Countries that have a productive and strong farm sector have one thing in common: They all provide support to their food producers in the form of subsidies and fiscal incentives. The United States, Thailand, Vietnam, and European countries have invested in their agriculture sector way before their accession to the World Trade Organization and their entry into regional trade agreements. They are now reaping the fruits of the foresight of their past leaders through the export dollars they are earning.
Thailand, for example, is earning more than $20 billion annually from its food exports, including rice. Vietnam is also raking in money from its rice shipments to its neighbors, including the Philippines. Farm producers from the US and European countries are profiting from their poultry and livestock sectors and the Philippines is one of the major buyers of their beef, poultry and pork.
These nations invested heavily in their farm sector and food production for many years, allowing them to feed their citizens and at the same time enable producers to increase their income. Aside from financial support they give to farmers, these countries supported research and development activities and allowed their planters to tap cheap credit. Thai producers, for example, are now earning more because they have learned to add value to their products.
The experience of these nations illustrate that a government cannot improve agricultural productivity and expand food exports by merely praying for good weather. If the Philippine government is truly serious about improving agricultural output and doubling farmers’ income, it should not be averse to shelling out money for the sector. Apart from increasing investments in the agriculture, government officials must take the time to assess Philippine farm policy and make the necessary adjustments to achieve the government’s food production goals.
There is no doubt that Acting Agriculture Secretary William D. Dar is qualified for the job of propping up food output, but his expertise will count for nothing if his agency is not given the funds to implement interventions for farmers. A “business-as-usual” approach will no longer work, given the rising demand for food and the difficulty of meeting the requirements of an expanding population due to climate change. Extreme weather conditions, such as drought and strong typhoons, are among the factors that prevent the Philippines from growing farm production by an annualized rate of 3 to 5 percent—the current target of the Duterte administration.
Dar needs the support not only of the national government, but also of local government units to pursue his initiatives to double farmers’ income, such as crop diversification. LGUs play a critical role because the Local Government Code of 1991 gave them the mandate to provide agricultural extension services to their planters. Encouraging farmers to shift to other crops will fail sans municipal agricultural officers who can guide them.
Feeding an entire nation is an expensive proposition, but there’s no other recourse for the government but to lead the way and invest in Filipino farmers. We urge officials to go beyond providing conditional or unconditional cash assistance to farmers, which is not enough to help them fund their planting requirements (See, “DBM thumbs down CCT program for farmers,” in the BusinessMirror, August 12, 2019). Investments in the sector will take a while to bear fruit, but the experience of Thailand and Vietnam has shown that these investments will pay great dividends.