Case Study Linkages in Rural Development

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I.

Introduction:
The Philippine agricultural sector employs 36 percent of the labor force and accounts for
roughly 14 percent of the nation’s Gross Domestic Product (GDP). When the agricultural- based
food processing sector is included, the whole of agriculture and food contributes 26 percent to
GDP. From the 1950s to the 1970s, government policies were biased against agriculture. These
policies included the government’s import substitution policy until the 1980s which created a
favor of manufacturing and penalized returns to agricultural investments and exports, export
taxes and exchange rate over-valuation which greatly reduced earnings from agriculture, and
government intervention through the creation of government cooperatives that siphoned off the
gains from trade (Intal and Power 1990, David 2003). There have also been numerous studies
examining the linkages between agriculture and machineries in particular locations (see Fei,
Ranis and Stewart for review). The integration of agriculture and machineries is necessary to
understand how linkages between the sectors affect not only the growth of each sector taken
individually but also the aggregate growth rate, the spatial pattern of such growth and whether
growth in incomes and employment is broadly based geographically and in terms of the
participation of different classes. The term linkages used to describe the manifold interaction
between agriculture and rural non-agriculture activities in a developing economy. It is our
contention that linkages not only describe the connection between sectors which are necessary
aspect of economic growth and development – their nature and magnitude changing as
development – their nature as magnitude changing as development proceeds – but also that the
extent and nature of these linkages materially affect the rate of growth of each sector individually
and that of economy as a whole. The strength and quality of this process of dynamic interaction,
moreover, affects the regional pattern of development, the size and labor intensity of both
agricultural and non-agricultural production and trough these mechanisms, the distribution of
income. If all of this is true, it follows that linkages and the spatial dimension of development
represent an important and dimension of development (see Linkages in development by Gustav
Ranis, Frances Stewart, and Edna A. Reyes)
The Philippines, Department of Agriculture implemented Memorandum Circular No.4
the Guidelines of the Special Area for Agricultural Development (SAAD) Program. The SAAD
Program hopes to complement the DA national banner in two ways. First, SAAD shall provide
interventions in areas not reached by the regular DA programs. Second, SAAD may provide
interventions and schemes which are not part of DA regular programs. In line with DA mandate
to uplift the socio-economic situation of farmers SAAD shall likewise assist beneficiaries to
organize an efficient production, post-harvest and marketing process to improve their gains from
farming. Cluster production and community agri -enterprises along existing supply shall be
encouraged. (see DA DM#4 series 2019)
II. Objectives
The purpose of this study is to be able to know the impact of the Rural Development
Program implemented by the government thru the Department of Agriculture in helping the
farmers attain better production.
III. Methodology
A descriptive research methodology was used in this study. A questionnaire was
administered to attain best result of this study. Also, an interview of the respondent of the study
was conducted. Together with the data gathered in Bayugan City DA office.

IV. Review of Related Literature


There are wide ranging of rural development program found in the literature. For this
paper three aspects are reviewed: definitions of rural development, rural development program
and factors that contribute to the success of the programs.
3.1 Defining rural development
Rural development is one of the foundations of rural economic development. Rural development
generally can be defined as creation of a new organization/ways that introduces a new product,
serves or creates a new market, or utilizes a new technology in a rural environment (Wortman,
1990). Development in rural areas include widening the base of a farm to include all the non-
agricultural uses that available resources can be put to or through any major changes in land use
or level of production that related solely to agriculture (Petrin, 1994).
In this regards, rural development is someone living in a rural location and contribute to the
creation of local wealth (Petrin, 1994). They can be focusing on agriculture or areas that relate to
natural resources (Degei & Martin, 2009) or. Hoy (1983) stated that a stated that a popular image
of a rural development is that of someone who is “ … independent, risk taking, achievement
oriented, self-confident, optimistic, hardworking and innovative” .
He added development in a rural context is focused upon creating new
opportunities in rural areas, via the generation of new ventures. Specifically,
Stathopoulos et al., (2004) divided rural development into three phases; conceptual development;
awareness in which farmer aware of the
opportunities; and operational phase in the actual operations. The above
definitions imply that rural development are the person who undergoes
development in rural area and at the same time they can adapt
any changing of environment.

3.2 Rural Development Programs


It is understood that the success stories of rural development programs usually depend of
government policy and strategy on program implementation. Over the last decades there are
diverse ranges and complex structure of programs and policies which, in some way or another
are concerned with stimulating and supporting various kinds of rural development. Some of these
are specifically targeted at rural development areas, whilst others are national programs that
include firms in rural areas alongside their counterpart in the rest of the country. From the policy
viewpoint Philippines has developed its own developmental or agricultural development policy.
The policy usually reflecting specific characteristics of the country such as cultural and
ideological histories of the country, the economy, and the role of state policy in relation to
agricultural development. It is also associated with differences in government structures and the
degree to which regional and local tiers of government have been involved in economic
development. In predominantly rural areas, the strategies and programs have infrequently been
related to rural development (Wortman, 1990). Whatever the location of the program, Petrin
(1994) suggested that rural development policy or strategy must be relevant to the development
needed.
3.3 Factors that contribute to the success of rural agricultural development
programs
Determinant of rural agricultural development are also diverse in nature. Previous studies
provide a range of factors that contribute to the success of agricultural development programs.
According to Petrin (1994) behind each of the success stories of rural agricultural development
there is usually some sort of institutional support. The factor can be seen similar to urban
agricultural
development programs. The factors can be classified within two perspective; farmers
perspectives and programs themselves.
From farmers’ perspectives Wortman (1990) discovered understanding of the agricultural
programs provided by government is the most important factor that contributes rural agricultural
development. He added the objectives of agricultural development programs must be understood
and fully utilize by rural recipient after attended the agricultural development programs. In
addition, Mohar (2007) argued that the recipient mindset is needed in the early stage of structure
and agricultural development environment. This argument in accordance with (Lee, 1997) who
concluded that agricultural development attitudes and motivation towards the program is
important to ensure the success of the program.
In the case of Malaysia, the Ministry of Regional and Rural Development (2009) has
provided training and consultation specifically to provide knowledge and understanding of
agricultural development among the rural areas. A survey conducted by SME Corp Malaysia
(2010) indicated that agricultural development programs promotion as a vital factor to increase
agricultural development awareness toward programs organize by government. By doing so the
Ministry believed that the program can be successfully implemented.
From the perspective of the program, North and Small borne (2006) said the success of
the program depending on the appropriateness of the programs to local circumstances. They
suggested that the program should be designed according to specific module that are relevant to
agricultural need and development.

V. Results and Discussion

5.1 Respondents’ Characteristics


This section presents descriptive statistics and explains the background of respondents and
reasons for involving agricultural activities.
Table 1 shows that about half (53 percent) of the respondents are male. In terms of marital status,
almost 82 percent of them are married, 11 percent are still single and almost 7 percent are
divorce/separate. Most of
the respondents are High School level (90.6 percent). Large percentages of the
respondents (34 percent) were involved in the rural agricultural development activities because
of their interests, followed by to gain income (31 percent). In addition, most of them have started
their activities/farming using government aid capital/financial supports (62.5 percent) as well as
borrowed from family members (25.5 percent) and only 9.4 percent rely on government/4P’s
member.

Table 1: Respondents’ Characteristics (N= 32)

Respondents’ Sub-Profile Percentage (%)


Characteristics

Gender Male 53.1


Female 46.9

Status Single 9.4


Married 81.8
Divorce/Separated 8.8

Education Elementary Level 6.2


High School level 90.6
College level 3.1
Reason of Involvement Family 50.0
Gain Income 35.0
Personal Interest 14.0
Source of Capital Government Aid 65.6
Family 25.5
Bank loan 6.4

It can be concluded that both male and female are involved in the rural
agricultural activities and their involvement mainly based on their interests and for their family.
However, their levels of education are at medium level. Although the government has provided
various kinds of financial, seeds and mechanical support, few of them depend also on their
family support.

5.2 Understanding Agricultural Development Programs


Level of understanding of rural entrepreneurs toward Agricultural development programs
organized by Department of Agriculture thru Municipality found to be high. The average mean
score ranging from the lowest (program content, 3.9), suitability programs (4.4) promotion
awareness and content (4.5) and activities (4.6). The result support a study by Wortman (1990)
which also discovered understanding of the Agricultural development programs provided by
government is the most important determinant of rural economic development. Specifically,
understanding of Agricultural development programs promotion as vital factors to increase
agricultural awareness toward programs organize by government.
The results on the suitability of Agricultural development programs also support previous
studies by North and Smallborne (2006). Based on Mohar (2007) and Lee (1997) this study
contended that the respondent clearly understands about the Agricultural development programs
and their mindset will be more focus and highly motivated towards success of the programs.
Based on the above findings this study concludes that the entrepreneurship programs organized
by Ministry of Regional and Rural Development need to be understood by the farmers before it
can be successfully implemented.

Table 2: Understanding Agricultural Development Programs (n=32)


Factors Mean Rank
Promotion awareness 4.5 High
Promotion content 4.5 High
Suitability program 4.4 High
Program content 3.9 High
Activities program 4.6 High

Mean Average 4.4 High

The study shows that there’s significant linkage effect in rural agricultural productivity in the
presence of modern agricultural programs organized and implemented by the government. The
increased of agricultural product is evident. Furthermore, the equality in the distribution of
agricultural product and machineries improve food production for household consumption and
commercial purpose in areas of operation.
References:
MR. BHOKSE UMESH CHINDHU- AGRICULTURAL & RURAL DEVELOPMENT
International Research Journal of Marketing & Economics ISSN (2348-9766) Impact Factor:
5.779 Vol. 7, Issue 2, February 2020 © Association of Academic Researchers and Faculties
(AARF) Website-www.aarf.asia

Ray D. Bollman
Agricultural Statistics for Rural Development
Research and Rural Data Section
http://dissemination.statcan.ca/english/IPS/Data/21-601-MIE.htm

Sylvain Cloutier , No.32 (21-601-MPE96032) Employment in Agriculture and Closely Related


Industries in Rural Areas: Structure and Change 1981-1991

Aguilar, F. The Making of Cane Sugar, Poverty, Crisis and Change in Negros Occidental. La
Salle Social Research Center, Monograph Series 3, 1994

Young, F. W. “Regional Organization and Agricultural Productivity in two Philippine


Provinces” The Philippine Economic Journal No. 32 Vol. XV p. 596-603
Wangwacharakul, V. “Direct and Indirect Impact of the New Cropping Systems Technology and
Irrigation in community economy: The Case of Oton and Tigbauan Municipalities, Iloilo
Philippines” Ph. D dissertation, University of the Philippines
Rural is space. Rural is distance and density. More generally, rural is part of the spectrum
ranging from a high-density settlement pattern to a very sparse settlement pattern. Rural is
neither agriculture nor forestry nor mining nor fishing (but each of these sectors exist within
rural space). However, these sectors tend to be “space intensive” in the sense that they use a lot
of space. Mining and fishing often take place at considerable distances from metropolitan
markets. Agriculture and forestry, in addition to often taking place a considerable distances from
metro markets, also use a lot of space in production

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