Gloria Macapagal-Arroyo

President of the Republic of the Philippines 2001 - 2010

Agriculture Sector

OVERVIEW

  • Gross Value Added in Agriculture
  • Value of Agricultural Production by Subsector
  • Volume of Production and Yield of Palay and Corn
  • Retail Price of Rice and Corn
  • Agricultural Development

MAJOR ACCOMPLISHMENTS

  • Goal 1
  • Goal 2
  • Volume of Production and Yield of Palay and Corn

AGRICULTURE SECTOR

OVERVIEW

A. Gross Value Added in Agriculture (GVAA)

During the years 1992-2009, the Gross Value Added in Agriculture (GVAA) registered an average growth rate of 2.80 percent. During the Arroyo administration, the GVAA grew at an average of 3.41 percent compared to the 2.52 percent and 1.49 percent during the Ramos and Estrada administrations, respectively.

Source: Bureau of Agricultural Statistics (BAS) Figure 1. Growth rate of Gross Value Added in Agriculture at 1985 constant prices, 1992-2009

B. Value of Agricultural Production by Subsector

From 2001-2009 the average value of agricultural crops, at 1985 constant prices, amounted to P140 billion which is 14% and 17% higher than the output during the Ramos and Estrada administrations, respectively.

For livestock, the output during the Arroyo administration was P39 billion. It was P28 billion and P34 billion during the Ramos and Estrada administrations, respectively. The poultry output during the Ramos, Estrada, and Arroyo administrations were P29 billion, P35 billion, and P44 billion, respectively.

For fishery, the value of production were P45 billion, P48 billion, and P70 billion during the Ramos, Estrada, and Arroyo administrations, respectively.

C. Volume of Production and Yield of Palay and Corn

For palay production, the annual production from 2001-2009 posted an average of 14.83 million metric tons (MMT). The yield, on the other hand, averaged 3.54 MT per hectare or a 22% increase from the Estrada administration and 23% increase over the Ramos administration. Compared to the palay production during the Ramos and Estrada administrations, the annual average amounted to 10.37 MMT and 10.91 MMT, respectively. Similarly, the average yield recorded during the past two administrations were 2.87 and 2.92 MT per hectare. Despite the unfavorable weather conditions during the past years, palay production still managed to increase through irrigation and the use of high-yielding varieties.

On the other hand, the annual corn production averaged 2.22 MMT while the yield grew by 5.66 MT per hectare during the Arroyo administration. The average production increased by 31% relative to the Estrada administration and 28% relative to Ramos administration. The yield, on the other hand, was 29% and 47% higher compared to Estrada and Ramos administrations, respectively.

D. Retail Price of Rice and Corn

During the period 2001-2008, the average price of rice was P16.28/kilo, at 1992 constant prices. On the other hand, rice prices posted an average of P18.12/kilo during the Estrada administration and P19.04/kilo during the Ramos administration.This shows that the average price per kilo of rice during the Arroyo administration was 10% and 14% lower than the price during the Estrada and Ramos administrations, respectively.

In the same period, the average price for corn grains, which were primarily used as feeds, came to P11.58/kilo. The price for corn grains during the Estrada administration was P12.58/kilo, while during the Ramos administration, it was posted at P13.36/kilo.

In nominal average prices, however, rice during the Arroyo administration increased by P7.16 and P3.43, while prices for corn increased by P5.68 and P2.54, compared to the Ramos and Estrada administrations, respectively.

Figure 2. Retail (a) and Average (b) Prices of Rice and Corn

E. Agricultural Development

Irrigation Development

Source: National Irrigation Administration (NIA) Figure 3. Irrigation Development by administration

The availability of irrigation systems enables farmers to maximize the benefits of high yielding varieties, particularly hybrid seeds. During the Ramos administration, the total area for irrigation development totaled 345,919 hectares. On the other hand, the total area developed during the Estrada administration was 515,261 hectares. Finally, during the Arroyo administration, the total area developed for irrigation was 1,620,867 hectares. This is 369% and 215% more than the area developed during the Ramos and Estrada administrations, respectively.

Farm-to-Market Roads (FMR)

Source:
a."Ulat sa Bayan", Terminal Report of President Ramos. (Includes FMR accomplishment in national irrigation systems)
b. Erap's 2-year report
c. DA-Field Operations Service (DA funded, including DPWH - implemented)

Loans Granted

Over the past nine years of stewardship, the Arroyo administration succeeded in pouring more funds towards agricultural productivity by providing loans to our farmers and fisherfolk. At the end of 2009 the total loan releases and grants totaled to P465.2 billion, more than 3 times the Ramos administration and 9 times the Estrada administration.

Note: a) Loans granted under different credit programs of various institutions (DA, ACPC, LBP, DBP, PNB, BAI, RBs, NTA, DENR, CRBs, PCA, CDA, Quedancor, TLRC, NAFC, DAPCO- PO, NLSF); and b) LBP loans com- pared across administrations are only production loans

Figure 5. Loans Granted by Administration

Mechanical and Flatbed Dryers

The Arroyo administration, upon realizing the importance of reducing losses due to inefficient postharvest handling, spearheaded the distribution of mechanical and flatbed dryers that would minimize loss and help increase the incomes of the farmers, especially the rice and corn farmers. At the end of 2009, a total of 1,924 units of flatbed dryers were distributed nationwide. On the other hand, the total number of flatbed dryers distributed during the Ramos and Estrada administrations were 1,033 and 88 units, respectively. With this, the Arroyo administration increased the distribution of dryers by 72% compared to the combined accomplishment during the Ramos and Estrada administrations.

Source: Bureau of Postharvest Research and Extension (BPRE) Figure 6. Accomplishments for Mechanical and Flatbed Dryers by Administration

Distribution of Seeds

To ensure the availability of high quality palay seeds that will increase production, the Department distributed high quality seeds (hybrid and inbred) nationwide. For the past nine years, the Arroyo administration committed to boost rice productivity by distributing 12.73 million bags of certified palay seeds. In turn, this effort saw a giant leap from the previous administrations. The total certified palay seeds distributed from 2001-2009 was increased by 426%. This significantly contributed to the 22% increase in palay production from the Estrada administration and 23% increase from the Ramos administration. Aside from this, the Arroyo administration also distributed hybrid palay seeds which further increased rice yields by an average of 15-30% over the best modern varieties.

Figure 7. Distribution of Certified Seeds by Administration

Agricultural Extension

With the advent of modern technology, it was imperative that our farmers also kept pace with these developments to improve their agricultural practices. The Department conducted 22,941 trainings from 2001-2009 benefitting 977,713 farmers nationwide. In comparison, this is 348% higher than the Estrada administration and 800% more than the Ramos administration.

Source: Agricultural Training Institute (ATI) Figure 8. Accomplishments on Trainings and Participants Trained by Administration

F. Budget Allocation

The budget of the Department of Agriculture substantially increased during the Arroyo administration. From 2001-2009, the total budget of the Department of Agriculture amounted to P190 billion with an annual average of P21.2 billion. For the Estrada administration, the total budget of the DA amounted to P51 billion with an annual average of P17 billion. On the other hand, the total budget during the Ramos administration amounted to P65 billion with an annual average of P11 billion of the DA. The DA budget increased by 134% from P20.1 billion in CY 2000 to P46.9 billion in C.Y. 2009.

G. Palay and Corn Procurement

To ensure that farmers derive reasonable returns on their investment, the Department, through the National Food Authority (NFA) procures palay directly from farmers/farmers organizations at a government support price. Using nominal terms, the government support price for palay from P10.50/kg in 2001 was increased to P17.00/kg in April 2008 to date. As a result of this price increase, the NFA was able to procure 685,000 MT of palay which is equivalent to 5% absorption rate of total production. This is the second highest palay procurement volume that we have attained for the last 29 years. The highest was 756,000 MT procured in 1979 which is almost 10% of palay production. Thus, farmers selling their produce to NFA increased their income.

Using constant values, the highest buying price for palay was implemented during the Arroyo administration at P10.97 per kilo in 2008 and P10.63 per kilo in 2009. This is the highest support price given for palay since 1992 which was set at P10.31 per kilo.

The support price for corn in 2001 was P11.70/kg for white corn and P11.00/kg for yellow corn and was increased in 2009 to P13.00/kg and P12.30/kg for white and yellow corn, respectively.

Source: National Food Authority (NFA) Figure 9. Farmgate and NFA Buying Prices

MAJOR ACCOMPLISHMENTS

Goal 1: Cost-effectively develop at least two million hectares of new lands1 for agribusiness in order to contribute two million out of the 10 million jobs targeted as a legacy by 2010.

The Department of Agriculture (DA), in collaboration with the Department of Agrarian Reform (DAR) and the Department of Environment and Natural Resources (DENR), was tasked to spearhead Goal 1. Goal 1 has been adopted as a strategy to expand the job opportunities and raise farmers' incomes in the countryside with the increase in production areas and promotion of agribusiness enterprises.

From 2005 to 2009, a total of 1.799 million hectares of agribusiness and agro-forestry lands have been developed of which 17,258 hectares were developed for biofuels. This is equivalent to 88 percent of the two million hectare target by 2010. On the other hand, a total of 2.62 million jobs2 have been generated from different agricultural activities. It may be noted that 53 percent of the 1.799 million hectares developed and 54 percent of the 2.62 million jobs created was accomplished in the Mindanao Agribusiness Super Region. For the Biofuel Feedstock Investments, a total of 25 projects were started covering a required area of one million hectares with a potential investment of P36.365 billion.

Goal 2: Make food plentiful at competitive prices where the cost of priority wage goods such as rice, sugar, vegetables, poultry, pork and fish, and other important non-wage goods like corn must be reduced.

FIELDS PROGRAM

To further bolster the effort at promoting agribusiness and pursuing sustainable approach to food security, income generation, and poverty alleviation in the country, the Arroyo administration has laid out its centerpiece agriculture program dubbed as FIELDS. Among the major accomplishments of the FIELDS Program are as follows:

Fertilizer

Provided 973 technology packages3 on community-based composting facilities under the Support System for the Tipid Abono Fertilization Program. Out of the 973 packages, 344 or 35 percent were distributed in the Mindanao Agribusiness Super Region (MASR), 276 packages in North Luzon Agribusiness Quadrangle (NLAQ), 301 packages in Central Philippines (CP), and 42 packages in Luzon Urban Beltway (LUB).

These composting facilities helped reduce the dependence of farmers on expensive inorganic fertilizers and promote environment-friendly organic farming in the country.

Irrigation and other infrastructure

  • For the national and communal irrigation system (NIS/CIS) projects, about P79.47 billion has been released for the restoration and rehabilitation of the NIS and CIS nationwide. These irrigation projects have generated 140,042 hectares of new areas and restored/rehabilitated a total of 1,480,826 hectares located in the four (4) super regions. In NLAQ, with P2.67 billion share, some 95,726 hectares have been restored/ rehabilitated; 27,752 hectares in ULB utilizing P773.37 million; 44,460 hectares in Central Philippines which received P1.80 billion; and 62,406 hectares in the Mindanao Agribusiness Super Region having P1.56 billion.
  • From 2001 – 2009, the government has constructed a total of 18,477.28 kilometers of farm-to-market roads (FMRs) worth P32.46 billion including those constructed by DPWH and DAR. Of this, the Department of Agriculture constructed 7,197.89 kilometers amounting to P14.61 billion. The DA- assisted FMRs were constructed in the four (4) super regions: the North Luzon Agribusiness Quadrangle (NLAQ) which received P1.72 billion for the completion of 1,256.77 kilometers of FMRs; the Urban Luzon Beltway (ULB) with P1.71 billion share for the construction of 673.57 kilometers of FMRs; the Central Philippines which received P4.66 billion for the completion of 2,028.49 kilometers of FMRs; and the Mindanao Agribusiness with 3,239.06 kilometers of FMRs worth P6.52 billion. Farm-to-market roads are very important infrastructure projects that directly benefit farmers. Completed projects reduce hauling costs, usually by more than half, because the farmlands become more accessible and less-prone to flooding. Concreted FMRs have allowed vehicles to access the farms. Moreover, there are multiple benefits brought by newly opened FMRs to farmers whose farmlands used to be inaccessible even to light vehicles.
  • Established 49 mariculture parks from 2001 to 2009, which enabled small fisherfolk to breed high-value marine species in submersible cages. These operational mariculture parks cover a total of 47,665 hectares located in the four (4) Super Regions. A total of 28 parks are operational in Central Philippines covering 2,056.5 hectares; 15 in Mindanao Agribusiness Super Region covering 33,788.07 hectares; four (4) in NLAQ covering 820 hectares; and two (2) in LUB covering 1,000 hectares.

The President fulfilled her promise during her 2007 State of the Nation Address to put up a mariculture park in Sibutu, Tawi-Tawi, covering an area of 27,000 hectares and providing economic opportunities to our Muslim brothers.

Extension services and trainings

Provided a total of 22,941 various agricultural technology trainings and orientations from 2001 to 2009 to 977,713 farmers, agricultural extension workers (AEWs), and farmer entrepreneurs. These agricultural technology trainings and orientations were conducted in the four (4) super regions: in NLAQ, a total of 8,149 trainings and orientations were conducted which benefited 380,945 farmers, AEWs, and farmer entrepreneurs in the Mindanao Agribusiness Super Region, 5,710 trainings & orientations were conducted which benefited 273,586 farmers, AEWs, and farmer entrepreneurs. In Central Philippines,

6,740 trainings & orientations were conducted which benefited 259,686 farmers, AEWs, 7 farmer entrepreneurs. Lastly, a total of 2,342 trainings and orientations were conducted in the Luzon urban beltway participated in by a total of 63,496 farmers, AEWs and farmer entrepreneurs.

These services were provided to equip the farmers with knowledge on new technologies and practices in modern agriculture.

Loans

From 2001 to 2009, a total of P28.8 billion was released under the Agricultural Modernization and Credit Financing Program (AMCFP) and Quedancor to our farmer-beneficiaries. If we include the palay production loans from the Land Bank of the Philippines (LBP) and releases from other financial institutions, the total amount was P333.65 billion.

These agricultural loans were released to encourage and develop the capacity of farmers to invest more in agribusiness.

Dryers and other postharvest facilities

A total of 1,924 units of flatbed dryers (FBDs) were delivered/installed/functionally completed. These dryers helped our farmers minimize post-harvest losses and ensure grain quality for better prices. Through the mechanical drying system, an estimated 25,724 MT of palay valued at P437M was saved in 2008.

In addition, a total of 39 cold chain facilities were completed and are currently operational nation- wide. These facilities were distributed to the four (4) super regions: 22 in NLAQ, three (3) in LUB, 12 in Central Philippines, and two (2) in the Mindanao Super Region.

These cold chain facilities prolong the shelf-life of vegetables and meat products, which enabled farmers to sell their products at competitive/higher prices.

Seeds

Provided 1.68 million bags of hybrid and 12.73 million bags of certified palay seeds from 2001 to 2009. In NLAQ, a total of 915,863 bags of hybrid and 6 million bags of certified seeds were distributed. In Mindanao Agribusiness Super Region a total of 449,543 bags of hybrid and 3.85 million bags of certified seeds were distributed in Mindanao Agribusiness Super Region. Meanwhile, 288,010 bags of hybrid and 2.57 million bags of certified seeds were distributed in Central Philippines, and 30,470 bags of hybrid and 302,133 bags of certified seeds were distributed in LUB.

The provision of hybrid and certified seeds to farmers ensured the availability of high quality rice seeds to increase productivity. Further, the Department established the development of climate-ready seeds including the saline, drought, and flood resistant varieties.

LOGISTICS SUPPORT

The government through the Department of Agriculture has provided market assistance to our farmers by increasing the price of agricultural products and by providing alternative market outlets. This intervention aims to reduce food prices by reducing marketing layers in bringing farm produce to the consumers.

Bagsakan Centers and Barangay Bagsakans

As of March 5, 2010, a total of 82 Bagsakan Centers (BCs) and 543 Barangay Bagsakan (BBs) have been established nationwide. Of the 82 BCs, 75 are operational and distributed in the super regions, as follows: 28 in LUB, 28 in NLAQ, 6 in Central Philippines, and 13 in Mindanao Super Region.

Of the 543 BBs established, 507 or 93 percent nationwide are operational, with breakdown as follows: 62 in LUB,150 in NLAQ, 118 in Central Philippines, and 177 in the Mindanao Super Region.

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Tindahan Natin

In line with the Accelerated Hunger Mitigation Program of the President, priority provinces, which are vulnerable to hunger, were identified and given access to highly subsidized, low-priced NFA rice and noodles through the Tindahan Natin outlets. From 2006 to 2009, the Accelerated Hunger Mitigation Program helped about 15.3 million beneficiaries by accrediting 39,097 outlets. Rice and noodles were sold at P18.25 per kilo and P4.25 per pack, respectively.

Roll-On-Roll-Off (RORO)

The use of Roll-On-Roll-Off (RORO) ports reduced the transport cost of agricultural products to Metro Manila by 25-30 percent. The total value of products transported through the RORO reached about Php 26.7 billion from 2006 to 2009.