Modernizing the Agricultural Sector in the Philippines - The Borgen Project (2024)

Modernizing the Agricultural Sector in the Philippines - The Borgen Project (1)
The COVID-19 pandemic hit the agricultural sector of the Philippines hard. Several families rely on their income from agriculture as more than 22% of the country’s population works in the agricultural industry. However, the pandemic particularly affected agricultural households because “agriculture-related occupations have always been associated with being income poor.” Many of those who solely rely on agricultural income do not have access to electricity, education, proper sanitation and more. COVID-19 serves to exacerbate these poor living conditions even further. However, the Philippines recognizes that the agricultural industry is a significant part of the country’s economy, thus, the nation has established initiatives aimed at modernizing the agricultural sector so that its citizens can thrive.

Disasters Affecting Farmers

Because of the impacts of both the COVID-19 pandemic and natural disasters, 2020 was an unfavorable year for the agricultural sector. The supply chain took a heavy hit with several obstacles, including lack of transportation, a decrease in demand and a low volume of exports. These factors all contribute to the decline of the agricultural industry and the country’s economy.

Due to pandemic-related quarantine restrictions, local farmers had to schedule market visits, which led to a rise in transportation costs. To make matters worse, several typhoons hit the Philippines, negatively impacting the economy, which is already suffering the effects of COVID-19. According to the FAO, typhoons in 2020 destroyed “agricultural equipment and other livelihood resources, significantly affecting those who are dependent on farming” for an income.

However, despite the difficulties that the agricultural sector faces, the Philippine government aims to improve the lives of farmers and the country’s economy by modernizing the agricultural sector in the country.

Modernizing the Agricultural Sector

In June 2020, the World Bank released a report titled “Transforming Philippine Agriculture During COVID-19 and Beyond,” which highlights the need to modernize the Philippines’ agricultural sectors. The report points out that while reconstructing the agricultural industry is a difficult process, it is necessary for a country to grow positively.

The World Bank offers ideas such as direct cash payments to farmers, investing in agricultural startups and increasing the use of e-commerce to modernize the Philippines’ agricultural sector and “reduce poverty in the rural communities.” The report supports the Philippines’ Department of Agriculture (DA) initiatives to transform the agricultural industry. Agriculture Secretary William Dar is adamant that the sector will recover in 2021, which in turn, will help with the overall economy’s recovery.

The Philippines’ 2021 overall economic growth target is 6.5%-7.5% and the agricultural sector’s growth target is 2.5%. The nation aims to achieve these goals “through further integration of technology that will improve production, connectivity and delivery of service to its beneficiaries.” Both the World Bank and the Department of Agriculture realize the potential of modernizing the agricultural sector of the Philippines. By reforming the industry through several different initiatives, the economy will improve along with the lives of farmers within the country.

Solutions

Alongside the Philippines’ and the World Bank’s efforts to modernize the agricultural sectors, other organizations have focused themselves on the same initiative. One of these organizations is Agro-Eco Philippines, established in 2004 as a ”farmer-led national network organization.” Farmers created the organization for farmers, with farmers constituting 80% of the Board of Trustees. The organization has several ongoing initiatives, including modernization interventions, such as the “development and documentation of locally-adapted technologies.” Specifically, the organization runs a “community-based, farmer-led and participatory breeding program” for rice and corn crops, with “35 farmer-breeders with about 500 bred lines used by an estimated 30,000 farmers nationwide.”

The Future

Overall, it is apparent that agriculture plays a crucial role in both the Philippines’ economy and the lives of several families who rely on agriculture for an income. Families are struggling due to the pandemic’s impact on the sector, however, modernizing the agricultural sector with the help of institutions and organizations brings hope to improve not only the country’s economy but also the lives of the families reliant on the sector.

– Karuna Lakhiani
Photo: Flickr

Modernizing the Agricultural Sector in the Philippines - The Borgen Project (2024)

FAQs

How can we modernize agriculture in the Philippines? ›

The report says that interventions like farm consolidation (including cooperative farming schemes for instance), better extension services, e-commerce, and investments in agribusiness start-ups can further advance modernization of Philippine agriculture.

What is the importance of modernization in agriculture in the Philippines? ›

Agricultural modernization in the Philippines

Economic development of the country has allowed per capita income to rise together with its population. Key indicators of the broader economic context of agricultural modernization relate to demography, economic growth, and economic structure.

What hindered the modernization of agriculture in the Philippines? ›

The supply chain took a heavy hit with several obstacles, including lack of transportation, a decrease in demand and a low volume of exports. These factors all contribute to the decline of the agricultural industry and the country's economy.

What is the biggest problem that Filipino farmers face when it comes to the country's agricultural status? ›

Climate change is undoubtedly one of the greatest challenges currently faced by farmers. Unpredictable climate patterns are having a severe impact on agricultural productivity. Rising temperatures can lead to reduced crop yields, while extreme weather events such as floods and storms are causing crop losses.

What is the agricultural development plan in the Philippines? ›

Spanning from 2023 to 2025, the Program aims to promote agricultural productivity in the Philippines, with emphasis on rice, corn, high-value crops, livestock, poultry, and fisheries as priority commodities under the current administration.

How does AFMA help modernize Philippine agriculture since it was implemented? ›

In general, AFMA aims to transform the agriculture and fisheries sectors to technology-based, advanced and competitive industry; ensure that the small farmers and fisherfolk have equal access to assets, resources and services; guarantee food security; encourage farmer and fisherfolk groups to bond together for more ...

What does it mean to modernize agriculture? ›

Modernisation of agriculture is a process of transforming agriculture from traditional labour-based agriculture to technology-based agriculture [25]. It is one of the fundamental issues in agricultural policies, particularly in countries, where agriculture is less developed.

Why the agriculture sector in the Philippines is not improving? ›

The farmers lack support, training and a moral boost. First, they lack basic skills in farming. Many are not educated or are only elementary graduates. Second, good fertilizers, pesticides and seeds are imported from other countries, making them very expensive and unaffordable for the lowly farmer.

What is the biggest problem in agriculture in the Philippines? ›

MAJOR AGRICULTURAL PROBLEMS
  • Small farm size; 78 percent farms are less than 3 hectares. ...
  • Land Conversions. ...
  • Lack or absence irrigation systems. ...
  • Inadequate management programs on soil, pests and diseases. ...
  • Reduced farm labor. ...
  • Expensive and inappropriate agricultural and farming equipment.
Apr 20, 2023

What is the importance of agriculture in the Philippines? ›

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.

What is lacking in the Philippines agricultural sector? ›

Poor rural infrastructure and climate extremes also contribute to low agricultural productivity. To address these key challenges, this Note recommends that the government reorient its public expenditure programs and promote research and development to boost long-term productivity.

What is the current status of agriculture in the Philippines 2023? ›

Value of Production in Agriculture and Fisheries Decreased by -1.3 Percent in the Second Quarter of 2023. At current prices, the value of production in agriculture and fisheries amounted to PhP 551.50 billion or an annual growth of 3.4 percent.

Why Philippine agriculture is declining? ›

Population growth, diminishing farm size, and declining relative incomes in agriculture have incentivized the shift out of agriculture.

What are the 5 agricultural issues in the Philippines? ›

8 Problems of The Philippine Agricultural Sector
  • Small farm size; 78% farms are less than 3 hectares. ...
  • Land is being encroached upon by the housing and industrial sectors. ...
  • Absence of critical programs on efficient irrigation systems. ...
  • Inadequate management programs on soil, pests and diseases. ...
  • Reduced farm labor.
Feb 13, 2017

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