Use of Small Water Impounding Project as Drought Adaptation Option for Rice Farming in Apayao and Mt. Province, Philippines

ABSTRACT This study evaluated the economic viability of the small water impounding project (SWIP) as the identified priority climate‐resilient adaptation practice for drought in rice farming mapped for Apayao and Mt. Province under the Philippine's Department of Agriculture's Adaptation and Mitigation Initiatives in Agriculture (AMIA) program. The cost–benefit analysis evaluation framework under the broader climate‐smart‐agriculture‐prioritisation framework of the International Center for Tropic Agriculture was used in the project. Surveys of users and non‐users, focus group discussions and key informant interviews were used to gather and validate the data. Furthermore, cost and returns analysis was also used to derive the incremental net benefits of using the adaptation practice. The study found that four SWIPs had positive net present values (NPVs), benefit–cost ratio > 1, internal rate of return > 10% and payback periods of 2–16 years. The other two had negative NPVs because of the reduced service area caused by the damaged spillway and canals, indicating that SWIP as an adaptation option for drought hazards in rice production is economically viable as long as the service area is sustained. Last, the narrative perceptions on the advantages of the farmer‐prioritised adaptation options evaluated powerfully support the economic analysis.