C – df)]

36
 Where B = benefit
C = cost
df = discount factor

Year Benefits Costs n df Discounted Discounte

Benefit d Cost

2020 0 1,587,1 0 1 0 1587161

2021 1,914,940.00 61.00
476,00 1 0.8696 16652 413929.6
0.00 31.824
2022 1,947,877.84 277,48 2 0.7561 14727 209802.6
2023 1,948,792.78 287,74
0.00 3 0.657 12813
90.435 189193.4
28
2024 1,949,707.72 298,69
6.76 4 0.571
5 11146
31.253 170762.1
947
2025 1,950,622.66 310,34
1.88 5 0.497
7 96984
47.904 154301.4
479
Total 9711941.00 323742
0.86 2 6503851.00
9.5866 2725150.35
773
NPV0.50 3778700.65

Table 11. Net Present Value Calculation

The NPV of the project is P3,778,700.65, which is positive and greater than zero.
Therefore, the project is economically feasible because the total discounted benefits is
higher than the total discounted costs.

Internal Rate of Return (IRR)

The Internal Rate of Return (IRR) is a metric/indicator employed to identify the

profitability of potential investments. In simple terms, the IRR is the discount rate that
makes the NPV of all cash flows from a project/activity equal to zero. The urban farming
project is a good investment if the IRR is greater than the rate of interest which could
have been spent on an alternative investment. The formula for IRR is as follows:

IRR = r+ + NPV+(r- - r+)

NPV+ + NPV-

Where r+ = biggest discount with positive NPV

r- = smallest discount rate with negative NPV
NPV+ = the NPV at r+
NPV- = the NPV at r-

Using financial calculators and built -in programs to compute the IRR, this
project’s IRR is 69%. This indicates that the project is profitable as it is above 1%.

37
Benefits-Cost (B-C) Ratio

The Benefits-Cost Ratio or the Profitability Index Rate is employed in a cost-benefit

analysis to summarize the relationship between the discounted relative costs and
benefits of a project/proposal. Picking from the long-method formula of computing the
NPV, it is the ratio of the benefits and costs, expressed in monetary terms. Below is the
formula:

B- C Ratio = Total Discounted Benefits

Total Discounted Cost

The B-C Ration of the proposed project is 2.37. Since the value is greater than 1,
the benefits from the project is greater than the costs, hence, the project is a good
investment.

38
 VI. RISK ASSESSMENT

As an integral part of this study, this chapter evaluates the risks of the project
aimed to create awareness, recognize potential hazards, and give recommendations on
how to control and monitor these risks. The main objective of the Risk Assessment is to
reduce undesirable incidents through proactive measures in order to achieve success
and sustainability of the project.

Risk Risk Indicator / Cause Total RANK

Detectability

Importance
Probability

Impact
Gardening Gardening Tools 3 3 3 3 12 1
Activities Chemicals used in the garden 1 3 2 3 9
Plant dermatitis 1 2 1 3 7

Low quality Quality of products did not 2 3 3 3 11 2

produce meet intended expectations

Human 1. Lack of gardening personnel 2 3 3 3 11 3

Resources 2. Employee differences /
Managemen grievances
t Risk 3. Poor people management

Site Safety Unsafe Ground 2 3 2 3 10 4

Conditions

Marketing Increased numbers of 1 3 2 3 9 5

Risk competing growers or changing
consumer preferences

Financial 1. Increased input costs, 1 3 2 3 9 6

Risk 2. Unsustained financial
support
3. Higher cash demand for
family needs

Production 1. Weather conditions such as 1 3 1 2 7 7

Risk excessive rainfall or drought
2. Damage caused by insect
pests

39
 Risk Risk Consequence Contingency Plan Monitoring
Indicator System
Gardening Gardening Cuts and 1. All members 1. Maintain Tools
Activities Tools injuries must have basic Condition
training in tool Monitoring
safety. Checklist to be
2. Do not use checked by staff
broken tools. every month
3. Ensure that the 2. Maintain a First
tools are regularly Aid Kit Inspection
checked for safety. Checklist to
4. Wear proper ensure availability
safety gardening of needed
gears. medicines and
5. Staff should have supplies
first aid box during
gardening.
Chemicals Inhalation, skin Adopt 1. Label the plants
used in the or eye contact. environmentally accordingly in the
garden sensitive approach garden.
to gardening as 2. If using
preventing the use chemicals, ensure
of chemicals. If proper storage
used, ensure all and safekeeping.
chemicals are
clearly marked and
stored in
accordance with
health and safety
regulations. The
application and use
must be through
qualified adults
only.
Plant Skin irritation, 1. Be aware of any 1. Head gardener
dermatitis allergic plant allergies to must be aware of
reactions avoid contact and the plant
allergic reactions. characteristics
2. Ensure to wear and possible
gloves at all times. allergic reactions.
3. Wash hands Corresponding
properly and information must
thoroughly after be cascaded to all
gardening. gardeners through
training and
ensure list of
attendance.

40
 Risk Risk Consequence Contingency Monitoring
Indicator Plan System

Low quality Quality of Lack of trust Review product Conduct

produce products did from the specifications and monthly Client
not meet beneficiaries regularly take into Satisfaction
intended account client’s Survey to get
expectations feedback direct feedback

Human 1. Lack of Toxic working 1. Establish good 1. Maintain a

Resources gardening environment relationship and training
Management personnel open database to
Risk 2. Employee communication monitor trained
differences / with farmers and and untrained
grievances family members. personnel
3. Poor 2. Provide regular 2. Establish
people trainings and rewards and
management capability- recognition
enhancement to program with
employees. proper criteria.
3. Recognize and
reward good
performance.

Site Safety Unsafe 1. Slips/Falls 1. Staff

Ground 2. Discomfort, training/awareness
Conditions illness 2. Wearing of
safety gears

Marketing Increased 1. Lower sales 1. Form or join a Maintain regular

Risk numbers of and prices marketing Market Analysis
competing 2. Unsold / cooperative to on neighboring
growers or unconsumed enhance prices communities
changing products and guarantee a
consumer market.
preferences 2. Increase direct
marketing efforts
to capture a higher
price.
3. Conduct
essential market
research -
understand your
customers’ needs
and preferences

41
 Risk Risk Consequence Contingency Monitoring
Indicator Plan System
Financial 1. Increased Expected 1. Conduct Maintain simple
Risk input costs, target financial literacy monthly financial
2. production training for statements to
Unsustained and level of farmers. identify
financial profit are 2. Develop a production and
support unmet strategic business financial trend
3. Higher plan.
cash 3. Control key
demand for farm expenses by
family needs considering
alternative
suppliers and
other inputs.
4. Communicate
and renegotiate
agreements with
suppliers and
lenders.
5. Control
unnecessary
family and
household
expenditures.
6. Evaluate other
sources of
employment.

Production 1. Weather 1. Damaged 1. a. If gardens Keep updated

Risk conditions plants and become flooded on changing
such as crops and waterlogged weather
excessive 2. Sunburn, do not harvest conditions and
rainfall or dehydration, crops from these prepare disaster
drought hypothermia areas for plan in case of
2. Damage due to intense consumption, and possible
caused by weather relocate garden to relocation
insect pests conditions area that has not
been flooded. Do
not grow crops in
flooded area for at
least 2 years after
the flood

42
Risk Risk Consequence Contingency Monitoring
Indicator Plan System

b. Ensure to
water the plants
and keep the
roots moist. Pull
up weeds and
mulch around the
plants to help
conserve water
and keep the
plants stronger.

2. Ensure to
mitigate risks by
adopting controls
such as trop crop
and resistant
varieties.

3. Wear
appropriate
clothes and safety
precautions best
suited for the
weather condition

43
 VII. ENVIRONMENTAL IMPACT ANALYSIS

The establishment of a vegetable garden/plantation on a 4,281 square meter

vacant lot is a project of the Barangay Old Balara in Quezon City. It is primarily intended
to 1) support its nutrition program in order to reduce the incidence of malnutrition, 2) raise
awareness and serve as training ground to those who are interested to venture into agri-
business, and 3) provide additional income to its constituents.

Project Description, Location and Area

44
Applicability of Presidential Decree No. 1586

Existing regulations of the DENR exclude the proposed urban garden/plantation

project from the operation P.D. 1586 or the “Philippine Environmental Impact Statement
System”. EMB Memorandum Circular No. 2014-005 provides for a screening guideline
wherein thresholds were established to determine whether a project proposal will be
required an Environmental Compliance Certificate (ECC), and whether the study would
be an Environmental Impact Statement, an Initial Environmental Examination (IEE)
checklist, or simply a Project Description. The applicability and type of study required for
the project is hereunder reproduced, to wit:

Project Covered (required to secure ECC) Not Project size

Description Covered parameters
(may
secure
CNC)
Category Category B: Non-ECP Category D
A: ECP
EIS EIS IEE PD (part 1
Checklist only)
Agriculture industry
Agricultural None >500 hectares >50 <50 Aggregated
plantation hectares hectares by
(e.g. but <500 municipality -
orchards, hectares based on
including contracting
rubber party
plantation)

Accordingly, the proposal will fall under category D, or “those projects or

undertakings that are deemed unlikely to cause significant adverse impact on the quality
of the environment”. As such, an Environmental Compliance Certificate is not required
to be secured by the proponent, and a certificate of non-coverage can be issued by the
Environmental Management Bureau – National Capital Region to establish proof of
exemption. It must however be cleared that said non-coverage shall not be construed as
an exemption from compliance with other environmental laws and government permitting
requirements. Nonetheless, an Environmental Management Plan has been developed to
inform the proponent barangay of the possible adverse impact of the project and the
options for mitigation as well as enhancement of positive ones.

45
Table 12. Environmental Management Plan

Project Phase/ Environmental Options for Responsible Cost Guarantee/financial

Environ- Component likely to prevention or entity arrangements
mental Aspect be affected/ mitigation or
potential impacts enhancement
Plantation 1.1) Site
Establishment preparation
and maintenance a.) Land
Change in land use Temporary Barangay N.A. related Land use plan
patterns, activities change from Officials to land use
grass-covered policy
(this is the management
description of the
land prior to
plantation/garden
development) to a
clear area for the
purpose of land
preparation.
There is no need
to change land
classification,
considering that
the implementa-
tion of the urban
vegetation project
is temporary in

46
 nature. There will
be no permanent
structure to be
constructed in the
project area.
Contouring to There will be Barangay Part of the Annual budget/allocation
enhance soil stability minimal Officials/machi clearing site
in plantation site disturbance in the ne operators development
project area. The budget of
area will only be 2,500 for the
levelled as part of use of back-
land preparation hoe loader
Soil disturbance by Effect would be Barangay part of the Appropria-
removal of vegetative temporary as officials Stan- tions and support from
cover leading to soil vegetable garden dard Opera- other private institutions
erosion will immediately ting Proce-
follow. Likewise, dure as well
storm drain will be as cost of
provided along the seed-
the periphery of ling produc-
the entire area to tion.
the mitigate run-
off
b.) Water
Increase in Timely planting of Workers/volun More on Annual appropria-
streamflow due vegetable and teers operations tions and/or use of multi-
vegetation removal other crops commissioned sche- use seedlings
immediately after by the duling policy
sire clearing Barangay

47
Degraded streamflow Establish storm Volunteers/wo Benefi- Annual appropria-
due to vegetation drain as well as rkers ciaries of the tions
removal easement from 4Ps prog-
adjacent ram
road/walkway as
riparian reserves
c.) Air
Air pollution caused Burning is Barangay Baran- Part of the operations plan
by burning of prohibited under Officials gay officials
biomass/discarded the Solid Waste workers/
vegetation Management Act volunteers
or R.A. 9003.
Hence, the
discarded
grass/cogon will
be converted into
compost material
to serve as
fertilizers for the
vegetable
/crops

48
Table 13. Environmental enhancement as a result of the proposed community garden/urban
farm
Environmental benefit
Improved soil quality
Reduction of stormwater run
off
Increased biodiversity
Reduced carbon emissions
Waste reduction
Description
● Reduce soil compaction
● Increase organic matter
● Improved nutrient content
● Increased microbial activity
● Improved drainage
● Reduced contamination
● Reduced compaction and increased drainage in
vacant lot/project area thereby increasing
infiltration
● Increased microbial biodiversity and earthworms
in soil in vacant lot/project area
● Increased earthworms and garden insects attract
birds
● Decreased food miles reduced carbon dioxide
emission
● Food waste is diverted from landfills for compost
in a compost pit to be established as part of the
vegetable garden/plantation
49
 VIII. ORGANIZATION AND MANAGEMENT ANALYSIS

This section explains the roles and functions of the Community Based Urban Farming
Team to be created in the barangay for the implementation of the proposed project.
Maximizing the positions of existing barangay officials and partner beneficiaries to implement
the project can reduce the costs and increase the sense of proprietorship of the project.

Project Ownership

This feasibility study on Barangay Matandang Balara urban farming project will be
owned by the Barangay as a single proprietorship. It will be managed and operated by
barangay itself. Participation of partner beneficiaries as empowerment is emphasized in the
organizational chart. The Barangay will have the authority to edit their own organizational
structure and allocate necessary work functions as they deem necessary and appropriate.

Organizational Chart

The barangay organizational management and operation of the Community-Based

Urban Farming project will demonstrate the flow and relationship of the team members in
accordance to the organizational chart indicated below:

Barangay Captain

Barangay Kagawad
Barangay Secretary / Urban Farming Focal
(Focal in Health and
Urban Farming)
Barangay Treasurer Person

Administrative
Barangay Tanods 5 Urban Farming
Planning / Budget /
(Peace and Order) Finance
Team Leaders

50 Urban Farming
Partner Beneficiaries

Figure 18. Organizational Chart

50
Project Members and Roles and Functions

In consideration of the analyses presented in the earlier parts of this paper, for the
smooth and efficient implementation of the project, the group has identified project
members for the organizational and management of urban gardening project in Barangay
Old Balara, Quezon City.

Table 14. Project Team Members and Roles

TEAM MEMBERS ROLES AND FUNCTIONS

BARANGAY CAPTAIN
BARANGAY KAGAWAD
BARANGAY TREASURER
BARANGAY SECRETARY
OVERALL FOCAL
PERSON COMMUNITY-
BASED URBAN FARMING
URBAN FARMING TEAM
LEADERS
• Acts as the Chairperson of the Community-Based
Urban Farming Team
• Ensures that the program is smoothly and efficiently
moving
• Responsible for the successful leadership and
management of the urban farming in Barangay
Balara, its activities, expansion, and execution of its
mission, according to the strategic direction set by the
team
• Acts as the Secretary of the Community-Based Urban
Farming Team
• Oversees the over-all implementation of the
Community-Based Urban Farming Project in the
community including administrative operations,
planning, marketing and coordination
• Responsible for the overall financial functions of the
project including financial management and execution
• Assists the Community-Based Urban Farming Team
in the implementation including but not limited to the
following tasks: documentation, proposal making,
submission of manual and online reports, monitoring
and others
• Acts as the Co-Chairperson of the Community Based
Urban Gardening Team
• Assists the Chairperson to ensure the smooth and
efficient implementation of the Urban Gardening
• Ensures the proper listing and genuine participation
of all the targeted household partner beneficiaries
• Act as the leaders or coordinators of household
clusters of beneficiaries

51
 • Provide technical assistance to household
beneficiaries in coordination with the Community-
Based Urban Farming Team
• Monitor the established community garden
• Attend capacity building activities and other meetings
HEALTH CENTER FOCAL • Leads the conduct of the baseline and endline survey
in coordination with the Community-Based Urban
Farming Team
• Provides significant local data on food and nutrition
PARTNER • Participate in the establishment of the community
BENEFICIARIES garden
• Attend Urban Farming Program orientation, capacity
building activities and other meetings
• Consume their own food produced in their community
to ensure mitigation and/or elimination of hunger and
malnutrition within the family circle
• Abide by the rules and regulations established by the
Urban Farming Team for the smooth implementation
of the program
• Continue planting vegetables even after the project
cycle
BARANGAY TANODS • Guard the day-to-day implementation of Community-
Based Urban Farming

52
Table 15. Project Scheduling

PROJECT PHASE BRIEF DESCRIPTION OF THE START DATE END DATE TIME FRAME
ACTIVITY
PRE-IMPLEMENTATON PHASE
1) Organization of Urban The Community Based Urban Farming 1st day of the 1st 5th day of the 1st 5 days
Farming Management Team will be created through a month month
Team Barangay Ordinance. Refer to the
Organizational Chart for the
composition of the team.
2) Identification of Priority beneficiaries are those with 6th day of the 1st 16th day of the 1st 10 days
beneficiaries high incidence of poverty and month month
malnutrition.
3) Conduct of Food and This will be done at the beginning of 17th day of the 1st 27th day of the 1st 10 days
Nutrition Baseline the project to serve as baseline data. month month
Survey
4) Orientation and This will be done for project partner 26th day of the 1st 28th day of the 1st 2 days
planning workshop beneficiaries and other concerned month month
for the team and other individuals to get familiarized with the
stakeholders
project as a malnutrition and hunger
mitigation project.
IMPLEMENTATON PHASE
1) Procurement process Bidding, canvass of garden tools, 1st day of the 2nd 10th day of the 2nd 10 days
seeds, seedlings, production and other month month
farm tools and actual inputs
2) Site preparation Prepare garden soil, beds, nursery by 11th day of the 2nd 30th day of the 2nd 20 days
digging to loosen the soil and adding month month
organic materials
3) Establishment of Only the best open-pollinated native 1st day of the 3rd 30th day of the 5th 90 days
community garden vegetable varieties – no hybrids- will month month
be used so growers can repeatedly
use the harvested mature seeds for
subsequent planting.
4) Conduct of monthly Sitio level meetings and monitoring Every 15th day of the 15th day of the 6th 5 days
meetings and month since 2nd month
monitoring month

53
5) Regular reporting Reporting will be done after the Every 1st day of the 1st day of the 6th 5 days
monitoring of the urban community month since 2nd month
farm month
POST-IMPLEMENTATON PHASE
1) Conduct of Food and This will be done at the end of program 30th day of the 6th 5th day of the 7th 5 days
Nutrition Endline cycle to serve as the endline data. month month
Survey
2) Conduct of Assessment and workshop will be 5th day of the 7th 8th day of the 7th 3 days
community conducted in the community month month
assessment of the
project
3) Terminal Reporting Terminal reporting will be done after 9th day of the 7th 10th day of the 7th 3 days
harvest of one planting / cropping month month
cycle.

54
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BStone. (2010). Help reduce pollution by Growing Plants, Bright Hub. www.brighthub.com/
environment/green-living/articles/61664.aspx
Buckley, J and Peterson, H. (n.d.). Preliminary Cost-Benefit Analysis for Urban Agriculture:
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cost-ben-150904-more-index.pdf
COA. (2004). Circular Letter 2004-003: Computation of Depreciation Expense of
Government Property, Plant and Equipment with Revised Useful Life and
Adjustments Arising from the Revision. Quezon City: COA.
COA. (2014). Government Accounting Manual for National Government Agencies
Volume I: Accounting Policies, Guidelines and Procedures, and Illustrative
Accounting Entries. Quezon City: COA
COA. (2016). The Philippine Public Sector Accounting Standards (PPSAS). A powerpoint
presentation presented on 23 August 2016.
Cofie, O., Dubbeling, M. & Egyir, I. (2009). Options for Local Financing in Urban
Agriculture. Accra: International Water Management Institute.
Colcol, E. (2018, December 20). Hontiveros hails signing of law giving gov’t support to
first 1,000 days of life. GMA News Online. Retrieved from
https://www.gmanetwork.com/news/news/nation/678919/hontiveros-hails-signing-
of-law-giving-gov-t-support-to-first-1-000-days-of-life/story/
Department of Budget and Management. (2019, May 15). Local Budget Memorandum
no. 78 – Indicative FY 2020 Internal Revenue Allotment (IRR) Shares of Local
Government Units (LGUs) and Guidelines on the Preparation of the FY 2020
Annual Budgets of LGUs
Department of Budget and Management (n.d.). Briefer on the FY 2019 National Budget.
Retrieved from https://www.dbm.gov.ph/images/pdffiles/DBM-ACBA-FY-2019.pdf
Development Academy of the Philippines (DAP). How to Prepare Project Feasibility
Studies. Manila: DAP.
DSWD. (2018). Memorandum Circular No. 12, Series of 2018. Public Financial
Management: Implementation of the Sustainable Livelihood Program. Retrieved
from https://www.dswd.gov.ph/issuances/MCs/MC_2018-012.pdf
Geography Revision (2019, January 24). Factors affecting Farming. Geography
Revision. Accessed through https://geography-
revision.co.uk/gcse/agriculture/factors-affecting-farming/

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House Bill no. 7526. Accessed through
http://www.congress.gov.ph/legisdocs/basic_17/HB07526.pdf
Hagey, A., Flournoy, R. & Rice, S. (2012). Growing Urban Agriculture: Equitable
Strategies and Policies for Improving Access to Healthy Food and Revitalizing
Communities. PolicyLink (no place indicated).
Iglesias,G.(2001).PM242:Introductiontothemethodsofpolicyanalysis.QuezonCity:U.P.Open
University.
Kenton, W. (2019, June 23). Cost-Benefit Analysis.

Local Government Code of 1991 (RA no. 7160). Accessed through

https://www.officialgazette.gov.ph/1991/10/10/republic-act-no-7160/
n.a. (n.d.). “Child Survival”. Retrieved from https://www.unicef.org/philippines/child-
survival.
n.a. (2019, October 16). “UNICEF: Many children and adolescents in the Philippines are
not growing up healthily”. Retrieved from https://www.unicef.org/philippines/press-
releases/unicef-many-children-and-adolescents-philippines-are-not-growing-
healthily.
n.a. (2016). Budget Operations Manual for Local Government Units 2016 Edition.
Retrieved from https://www.dbm.gov.ph/wp-
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inside%20pages-correct%20paging-FINAL.pdf
n.a. (2019, February 26). National Budget Memorandum no. 131 – National Budget Call
for FY 2020. Retrieved from https://www.dbm.gov.ph/wp-
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26Feb2019.pdf
PhilAtlas (n.d.). Matandang Balara. Retrieved from
https://www.philatlas.com/luzon/ncr/quezon-city/matandang-balara.html
Plumer, B. (2016, October 12). The real value of urban farming. (Hint: It’s not always the
food.). Vox. Accessed through https://www.vox.com/2016/5/15/11660304/urban-
farming-benefits
Public Financial Management. (2012). Philippine Public Financial Management (PFM)
Program. A powerpoint presentation given on December 2012.
Rivas, R. (2019, August 06). William Dar aims to quadruple agri growth, double farmers’
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william-dar-aims-agriculture-growth-double-income-farmers
RUAF Foundation. (2017). Urban Agriculture: What and Why? Retrieved from
http://www.ruaf.org/urban-agriculture-what-and-why.
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Senate Bill no. 257. Accessed through
https://www.senate.gov.ph/lisdata/3053427399!.pdf
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https://www.who.int/nutrition/nlis_interpretation_guide.pdf

57
ANNEXES

A. Total Project Cost

Total Project Cost

1,587,161.00

COST in TERMS
COST PER UNIT
ITEM SPECIFIC ITEM of Amt Needed (in COST (in PhP)
(in PhP)
PhP)

Asset Requirements
Fixed Assets
Nursery
17,980.00
Mosquito net (4'x6') (10 pcs) 400/pc 4,000.00
3" Common wire nails (2 kg) 90/kg 180.00
Folding table (5 pcs) 400/unit 800.00
PolyEthyrene film (3x5m) 1000/set 5,000.00
(5 sets)
Bamboo posts (20 pcs) 400/pc 8,000.00
Building
1,005,411.00
Building construction (office) 752,940.00
Electric Utilities 20,000.00
Water Consumption 220,000.00
(1650 cubic meters)
Décor (artificial flower) 720/set 720.00
Office Chair 1929/pc 5,787.00

58
 Monobloc Chairs 1499/set (6pcs) 1,499.00
Office Table 2,166/pc 2,166.00
Filing Cabinet 2,299/pc 2,299.00
Computer Desk Computers (1 pc) 20,000.00 ₱
20,000.00

Total Cost of
Fixed Assets 1,043,391.00

Current Assets
Raw Major Items
materials 52,500.00
Garden soil (500 bags) 50/bag 25,000.00
Vermicast (50 sacks) 450/bag 22,500.00
Carbonized Rice Hull (50 sacks) 100/sack 5,000.00
Total Assorted Vegetable Seeds
84,000.00
Radish (5kg) 1200/kg 6,000.00
Okra (5kg) 705/kg 3,525.00
Eggplant (5kg) 5500/kg 27,500.00
Tomato (5kg) 3500/kg 17,500.00
Upland Kangkong (5kg) 400/kg 2,000.00
Bush Sitao (5kg) 435/kg 2,175.00
Pole Sitao (5kg) 770/kg 3,850.00
Bitter Melon (5kg) 3890/kg 19,450.00
Sweet Potato (20 bundles) 50/bundle 1,000.00
Cassava (20 bundles) 50/bundle 1,000.00
Fertilizer
3,000.00
Fermented Fruit Juice (3 units) 250/unit 750.00
Fermented Plant Juice (3 units) 250/unit 750.00

59
 Fish Amino Acid (3 units) 250/unit 750.00
Calcium Phosphate (3 units) 250/unit 750.00
Supplies Sets of garden tools (10 sets) 10,000/set 100,000.00
100,000.00
Rake (10 pcs)
Sprinkler (10 pcs)
Pick Mattok (10 pcs)
Bolo (10 pcs)
Spade (10 pcs)
Trowel (10 pcs)
Knapsack sprayer (10 pcs)
Other Materials
48,700.00
Seedling Trays - 104 holes (35 pcs) 500/pc 15,000.00
Atomizer (3 pcs) 150/pc 450.00
Pail (20 pcs) 50/pc 1,000.00
Shovel (10 pcs) 300/pc 30,000.00
Pruning Shears (5 pcs) 250/pc 1,250.00
Popsicle Sticks (10 packs) 15/pack 150.00
Funnel (3 pcs) 50/pc 150.00
Net bags (20 pcs) 10/pc 200.00
Twine (Single-ply) (2 pcs) 250/pc 500.00
Containers
7,800.00
Sacks (200 pcs) 5/pc 1,000.00
Polyethylene Grow Bags (100 pcs) 30/pc 3,000.00
Plastic Pots (100 pcs) 35/pc 3,500.00
1.5 L PET Bottles (100 pcs) 3/pc 300.00
Intangible
Assets

60
 Training
247,770.00
Meals of trainees(50 pax;8 sessions) 150/meal 180,000.00
Meals of trainer (2 pax; 8 sessions) 150/meal 7,200.00
Training Materials 500/pax 10,000.00
Token (2 trainers) 1000/trainer 2,000.00
Honoraria (2 trainers; 8 sessions) 3000/session 48,000.00
Pens (20 pcs) 7/pc 140.00
Permanent Marker (20 pcs) 10/pc 200.00
Masking Tape (5 pcs) 20/pc 100.00
Stapler (2 pcs) 65/pcs 130.00

543,770.00

Total Cost of
Current Assets 543,770.00
Total Cost of
Fixed Assets 1,043,391.00
TOTAL PROJECT
COST 1,587,161.00

61
B. Sources of funds

Amount and/or
Sources of Funds Percentage
Contribution to Proj.
Cost
Amount Percentage

Short-term Financing
1 Brgy. Old Balaea Budget for Community-Based Urban Farming* 40%
2 Quezon City's Appropriation on "City Planning and 30%
Development Office"
4 Department of Social Welfare and Development's 30%
Sustainable Livelihood Program (SLP)
Sub-total

Long-term Financing
1 Proposed Urban Agriculture and Vertical Farming Law** 100%
Sub-total

TOTAL

* A total appropriation of Php 650,000.00 was included in the 2020 Budget for this activity
** There is currently a proposed Urban Agriculture-related bills in the House of Representative and Senate. In the former,
House Bill no. 7526 entitled, "Integrated Agriculture and Vertical Farming Act of 2018". On the other hand, Senate Bill no.
257 entitled, "Urban Agriculture and Vertical Farming Act of 2019" was also filed in the Upper House. Hence, when this
proposed bills are passed into law, Brgy. Matandang Balara may apply for financial assistance.

62
 C. Income Statement

Yield Yield/Yr Price Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

(in kg) (in kg)
INCOME
Revenues:
Sales/Reven 34.5 103.5
ues
from
operation
Radish 396kg/90 2376 70
sqm - 166,320.00 172,307.52 172,473.84 172,640.16 172,806.48
Okra 300kg/90 1800 60
sqm - 108,000.00 111,888.00 111,996.00 112,104.00 112,212.00
Eggplant 315kg/90 1890 70
sqm - 132,300.00 137,062.80 137,195.10 137,327.40 137,459.70
Tomato 107kg/90 642 60
sqm - 38,520.00 39,906.72 39,945.24 39,983.76 40,022.28
Upland 750kg/90 4500 50
Kangkong sqm - 225,000.00 233,100.00 233,325.00 233,550.00 233,775.00
Bush 60kg/90 360 60
Sitao sqm - 21,600.00 22,377.60 22,399.20 22,420.80 22,442.40
Pole Sitao 60kg/90 360 60
sqm - 21,600.00 22,377.60 22,399.20 22,420.80 22,442.40
Bitter 320g/90 1920 70
Melon sqm - 134,400.00 139,238.40 139,372.80 139,507.20 139,641.60
Sweet 104kg/90 624 50
Potato sqm - 31,200.00 32,323.20 32,354.40 32,385.60 32,416.80
Cassava 120kg/50 720 50
sqm - 36,000.00 37,296.00 37,332.00 37,368.00 37,404.00
Net sales
revenue - 914,940.00 947,877.84 948,792.78 949,707.72 950,622.66

63
Less cost of
goods sold
(COGS):
Opening 0 0 0 0 0 0
stock
Plus 0 0 0 0 0 0
purchases
made
Less closing 0 0 0 0 0 0
stock
Cost of 0 0 0 0 0 0
goods sold
Gross profit 0
914,940.00 947,877.84 948,792.78 949,707.72 950,622.66

Gains:
Gain from 937161. 1000000.0 1000000.00 1000000.00 1000000.00 1000000.00
Subsidy 00 0

Total Gains
937,161. 1,914,940. 1,947,877.8 1,948,792.78 1,949,707.72 1,950,622.6
00 00 4 6

EXPENSES
Depreciation
expense - 2,972.85 3,191.93 3,543.45 4,403.40
Raw
Materials - 139,500.00 87,000.00 90,219.00 93,647.32 97,299.57
Supplies
- 156,500.00 4,000.00 4,148.00 4,305.62 4,473.54
Electricity
- 20,000.00 20,720.00 21,486.64 22,303.13 23,172.95

64
Water
- 150,000.00 155,400.00 161,149.80 167,273.49 173,797.16
Salaries for
Bldg 336,981. - - - -
Construction 00
Delivery
expenses - 10,000.00 10,360.00 10,743.32 11,162.31 11,597.64
Training 247,770. - 0 0 0 0
00

Total
Operating 584,751. 476,000.00 277,480.00 287,746.76 298,691.88 310,340.86
Expenses 00
Total Cash
(Income) 937,161. 1,914,940. 1,947,877.8 1,948,792.78 1,949,707.72 1,950,622.6
00 00 4 6
Gross
Income (I-E) 352,410. 1,438,940. 1,670,397.8 1,661,046.02 1,651,015.84 1,640,281.8
00 00 4 0
Tax (-)
- 28,778.80 33,407.96 33,220.92 33,020.32 32,805.64
NET PROFIT
352,410. 1,410,161. 1,636,989.8 1,627,825.10 1,617,995.52 1,607,476.1
00 20 8 6

65
 D. Cash Flow

PROJECTED 5-YEAR
CASH FLOW
STATEMENT

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

DESCRIPTION
Cash Inflow (amount
brought forward)

Subsidy 1,291,161.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00

Revenues from operation - 914,940.00 947,877.84 948,792.78 949,707.72 950,622.66

Total Cash Inflow 1,291,161.00 1,914,940.00 1,947,877.84 1,948,792.78 1,949,707.72 1,950,622.66

Cash Outflow
Fixed capital investment 1,291,161.00 - - - - -
Total Operating Expenses - 476,000.00 277,480.00 287,746.76 298,691.88 310,340.86

Total Cash Outflow 1,291,161.00 476,000.00 277,480.00 287,746.76 298,691.88 310,340.86

Net Cash Flow - 1,438,940.00 1,670,397.84 1,661,046.02 1,651,015.84 1,640,281.80

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 E. Balance Statement

For Community-Based Urban Farming

For 5-year period
Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Current Assets
Cash on hand or in banks
914,940.00 947,877.84 948,792.78 949,707.72 950,622.66
Raw materials
139,500.00 87,000.00 90,219.00 93,647.32 97,299.57
Major items (52,500.00)
Assorted Vegetable Seeds (84,000.00)
Fertilizer (3,000.00)
Supplies
156,500.00 4,000.00 4,148.00 4,305.62 4,473.54
Sets of Garden Tools (initial cost:100,000)
Other Materials (48,700.00)
Containers (7,800.00)
Intangible Assets (Training)
Training - - -
247,770.00 -

Total Current Assets

1,458,710.00 1,038,877.84 1,043,159.78 1,047,660.67 1,052,395.77

Fixed Assets
Nursery
17,980.00 16,824.16 15,579.40 14,230.84 12,759.76
Building and Storage
1,005,411.00 975,392.64 944,334.24 912,161.40 882,394.44
Computer -
20,000.00 15,500.00 9,500.00 500.00

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Total Fixed Assets
1,043,391.00 1,007,716.80 969,413.64 926,892.24 895,154.20

Total Assets
2,502,101.00 2,046,594.64 2,012,573.42 1,974,552.91 1,947,549.97

LIABILITIES
Liabilities
Accounts Payable 0 0 0 0 0
Tax payable
15,236.56 22,994.36 22,725.45 22,548.84 22,364.42
Others…
Total Liabilities 15236.56488 22994.3605 22725.45124 22548.83911 22364.42329

*Note: The idea is for the cooperative to be self-

sustaining. As indicated in the income statement,
there is a projected positive
income for the first five years of operation. Hence,
there is no need to apply for loans (there will be no
accounts payable to be
incurred).

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 F. Profitability

Project's Profitability, Liquidity and Cash Solvency

TESTS OF PROFITABILITY
Amount
Net Profit Margin Net income after tax 1.541260848
Sales
Profit before interest &
Operating Profit Margin taxes 1.572715151
Sales
Gross Profit Margin Gross profit 2.092967845
Sales
Return on Financier's Net Income N/A
Investment Stock equity

TESTS OF LIQUIDITY
Amount

Current Ratio Current Assets 95.73745864

Current liabilities
Acid-test ratio Current assets-inventories 95.73745864
Current liabilities
Liquidity of inventories Cost of sales 0.520252694
Average inventory

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TESTS OF DEBT-SERVICE
Amount
Debt-to-net Worth Ratio* Total liabilities N/A
Total equities
Total Capitalization Ratio Long-term liabilities N/A
Long-term liabilities &
equities N/A

Note: There are no loans to be applied.

* There are no equities because there are no contirbutions from the
owners.

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 IX. Documentation
Photos below show the fieldwork activities of the group with the officials of
Barangay Matandang Balara.

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