Despite government pronouncements that the farm sector needs support to boost output, subsidies extended by the state to agribusinesses declined by 35 percent in 2016, according to a report released by the Philippine Statistics Authority (PSA).
Based on the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for the Agriculture, Forestry and Fishing Sector with Total Employment (TE) of 20 and over, subsidies extended to agribusinesses declined to P2 billion in 2016 from P3.1 billion in 2015.
This was the lowest support given by the government to the industry since 2010, when it granted a subsidy of only P622.8 million. The largest subsidy given to the sector was in 2013 at P6.3 billion.
“Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry,” the PSA explained.
Data showed that out of the 8 major industry groupings for the sector, only 3 were recipients of subsidies in 2016.
These were support activities to agriculture and postharvest crop activities with P1.9 billion, or 96.6 percent of total grants extended to the sector.
Other industries that benefited from the subsidies were fishing with P63.6 million, or 3.2 percent of the total and growing of perennial crops with P4.6 million, or 0.2 percent.
The total value of output generated by Agriculture, Forestry and Fishing establishments with TE of 20 and over reached P129.8 billion in 2016.
By industry group, the highest value of output was generated by growing of perennial crops worth P57.6 billion, or 44.4 percent of the total. The PSA said this was followed by animal production with P37.4 billion, or 28.8 percent, and growing non-perennial crops ranked third with P13.5 billion, or 10.4 percent.
The top 3 regions in terms of value of output in 2016 were all in Mindanao, with a combined value of output of 60.2 percent of the total.
Davao region generated the highest value of output worth P33.7 billion, or 26 percent, followed by Northern Mindanao and Soccsksargen with 19.8 percent, or P25.7 billion and 14.4 percent, or P18.7 billion, respectively.
The PSA said there were 1,129 establishments with TE of 20 and over in the formal sector and engaged in Agriculture, Forestry and Fishing activities.
Among the industries, animal production led the sector with 374 establishments, accounting for 33.1 percent of the total.
Growing of non-perennial crops and growing of perennial crops followed with 303, or 26.8 percent, and 192, or 17 percent, of total establishments, respectively.
The remaining 23.1 percent, or 260 establishments, were engaged in fishing, 115 establishments, or 10.2 percent; support activities to agriculture and postharvest crop activities, 91 establishments, or 8.1 percent; aquaculture, 47 establishments, or 4.2 percent; and silviculture and other forestry activities and support services to forestry, seven establishments, or 0.6 percent of the total.
The data collected from the ASPBI survey provide information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2016.
The 2016 ASPBI survey was conducted nationwide in 2017 with the year 2016 as the reference period of data, except for employment which is as of November 15, 2016.