The Irony of Neglect: Why the Philippines Fails to Prioritize Its Agricultural Sector

In Partial Fulfillment of the Requirements in GEC 15 (Purposive Communications)

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2024
Introduction

The Philippines is an agricultural country that many nations have tried to invade due to its

abundance of natural resources and rich the land. The country mainly relies on agriculture practices

such as farming and fisheries. However, despite being an agricultural powerhouse, the Philippines

remains a third-world country. The reasons for this issue vary, from being a country with numerous

islands—making trade from every region difficult and costly—to corruption from local government

agencies to the Philippine government officials. Because of corruption, the agricultural sector

remains underfunded, underdeveloped, and neglected by government officials. This neglect has

contributed to the increasing poverty rate in the country, particularly in rural areas, which has also

resulted in a low productivity rating. Consequently, the government is forced to rely on food imports

such as rice. “According to the Philippine Bureau of Plant Industry, the country imported 3.29 million

metric tons of grain as of October 3, with Vietnam being the largest rice supplier (2.61 million metric

tons), followed by Thailand (over 416,000 metric tons) and Pakistan (over 157.500 metric tons)”

(VietnamPlus, 2024). Poor farming equipment is an issue too. Many farmers don’t own a tractor or

other farming materials and rely on loans to help with their farming situation.

The question arises: why does a country with such agricultural potential fail to focus and

invest in the industry that the country is best at? It is ironic that a country that is suited for

agricultural practices and is rich in various resources still depends on imports from other countries

when it should be exporting its own products. Meanwhile, countries such as Thailand and Vietnam

are leading rice exporters in Asia. This suggests that investing in the agricultural sector will help

contribute to the country's economic growth.

agriculture in the Philippines. Despite being an agricultural country with fertile lands and a climate

that is good for farming, the country has failed to reach its potential in agriculture. Issues such as

corruption, not enough funds for the agricultural sector, and the lack of technological advancements

have made the sector not able to compete globally. This involves addressing corruption, increasing

government investment, modernizing farming practices, and creating incentives to encourage youth

participation in agriculture. Through these, the Philippines should be able to achieve sustainable

development in agriculture, ensure food security, boost the economy, and make the lives of everyone

better.
Body

Agriculture has always been one of the core sectors of the Philippine economy. It is

employing 23.2% of the population in 2023, slightly improving from last year's rate (Statista, 2023).

Still, it has remained low in its share in the Gross Domestic Product of the country, showing some

challenges on productivity and growth. The agricultural sector has been lagging behind for decades,

as the growth of Total Factor Productivity (TFP) was merely 0.91% per annum from 1986 to 2016.

Growth slowed down to 0.31% between 2006 and 2016, exposing stagnation and inefficiencies that

have been inherent in the industry for decades (Philippine Institute for Development Studies, 2021).

Another problem is the country's dependency on imports, which is brought about by insufficient

domestic production.

As of October 3, 2024, the Philippines imported 3.29 million metric tons of rice. Vietnam

supplied the most significant portion of the imported rice, followed by Thailand and Pakistan

(VietnamPlus, 2024). It is also expected by the United States Department of Agriculture (USDA)’s

Foreign Agricultural Services that the country’s rice imports would reach 4.7 tons in 2024.

Meanwhile, the lack of access to modern farming technologies continues to hinder the country’s

progress. Many farmers are stuck with old equipment that cannot compete with other nations on a

regional or global level. “The government has been striving to develop and promote appropriate

agricultural machinery and other mechanization technologies,” wrote Elmer Bautista, Jong-sun Kim,

Yun-jung Kim, and Maria Evic Panganiban, authors of a paper that was published in the Journal of the

Korean Society of International Agriculture (Tacio, 2022). However, promoting to farmers are not

enough and many farmers won’t be able to afford those because of its expensiveness. Another issue

is the abundance of rural labor, small landholdings, and government policies that are not favorable to

mechanize agriculture. The sector has been left in a vulnerable position due to this technological gap,

which increases the vulnerability of the sector in the face of increased demand for food and

resources.
 In the recent past, the country has experienced a greater allocation of budgetary packages

for agriculture. Yet, these are still far from what the sector requires to result in meaningful changes.

For example, in 2018, the agricultural budget was at PHP 142.7 billion, accounting for only 8.9

percent of the gross value added (Philippine Institute for Development Studies, 2021). The budget for

fiscal year 2024 stood at PHP 197.84 billion, an increase of 6% over the previous fiscal year

(Department of Budget and Management, 2023). Still, that incremental gains in such allocations and

spending have not led to a change of meaning means that the agricultural sector is still behind in its

pursuit and has not been able to reach its full capacity to feed the growing population. With that

amount of budget, the country’s agricultural sector should be able to afford farming equipment and

machineries however, due to the rampant corruption, it is not being allocated to farmers. The

Department of Agriculture will also receive a budget cut of around 20 billion pesos for the year 2025

and will only receive 124 billion pesos (News5, 2024).

The neglect of agriculture in the Philippines has far-reaching and serious effects, particularly

in rural regions. Agriculture remains the backbone of many rural areas where a large population

depends on farming for its livelihood. Unfortunately, because of a lack of financial support, including

low government investment, outdated techniques of farming, and the absence of sufficient

machinery, the farmers cannot improve their conditions. This locks farmers into a cycle of poverty

where they have limited access to resources, education, or financial capabilities needed to invest in

modern agricultural methods. Also, crop yields are very low due to a lack of technology, better seeds,

or irrigation systems, making food insecurity prevail in such areas. Because of this, rural poverty

becomes not only a by-product of agricultural neglect but also a reinforcing factor. Since it does not

improve their economic mobility and increase better living standards, most farmers are prevented

from changing the situation. According to the Philippine Statistics Authority in 2023, farmer's and

fisherfolk's poverty incidence in the country is still high; its rates are 30.0% and 30.6%, respectively.
These figures depict the persistent issues these industries face in breaking the cycle of poverty

(Philippine Statistics Authority, 2023).

Conclusion

In conclusion, agriculture remains an important yet underdeveloped sector in the

Philippines. Despite employing a significant portion of the population, agricultural productivity

remains low, and the country continues to rely heavily on imports to meet its food demand. The

stagnation of growth, with limited gains in Total Factor Productivity (TFP), indicates inefficiencies that

have plagued the sector for decades. Insufficient access to modern farming technologies, outdated

farming equipment, and less funding from the government explain why the sector remains

vulnerable. With the funding for this sector are growing year after year, it still falls short of meeting

its full potential, owing to poor management and corruption. As a result, rural poverty does not

disappear suddenly, and farmers and fishermen continue to have some of the highest poverty rates.

The Philippines should prioritize agricultural development by increasing financial support for

farmers, investing in modern technologies, and creating policies to ensure that funds are properly

allocated to the farmers rather than ending up in the pockets of corrupt officials. With a significant

budget already in place for agriculture, proper management and allocation could allow the sector to

thrive. Citizens also have the power to influence change by electing capable and trustworthy

government officials rather than opting for individuals with questionable backgrounds, such as the

son of a dictator, an artist, or a felon.

By choosing the right leaders, the country can focus on building essential infrastructure,

providing easier access to modern farming equipment, implementing policies that ensure

transparent fund reporting, and promoting mechanization and technological innovation in

agriculture. Additionally, farmers should receive training and education to adopt new farming

practices effectively. Through these efforts, the Philippines can gradually rebuild its agricultural

sector, allowing it to become a true economic powerhouse.

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