Being the staple food of the Philippines, rice has a significant impact on the food security and overall well-being of Filipinos. It is the primary source of livelihood of people from rural areas and of those who depend on agriculture for employment and sustenance. Unfortunately, the declining trend in rice productivity is causing low income and low employment especially in the agricultural sector. Up to now, although government programs have sought to improve rice self-sufficiency and farmer well-being, achieving sustainable growth in rice production is still a major challenge.
Stumbling Block
- Diminishing agricultural productivity. Productivity growth has been declining in previous years. This is due to lack of investments in technology and inadequate investment in agricultural research.
- Few employment opportunities. Limited employment opportunities outside the agricultural sector induce small farm households to utilize ecologically fragile uplands, which hurts the environment and further decreases agricultural productivity.
- High population growth. Population growth in the country is so rapid that rice consumption outpaced rice production, thereby requiring rice importation.
- Other Key Constraints. Other key challenges encountered by the rice sector are: gaps in rice yield due to climatic, biological, and socioeconomic constraints; low investment in research and development (R&D); poor government intervention; difficult and costly rice market policies; slow implementation of agrarian reform; inadequate rural financing; and weak coordination with local government units (LGUs).
Policy Options for Rice Security
- Business-as-Usual. This policy option is characterized by current productivity programs and agricultural trade policies. This scenario has been unable to address the existing issues of the rice economy.
- Market Access. This policy option assumes progress in multilateral trade negotiations wherein developed economies reduce and eliminate farm subsidies. The scenario assumes replacement of current tariff rate quotas by a tariff schedule cascading to 10% over a period of ten years. This set-up is not seen to achieve optimum, broad-based agricultural growth alone.
- Governance and Market Recovery. This policy option combines improved market access with government intervention through low tariffs on imports across-the-board and increased investments in productivity. This scenario is seen to increase rice production, decrease poverty, and achieve food security.
Steps toward Greater Rice Security
- Fund investment requirements. The projected total investment for 2015 is about Php 1.09 billion (at 2000 prices). This budget must be allocated to the key factors to growth in rice production: R&D, knowledge dissemination, improved rural infrastructure like irrigation systems, and rice extension delivery system.
- Employ policy and Governance Reforms. Reforms that have fortified sustained rural growth and poverty reduction in developing economies of Asia must be employed in the Philippines as well.
- Accomplish the basics. Public rice R&D governance must be improved to develop new technologies and maximize their impact on farm production. In addition, the LGUs must lead rice extension programs that are linked to research systems and focused on developing technical and managerial capabilities to enable them to make the right production and market decisions. Also, irrigation development should focus on rehabilitating and developing existing small-scale systems.
- Set a favorable investment climate. Out-dated policies and regulations that raise business cost and obstruct private sector investment and regional integration must be replaced and renewed.
- Mobilize credit and Microfinance. Policies must be set to address the lack of investment credit and sustainable financing for smallholder agriculture like rice farmers and emerging rural enterprise. The government must mobilize funds for agriculture and rural development in the medium to long term.
- Empower the LGUs and Civil Society. Agricultural extension services must be decentralized because LGUs and nongovernment organizations (NGOs) have better understanding of the needs of their farming constituents. They can localize and implement agricultural development plans and programs based on their localities.
- Improve governance. All policy reforms and programs have to be done properly and with sincerity. This includes having a transparent program funding that addresses equity, accountability, and responsibility.
Source:
Balisacan, Arsenio, Leocadio Sebastian, et al, Securing Rice, Reducing Poverty, (CSEARCA, 2006), pp. 1-19.
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