MODULE

FOR STATUS OF PHILIPPINE

WEEK 2 AGRICULTURE

INTRODUCTION

The Philippines as an archipelagic state is primarily considered as an agricultural

country. It has rich natural resources where bigger percentage of the population is dependent
in these available and abundant resources. Agriculture is still considered one of the main
drivers of the country’s economy. According to World Bank agriculture in the Philippines
employs 27.7% of the Filipino workforce as of 2017. The Philippine British Business Council
reported that the country’s agricultural sector is divided into: farming, fisheries, livestock,
and forestry making up 20% of the country’s gross domestic product. Thus, the government
has allocated big amount of funds to finance the different agricultural activities in the country
and also created laws that will govern the operation of the agricultural sector. While it is a
fact that the country is rich in its agricultural resources; several issues, problems, and
challenges confronted the government and every Filipino farmer as they face the diverse and
challenging landscape of the agricultural sector.
In this module, you will examine the status of Philippine Agriculture as it affects the
economy of the country. Furthermore, this module will increase your awareness regarding the
trends, constraints, and problems faced by the Philippine Agriculture. Lastly, this module will
give you information’s regarding conventional farming. If you have questions and
clarifications, do not hesitate to contact your instructor.

LEARNING OUTCOMES!

1. Increase awareness on the status of Philippine Agriculture

2. Discuss the Effects of conventional farming.
3. Determine the trends, constraints, problems faced by Philippine Agriculture.
 Answering the question below
will help you determine your

Answering the question below will help you determine your basic knowledge about the status
of Philippine Agriculture.

1. As a student of an Agricultural University, what do you think are the main problems of the
country along the following sectors of agriculture? Discuss your answers briefly.

Sectors in Philippines Agriculture

FARMING FISHERIES LIVESTOCK FORESTRY

REFERENCES AND LEARNING RESOURCES!

The following served as references for this module.
A. Books

B. Video Clips
K to 12 Basic Education Program in the Philippines - YouTube
K to 12 curriculum talk - YouTube
DepED Dr. Giron's Lecture on K to 12.wmv - YouTube
Failon Ngayon: Is PH ready for K-12? - YouTube
 EXPLORE!

Note: Read the article written by Sara Soliven De Guzman

Agriculture is dying in the

Philippines

AS A MATTER OF FACT - Sara Soliven De Guzman (The Philippine Star) - June 18, 2018 - 12:00am

Agriculture is dying. This is a sad reality of the country.

Agricultural land is being developed into industrial areas, shopping malls and subdivisions.
Farmers are growing old and their children have shifted into other careers. The agriculture
industry has not progressed in ages. Many of our agricultural schools are producing office-
oriented workers who would much rather do paper work than help improve the agricultural
sector of the country. Not to mention the many horror stories of corruption at the Department
of Agriculture.    

Even if the Philippines is primarily an agricultural country, we have not done anything to
‘cultivate’ this sector. In the sixties, we were ahead in Asia. Students from different countries
came here to study agriculture and its technology. But what happened? They are now better
than us. Somehow, we lost in the race.

Yes, we have been blessed with different kinds of bodies of water, lands that are lush and
fertile, and a climate that is favorable in growing various kinds of high valued crops and
raising livestock, poultry and other farm animals. But due to economic industrialization, this
industry has been challenged. Our priorities have changed almost forgetting our fundamental
need for survival. And according to reports, the agricultural sector employs only 25.96
percent of the Filipino workers as of November 2017. This is very low compared to many
countries who prioritize and give more importance to it.

Agriculture plays an important role in the country’s economy. This is measured as the value
added of the agricultural sector as percent of GDP. According to the World Bank data from
1960 to 2016, the average value for the Philippines during the period was 21.36 percent with
a minimum of 9.65 percent in 2016 and a maximum of 31.06 percent in 1974. This shows a
sad truth that the percent of GDP (value added) contributed from the agriculture sector
continues to decrease. Although people still think of the Philippines as an agricultural
economy, strictly speaking, and based on the data, this is not the case.

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. Third, the government has not developed a good infrastructure for
farmers (i.e. farm-to-market roads, irrigation system, drying facilities and milling centers,
etc.). Fourth, most of our farmers do not own the land they till. They cannot maximize the use
of the land that results in low income. And since they are just tenants, some landowners
require a 50-50 share of the product, thus leaving only half of the produce to the farmers.
Fifth, farmers have difficulty in financing their farming endeavors due to the high rates of
borrowing institutions. And when harvest time arrives, the money from the sale is only
enough to pay their debts and nothing is left for them. Sixth, farmers lack protection from the
middlemen who take advantage of their weaknesses. The middlemen buy their products at a
very low cost and the Department of Agriculture always seems to be turning a blind eye on
these culprits.

During the Innovation Olympics 2018 held at the 8 Waves Resorts in Bulacan last April,
East-West Seeds Philippines general manager Henk Hermans said that farmers represent the
second poorest sector in the country. This has resulted in the young people’s disenchantment
in pursuing a career in agriculture. He noted that the average age of Filipino farmers is 57-59
years old and therefore there is a great need to encourage the youth to engage in crop
production to ensure the country’s food security. He also pointed out that our farming
practices are outdated, and majority of the farmers are reluctant to use modern technology in
farming, making their work labor intensive and unsustainable.

The government has recognized the declining contribution of the agricultural sector in the
country’s GDP and this drop in its performance is attributed to its vulnerability towards
extreme weather events (drought and typhoons), infestations (coconut scale insects), and poor
adoption of high-yielding varieties at the end of the farmers. The restricted crop production
diversification of farms particularly concentrating on rice, corn, and sugarcane impedes the
optimization of the land potential. Other longstanding issues such as the limited access to
credit and insurance, low farm mechanization and inadequate postharvest facilities,
inadequate irrigation, limited support R & D, weak extension service, ageing farmers,
agrarian reform, limited connection between production area and markets, poor compliance
with product standards, competing land use, and weak institutions have also been recognized.
But we need action!

The Philippine Development Plan for 2017-2022 seeks to: expand economic opportunities for
those who are engaged in agriculture; increase access to economic opportunities for small
farmers. Based on the legislative agenda, the development plan supports the following
strategies to: abolish irrigation service fees for small farmers; comprehensive Forestry Law
and delineation of Specific Forest Limits; amend the revised chapter of the Philippine Crop
Insurance Corporation to increase capital stock; amend Presidential Decree No. 4 series of
1972 to separate the regulatory and propriety functions of the National Food Authority;
amend the Agriculture Tarrification Act of 1996; provide guidelines for the utilization of
coco levy fund; pass the National Land Use Act to protect prime agricultural lands; and
genuine and comprehensive Agrarian Reform Program to distribute for free without
amortization agricultural lands to landless farmers and agricultural workers (NEDA, 2017).
So, what gives?

Last year the Department of Agriculture had a budget allocation of P46 billion. This year the
budget is P60.6 billion. Next year, it is expected to go up to P124 billion. Yes, the DA has the
budget but they don’t seem to have the brains and the balls to get things going. They continue
to point fingers on the past administrators. Every Agriculture Secretary has a reason for the
season. Sanamagan! Just do it!

UPLB Center for Technology Entrepreneurship executive director Glenn Baticados said that
agriculture today is more than just a farmer simply planting a crop, growing livestock, or
catching fish. He said, “It takes an ecosystem and several actors to work together to produce
and deliver the food we need. It is this dynamic and complex ecosystem that will equip
agriculture to cope with the competing challenges of addressing food safety and food
security, creating inclusive livelihoods, mitigating climate change and sustainably managing
natural resources.”

Agriculture constitutes the foundation of food security. As such, it is imperative that all
concerned bodies work together, innovate continuously, and collaborate in research and
development to meet future challenges in agriculture.

General Status of Philippine Agriculture

Note: This overview on the Status of Philippine Agriculture is taken from the presentation of
Karl Obispo.

1. The Philippines, one of the largest island-groups in the world with over 7,100 islands and a
wealth of natural resources, is prone to seismic and volcanic activity. The mountainous island
archipelago is of volcanic origin, forming part of the 'Pacific Ring of Fire', and has a tropical
climate with high annual temperatures, humidity and rainfall.

2. Country: Republic of the Philippines Capital: Manila Area: 300,000 sq km Population:

103,775,002 (2012 est.) Population growth rate: 1.9% (2011 est.) Life expectancy: 72 (2011
est.) Inflation: 5.3% (2011 est.) GDP purchasing power parity: US$393.4 billion (2011 est.)
GDP per capita: US$4,100 (2011 est.)

3. GDP composition by sector: agriculture: 12.3%; industry: 33.3%; services: 54.4% (2011
est.) Land use: arable land: 19%; permanent crops: 61.67%; other: 64.33% (2005) Land under
cultivation: coconut (3.3 million ha), rice (2.5 million ha), maize (1.4 million ha), sugarcane
(0.4 million ha) Major industries: electronics assembly, garments, footwear, pharmaceuticals,
chemicals, wood products, food processing, petroleum refining, and fishing.

4. Agricultural products: sugarcane, coconuts, rice, corn, banana, cassava, pineapple, mango;
pork, eggs, beef; fish Natural resources: timber, petroleum, nickel, cobalt, silver, gold, salt,
copper.

Export commodities: semiconductors and electronic products, transport equipment, garments,

copper products, petroleum products, coconut oil, fruits

Export partners: China 19%, US 13.4%, Singapore 13.2%, Japan 12.8%, Hong Kong 7.6%,
Germany 4.2%, South Korea 4.1% (2010)
5. Agriculture as pillar of Philippine economy. The agricultural sector employs about 30 per
cent of the population but contributes only 12 per cent of GDP. Almost 5 million farmers
cultivate 9.7 million hectares, or about 30 per cent of the total land area of the country.

6. Coconut, rice, maize and sugarcane are the top four crops cultivated. Although the
economy is moving away from agriculture to services and manufacturing, the sector is crucial
to realising the Government's target of becoming food self-sufficient by 2013

7. Rice is the most important staple food crop. Yields have increased substantially since the
1960s as a result of high-yielding varieties, but per hectare yields are generally low in
comparison with other Asian countries.

8. Despite being the eighth largest rice producer in the world, rapid population growth, poor
road and irrigation infrastructure, and limited suitable land to expand production, mean that
the country is also one of the world's largest rice importers. From a record of 2.45 million
tons in 2010, however, rice imports were reduced to 860,000 tons in 2011.

9. Between 2004 and 2010, agriculture and fisheries exports rose from US$2.5 billion to
US$4.1 billion. Coconut was traditionally the major export earner, but with depressed prices
for copra and other coconut products, production has decreased, particularly as trees have not
been replaced.

10. Banana, coconut oil, tuna, pineapple, tobacco and seaweed are the top exports. High
quality robusta and excelsa coffees are produced in the country but very little is exported.

11. According to the Government, agricultural growth and productivity are constrained by the
high cost of production inputs. In the Philippines, fertilizers and pesticides typically account
for 20-30 per cent of production costs, while livestock feeds account for about 70 per cent.

12. High transportation costs, post-harvest losses, inadequate irrigation infrastructure, and
limited access to credit have also been identified as barriers to growth.

13. In 2011, the agriculture sector grew by just over two per cent. Recovering from drought
in 2010, significant gains in production in 2011 were recorded for palay (unhusked rice)
(6%), maize (9%), sugarcane (58%), mung bean (22%), tobacco (11%) and rubber (8%).

14. According to the Department of Agriculture, the use of quality seeds, rehabilitation of
irrigation facilities, improved fertilization, a reduction in pests and diseases, favourable
weather conditions, increases in area harvested, and higher prices all contributed to the
increases.

15. There are four types of climate base on Modified Corona’s System. Type I Two
pronounced seasons, dry from November to April; wet during the rest of the year. The entire
province in the western part of the islands of Luzon, Mindoro, Negros, and Palawan. Type II
No dry season with a very pronounced maximum rainfall from November to January. The
areas covered are Catanduanes, Sorsogon, The eastern part of Albay, the Eastern and
Northern part of Camarines Norte and Camarines Sur, a great portion of Eastern part of
Quezon, the eastern part of Leyte and a large portion of Eastern Mindoro.

16. Type III No very pronounced maximum rain period Only a short dry season lasting from
one to three months. Covers the Western part of Cagayan (Luzon), Isabela, Nueva Viscaya,
the southern portion of Mountain Province, Southern Quezon, the Bondoc Peninsula,
Masbate, Romblon, Northeast Panay, Eastern Negros, Central and Southern Cebu, Part of
Northern Mindanao and the most Eastern Palawan. Type IV Rainfall more or less evenly
distributed throughout the year. There is no dry season and no very pronounced rainy. Covers
Batanes Provinces, Northern Luzon, Western Camarines Norte and Camarines Sur, Albay,
Eastern Mindoro, Marinduque, Western Leyte, Nortern Negros, and most of Central, Eastern
and Southern Mindanao.

17. December-May This interval is hot… it’s the dry season. The March-May period is the
hottest… the best time to go to beaches and water resorts. The prevailing wind in this period
is the Amihan, which comes from the east.

18. June-November This period is rainy… it’s the wet season, it’s the typhoon regime.
During this period, an average of 21 typhoons hit the country. A few times, it reaches 23.
Typhoons in November are much less and when they come… they are really ugly and very
destructive. The prevailing wind in this period is the Habagat, which comes from the west.

19. Of the total rainfall recorded annually, 47% is attributed to the occurrence of the tropical
cyclones (especially from June to December). Tropical cyclones are generally from the North
Pacific Ocean region and generally move in West Northern direction towards the country.
The annual humidity ranges from 74% to 85% while the annual mean temperature is between
19,5°C to 28°C and annual rainfall ranges from 1,893 to 3,855.2 millimeters.

20. The majority of the Philippines’ soil resources are best suited for cultivated crops
(Inceptisols), some soil types (Entisols, Vertisols, and Mollisols) are economically important
for rice and other major crop production. Some are considered problem soils (Ultisols)
because of high erodibility and low nutrient content but still has potential for agricultural
production.

21. SOIL TYPE AREA (Ha) SOIL TYPE AREA (ha) Clay 5,326,035 Sand 121,624 Silty
Clay 10,475 Fine Sand 130,694 Sandy Clay 246,570 Beach Sand 6,442 Loam 2,244,102
Beach Sand 9,846 Sandy Loam 1,171,951 Loamy Sand 14,444 Clay Loam 6,405,080 Coarse
Sand 13,498 Silty Loam 861,928 Complex 262,305 Gravelly Loam 21,213 M.Soil Undiff’d
8,789,216 Silty Clay Loam 403,303 Rocks and Mt.Lands 551,195 Sandy Clay Loam
1,132,46 Others 1,524,728 Fine loam 262,561 Gravelly Sandy Loam 3,123 Total 29,512,798

22. An average of 20 typhoons enter the Philippines in a year. Public Storm Warning Signal
PSWS #1 - Tropical cyclone winds of 30-60 km/h are expected within the next 36 hours.
PSWS #2 - Tropical cyclone winds of 60-100 km/h are expected within the next 24 hours.
PSWS #3 - Tropical cyclone winds of 100-185 km/h are expected within the next 18 hours.
PSWS #4 - Tropical cyclone winds of greater than 185 km/h are expected within 12 hours.
23. Of the country's total land area, forest land has the highest share with 65% as of 1996
(NLUC 2002). Agricultural land has about 33%, while those used for inland fisheries,
settlements and open land account for 2, 0.44 and 0.04%, respectively. Mining and quarrying
has the least with only 0.03 percent.

24. Forest cover in the Philippines decreased from 34% in the 1970s to 22% in 1987, and
remaining forest cover is concentrated in Palawan, Mindanao and the uplands of Luzon.
(http://www.cifor.org)

25. “The share of agriculture in the economy continues to fall and was down to 11.6% of
GDP in the first quarter; manufacturing was at 22.9% of GDP in the first quarter of 2012
which is as small as its share in the 1950s”. The Gross Domestic Product (GDP) is one the
primary indicators used to gauge the health of a country's economy. It represents the total
dollar value of all goods and services produced over a specific time period.

26. Yet manufacturing and agriculture are important sectors for creating jobs, have the
greatest potential for high productivity, and should be the main drivers of economic growth.
As it is, the domestic agriculture sector remains largely backward and local manufacturing
still grossly underdeveloped." -- From the Midyear 2012 Birdtalk paper "Exclusionary
Economics, Elite Politics"

27. Industry 2003 2008 Agriculture, Fishery and Forestry 14.64 14.86 Industry 31.94 31.65
Service 53.41 53.49 Total 100.00 100.00

28. The Philippine economy has the potential to increase GDP and export revenue through
their agricultural sector, however they lack the government units needed to support it. The
agriculture industry is conflicted with low economies of scale, low productivity, and poor
infrastructure support.

29. The Philippines agricultural products include: sugarcane, coconuts, rice, corn, bananas,
cassavas, pineapples, mangoes; pork, eggs, beef; fish. Top agricultural exports include:
refined coconut oil, coconut water, fresh bananas, mangoes, pineapples and carrageenan. The
United states and Japan are among the top destinations for the countries agricultural export.
http://internationalbusiness.wikia.com

30. In 2010, the Climate Change Vulnerability Index ranked the Philippines as the 6th most
vulnerable country to climate change, out of 170 countries. Changing rainfall patterns, rising
temperatures, increasing frequency and intensity of typhoons and dry spells, and sea level rise
are projected as a result of climate change.

31. Typhoons Ondoy and Pepeng resulted in damage to the agriculture and fisheries sectors
estimated at US$580 million in 2009. Meanwhile in some parts of the country, rising sea
levels are already causing salt water intrusion.

32. Government priorities Despite positive growth and gains in productivity, there has been
almost no change in the welfare of almost 6.4 million people who are dependent on
agriculture and fisheries. In the latest national Development Plan, the Government states that
improving productivity and efficiency in the agriculture sector is critical to maintaining the
affordability of food and reducing poverty.

33. To improve food security and rural incomes, the Government is working to improve rural
infrastructure (including roads, post-harvest facilities and markets), strengthen extension
systems, improve access to credit, increase investment in research, and encourage investment
from the private sector. The Government is also promoting integrated water resource
management, sustainable land management, restoration of fishing grounds, and strengthening
crop and fisheries insurance schemes, to increase resilience to climate change.

34. Reaffirming their commitment to achieving food self-sufficiency by 2013, the

Government has increased its 2012 agriculture budget by 50 per cent compared to last year.
The money will be spent on constructing and rehabilitating irrigation systems and repairing
roads, in addition to boosting the budgets of national programmes designed to boost
production of rice, maize, vegetables, fisheries and livestock.

DISCUSSION BOARD

Answering the question below will help you to have an in-depth understanding on the status
of Philippine Agriculture.

A. As a young agriculturist, enumerate specific issues, problems, and challenges faced

by the agricultural sectors based of the article you have read and suggest specific
solutions that will address these problems.

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 POST-COMPETENCY CHECKLIST

Based from what you have learned in this module, you are now expected to
understand the status of Philippine Agriculture.

I. Persuasive Essay

1. In order to solve some issues in Philippine Agriculture, scribble some

practices occurring at home or in your community that will promote
Agriculture as one of the ways of improving the quality of life of every
Filipino family. Get your partner and complete the table below.

Issues in Philippine Agriculture As a young agriculturist, I will……

1. High cost of synthetic fertilizers and
commercialize pesticides.

2. Lack of interest of Filipino youth in

Agriculture.

3. Climate change and natural disasters.