The process and effects of rice commercialization on productivity, income, and living condition of 30 percent of the farmers in two rice producing villages in Nueva Ecija, Philippines were examined. Change in land tenure, irrigation, and modern technology in production positively influenced productivity. Government support through trainings and other programs were also provided, although on a limited scope, to hasten the commercialization process. Yield in the villages were found to be higher than the regional and national average. Income from rice farming constitutes the bulk of the income, but was delimited by the low price of palay in 2001. With limited education and employment opportunities in the villages, rice farming is the most strategic commodity because it had provided the major source of income and employment.
