宿务亚典耀圣心学校

SACRED HEART SCHOOL – ATENEO de CEBU

H. Abellana Street, Canduman, Mandaue City

High School Social Studies Area

S.Y. 2016– 2017

ECONOMICS JHS

LESSON ON
AGRICULTURAL, INDUSTRIAL AND SERVICES SECTORS

I. Agricultural Sector
A. What is agriculture?
- it is defined as the science and art of crop and livestock production. It covers a wide range of activities
associated with the production of useful plants and animals, including soil cultivation, crop and livestock management,
and processing and marketing activities.
B. Factors that influence the kind of agricultural practice in particular areas
1. climate 4. transportation facilities
2. soil 5. land costs
3. topography 6. nearness to market 7. other economic variables
C. Three Major Patterns of Agricultural Development
1. Traditional Agriculture or Subsistence Farming
-farmers cultivate land and plant crops primarily to feed the members of their household,
use traditional methods of cultivation, planting, and processing. Also, included hunting, animal
husbandry, kaingin farming and fixed cultivation.
2. Modernizing Agricultural Stage
- the main feature is the increased importance of commercial production in farming. Farmers produce
not only for subsistence but to produce surplus to be traded for cash or in exchange for other
commodities. Start using fertilizers and mechanized tools for cultivation, harvesting, threshing and
milling.
3. Modern Agricultural Stage
- agricultural processes are specialized and are characterized by a large portion of the
product being produced for commercial purposes. The labor productivity is high,
improved technology, highly mechanized farm system, intensive cultivation and employ
high-yield varieties of seeds and the like.

D. Importance of the Agricultural Sector (15.1% of the GDP as of 2001)

a. source of food
b. source of cash crops used by households, industries, and foreign buyers
c. source of foreign exchange (7 of the 10 principal exports are products of the agri. Sector)
d. it can absorb a number of laborers in the economy
e. source of raw materials to other sectors
f. it also a potential market for the products of the other economic sectors
It is, therefore important to develop the agricultural sector and improve its productivity in order to increase the
purchasing power of farmers.

E. Land Tenure in the Philippines

One of the key factors that slowed down the progress of the agricultural sector is the land tenure system.
Five Classifications of Land Tenure in the Country
1. Full Owners -they are those who own all the land which they work on
2. Part Owners -they are farm operators who own part of the land they work on while they hold the remaining
portion as tenants
3. Tenants -they are farm operators who rent or lease from others the land they culitivate
Kinds of Tenancy
a. Cash Tenants - farmers pay cash as rent for their use of the land
b. Share-of-Produce Tenants – tenants who give the owner of the land a share of their harvest as agreed upon
beforehand
c. Fixed-Amount-of-Produce Tenants – farmers pay rent in the form of a fixed quantity of the harvest agreed
upon by the owner and the tenant
d. Cash and Fixed-Amount-of-Produce Tenants – tenants pay rent using the land in a mix of cash payment
and a fixed portion of the harvest agreed upon
e. Cash and Share-of-Produce Tenants – tenants who pay the owner of the land a combination of cash and a

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 portion of the harvest agreed on beforehand by both parties
f. Rent-Free Tenants – tenants who till land with the consent of the owner without having to pay rent in cash
or in kind. Marginally productive lands are generally involved here.
4. Farm Managers – supervise the day-to-day operations of large farms and receive wages, a salary,
or part of the harvest for their services
5. Other Farm operators – they operate farms under the conditions other than those previously
mentioned

F. Land Reform in the Philippines

Land Reform refers to the “full range of measures that may or should be taken to improve or remedy the
defects in the relations among men (i.e. between tiller and owner of land, employee and employer in a farm) with respect
to their rights in land and involves the transformation of agrarian structure.”
Agrarian Reform “comprises not only land reform but also the reform and development of complementary
institutional frameworks such as the administrative agencies of the national government created to undertake land reform,
local governments, rural educational and social welfare institutions, and voluntary associations, particularly farmer’s
organizations.”
Goals of the Government:
1. to establish owner-cultivatorship and make family-sized farms the basis of Philippine agriculture
2. to achieve dignified existence for small farmers and free them from harmful institutional restraints and practices
3. to establish social and economic structure in agriculture in agriculture conducive to greater productivity and
improved farm incomes
4. to apply all labor laws without discrimination to both industrial and agricultural wage earners
5. to provide a more systematic land resettlement and land distribution program
6. to make the small farmer a more independent, self-reliant and responsible citizen, and a source of genuine strength
in our society
 Diosdado Macapagal – signed the Agricultural Land Reform Code of 1963
-the first comprehensive land reform program that was initiated
-it laid down the foundation of an ideal tenure system in the Philippines with the abolition of tenancy and replaced
it with long-term leasehold
-the program was not successful in eliminating tenancy because land coverage was very limited and the slow
implementation of the law allowed owners of tenanted farms enough time to eject their tenants
 Ferdinand E. Marcos –signed the Presidential Decree No. 2 and No. 27 in 1972
-Presidential Decree No. 2 – place the entire country a land reform area
-Presidential Decree No.27 – emancipated the tenants “from the bondage of the soil, by transferring to them the
ownership of the land they till.” This decree provide that each tenant-farmer of a private agricultural land
devoted to rice and corn under a system of share-crop or lease tenancy should be the owner of a portion of the
land consisting of family-sized farm of five hectares
 Corazon C. Aquino – signed the Republic Act No. 6657 or Comprehensive Agrarian Reform Law
-conceived agrarian reform as redistribution of all public and private agricultural lands, regardless of crop or
tenurial arrangement, to landless farmers and regular farm workers, to include all the necessary support services
designed to improve the economic status of beneficiaries and increase land productivity, and all the arrangements
which will provide the beneficiaries a just share of the fruits of the land they work
Coverage of the CARL / CARP (Comprehensive Agrarian Reform Program)
1. all alienable and disposable lands of the public domain devoted to or suitable for agriculture
2. all lands of the public domain in excess of the specific limits
3. all other lands owned by the government devoted to or suitable for agriculture
4. all private lands devoted to or suitable for agriculture regardless of the agricultural product raised
Major Programs of Agrarian Reform
Operation Land Transfer (OLT) – the major component of the land reform program involves
the orderly and systematic transfer of all lands planted to rice and corn to the tenant-tillers
Five Stage Process
1. identification of tenants, landowners, and lands covered
2. mapping the actual area cultivated by the tenants
3. printing and issuance of certificates of land transfer
4. valuation of the land transferred
5. issuance of emancipation patents to farmers who have completed payment for the land
Leasehold Operations – Leasehold is an intermediate stage of land tenure whereby tenant-farmers are given
protection by the law from harassment, ejection, and other practices which characterize share-crop tenancy
Land Consolidation – the process by which comparatively irregular, small, fragmented, and scattered farm lots
are concentrated and restricted for better management and more efficient farm operations and production
Compact Farms – involves the voluntary grouping of farmers to enable them to properly combine and utilize
their resources for greater productivity and efficiency
Agrarian Reform and Cooperatives
-one of the institutions which has been identified as crucial in the development of agriculture and agrarian reform
in particular is the cooperative movement. A cooperative is a group of persons who combine their resources
under the principle of equality in order to attain objectives to their mutual benefits
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 -Four Basic Principle that Guide the Cooperative Movement
a. open membership c. limit interest to capital
b. democratic control d. patronage refund
G. Problems and Prospects in Agriculture
Problems – a. there is a constraint in increasing the land available for cultivation
b. the impact of government policies on the agricultural sector is another factor such as low food
prices (price control)
c. high cost of fertilizers and other agricultural inputs
Prospects – there is a need for it to grow faster than is indicated by its previous growth performance –
possible if the government policies are revised to promote agricultural development, adopt
modern technologies, and implement agrarian reform program

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