BBM said last week that for the longest time, we did not have an agriculture policy. He said this was the reason why the youth are not engaged in farming activities, adding that they do not see a good career path in the agricultural sector.
It seems that after taking on the agriculture portfolio for 18 months, BBM still has no idea what an agriculture policy is. In an event in Nueva Ecija, BBM talked about using modern technology and putting up soil laboratories. He can’t distinguish policy from programs.
An agriculture expert was shocked by BBM’s statement. “Of course, we have an agricultural policy,” he said in our Viber group, “one that protects producers at the expense of consumers.”
“We give an array of subsidies to farmers but penalize consumers who must pay high food prices because of the inefficiency of our small farms. We have a policy of distributing lands to the point of fragmenting our land area to minuscule sizes, which cannot enjoy economies of scale.
“We have a policy of favoring rice, which receives more than 50 percent of the DA’s budget, leaving little for the improvement of other crops where our farmers can earn more income. All these make agriculture unattractive to the youth as a career path.”
As for soil testing, the expert remarked that “ang dami ng soil lab testing units na ginawa in the past. A former DA secretary allocated P500 million to upgrade soil testing equipment during his term. The late Dr. Henry Samonte of the UP College of Agriculture even introduced soil testing kits in the 1980s.
“The problem is not the availability of soil testing but whether farmers value the service, given the small land parcels they cultivate. Unless farmers become entrepreneurs, soil testing will not become part of their planting culture.”
Indeed, our agriculture sector has been sick for a while. Just over the last three years, the agricultural sector stagnated in 2022, made a small rebound in 2023, then suffered a significant drop in 2024. Overall, output is down about 3.7?percent from 2021 levels, with 2024 alone accounting for a 2.2?percent downturn — all under BBM’s watch.
Agriculture certainly needs shaking up to be more efficient and profitable for farmers. And BBM can’t be timid in introducing reforms. He can’t allow business as usual.
For starters, BBM must be ready to change or junk the agrarian reform program. It has been a proven failure since before the time of his father. No sense hoping the outcome will change for the better after over 60 years.
Small farm sizes are at the root of the sector’s lack of productivity. The PSA said the average farm size in the Philippines shrank by 77 percent to 0.83 hectares in 2022, from 3.61 hectares in 1970. With less than a hectare, a farmer’s costs go up per kilo produced and traders take advantage.
Another hallmark of our agricultural policy is protectionism through relatively high tariffs and non-tariff restrictions.
“Protectionism and small farm lands have brought about an inefficient agri sector. There is not much incentive to raise productivity because of protection. No competition.
“To keep our small, inefficient farms afloat, the government has transformed the DA into a virtual social protection agency with an array of ayudas or subsidies (i.e., free seeds, irrigation, fertilizer, farm machineries and equipment, cash grants and numerous subsidized credits). Assistance has not been tied to any efficiency or productivity-raising goals.”
Our expert also pointed out that our agri policy is heavily biased toward rice, with more than 50 percent of the DA’s budget supporting rice.
“We have P42 billion for the NIA, with an additional funding of P27 billion. NIA’s irrigation covers mostly rice areas.
“We have the P32 billion National Rice Program. We have the RCEF, amounting to P30 billion now. Our crop insurance covers 90 percent rice, our research funding is mainly geared to rice, small irrigation systems are geared to rice, etc. Sadly, rice productivity gains average around one percent.”
What do we have to show for all the resources given to rice farming? We became the world’s number one rice importer last year. In other words, a near-total failure of policies.
“Our rice-centric policies mean the budget for coconut is less than P2 billion, high value crops (with 13 commodities under it) receive around P2 billion and the livestock sector (high value) gets around P5 billion.”
Our expert continues: “Protectionism or favoring certain crops never worked. Just look at what happened to our two mainstay agri exports in the past: sugar and coconut. We are now massively importing sugar and coconut substitutes (palm oil).”
So, BBM is wrong. We have agricultural policies. But these policies are anti-growth and anti-efficiency because of powerful vested interest groups who benefit enormously from the government’s agricultural policies.
To succeed where other presidents failed, BBM must chart new pathways. He must review agrarian reform and quickly encourage farm and land consolidation without having to spend years in congressional debates.
Getting the big conglomerates involved in growing our food ensures the modernization of agriculture because they will be after maximizing productivity and profitability. Farmers can become corporate workers earning regular salaries and covered by social security and other benefits.
In any case, the age of farmers today is pushing their 60s, and their children are not interested in being farmers. Sooner rather than later, we must address the problem of who will grow our food.
BBM is wrong. Our government has policies aplenty for all aspects of our lives, including agriculture. Making policies is how our bureaucrats and members of Congress while away their time.
But having the right policies implemented for the greater good — and not for vested interest groups — is crucial. It has always been the tough consideration that stops presidents from doing anything useful for the country and the people.
