Engage

Below are two situations. Choose just one situation and then answer the question.

1. Imagine yourself to be the owner of a large tract of agricultural land. You want
the land to be productive but then you have no idea how to farm. A landless farmer
approached you, and discussed with you the possibilities of him tilling your farm.
What kind of economic/financial arrangement do you think would be appropriate so
that both of you benefits from the relations? Possible arrangements include:

A. Employment of the farmer to be paid a fixed monthly wage

B. Proportionate sharing of costs and profit
C. Landowner bears all costs of farming implements and gets a bigger share of the
profits
D. Other options.
Please elaborate your answer

B. Proportionate sharing of costs and profit.

- I think the economic/financial arrangement that would be
appropriate so that both of us could benefit from the relation is having a
“Proportionate sharing of costs and profit” or the share lease. It is a land
lease agreement that specifies that we will share the costs of producing
goods and services proportionally. The agreement provides for a revenue
sharing mechanism. Typically, the proportion of our revenue that is shared
would be the same as the proportion of our costs that is shared. We'll take
a 50-50 arrangement, in which I, as the landowner, will cover half of the
production costs and the farmer will cover the other half. Fifty percent of
total revenue would go to me (for the farmer, this is known as the "share
leasing fee"), and fifty percent would go to the farmer-tenant. As a result,
rather than setting a desired proportion, we place a value to all
contributions that are practical, fairly and equally, based on available
resources.

2. Reverse the scenario, this time you are the farmer. Same question and options
apply. Which do you choose? Clarify your response.

C. Landowner bears all costs of farming implements and gets a

bigger share of the profits
Contrastingly, as a farmer, I would definitely choose the
“Landowner bears all costs of farming implements and gets a bigger share
of the profits”. Since I am a landless farmer who cannot afford to buy
farmland because I do not have enough capital for a down payment or
because my income will not be sufficient to meet the farmland financing
payments, it would be preferable if the landowner bears all of the costs of
running the farm and receives a larger share of the profits. Following that
the landowner will provide all of the work and equipment required for
ploughing, planting, pest control, harvesting, and carrying crops to
storage. On the other side, I will be responsible for tilling, planting,
cultivating, in harvesting the land, and all other physical labor or work in
farming, and in return, I will receive a lower wage because the landowner
covered all of the expenses.

Evaluate (Choose one set to answer)

Set A. Apart from the land award, what do you think are the benefits of Agrarian
Reform to the
Landless Farmers and the greater Agricultural Sector? Explain two benefits each.

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 Benefit to the Farmer Beneficiary:
Includes higher farm income and yield
- The farmer beneficiary's income increased as a result of the government's
Agrarian Reform service, which includes marketing systems, farm-to-
market roads, irrigation and post-harvest facilities, extension, research, and
institutional development. AFP's Leasehold Operation, Land Transfer, Land
Consolidation, and Settlements overcome various agrarian reform
constraints such as administrative, financial, and managerial constraints,
allowing wider access to modern farm technology and maximizing the
benefits of economies of scale, resulting in higher income and yield among
farmers.

Enhance food security

-
According to a study done in Central Luzon in barangay Talavera, many
farmers in the Philippines lack access to solar drying facilities, the quality of
their palay is poor, and the farmers rush to sell their palay before it
deteriorates. Because they were having trouble getting their goods to
purchasers, the Agrarian Reform developed and built a farm-to-market
road, a sun drying facility, and a storehouse in the barrio, all of which
improved the security of their commodities. As a result, the route was soon
clogged with vehicles. Farmers didn't have to haul their sacks of palay since
palay purchasers came. Palay buyers came and the farmers did not have to
transport their sacks of palay. The money saved on transportation costs
was simply converted into profit. They were able to earn a higher price for
their palay now that they could dry it. They might also store their palay in
the storeroom until prices were favorable. Therefore, agricultural
institutions and governance systems are improving, allowing for greater
openness and accountability to be included into publicly supported
programs that improve people's chances of not being impoverished.
Benefit to the Agricultural Sector:

Evolution of a free market for agricultural land

- Rising fertilizer use, stable agricultural prices, cooperative marketing, and
export incentives all contributed to significant expansion in agricultural
productivity. To raise agricultural productivity and strengthen the
production and marketing system, the government has enacted critical
measures such as rice price assistance, encouragement of mechanized
agriculture and other new technology, and guaranteed delivery of key
agricultural inputs and farmer’s welfare.

Linking agrarian reforms with environmental protection

- - The Agrarian Reform encourages environmental protection (recent
development) in the agricultural sector, preserving biodiversity. It changes
the structure of agriculture to improve resource efficiency and biological
conservation. It moreover reduces the negative impact of the environment
on agricultural production and promotes environmentally and friendly
agricultural methods like organic farming for long-term sustainability and
environmental protection and conservation.

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