This research study was conducted to determine whether oil palm farmers are responsive to price variations that occur from time to time due to supply and demand fluctuations. This study, therefore, analyzed the oil palm farmers' responsiveness from the period of 2005- 2020. Specifically, it aims to (a) examine the oil palm trends in production (metric tons) and oil palm pricing in the Philippines from 2005 to 2020. (b)to identify the short run or long run relationship between oil palm production and oil palm pricing, (c)to estimate the supply elasticity of oil palm. When the Autoregressive Distributive Lag bound test is performed, it is discovered that there is a cointegrating connection, and the ARDL is then reparametrized and included in the Error correction model. The ARDL approach to cointegration estimation for the price of oil palm is inelastic in the short run and the long run. The researcher concludes that oil palm farmers are not responsive to fluctuations in their prices in the long and short run. The research study also concluded the trends of oil palm production and farmgate price of oil palm.

Keywords : ARDL Model, Cointegration, Demand, Error Correction Model, Oil Palm And Supply Response.