(A joint Position Paper for Agriculture by the Bayanihan sa Agrikultura, Federation of Free Farmers, Alyansa Agrikultura, Philippine Chamber of Agriculture and Food, Coalition for Agriculture Modernization in the Philippines, and Integrated Rural Development Foundation).
A major development challenge facing the next government is Transforming Philippine Agriculture into an engine of economic growth, a generator of jobs, a social and economic stabilizer in the countryside, and the cornerstone for the country’s food security. Before Covid, the sector had been stagnating. Under the pandemic, agriculture has been weakened further by transport and logistical breakdowns, aimless import liberalization, lack of health facilities to contain the virus spread, and poor distribution of amelioration assistance to the rural masses.
We demand a reversal of this situation. Agriculture can and should play a leading role in national economic recovery and, more importantly, in ensuring social and economic development for all. To achieve this, urgent policy reforms must be institutionalized and implemented with decisiveness.
Here is an update on the sector, followed by a list of must-do measures:
A. Policy Objective
“Modernization and industrialization of agriculture, with full implementation of agrarian reform, natural resources and fisheries reform, as keys to achieve food security, job creation, poverty eradication, and balanced rural-urban development.”
B. Agriculture and Fisheries Sector Situationer
1. Sector accounts for 30 percent of labor force, consisting mostly of some 10 million small farmers (3 hectares or less), farm workers, forest settlers, municipal fisherfolk and other small-scale producers.
2. Direct contribution to gross domestic product is 10 percent. Combined with processing (10 percent) and ancillary services (15 percent), sector’s total contribution is 35 percent. (In contrast, during last nine years before Covid, agriculture’s yearly share of the national government budget was only 2 percent. This, compared to Vietnam’s 5 percent to 6 percent and Thailand’s 3 percent to 4 percent.)
3. A significant number of farmers in private agricultural lands and in lands of the public domain still do not have secure land tenure. Small fishers’ catch is limited by continuing encroachment by outsiders into municipal waters and fishing areas within the country’s territorial sea.
4. Inadequate agricultural support services, limited processing of raw produce and inefficient marketing/transport/shipping of farm products have resulted in low agricultural growth of 1.6 percent, low productivity, poor incomes for producers, and shortages in local supply and high prices for consumers. The Philippines is a net food importing country. In recent years, excessive importations of agricultural and fisheries products—without the proper safeguard measures and safety nets provided by law—have seriously depressed farmers’ incomes. Yet, consumer prices have fallen minimally.
5. Sustainability of production is threatened by land conversion, degradation of the natural resources base (soils and water sources, forests and other natural habitats), and climate change.
6. Result is widespread poverty. Three out of every four poor Filipinos are in rural areas. Limited number and quality of job opportunities. Hence, big development disparity between rural and urban areas, and mass exodus to urban centers remains unabated.
C. Major Recommendations
1. Agriculture and fisheries should be recognized as the main guarantor of food security and foundation for economic recovery. Our farmers and fishers (including indigenous peoples) should be treated as saviors and lead actors, not as mendicants or targets of assistance.
2. Agri-fisheries deserves adequate, sustained and effectively used funding. Its budget should at least be doubled; and its allocation optimized, to yield the greatest over-all benefit for the sector.
3. Emphasis must be placed on self-reliance in domestic production, coupled with farmers’ productivity, profitability and protection from pandemics, calamities and climate change events. Government should implement safeguard and other trade measures to protect local producers from serious market disruptions and unfair trade practices. Importation must be a last resort; and any benefits therefrom, equitably shared among producers and consumers. In this regard, the Rice Tariffication Law must be reviewed and amended.
4. Substantial and fairly allocated support should be accorded to commodities other than rice—such as coconut, corn, high-value crops, fish, poultry and livestock. As in rice, tariff collections must be earmarked for sectors affected by imported commodities.
5. To ensure more producers’ incomes and livelihood, the Department of Agriculture (DA) should lead the shift from monocropping to localized, diversified, sustainable production systems and cluster/cooperative/community-based approaches in production, value-adding and marketing. A more effective rural credit and crop insurance program must be emplaced, including the creation of a Land Bank subsidiary dedicated to lending to small farmers and fishers. Mechanization, digital technology and other appropriate innovations should be fast-tracked.
6. More investments are necessary in rural, market, post-harvest and agri-fisheries processing infrastructure to curb post-production losses, cut marketing expenses, enhance producers’ access to alternative outlets for their products, and reduce the cost of food to consumers. This needs to be accompanied by effective business information systems and competitive domestic markets.
7. Given the immense area and economic potential of our territorial and inland waters, a Department of Fisheries and Marine Resources should be created. Moreover, government must assert our sovereign rights in the West Philippine Sea, a major source of our marine fish supply.
8. The DA and other agencies should establish a real partnership—based on shared priorities, responsibilities and resources—with local government units that will put more resources and efforts into agriculture and fisheries. Upgrading LGUs’ capacity to provide agricultural support services must be prioritized. In particular, the province-led agriculture and fisheries extension system should be fully implemented.
9. Genuine representation and involvement of farmers, fishers and other stakeholders must be institutionalized at all levels of planning and monitoring. Sectoral appointees to government agri-fisheries boards, councils and committees must have a proven track record of service.
10. Women have a limited participation in areas like fisheries production, agricultural services and equipment/facilities. Equity, productivity and justice call for a bigger women’s empowerment program in agri-fisheries. The youth should also be assisted to go into the sector.
11. As mandated by the Constitution, the agrarian reform and support services program in private agricultural and public lands must be fully implemented.
12. A National Land and Water Use Law is urgently needed—along with inter-agency and citizens’ mobilization programs—to conserve and regenerate our soil, water, biodiversity and other natural resources and to guarantee food security for all. To ensure unified direction, the National Irrigation Administration should be placed under the DA’s supervision.