“An industry that feeds us is an industry worth fighting for” – Anonymous
A crucial decision is needed. Should we allow agriculture to get strangled and stagnate, or move with utmost political seriousness and commitment? There is a fine thin line that defines the modern state of agriculture and competitive agriculture.
‘AGRI-STATE’
What is the current state of Philippine agriculture, and which aspects need immediate fixings if we want to be globally competitive while our farmers enjoy its benefits? According to the Philippine Institute of Development Studies, “our country’s agriculture has receded in recent decades due to the slow expansion of production and productivity.”
Another proof is the dramatic decline of agricultural workers. Since 1995 the number of agricultural workers has been reduced to a low of almost 10 million Filipinos, from a high of more than 100 million. A devastating fact where now debate thickens on whether agriculture remains a major economic driver for growth and development. On the flipside, it managed to register 0.5 percent growth in 2020, with crops registering a 5.0 percent in production. This is only a general characterization of our agricultural state.
FIXABLES
Obviously, Philippine agriculture needs some fixing to seriously put an end to these perennial and lingering problems. We have poor rural infrastructure that contributes to low agricultural productivity. The unpredictable climate extremes have been hollowing us as we speak, and though uncontrollable, we can always mitigate and become more resilient. To address them, the government must first reorient its public expenditure programs and promote research and development to boost long-term productivity. This is a matter of technology upgrade and research value. Moreover, various studies show that there is population growth in the rural areas with declining farm sizes effecting decreased incomes. These have pushed the young rural generation including productive work force to pull out of agriculture.
More importantly, I always emphasize that capital formation is crucial, but remains constrained by limited financing access. Government financing systems must be relaxed with swift processes for poor and marginal farmers, with acceptable and reasonable interest rates. The need to develop and improve the climate for agricultural-food system business is an imperative to encourage productivity and investments. Our post-harvest facilities significantly lack improvement, resulting in losses from spoilage and quality reduction. These must be upgraded and infused with up-to-date technology.
Gradually addressing these major concerns can create transformation towards a more active and dynamic agriculture industry. These imperatives ensure Filipinos’ food security and poverty reduction, especially among the marginalized farmers, small ARB’s, and underprivileged in general.
STABLES AND SOLID
Despite the overwhelming lingering concerns of the industry, it remains solid and intact in some respects. One of them is the diversified crop production of high valued crops such as rice as our staple, sugarcane, corn, banana and coconut, to name a few. These products significantly contribute to our domestic and international markets and are resilient to market fluctuations and climate impacts to some extent.
On top this is our vast and rich natural resources. Our fertile soil and favorable climate for agriculture, despite blows of climate impacts, are a solid base for productivity. Our livestock can also bridge and offset certain handicaps of the industry albeit beset with periodic diseases particularly in the swine and hog industry. And, we are more confident in our agriculture communities, which is one of the best foundations of the industry. We have solid and prouder farmers waging the Filipino products anywhere they may be as proof of their innate hard-working and dedicated characters. Despite almost insurmountable challenges they face, they remain proud Filipino farmers.
It can be said that at times the government support in agriculture is a hit and miss approach, but there are quite a few initiatives which have strategic impacts among producers and consumers alike. Still, government must seriously review its policies on agriculture to see whether these policies and projects bring more benefits than burden to the industry. A closer look at research and technology, infrastructure and adequate subsidies to rightful beneficiaries, and policies on import and export, the law on Rice Tariffication, and the role of NFA will significantly contribute to our solid foundations in the industry.
Finally, there is an increasing interest in agribusiness manifested by investments in aspects of the products supply chain such as in processing, packaging and marketing. It is always important that products are added with value and quality enticing marketers and consumers. On the other hand, the production part needs massive investment as the supply chain starts here.*
