Reviving the Troubled Agriculture Sector: A Glimpse of Hope
Recent visits to several provinces have given me hope that our troubled agriculture sector can be revived from its current sorry state. The two main issues that plague the sector are lack of productivity and complacency. Data from the United States Department of Agriculture (USDA) shows that our total factor productivity (TFP) growth in agriculture has lagged behind our Asean peers for the past half-century. Not only has TFP growth been slower than in neighboring countries, it has actually declined since 2011. This is the reason why our food prices are so exorbitant, even compared to wealthy countries with higher purchasing power.
The persistent protection of our domestic market from market competition has exacerbated the problem over time, as it has eliminated the drive to match our neighbors’ productivity and lower costs. Complacency among government, producers, and traders has also hindered the growth of our agriculture sector. To address these issues, we need a significant boost in farm productivity. It’s not just about producing more, but getting more out of a given amount of land, labor, and capital. This is what TFP growth represents, and only through this can we lower our food prices without relying heavily on imports.
Looking towards the future, there is both good news and bad news. The good news is that there is hope. In the past year, I have traveled around the country with a study team to assess how well our provinces are supporting their farmers and fishers in improving productivity and incomes. This work was commissioned by the Department of Agriculture through its Agricultural Training Institute (DA-ATI), in response to the devolution mandate resulting from the Mandanas-Garcia ruling. This ruling increased the allocations of local governments from national tax revenues. To support this mandate, the DA has launched the province-led agriculture and fisheries extension system (Pafes), which empowers provincial governments to coordinate with municipal agriculture offices to meet the technical needs of their farmers and fishers.
It has been inspiring to see provinces taking this responsibility seriously. This could be the key to unlocking the productivity potential of our farms and fisheries. When units of governance closest to the ground find and implement tailored solutions based on specific needs, rather than relying on one-size-fits-all fixes from the top, we can see significant progress. Albay province serves as a shining example. Its past and present leaders have allocated ample attention and budgets to the agriculture and fisheries sector. In 2016, they established the Albay Farmers’ Bounty Village (AFBVille), a 15-hectare complex that houses the well-staffed Albay Provincial Agriculture Office and the Pafes Center. This center serves as a physical hub for collaboration between various entities involved in the Pafes, including national and local governments, academic institutions, research institutions, private sector, and civil society organizations. The AFBVille facilities also include training, research, laboratory analyses, food processing, packaging, and marketing. It has become a platform for improved communication, coordination, cooperation, and collaboration among stakeholders striving to enhance opportunities for the province’s farmers and fishers.
Albay also employs community facilitators throughout the province, who work closely with municipal and city governments to execute development initiatives. These facilitators play a crucial role in keeping the Pafes machinery running smoothly, as they foster provincial-municipal-city coordination in their daily work. Beyond Albay, we have seen other provinces with leaders who prioritize and allocate adequate resources to the farm and fishery sectors. However, there are also governors and mayors who neglect these sectors, leading to underfunded, poorly equipped, and understaffed agriculture offices.
Going forward, it is essential to hold our local chief executives accountable for the success or failure of the agriculture sector. I have long argued that this sector is the backbone of the Philippine economy. By prioritizing and investing in it, we can overcome the challenges and ensure a brighter future for our farmers and fishers.
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