1

AGRICULTURE AND ECONOMIC  52% for Food crops (coconut,

DEVELOPMENT sugarcane, industrial crops, fruits,
vegetables, root crops)
I. AGRICULTURE  31% Food grains (rice and other
A. Definition and Features of grain crops)
Agriculture  17% Non-food (pasture and cut
AGRICULTURE = is defined as the flowers)
practice of cultivating crops and the  Low productivity and low income
husbandry of livestocks, including the  Low farm gate prices and high
use of water, work animals and retail prices
machineries and the fertilization and  Most farms are small-scale,
conservation of the soil to create below 5-10 ha
products used for human and animal
consumption, including the use of
modern technology to increase
productivity.
Etymology
The word agriculture is the English
adaptation of Latin agricultura, from
ager,―a field‖ and cultura ―cultivation‖,
thus in literal reading , it means ―tillage
of the soil/field‖

o General Importance of
―AGRICULTURE‖
Exemplified in the passage given by
John Abraham Garfield:
“At the head of sciences and arts; at the
head of civilization and progress, stands
not militarism, the science that kills, not
commerce, the art that accumulates, but
AGRICULTURE, The MOTHER OF ALL
INDUSTRIES and the MAINTAINER OF
HUMAN LIVES.”

Universal Characteristics of
Agriculture/Farming  In the 3rd Quarter of 2013, GDP
1. Farming business is biological and increased by 5.2%
not mechanical  Agriculture, Hunting, Fisheries
a) it is subject to natural and Forestry contributed 0.3% to
environmental factors the increase
b) subject to high risks and  and 8.2% and 7.5% for the
uncertainties Industry and Services sectors.
c)Farm products are difficult to Top Agricultural Exports (2010)
standardize  Coconut Oil (to US and
2. The home and the farm are closely Netherlands)
integrated  Bananas (France and Japan)
3. Agriculture can be carried on by  Fish (US, Japan, Germany)
person even with no or low formal  Desiccated Coconut
education
B. INTENSIVE AND EXTENSIVE
Characteristics of Agriculture in the AGRICULTURE
Philippines: EXTENSIVE AGRICULTURE- System
Agriculture occupies about one-third of of crop cultivation using small amounts
the Philippine total land area (2001), of labour and capital in relation to area
13M ha (2010) of land being farmed.

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 crop yield in extensive agriculture
depends primarily on the natural
fertility of the soil, terrain, climate,
and the availability of water.
 produces a lower yield per unit of
land,
 use commercially requires large
quantities of land in order to be
profitable.
 it focus on maintaining long-term
ecological health of farmland, so
that it can be farmed indefinitely.
 the farm is usually large.
Advantages
Extensive farming has a number of
advantages:
o Less labour per unit areas is
required to farm large areas,
especially since expensive
alterations to land (like terracing) are
completely absent.
o Mechanisation can be used more
effectively over large, flat areas.
o Greater efficiency of labour means
generally lower product prices.
o Animal welfare is generally improved
because animals are not kept in
stifling conditions.
o Lower requirements of inputs such
as fertilizers.
o Local environment and soil are not
damaged by overuse of chemicals.
Disadvantages
Extensive farming can have the
following problems:
 Yields tend to be much lower than
with intensive farming in the short
term.
 Large land requirements limit the
habitat of wild species.
Intensive Agriculture = is an
agricultural production system
characterized by the high inputs of
labor, capital or heavy usage of
technologies such as pesticides and
chemical fertilizers relative to land area.
 It aims to get maximum yield from the
available land.
 It illustrates the ―Economies of Scale‖
(of Mass Production)
Advantages:
✔ Crop yield is high.
 The same area of land is able to
supply food and fiber for a larger
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population reducing the risk of
starvation.
✔ It helps the farmer to easily supervise
and monitor the land and protect his
livestock from being hurt or hounded by
dangerous wild animals.
✔ With the introduction of intensive
farming, farm produce, such as
vegetables, fruits, and poultry products
have become less expensive.
✔ Large productivity of food is possible
with less amount of land. This leads to
economies of scale and directly
contributes towards meeting the ever-
growing demand for food supplies.
Disadvantages
Intensive farming alters the environment
in many ways.
 Limits or destroys the natural habitat
of most wild creatures, and leads to
soil erosion.
 Use of fertilizers can alter the biology
of rivers and lakes.
 Pesticides generally kill useful insects
as well as those that destroy crops.
 Is often not sustainable if not properly
managed—may result in
desertification, or land that is so
poisonous and eroded that nothing
else will grow there.
 Requires large amounts of energy
input to produce, transport, and
apply chemical fertilizers/pesticides.
 The chemicals used may leave the
field as runoff eventually ending up
in rivers and lakes or may drain into
groundwater aquifers.
 Use of pesticides have numerous
negative health effects in workers
who apply them, people that live
nearby the area of application or
downstream/downwind from it, and
consumers who eat the pesticides
which remain on their food.
 The livestock and poultry are
injected with hormones and other
chemicals to increase the yield.
Alternatives?
a. Organic Farming
b. Hydroponics- In this method, plants
are grown not in the soil but in water
containing dissolved nutrients in
greenhouses. This technique eradicates
diseases caused by soil organisms but
the plant needs constant support,

supervision, and is grown in areas
where there's no soil.
c. Biological Control- Using a predator
intentionally to fix the pest population
size is known as biological control. This
technique demands utmost caution and
thorough study, as it could go all wrong,
if not managed properly.
C. Modern intensive farming types
Modern intensive farming refers to the
industrialized production of animals
(livestock, poultry and fish) and crops.
The methods deployed are designed to
produce the highest output at the lowest
cost; usually using economies of scale,
modern machinery, modern medicine,
and global trade for financing,
purchases and sales. The practice is
widespread in developed nations, and
most of the meat, dairy, eggs, and crops
available in supermarkets are produced
in this manner.
Economies of Scale
 are very important in explaining why
so many of the goods we buy are
produced by large companies.
 In many industrial processes, when
you double all inputs, you may find
that your output is more than doubled.
This phenomenon is called
―increasing returns to scale‖ or so-
called ―economies of mass
production‖
1. Contract Growing. It refers to an
arrangement agreed upon in the field of
agriculture, wherein the farmer sells a
certain quantity of a crop to the buyer
under the contract that states specific
rules for production and marketing of the
product.
 However, the contracted agricultural
product should meet specific quality
requirements and must be delivered to
the buyer at a certain time as per the
agreement and the buyer makes a
commitment to purchase it.
 The contract commonly enlists terms
of payment, quality standards,
technology specifications,
determination of final price and dispute
settlement.
 Benefits: While it ensures an assured
sale to the farmer at lucrative prices
with least wastage of produce, it gives
the buyer the advantage of procuring
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the required agricultural product of
certain specifications at a definite time.
 The farmer is also helped with
financial and technical assistance from
the buying company before growing
the crop.
 It eliminates intermediaries from the
buying-selling cycle and offers a
favorable price for a good quality yield.
2. Monoculture- a method of growing
only one crop at a time in a given field,
is a very widespread practice, but there
are questions about its sustainablility,
especially if the same crop is grown
every year. Today, it is realized to get
around this problem, local cities and
farms can work together to produce the
needed compost for the farmers around
them. (this is known as ORGANIC
AGRICULTURE or ORGANIC
FARMING)
C. Sustainable Agriculture
/Development
Sustainable agriculture shall mean any
principle, method, practice or philosophy
that aims to make agriculture
economically viable, ecologically sound,
equitable, culturally appropriate and
grounded on holistic science.
 Sustainable Development – is
development that meets the needs of
the present generation without
compromising the needs of future
generations
Sustainable Agriculture is also defined
as ―integrated system of plant and
animal production practices having a
site-specific application that will last over
the long term‖:
1. to satisfy human food and fiber needs
2. to make the most efficient use of non-
renewable resources (fossil fuels
i.e.coal, petroleum) and natural gas
3. to sustain the economic viability of
farm operations
4. enhance the quality of life for farmers
and society as a whole
Agriculture is facing three major
problems and choices for
sustainability:
(a) Ecology/Technology: Which
technology to base the future of world
agriculture on? As the chemical-based
model is faltering, the private sector and

global establishment are looking to
genetic engineering as the way ahead.
(b) The global economic framework:
The economic environment has turned
extremely bad for developing countries’
small farmers.
(c) Land for the farmers: Many small
farmers are poor and some are
becoming poorer.
Constraints in Achieving Sustainable
Agriculture
1.Institutional and Socio-economic
Constraints
Population Growth
Insecure Land Tenure
Limited Policies and Plans
Fragmented Research, Development
and Extension (RDE)
Lack of Institutional Funds
2. Environmental Constraints
Climate Change and Variability
Government Efforts and Initiatives on
Sustainable Agriculture
1. Creation of the Presidential Task
Force on El Niño.The Task Force serves
as the coordinating body for the
formulation of comprehensive action
plans to mitigate the adverse effects of
seasonal
aridity in the Philippines. The mitigating
measures include:
• Cloud seeding/ rain-making operations
• Information and Education Campaign
• Research and Development
• Transfer of technologies and
interventions on water management.
2. Creation of the National Technical
Evaluation Committee on Land Use
Matters (NTECLUM) Secretariat.
3. Promotion of Organic Agriculture
(OA)
4. Promotion of Soil and Water
Conservation Measures. Several soil
and water conservation measures are
the following:
a. Planting of best-suited crops or crops
that contribute to the sustainability of the
farming system.
b. Soil fertility enhancement practices
such as farm waste
recycling, green manuring and balanced
fertilization or optimum use of organic
and inorganic fertilizers.
c. Use of Sloping Agricultural Land
Technology (SALT) in upland areas
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experiencing moderate to severe
erosion in order to stabilize the soil and
prevent loss of nutrients.
d. Agronomic measures such as
minimum tillage, crop diversification, use
of drought resistance crops in drought-
prone areas, mulching in dry land and
drip irrigation to improve the water
efficiency of coarse textures soils.
5. Approval of the National Integrated
Research, Development and Extension
Agenda and Program and
Operationalizing the National Soil
and Water Resources RDE Network.
6. Review of Policies
 Republic Act 8435- Agriculture and
Fisheries Modernization Act (AFMA)
 Presidential Proclamation 1071 -
Adoption of Balanced Fertilization
Strategy (BFS),
 Executive Order 481 – promotion and
development of Organic Agriculture in
Philippines and
 Republic Act 6657- Comprehensive
Agrarian Reform Law.
7. Creation of the Philippine National
Action Plan (NAP) to Combat
Desertification, Land Degradation,
Drought and Poverty.
 The NAP is an expression of full and
unqualified commitment of the
Philippine Government in the effective
and accelerated implementation of
the programs and project activities to
combat desertification, land
degradation and poverty in the identified
drought vulnerable areas of the country
One of the General Plan of Actions (FY
2004-2010) of the Philippine NAP is the
actual implementation of priority
programs which include sustainable
agriculture and marginal upland
development and integrated ecosystems
management.
8. Organic-based Agriculture
Development Program (Agri- Kalikasan
Program)
Methods of Sustainable Agriculture
Two of the many possible practices of
sustainable agriculture are:
1. Crop Rotation
2. Soil Ammendments
 Both are designed to ensure that
crops being cultivated can obtain
the necessary nutrients for healthy
growth

 Soil Ammendment would include
using locally available compost from
community recycling centers. These
recycling centers help produce the
compost needed by the local
organic farms.
II. ECONOMIC GROWTH
Economic Growth- An increase in the
capacity of an economy to produce
goods and services, compared from one
period of time to another. It can be
measured in nominal terms, which
include inflation, or in real terms, which
are adjusted for inflation.
 Economic growth is usually
associated with technological
changes.
Drivers of Economic Growth
1. Growth in physical capital stock
leading to a rise in capital per
employee.
2. Growth in the size of the active
labor force available for
production.
3. Growth in the quality of labor.
4. Technological progress and
innovation driving productivity
improvements.
5. Institutions including maintain the
rule of law, stable democracy and
macroeconomic stability.
6. Rising demands for goods and
services.
Models of Economic Growth
1. Harrod-Domar Model
2. Neo-Classical Growth – The
Solow Model
3. Endogenous Growth Theory
4. Production Function
Disadvantages of Growth
1. Inflation risk: If demand races ahead
of aggregate supply the scene is set
for rising prices. Many fast growing
developing countries have seen high
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rates of inflation in recent years, a
good example is India.
2. Working hours – sometimes there
are fears that a fast-growing
economy places increasing demands
on the hours that people work and
can upset work-life balance.
3. Structural change – although a
growing economy will be creating
more jobs, it also leads to structural
changes in the pattern of jobs.
4. Environmental concerns-Fast
growth can create negative
externalities for example higher
levels of noise pollution and lower air
quality arising from air pollution and
road congestion.
Economic Development
 It is the increase in the standard of
living in a nation’s population with
sustained growth from a simple, low-
income economy to a modern, high –
income economy.
 Other people termed it as
Modernization, Westernization and
Industrialization.
 This involves improvements in
literacy rates, life expectancy and
poverty rates.
Why do some countries desire
Development ?
 Increase in Economic welfare
(such as better health, , land reform,
better methods of land cultivation,
industrialization or political rights as
individuals)
 Modern people desires development
also for reasons of ―nationalism‖: so
that their country may be powerful,
respected or feared.
Internal and External Constraints to
Growth in Developing Countries:
1.Instability-refers to the political and
civil conflicts that affected the
developing world
2. Trade policies in industrial
countries. Average tariffs and trade
barriers among developing countries are
high
3. Agricultural subsidies in industrial
countries.
Inefficient producers in industrial
countries are given agricultural

subsidies hurt developing countries
ability to export and compete.
4. Overvalued real exchange rates
and high real exchange ratio volatility
prevented exports from rising even after
trade liberalization and other reforms.
5. Most of the world’s poorest
countries lack the skills and
infrastructure to support exports.
These weaknesses are reflected in the
low level of export market diversification,
the lack of capital market providing
adequate and timely credit, low
capitalization of many enterprises, the
small number of firms, and the difficult
environment to transactions.
III. POVERTY ALLEVIATION IN THE
PHILIPPINES
Top 5 poorest countries
1. Congo
2. Liberia
3. Zimbabwe
4. Burundi
5. Eritrea
The five poorest provinces 2012
(NSCB):
1. Lanao del Sur (68.9 percent
poverty incidence)
2. Apayao (59.8 percent)
3. Eastern Samar (59.4 percent)
4. Maguindanao (57.8 percent) and
5. Zamboanga del Norte (50.3
percent).
Five poorest regions:
1. Autonomous Region in Muslim
Mindanao (46.9 percent)
2. Region 12 (37.5 percent)
3. Region 8 (37.2)
4. Region 9 (36.9 percent), and
5. Region 10 (35.6 percent)
 The poverty incidence stood at 27.9
percent (roughly 4.2 million families)
in the first semester of 2012.
 ―practically unchanged‖ from the
same period in 2009 (28.6 percent)
and in 2006 (28.8 percent) (NSCB).
 A Filipino family of five needed PhP
5,513 to meet basic food needs every
month and
 Php 7,890 to stay above the poverty
threshold (basic food and non-food
needs) every month.
Who are the Poorest ?
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The minimum Basic Needs (MBN) is
used:
3 major areas of family well-being:
1. Survival =relate to water and food
intake and basic health
2. Security = food security that assures
nutritional requirements met; and
housing security
3. Enabling services = include health
and education
Poverty Eradication Program
 seeks both to alleviate absolute
poverty and address relative
poverty.
 is pro-poor and market-driven
―Absolute Poverty‖ refers to the number
of households below minimum food
threshold, while ―Relative Poverty‖
refers to the resource gap between the
rich and the poor
 it provides access to market
information
 it provides vital government
services to meet the minimum
basic needs of the poor
 it encourages microenterprises
through the provision of
microfinancing
Government services include:
medical and health services, food,
housing, youth and child protection and
grants to cooperatives.
Pantawid Pamilyang Pilipino Program
(4P’s)
 In light of the President Pnoy’s
commitment to reduce poverty across
the country, budgetary allocations for
the government’s social protection
programs will continue to increase,
with the total allocation for the
Department of Social Welfare and
Development (DSWD) up by 47.9
percent to P48.9 billion in 2012.
 Under the 4Ps, indigent households
receive a conditional cash transfer
(CCT) of as much as P1,400 per
month, on condition that:
a. Children go to school and atleast
85% of their classes.
b. That the children receive regular
examination
c. Mother’s avail of maternal care

 PantawidPamilyang Pilipino Program
(4Ps)
Most of the DSWD’s budget, amounting
to P39.4 billion, will support the
PantawidPamilyang Pilipino Program
(4Ps), to cover an estimated 3 million
indigent household-beneficiaries, from
2.3 million households in 2011. The
Aquino Administration aims to enroll all
4.3 million indigent households into the
program by 2016.
IV. ASEAN Economic Community
What is ASEAN?
 It is arguably the most durable
and successful regional grouping
in the developing world.
 Established in 1967, it has
contributed greatly to regional
harmony and prosperity.
 It is characterized by great
internal diversity, generally high
economic growth, and a ASEAN has never been, and probably
reluctance to establish a strong
supranational structure.
Member-Countries
1. Brunei Darussalam
2. Cambodia
3. Indonesia
4. Lao PDR
5. Malaysia
6. Myanmar
7. Philippines
8. Singapore
9. Thailand
10. Viet Nam
Overview of ASEAN Economies
 Singapore is the richest country.
 In term of economic size:
 Indonesia is the dominant
followed by Thailand.
 Three intermediate ranked
economies, Malaysia Singapore,
and the Philippines.
 Cambodia and Lao PDR are still
officially regarded as ―least
developed states‖,
ASEAN Objectives
 To accelerate the economic
growth, social progress and
cultural development in the
region …
 To promote regional peace and
stability…
 To promote active collaboration
and mutual assistance … in the
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economic, social, cultural,
technical, and administrative
spheres.
Characteristics of ASEAN
1. First, it is a region of great diversity,
probably more so than any other group
in the world. Indeed, its economic,
political, cultural, and linguistic diversity
is greater than that of the European
Union, for example.
2. Most of the countries have achieved
rapid economic development for most of
the past 25 years, and longer in some
cases. Four of them – Indonesia,
Malaysia, Singapore, and Thailand –
were classified by the World Bank
(1993) as ―miracle‖ economies.
3. ASEAN diplomacy and cooperation
have been characterized by caution,
pragmatism, and consensus-based
decision-making.
4. Related to the third observation—
will never be, an EU type organization,
nor even a NAFTA-type economic bloc.
ASEAN achievements in its fifth
decade…
1. It still exists as an effective
functioning entity, which is more than
can be said for several other past and
present regional organizations in the
developing world.
2. For a region characterized by great
diversity and considerable past tension,
Southeast Asia has by and large been
free of major conflict since the mid-
1980s, as the three communist states
progressively re-entered the regional
and international mainstream.
3. ASEAN in aggregate has been a
region of rapid economic development
and rising living standards.
4. ASEAN has been diplomatically
skillful in effectively playing ―balance of
power‖ politics (Acharya, 2009).
From ASEAN to ASEAN Economic
Community or Economic
Integration…
Economic Integration An economic
arrangement between different regions
marked by the reduction or elimination
of trade barriers and the coordination of
monetary and fiscal policies. The aim of

economic integration is to reduce costs
for both consumers and producers, as
well as to increase trade between the
countries taking part in the agreement.
The more integrated the economies
become, the fewer trade barriers exist
and the more economic and political
coordination there is between the
member countries. By integrating the
economies of more than one country,
the short-term benefits from the use of
tariffs and other trade barriers is
diminished. At the same time, the more
integrated the economies become, the
less power the governments of the
member nations have to make
adjustments that would benefit
themselves. In periods of economic
growth, being integrated can lead to
greater long-term economic benefits;
however, in periods of poor growth
being integrated can actually make
things worse.
ASEAN has developed an elaborate set
of extra-regional agreements, ranging
from general statements about the
desirability of closer economic relations
to what on paper appears to be firm
commitments to economic integration.
 ASEAN has made significant
commercial policy commitments,
initially in the form of ASEAN+3
and more recently ASEAN+6.
 The latter has in turn morphed
into the ASEAN Economic
Community and the East Asian
Summit15.
 ASEAN's regional economic
integration efforts are geared
toward creating an ASEAN
Economic Community (AEC).
 The ASEAN Leaders had
originally intended to create AEC
by 2020, but in early 2007 they
advanced the deadline to 2015.
 The AEC envisions ASEAN as a
competitive economic region with
a single market and production
base.
 At the 13th ASEAN Summit held
in Singapore on 20 November
2007, ASEAN Leaders adopted
the ASEAN Economic Blueprint,
to serve as a guide for
establishing the AEC.
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 The blueprint contains 17 ―core
elements‖ and 176 priority
actions, to be implemented within
a Strategic Schedule of four
periods (2008–2009, 2010–2011,
2012–2013, and 2014–2015).
 Given the diversity within
ASEAN, and sensitivities
regarding different
issues\sectors, it was agreed that
liberalization of goods, capital,
and (skilled) labor flows proceed
at different speeds according to
member countries’ readiness,
national policy objectives, and
levels of economic and financial
development.
 Despite the blueprint and the
various priority actions and
schedules, it remains to be seen
to what extent concrete
liberalization will be implemented,
or whether it will remain
essentially a vision statement.
Four key characteristics/pillars and core
elements of the AEC Blueprint
A. Single Market and Production
Base
A1. Free flow of goods (9 Strategic
approaches)
A2. Free flow of services (3 strategic
approaches)
A3.Free flow of investment (5 strategic
approaches)
A4. Freer flow of capital (7 strategic
approaches)
A5. Free flow of skilled labor
A6. Priority integration sectors
A7. Food, agriculture and forestry
B. Competitive Economic Region
B1. Competition policy
B2. Consumer protection
B3. Intellectual priority rights
B4. Infrastructure development (10
strategic approaches)
B5. Taxation
B6. E-commerce
C. Equitable Economic Development
C1. SME development
C2. Initiative for ASEAN Integration
D. Integration into the Global
Economy
D1.Coherent approach toward external
economic relations
D2. Enhanced participation in global
supply networks

Philippine industries brace for
ASEAN 2015…
 Ready or not, everybody in
ASEAN is thrown into a free-for-
all single market.
 The idea of free-market in a
region with 600 million population
has made lots of Philippine
industries running scared.
 BPO, construction, meat
processors, and beverage sector
would be able to compete.
 Agriculture sector is at a loosing
end together with banking.
 As the deadline becomes clearer,
more and more firms have
accepted the fact that a new way
of doing business is about to
happen: a seamless way of doing
business is at hand in ASEAN.
V. POLICIES AND PROGRAMS FOR
AGRICULTURAL DEVELOPMENT
AND LEGAL PARAMETERS
―Social spending‖ and ―investments in
human Capital‖are now recognized as
―:key and core of development.‖
Social Policy is now considered as
central policy. This means that to be
able to maximize this sector as the main
drives of growth, the countries will have
to make substantial investments in
higher level education, training and
research. A large and growing pool of
educated and technically equipped
workers can be a major, if not as main
driving force for sustained economic
growth.
Serious Problems in the Philippines
Include as urban degongestion,
debilitating rural poverty, environmental
problems and political tensions
 The Medium-term Philippine
Development Plan envisions a
―sustainable development path‖
anchored on growth with social
equity. This means a reduction in
poverty, especially in rural areas and
in improvement in the distribution of
income.
 Social safety nets include social
assistance and social protection.
 Social safety nets refer to programs
that provide or substitute for income.
 Examples are: a) Cash or cash-like
transfers such as family allowances,
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unemployment allowances and public
works; b) in kind transfers such as
food stamps and subsidized public
services
Agricultural and Related Laws
A. R.A. 8435 or also known as the “
Agriculture and Fisheries
Modernization Act of 1997”
 An act prescribing urgent related
measures to modernize the
agriculture and fisheries sectors of
the country in order to enhance their
profitability, and prepare said sectors
for the challenges of globalization
through an adequate, focused and
rational delivery of necessary
support services, appropriating funds
therefore and/or for other purposes.
 Approved July 28, 1997
 Implementing agency: Dept. of
Agriculture
B. Agricultural / Crop Insurance Law
(1970)
 refers to the government program
that provide insurance protection
to agricultural producers against
loss of the crops, livestocks and
agricultural assets on account of
natural calamities, plant pests
and diseases and/or other perils
 The Philippine Crop Insurance
Corporation (PCIC) is directly
responsible for its implementation
 Benefeciaries include: rice and
corn farmers; high value
commercial crops growers;
livestock raisers; NGOs,
Cooperatives and Gov’t entities
C. R.A. 6657 or also known as “The
Comprehensive Agrarian Reform
Program (CARP)”
 Implementing agency : Dept. of
Agrarian Reform (DAR)
 Signed by Pres. Corazon Aquino
on June 10, 1998
 It is defined as the distribution of
lands, regardless of crops and
fruits produced, to farmers and
regular farm workers who are
landless and ―all other
arrangements alternative to the

physical redistribution of lands,
such as production or profit-
sharing, labor administration and
the distribution of shares of stock
which will allow benefeciaries to
receive a just share of the fruits
of the land they work.‖
 CARP aims ― for a more
equitable distribution and
ownership of land.‖ It meant to
distribute lands to farmers in a
span of 10 years but was
extended by the 11th Congress
due to delays in land distribution
and lack of budget allocation.
 However, a common CARP
loophole was that landlords
escaped relinquishing their lands
through land reclassifications.
Land classified by local zoning
ordinances as residential,
commercial and industrial lands
are excluded from CARP
 A maximum of 5 hectares can be
retained by the landlords and 3
hectares for each of their children
Who will implement the Program?
 The government, through all its
departments, with the DAR
playing the lead role
 The Land Bank serves as the
financial Arm of the CARP. It
pays the landowner the value of
their land, collectsthe land
amortization from farmer-
benefeciaries and provide credit
facilities and other technical
assistance to both farmer-
benefeciaries and landowners.
Is the CARP the same as Land Reform
?  Modern biotechnology research
 NO. Land Reform only involves
the acquisition and distribution of
land to the tillers, but no
assistance given to farmers like
credit, construction of roads,
bridges, school buildings,
warehouses and other
postharvest facilities, organizing
the farmers into cooperatives and
encouraging them to adapt new
farming techniques.
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10
 Their Differences
a) CARP covers all agricultural
lands regardless of crops planted while
the old Agrarian Reform Program
covered basically rice and corn lands
b) CARP not only seeks to distribute the
land equitably but also provides all the
necessary mechanism to make the
farmers fully productive.At the same
time, it provides assistance to land
owners.
D. National BioSafety Law
 A law to provide for the regulation of
the import, deliberate release into
the environment, placing on the
market, and the contained use of
genetically modified organisms
(GMOs) and products derived from
GMOs.
 Bad effects to human and animal
health and ecosystems (environment
and biological diversity).
 Competent Authority or Ministers or
the Director-General of the National
Environment and Management
Authority is to be in charge, with
independent panel of experts (on
GMOs) to evaluate the risk
assessment
 A policy to address Ecological
Risks brought about by modern
biotechnology or GMOs
 Biotechnology is any technique
that uses living organisms or
substances from those organisms
to make or modify a product,
improve plants or develop
microorganisms for specific
purposes.
is believed to reduce poverty and
food security
 The inclination of the developing
countries to promote or block the
spread of GM crops can be
judged by the policy choices they
make in 5 separate areas:
1) intellectual property rights (IPR)
policy

2) biosafety policy
3) trade policy
4) food safety policy
5) public research investments
E. The Irrigation Act or National
Irrigation Administration (NIA)
 Legal basis: R.A. no.3601(1963)
as awarded by P.P. Nos. 552 and
1702
 Objective: To investigate, study,
construct, repair and improve as
well as to operate and maintain,
all national irrigation systems
 The development of irrigation
systems started during the pre-
Spanish period
 There has been greater concern
for larger infrastructures with the
creation of the NIA in 1963, as
exemplified by the construction of
the Pantabangan dam under the
Upper Pampanga River Project in
1969.
F. Pest Control Laws in the
Philippines
 Creation of the Fertilizer and
Pesticide Authority (FPA) in May
1997
 Creation of the National Crop
protection Center (NCPC) at UP
Los Banos
 Establishment of the Pesticide
Residue Laboratory (PRL) at the
BPI now PAL (Pesticide
Analytical Laboratory)
G. The Omnibus Power Bill
How will the New Power Bill benefit
consumers, industry participants and the
Government ?
To consumers- in terms of giving them
the power of choice so that they can
choose which electricity will give them
lower rates and better services
For the industry players – it will give
them the opportunity to enhance
CENTRAL MINDANAO UNIVERSITY
11
security and reliability of electricity
supply
For the government – it will mean leaner
budget and there will be more budget
for other vital services such as health,
education, etc.
Main Points of Power Bill
 NAPOCOR will be sold to private
sector
 NAPOCOR’s contracts with
independent power producers will
be reviewed
 NPC’s total assets, its generation
companies will be divided into 6
groups and sold mainly to foreign
investors in about 15-18 months
 Consumers will shoulder losses
from Independent Power
Producers (IPP) contracts
estimated to be 25-30 centavos
per kilowatt-hour
 The industry will be broken up
into 4 sectors: generation,
transmission, distribution and
supply/retail
 The generation and supply/retail
sectors will be open to
competition to both domestic and
foreign companies
 Transmission and distribution will
likely to be a monopoly, but
regulated by a government-
commissioned body
 The Consumer Impact
Assessment Report of the Asia
Development Bank showed that
the power reform bill would lead
to economic growth due to
opening of the market to
competition, which translates to
the more competitive pricing of
their produce in the domestic and
international markets.
H. Professional Regulation
Commission (PRC) and the Creation
of the Board of Agriculture
PRC = is an agency responsible for
regulating and supervising the practice
of professional individuals according to
knowledge base and practice
 12

= is a three-man commission attached

to the office of the President of the
Republic of the Phil.
= created with the signing of P.D. No.
223 on June 22, 1973 by Pres.
Ferdinand E. Marcos
= R.A. 8981, otherwise known as the
―PRC Modernization Act of 2000‖
Creation of Board of Agriculture
Rules and Regulations Implementing
PRC Resolution No. 2000-663 RR:
Creation of the Board of Agriculture
(Resolution N0. 1)

I. Price Floor Policy

= is a legislated minimum policy of the
government to protect the welfare of the
producers/farmers
= to be, effective, the price of the
product is set above the equilibrium or
market price
=consequences will be oversupply of the
products in the market
=Examples of this policy are the:
Agricultural Price Support Policy of the
Government and the Minimum Wage
Law

J. Price Ceiling Policy

= is a legislated aximum policy of the
government to protect the welfare of the
buyers/ consumers
=to be effective, price is set below the
equilibrium price or market price
=consequence is there will be shortages
or deficit of product
=Examples of this policies are: price
control policy on basic commodities and
rental control policy

CENTRAL MINDANAO UNIVERSITY