AGRICULTURE

DECEMBER 20, 2023

Introduction
The word agriculture came from two Latin words (i.e., Ager = means Field and
Cultura = Cultivation).1 Agriculture therefore refers to the cultivation and production of
crops and plants and raising of livestock for economic purposes and human needs2; it is
also termed as the science and art of farming including the work of cultivating the soil,
producing crops, planting forests plants and trees, raising livestock and rearing fishes.
There are three sets of discipline or spheres in Agricultural crop farming (i.e.,
geoponic = normal farming; hydroponic = cultivation of crops using water; aeroponic =
cultivation of crops using air). We have a land area of about 30 million ha; 40% or 12
million ha is devoted to agriculture and 85% are into small scale farms in rural areas.3
Our Agri Products commonly include rice, corn, bananas, coconuts, sugarcane,
mangoes, abaca, coffee, pork, beef, eggs and fish. Our top Agri exports include refined
coconut oil, coconut water, bananas, mangoes and pineapples and the top destinations
of our Agri exports are in the USA and Japan.

Why Agriculture?
Agriculture plays a significant role in the Philippine economy. Involving about 40
percent of Filipino workers, it contributes an average of 20 percent to the Gross
Domestic Product. This output comes mainly from agribusiness, which in turn accounts
for about 70 percent of the total agricultural output.5
The neglect of the agriculture sector and the uneven distribution of resources
worsened the poverty situation in rural areas. Only the remittances of migrant workers
to their families have enabled the latter to survive crippling poverty brought about by
stagnant agricultural productivity, stiff competition from cheaper food imports, and
periodic droughts and floods that devastated crops and livelihoods.6
Despite the world's social and political challenges, our country faces an even
greater challenge: Agriculture. Agriculture is one of the most important sectors in any
society because it is the only one that feeds and nurtures its people while also
cultivating the land's ecology; without farmers, we would all perish. We owe a great deal
to our farmers because they single-handedly cultivated an entire nation; not only did
they feed the people in times of need, but they also fought for the country's well-being.
Their life is built on blood, sweat, and tears. However, we should ask ourselves, "How
do we repay them?" As a result, there would be no way to survive without them.
Snapshot of the Agriculture Sector of the Philippines
1960s
The Philippines is proud to be one of the top agricultural countries in the world;
we are renowned for world class farmers and this kind of reputation led international
students to study our farmers and this is the reason why the International Rice
Research Institute was established. IRRI is the largest non-profit agricultural center and
was established in Los Banos, Laguna.
It paved the way to prevent the Asian famine in the 60s; 60’s was our heyday.
Agriculture contributes 31% of the GDP and now it's only 9%.
1970s - 2017
Per ADB, the average value added in the percent GDP index of the Philippines in terms of
agriculture is just 21.02% (minimum of 10.18% in 2017 vs. maximum of
31.06% in 1974)7 and this only proves that the Philippines is not an agricultural
economy anymore strictly speaking. The general trends in the last two decades present
a dim picture of the agriculture sector.8 Significant decrease in productivity, high
production costs, and low government support to the sector, among other things, have
led to a crisis in Philippine agriculture.9
2018
On June 18, 2018, Philippine Star, a reliable news company published that the
agriculture sector in the country is dying. According to the article, the agriculture sector
employs only 25.96% of Filipinos and this means that, this sector is still struggling to get
a traction as a priority as compared to some of its neighboring countries who prioritize
and give more importance to agriculture (India 43.3%, Indonesia 29.63%, Thailand
32.14%, Vietnam 38.06%, Myanmar 48.2% ).10 Per the recent study of the World Bank,
broad income inequalities exist in the Philippines, with 27.6 million Filipinos surviving on
less than USD 1.25 per day. Despite the fact that micro, small, and medium enterprises
(MSMEs) account for 95% of all business enterprises in the Philippines, there are
barriers to entry and development for entrepreneurs and small businesses. Though the
government has made substantial infrastructure investments in recent years, there is
still a significant backlog that is impeding economic development.
Agriculture is one of the most important sectors in the Philippines – representing
32% of land use; contributing to 10% percent of national GDP; and employing 31% of
working Filipinos in 2013. However, the agriculture sector continues to experience
declining productivity, efficiency and competitiveness, most significantly in crops where
the Philippines has a comparative advantage. The Philippines Agribusiness Program
can be seen as an effort to effectively respond to the decline in agricultural productivity
and competitiveness. The Philippines Agribusiness Program (2013-2017) supports the
Government of Philippines in its effort to improve the productivity and the
competitiveness of Filipino farmers and the agribusiness sector in order to ensure the
sustainable economic development of rural areas in the Philippines.11
We can simply infer from the illustration in Figure 1, which is taken from the
Department of Budget and Management, how the past Philippine Presidents were able to
contribute to agriculture. From our Agricultural “heyday” during the time of then
President Marcos, the growth from this sector has experienced significant setbacks due
to non prioritization. However, it's noteworthy to consider the efforts made under the
presidency of Joseph Estrada where significant growth was observed as compared to
his former predecessors and those who replaced him. If one is to show that he/she is
pro-poor, this can significantly be shown in agriculture for this is the only sector that
feeds the entire nation and its people.
What caused the decline?
It is imperative that we discuss and highlight the significant factors that led to the
decline of this sector. Based from our references, the decline in Philippine Agriculture
can be attributed mainly into three factors:
1. Government’s failure to protect the interest of our local farmers in favor of
globalization and commercialization
2. Employment across other industry sectors are also luring away farmers to
take on and adapt a different role (e.g., manufacturing, BPOs and
construction) thus affecting the number of those who work for the
agricultural sector and thus affecting its outputs
3. Failure to use emerging technologies (as compared to other neighboring
nations) to improve the produce in this industry to better supply the food
requirements of the nation.
All these factors when combined together is a formula for food shortages which
threatens the lives of the citizens, the very fiber of the nation.
In hindsight, we are not saying that other industries are not important. It is the
lack of attention and protection on this very important sector that we are aiming to expound
on. For example, the concept of Urbanization is not bad, however, it is the lack
of strategic foresight to consider the protection of prime agricultural lands being
converted into residential subdivisions or other usages like malls and amusement parks
that has to be averted. Likewise, Globalization which is defined as a worldwide
movement toward economic, financial, communications and trade integration12 wherein
businesses begin operating internationally has also led to importation of other
agricultural products from other nations and this has also led to massive corruption in
the dynamics of importation. The government’s failure to curb the importation of other
agricultural products in favor of local produce has stifled the income of our farmers and
will kill this industry in the long run.
As a result, the younger generations are finding it difficult to consider “farming” as
a source of their future livelihood. Now, this should have a grim effect for all of us. If the
farmers will become extinct because of meager income, what would happen to them
and what would happen to us? How will our country thrive if there will be no food? Other
countries over Asia are putting in all efforts in becoming self-sustaining countries by
prioritizing agriculture. Worst, Filipinos only taught them in the 1960s how to farm, yet
now, they are a more developed and stronger nation.
Is there hope for the Philippine Agriculture?
Nature has its trivial way to make us remember what is essential in our
day-to-day existence. From the various and significant lockdowns due to pandemic, we
can see that it was food that has been sustaining us throughout our pandemic journey.
Various private, public, NGOs and small enterprising individuals joined hands to bring
food to those whose lives and livelihoods were destroyed by COVID-19 pandemic.
These food provisions were produced by the Agriculture sector whom our society has
been neglecting all along. Taken into logical extremity, if this sector has died already
due to circumstances which we earlier stated, what will happen to us at the onset of
pandemic? We will be fighting or hurting each other (similar to other 3rd world countries)
just to get scant food provisions.
According to the 2020 annual report by the Department of Agriculture, the Covid
19 pandemic was the worst crisis it has faced since World War II. This year has also
been the most challenging year for the Philippine agriculture sector. Our farmers and
fishers wrestled with so many stresses from various natural calamities like volcanic
eruption, infectious animal diseases (swine flu), crop pest infestations and the
pandemic. However, it was also during this same year when this sector rose to the occasion
and kept the country’s economy afloat with steady and affordable food supply
for the population. This was a game changer since this gave birth for “reboot” in the
Department of Agriculture and identified this year as a “rebound” year where growth in
this sector is projected to hit a growth rate of 2% to 3% from the previous very dismal
growth performance of 0.6% - 0.7% during the previous years.13
Considering the resiliency of the Agriculture sector in the face of pandemic and
the emerging technologies which will definitely improve this (e.g., rice combines,
autonomous tractors, intelligent farming tools, drones, hybrid seeds, solar powered
irrigation system, guide maps and mobile agriculture apps), let us take advantage of the
particular “reboot” in Agriculture that will be spearheaded by the government as there is
still hope in establishing a larger footprint of this industry in the country and thereby
saving our nation’s future.
Industrial Structure
Agriculture in the Philippines is a declining sector in terms of total employment.
The World Bank estimates 22.86% of Filipinos are employed in the sector and has been
on the decline from 44.91% in 1991.14
The Philippines is the location of the International Rice Research Institute, an
organization spearheading rice-based, agri-food systems research as well as
collaboration and innovation in the agriculture sector building strong partnerships
domestically and abroad.15
Despite the strong agricultural influence in the economy during the 90s, the
Philippines showed strong neglect, reflecting only 8.9% of the gross domestic product
as coming from the agriculture sector and the same sector improved to 10.1% share of
the GDP despite the economic effects of the COVID-19 pandemic.16
The Philippines is among the top importer of rice17 and is an obvious effect of the
declining agriculture sector. With only P71 billion as the 2021 budget for agriculture.
Despite the decline and the still actions towards improvement and support, the
sector is beginning to capitalize on the use of technology as a focal point to increase
productivity and incomes by providing farmers, fisherfolk, rural women, the youth,
indigenous communities, and farm families the technical, marketing, and financial
support. Food and Agriculture Organization of the United Nations (FAO) and the
Department of Agriculture (DA) promotes the use of technology to monitor, assess, and
implement early warning systems relating to natural disasters and its effects; FAO and
DA also aims to integrate technologies such as the digital infrastructure to market and
promote products to the consumers.20
In cooperation with DICT, DA has envisioned that the agriculture sector needs to
have a national adoption of information and communications technology to address the
gaps within the value chain, potentially preventing pocketed effects of isolated
implementation. This being an aligned strategic approach of the DA, both the private
and public sectors are mandated by the Agriculture and Fisheries Modernization Act of
the Philippines (1997) to take advantage of the emerging technologies for the
enhancement of food security, easier access to markets and information that supports
rural livelihoods.
With the current state of agriculture in the Philippines still relying on human and
animal power, simple farming implementations, and the lack of mechanization and
innovation, and access to food technologies, can simply be compared with the first
industrial revolution.
According to the Philippine Statistics Authority, agricultural production decreased
by 1.2% in the first quarter of 2020, an increase of 0.5% in the second quarter, an
increase of 0.7% in the third quarter, and a decline of 3.8% in the last quarter of 2020.
This is the second decline year-on-year, with 2019 posting 0.1% decline.
Social, cultural, demographic, and environmental factors
The Philippines being one of the supposedly agricultural countries competes with
other ASEAN nations when it comes to exports while maintaining a healthy lead on
imports such as rice. Despite the old notion that the Philippines is a powerhouse when it
comes to rice exports, this has been a long gone endeavor as the country is now the
biggest importer of rice; this is a threat that looms over the Philippine economy as
Filipinos are culturally and socially unable to cope up with other sources of staple foods
such as root crops and various other produce other than rice (Sace, 2021).
The farmers, fisherfolk, and related workers in the value chain are not prioritized
when it comes to industrialization and support; the Department of Agriculture is on the
latter half of the overall budget management, with possible plans of increasing support
towards agricultural innovation hindered by the total perceived growth in the sector. The
department is aiming to include the younger generation by supporting modernization
through different programs and start-up capital, and the establishment of DA’s
agricultural training institute that integrates initiatives for the youth.
According to NEDA in 2015, the median age of the working population in the
agriculture sector is 23.4 years old. This is a factor that only gives hope due to the
increasingly transformed society wherein digital and e-commerce prevails over their
traditional counterparts and the youth is at the center of these emerging technologies.
Political, governmental, and legal forces
Despite the widespread effect of the COVID-19 pandemic, the Philippine
agricultural sector grew and continuously providing by not stopping any farming and
fishing activities, workers being exempted from quarantine and supporting businesses
such as animal clinics and essential supplies are exempted from checkpoints and
quarantine29, and the Inter-Agency Task Force on Emerging Infectious Diseases
approved a protocol to speed up transport of goods and major agro-fishery products to
Metro Manila from several parts of Luzon.
Technological Forces
Agricultural technology in the Philippines is also one of the neglected aspects of
the sector; the involved technologies are available for purchase or lease, but are
hindered by the actual costs related to the machinery.
The improving information and telecommunications industry is now becoming a
pillar of the Department of Agriculture’s approach to transforming the sector into an
IT-enabled contributor through their programs30 and according to Secretary William Dar,
the sector is starting to harness systems and technologies that will greatly improve the
yield, to increase the sustain, and help industrialize the sector by capitalizing on the
streamlined approach and cost-efficient measures.
Partnership with other agencies such as the DICT is becoming increasingly
visible as the inter-agency approach becomes the norm especially during and after the
COVID-19 pandemic. An example of this approach is the project to build and enhance
connectivity of remote areas, especially rural farmlands, and to allow improvement of
the country’s Internet in general.
Economic Forces
As the agricultural sector heavily relies on government support and the positive
economy as an output of spending, the sector grew despite the effects of the COVID-19
pandemic. This shows how resilient the sector is when faced with calamities from
weather-related to diseases; it is imperative however to not overly rely on government
support but to increase collaboration between the agricultural sector and the private
entities by supporting each other through possible shared values and mission.
Agriculture is divided into four sub-sectors
1. Crop Farming - Crop farming is the cultivation of plants for food and for other
commercial uses (either thru geoponics, aquaponics and aeroponics).
2. Livestock - Refers to the management and breeding of domestic livestock or
farm animals for the purpose of obtaining their meat and products (milk, eggs,
leather, etc).
3. Fisheries - Is the enterprise of raising or harvesting fish and other aquatic life.
4. Poultry - Refers to the raising of domesticated birds such as chickens, ducks,
turkeys and geese for the purpose of farming meat or eggs for food.
Crop farming is still the leading sub sector in Agriculture as it accounts more than 50%
of this sector’s output.
There are also five (5) motivations that influence customer’s buying behaviour in
the agri sector
And these motivations also define where they will buy the agri products (i.e., in the
public market or private supermarket):
1. Price - It is believed that local public market provides cheaper foods than the
grocery stores in big malls
2. Lifestyle - Sometimes lack of time, opportunity and convenience (parking spaces)
can be a motivation in buying
3. Food Quality - Foods that are sold at the local public market are believed to be
better quality in terms of freshness compared to those at the private
supermarkets
4. Product Choice - Preference to buy canned goods, processed meats,
condiments and other preserved foods at the department stores because of the variety to
choose from; for vegetables, meat and fish are commonly purchased
from the local public market
5. Support for Local Farmers - Territorial disputes in WPS has driven the consumers
to be positive in supporting local farmers believing that it was good to help them
in every possible way.
Conclusion: Opportunities and Threats
There are innumerable number of threats in the Philippine Agri Sector but for the
sake of brevity we just would like to highlight some of the key issues confronting this
industry as follows:
1. Climate Condition (La Niña/El Niño) - The climate of the Philippines is highly
influenced by El Niño. This is associated with an increased chance of drier
conditions and La Niña is associated with an increased chance of wetter
conditions. ENSO is a naturally occurring phenomenon and has both negative and positive
impacts on the various sectors of the society especially in the
Agriculture sector. 43
2. Increasing population - the steadfast increase in population can be a threat to
Agriculture simply because the outputs of this sector at present still falls short in
order to attain self sufficiency. This will result in almost doubling of demand in
terms of food consumption.
3. Land Conversion - significant agricultural lands are being converted to various
residential, community and industrial uses. Wanton land conversion can lead to a
faster demise of this sector simply because the arable lands will be reduced
significantly thus affecting agricultural productivity.
4. Lack of Interest due to Low Income - Due to low income in Agriculture and
opportunities in the other industry sector, the younger generations find it
unattractive to work in the field.
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