INTRODUCTION TO AGRICULTURAL

POLICY AND DEVELOPMENT

ALJON A. OGALE, L. Agri., *MAB

Mindanao State University at Naawan
College of Agriculture, Forestry, and Environmental Sciences
Department of Agricultural Sciences
This is a review of key Philippine Agricultural laws and
policies and its objectives focusing on food security and
poverty alleviation through guaranteeing a stable food
supply at affordable prices. The goal of self-sufficiency has
driven range of policy measures for increased food
production and higher value of commodities.
 What is policy?
Policy is defined as the course of action chosen by government towards an
aspect of the economy, including the goals that the government seeks to
achieve, and the choice of methods to pursue those goals that have to be
justified.
 What are Agricultural policies?
Agricultural policy is a term which is collectively used for a
bundle of policies related to the agricultural sector.
NATURE AND SCOPE OF POLICY-
MAKING PROCESS
 VISION OF THE
DEPARTMENT OF
AGRICULTURE

A modernized agriculture and fisheries sector with

enhanced profitability, and prepared for the challenges of
globalization through adequate, focused and rational
delivery of necessary support services.
 WHAT IS POLICY?
Policy is a law, regulation, procedure,
administrative action, incentive, or voluntary
practice of governments and other institutions.
The term 'policy' refers to a plan of action to guide
decisions and achieve predetermined goals. It may
apply to any public or private sector institution or
organization, groups, individuals.
 Policy is defined as the course of action chosen by
government towards an aspect of the economy,
including the goals that the government seeks to
achieve, and the choice of methods to pursue those
goals.
 THREE IMPORTANT POINTS ARE
CLEAR FROM THE DEFINITION

Policy is concerned with both the selection of the

means of attaining such goals.

Policy-making is done within the framework of an

institution so that it could commandeer the
necessary resources and authority for its
implementation.

Those setting policies must have the mandate or

responsibility to do so
 PUBLIC POLICY
Public policy : the action that the government
takes to address an issue, solve a problem, or
meet the needs and wishes of the citizens.

What Public Policy includes :

Policy includes all of the goals that a
government pursues in the many areas of
human affairs in which it is involved –
everything from seat belts, speed limits, zoning
for flood control, old-age pensions, and the use
of military force in international affairs etc..
PUBLIC POLICY
PROCESS
Examples of Public Policies:
1. The Department of trade and Industry (DTI) has an objective
of “serving as the government’s main economic catalyst
in enabling innovative, competitive, job-generating,
inclusive business, and empowering consumers… (DTI,
2020)

2. The National Food Authority (NFA) has the objective of

“ensuring reasonable rate of return to Filipino farmers,
provide adequate supply, and affordable rice and corn
for the country, and promote the integrated growth and
modernization of the rice and corn marketing industry to
enable it to compete in the global market. (NFA, 2020)
 ECONOMIC POLICY AND
AGRICULTURAL POLICY

Economic policy : dictates the way

the government will manage the
national economy.

Agricultural Policy
Agricultural policy is government’s intentions,
ambitions, and goals for agricultural sector and the
means for attaining such goals given available
resources, technologies, preference patterns, and
institutional capability
 OBJECTIVES OF AGRICULTURAL
POLICY

• Promote industrialization and full employment

• Enable those who belongs to agriculture and
fisheries sectors to participate and share in the
fruits of development and growth
• Promote food security and sufficiency in our staple
food
• Adopt the market approach in assisting the
sectors without neglecting welfare of poor
consumer;
• Empower the said sectors to develop and sustain
themselves
 THE FOLLOWING
PRINCIPLES SHOULD GUIDE
THE STRATEGIES TO BE
ADOPTED;

• Poverty alleviation
• Food security
• Rational use of resources
• Global competitiveness
• Sustainable development
• People empowerment
• Protection from unfair competition
 TYPES OF AGRICULTURAL
POLICY
To deal with these problems, governments have
policies in agriculture which can be divided into three
main groups:

1. Price policies,
2. Structural policies, and
3. Marketing policies.
 PRICE POLICIES
Agricultural price policy is common with prices which the
farmers receive for their product (the farm gate price) and
the prices at other stages in the distribution chain. Attention
is generally focused on farm gate prices and the individual
policies are generally concerned with stabilizing and
frequently raising them.

Objectives of price policies: In principle, price policies could

be aimed at:
a. increase prices
b. decrease prices
c. stabilize prices
 STRUCTURAL POLICIES
Structural policies are those designed to improve the
structure of agricultural production i.e. the size, layout and
the equipment of farms as well as the rural infrastructure,
electricity and water supplies, educational and advisory
services and in a broad sense, social facilities in the
country sides.

MARKETING POLICIES
Marketing policies are concerned with changes in the
distribution chains between farmers and consumers, the
objective which may be to strengthen the farmers bargaining
position by for example, encouraging the development of
producers-controlled marketing organizations or to improve
hygiene or quality, or to reduce the cost of marketing.
 ANALYSIS OF SPECIFIC
AGRICULTURAL POLICIES
Agricultural policies can be classified in several
ways, depending on:
their objectives,
the instruments used,
the commodity system they are primarily focused
on
 THE IMPORTANCE OF
AGRICULTURAL POLICY
In general, agriculture is a basic and strategic sector of the national
economy; therefore, the need for explicit study of agricultural policy easily
becomes apparent. More specifically, agricultural policy is studied for the
following reasons:
1. To improve the management and use of resources in the
agricultural sector in order to attain stated objectives.
2. The growth and contribution of the agricultural sector to
the national development is enhanced, and the welfare
and well-being of farmers and rural people
promoted, when we understand and properly adopt the
right agricultural policies.
 THE IMPORTANCE OF
AGRICULTURAL POLICY

3. Agricultural policies are intended to resolve problems and

challenges in the agricultural sector, to the benefit of
farmers and the society in general
4. To enable us analyze and understand the consequences
of selected agricultural policy in advance and hence
institute appropriate mitigation measures to contain
unintended effect during implementation.
5. It helps to build and improve the capacity for policy
analyses in the agricultural sector.
 THE IMPORTANCE OF
AGRICULTURAL POLICY
6. Government intervention in the agricultural sector often
entails the investment of large chunks of public
resources. There is therefore the need to ensure proper
harnessing of these funds to the greatest benefit of
society, through the right‖ agricultural policies.
7. Agricultural policy analysis is also undertaken to ensure
that the right policy instruments are employed for the
selected policy objectives.
8. Policy result in a more orderly and predictable pattern of
development of the agricultural sector. This helps to
promote both intra-and-inter-sectoral growth stability.
 THE IMPORTANCE OF
AGRICULTURAL POLICY
9. Policy guides the selection of programmes and projects
and hence the pattern and direction of resource allocation
in the agricultural sector. In this connection, it should be
noted that policy is like a compass, which guides the
direction of government actions and interventions in the
sector.
10. Agriculture is a risk-prone and environmental-dependent
enterprise. Therefore, policy is needed to minimize the
effects of uncertainty, variability in environmental
variables, and risk on performance and outcomes in the
sector.
 NEED FOR AGRICULTURAL
POLICY OBJECTIVES
There is need for the explicit statement of the food policy objectives of any
nation for the following reasons:
1. It gives clarity of purpose regarding what it is the country
hope to achieve and therefore acts as a good barometer
for gauging or measuring performance in the future.
2. A clear statement and specification of objectives
provides the basis for the choice of optimal policy
instruments for achieving the stated objectives. It thus
helps to avoid confusion in the statement in the selection
of appropriate policy instruments for achieving stated
objectives.
3. We are in a better position to measure policy performance
as well as determine the effectiveness of policy instruments
when the objectives of policy are clearly spelt out.
4. When objectives are well-stated, both inter-and-intra-
sectoral conflicts in objectives are more easily identified and
corrected or avoided.
5. Clear and explicit specification of objectives easily revealed
the underlying preferences, assumptions, beliefs, biases
and value system of the country or policymaker as the case
may be.
6. The ranking of objectives both inter-and intra-sectorally
becomes easier and simpler when they are explicitly and
unambiguously specified.
 POLICY MEANS AND
INSTRUMENTS
A policy instrument is an individual economic tool which can
be used to manipulate an economic variable to achieve an
economic objective. Instruments include interest rates, tax
rates, subsidies, minimum prices and wages, and
legislation. (Economics online, 2020).
Example of Policy Instrument:
Policy instruments are interventions made by
government/public authorities in local, national or
international economies which are intended to
achieve outcomes which conform to the objectives
of public policy;
Policy instrument is a linkage between policy and
policy formulation and policy implementation. The
intention in policy formulation is reflected in policy
implementation through instrument. Policy
instrument are often known as governing tools as
well, particularly when they are applied with all
conditions associated to them.
 Types of agricultural policy
instruments which include
I. Subsidy VI. Agricultural insurance scheme
II. Agricultural commodity VII.Agro-industrialization strategy
price support schemes VIII.Agricultural sector budgets
III. Taxes IX.Legislation
IV.International trade X. Infrastructure services
instruments XI.Research and extension
V. Monetary policy XII.Direct payment
instruments
 INSTRUMENTS OF
AGRICULTURAL PRICE
POLICIES
The objectives of price policies, thus, should be
pursued through attempts at modifying the effective
prices faced by farmers and consumers, which
constitutes the real incentives.
The main instruments to modify the price faced by producers
and consumers are:
a. Trade policies
b. Exchange rate policy
c. Sectoral policies
a. Price Controls
b. Farm Support Services
c. Public Storage
 TRADE POLICIES
Trade policies are the set of public intervention
intended at modifying the volumes of import and/or
exports. By modifying the volume of international
trade, these policies effectively drive a wedge
between domestic prices and world prices.

There are various instruments that can be used to achieve

the objectives of trade policies, among them are:
a. Tariffs
b. Quotas and other non-tariff trade restrictions
c. Export incentives
TARIFF
Tariffs are taxes levied on imports, so that the
effective domestic price becomes higher than the
world price. In general, the effect of a tariff is to
provide economic protection for domestic
production, because it makes imported products
more expensive in the domestic markets

QUOTAS AND OTHER NON-TARIFF TRADE

RESTRICTIONS
An alternative type of intervention on trade is to
restrict the volume of import or export through
quotas.
EXPORT INCENTIVES
Export incentives are regulatory, legal, monetary, or tax
programs that are designed to encourage businesses to
export certain types of goods or services. Exports are
goods that are produced in one country and are then
transported to another country for sale or trade.
Rather than by reducing imports, one other set of trade
policies that can be used to raise incentives for agriculture
concerns enhancing exports. A subsidy on exports has the
effect of raising the effective price for producers and
consumers.
 INSTRUMENTS OF AGRICULTURAL POLICIES
A. Trade policies
Tariffs
Quotas and other Non-tariff trade restrictions
Export Incentives
B. Exchange Rate Policy
Supply of foreign currency is generated when exporters, who sell their
products abroad are being paid with foreign currency
Demand is generated by importers who pay foreign currency whenever
they purchase the imported goods from the world market.
C. Sectoral Policy – policies that are more focused on a particular
sector of an economy and may not consider fully the effect of trade

Sectoral Policy Rationale

Administrative Prices (Price Control or Ceiling) Keep the price for food low to benefits consumers
Minimum Guaranteed Price(Price Floor) Increase farmer’s income
Stabilize farmer’s income to offset the high variability of
Price Stabilization Schemes
agricultural production

Commodity Taxes Generate Fiscal revenue

 FORCES THAT CAUSES THE
POLICY TO CHANGE

• Instability
• Globalization
• Technology
• Food Safety
• Environment
• Industrialization
• Politics
• Unforeseen events
 DEVELOPMENT OF
AGRICULTURAL POLICY
Policy Policy Public
Development Policy Goal
Awareness

Policy Public Determining the

Acceptance Importance of Policy Goal

Costs of Benefits Analysis of

alternatives plans for Proposed Policy Drafted to
addressing the need become a Bill

Introduction to
legislator and Policy Policy Policy
enacted Implementation Evaluation Revision
INFLUENCE OF GROUPS AND
FARM ORGANIZATIONS ON
AGRICULTURAL POLICY
DEVELOPMENT
AGRICULTURAL INTEREST GROUPS
A. General farm organizations
B. Commodity groups
C. Agribusiness Groups
 FUTURE OF
AGRICULTURAL POLICY
• Globalization will continue to influence the call for free
markets and fewer international trade restrictions
• Economic and political policies will focus on protecting
against terrorism
• Agricultural policy will be directly influenced by the
national and international trade organizations
• Governmental regulations will increase
• Farming will come to be viewed as a public service;
thus, private property rights and interests in lands may
be restricted
THE POLICY MAKING PROCESS
 General Framework of the Policymaking process
GENERAL FRAMEWORK ON
DEVELOPMENT OF ACTION PLAN

• Analysis of the current situation/setting “where we

are”
• Definition of goals and objectives ”where want to
go”
• Design of the means to achieve goals “how do we
get there”
• Evaluation “what did we achieve?
 Phases or Stages of the
Policymaking Process

1. Policy agenda setting

2. Policy formulation or development
3. Policy adoption and program implementation
4. Policy and program monitoring and evaluation

Policy agenda Formulation/ Adoption/Program

setting design implementation

Monitoring and
Evaluation
 Criteria for Evaluating
Policy and the Policy
Process

Efficiency Effectiveness Adequacy

Responsiveness Appropriateness Timeliness

LAWS AND POLICIES IN
AGRICULTURE
FORMS OF POLICY OUTPUTS: PHILIPPINE EXAMPLES

R.A. – Republic Act

A Republic Act is a piece of legislation used to create policy in order
to carry out the principles of the Constitution. It is crafted and
passed by the Congress of the Philippines and approved by the
President of Philippines.

Proclamation Nos.
•deal with the activities of private individuals;
•do not have the force and effect of law, unless the President is given the
authority over private individuals by the Constitution or a federal statute; and
•Are usually made by the President

Executive Orders
•directed to, and govern actions by, Government officials and agencies;
•have the force of law if the topic of the Executive order is "founded on the
authority of the President derived from the Constitution or statute"; and
•Usually issued by the President of the state
Presidential Decree
Presidential Decrees were an innovation made by President
Ferdinand E. Marcos with the proclamation of Martial Law. They
served to arrogate unto the Chief Executive the lawmaking powers
of Congress. Only President Marcos issued Presidential Decrees. In
the Freedom Constitution of 1986, President Corazon C. Aquino
recognized the validity of existing Presidential Decrees unless
otherwise repealed.
House Bill (HR, House Resolution)
Bills are laws in the making. They pass into law when they are
approved by both houses and the President of the Philippines. A bill
may be vetoed by the President, but the House of Representatives
may overturn a presidential veto by garnering a 2/3rds vote.

Senate Bill (S… No.)

A Senate bill is a piece of proposed legislation that either originated
or was modified in the Philippine Senate. A bill can't become a law
unless it has received majority approval in both the Senate and the
House of Representatives, and has been approved by the President
of the state
 PRIORITY AGRICULTURAL
LAWS
 Agriculture and Fisheries Modernization Act
(AFMA), Republic Act 8435, year 1997
 Agricultural Competitiveness Enhancement Fund
(ACEF), Republic Act No. 8178, year 1996
 Agricultural and Fisheries Mechanization
(AFMech) Law Republic Act NO. 10601, year 2013
 Organic Agriculture Act, Republic Act No.
10068, year 2010
 RA 7900
In 1995, Republic Act 7900 known as the High
Value Crops Development Act was created. It is an
act to promote the production, processing,
marketing and distribution of high value crops.
Previously the program was called as High Value
Commercial Crops Program and since it was
aligned with the RA 7900, the program is now
known as High Value Crops Development Program
(HVCDP).
 RA 7900
High Value Crops Development Program is one of
the banner programs of the Department of
Agriculture mandated to contribute for attainment of
the food self sufficiency, economic growth and
enhancement of consumer’s health and welfare. It
also promotes the production, processing,
marketing and distribution of high value crops.

Major fruits (mango, banana and pineapple) Local/regional

fruits with seasonal and local demand (durian, pili, cashew,
etc.) Industrial/plantation crops (coffee, cacao and rubber)
Alternative staple food crops (banana-saba and rootcrops)
 RA 7900
The four (4) pillars that play a vital role for the
program are:

 Land ( productive and health soil)

 Small producers (organized, interested and
competent farming communities)
 Support System (appropriate technology,
functional support services and structure)
 Legal/Policy ( enabling environment for
production and competition)
 VISION, MISSION, GOALS
AND OBJECTIVES OF THE
PROGRAM
Vision
A productive farming community

Mission
Empowers high value crops producers
Helps attain food self sufficiency and economic
growth

Goals
Increase production, income and livelihood
opportunities among small producers
Access to affordable, safe and health food
 VISION, MISSION, GOALS AND
OBJECTIVES OF THE PROGRAM
Objectives

Delivery of appropriate development support

services
Facilitate and harmonize development
interventions in the strategic production
areas/zones
Facilitate and promote access to local and
international market
Proactive management actions on demand and
supply situation
Priority Commodities include:
 Vegetables (lowland, upland, spices and
indigenous)
 Major fruits (mango, banana and pineapple)
 Local/regional fruits with seasonal and local
demand (durian, pili, cashew, etc.)
 Industrial/plantation crops (coffee, cacao
and rubber)
 Alternative staple food crops (banana-saba
and rootcrops)
AGRICULTURE AND FISHERIES MODERNIZATION
(AFMA)
🞑 Republic Act 8435
An act prescribing urgent related measures to
modernize the agriculture and fisheries sectors of the
country in order to enhance their profitability, and
prepare said sectors for the challenges of globalisation
through adequate, focused and rational delivery of
necessary support services, appropriating funds
therefor and for other purposes.
Signed in to law by former Philippine President Fidel
V. Ramos in December 22, 1997
AGRICULTURE COMPETITIVE ENHANCEMENT
FUND (ACEF)
 Basically, ACEF seeks to raise farm productivity and
reduce costs by providing for the necessary
support services such as, irrigation, farm to market
roads, post- harvest facilities, credit, research and
development, extension services, market
infrastructure and information.
 The fund essentially supports the Agriculture and Fisheries
Modernization Act (AFMA) of 1997 with the objective
of modernizing and enhancing productivity a nd
inc o me in the a gric ulture a nd fisherie ssectors.
2. AGRICULTURAL COMPETITIVE ENHANCEMENT
FUND (ACEF)
🞑 REPUBLIC ACT NO. 10848 of 2016 (Aquino)
An act further extending the period of implementation of
the Agricultural Competitiveness Enhancement Fund
(ACEF), amending for the purpose of REPUBLIC ACT NO.
8178 Agricultural Tariffication Act, as amended by
REPUBLIC ACT NO. 9496, entitled: “An act replacing
quantitative import restrictions on agricultural products,
except rice, with tariffs, creating the Agricultural
Competitiveness Enhancement Fund, and for other
purposes”
 PURPOSE OF ACEF
(a) increased productivity of farmers and fisherfolk by
providing the necessary credit to farmers and fisherfolk
and their cooperatives and associations, and micro and
small-scale enterprises, for the acquisition and
establishment of production, postharvest, and processing
machineries, equipment and facilities, farm inputs and
improvement;
(b) research and development on agricultural and fishery
products of state universities and colleges;
(c) a comprehensive and attractive grant-in-aid program
for agriculture, forestry, fisheries, and veterinary medicine
education to promote the development of agriculture
and fisheries:
 RA 7308: SEED INDUSTRY DEVELOPMENT
ACT OF 1992
REPUBLIC ACT NO. 7308 - An act to promote and
develop the seed industry in the Philippines and
create a national seed industry council and for
other purposes

RA 7308 was signed into law on March 27,

1993 after the presidency of Corazon Aquino
REPUBLIC ACT NO. 8178 of 1996
(Ramos)
An act replacing quantitative import
restrictions on agricultural products,
except rice, with tariffs, creating the
Agricultural Competitiveness
Enhancement Fund, and for other
purposes
 3. AGRICULTURAL AND FISHERIES
MECHANIZATION (AFMECH) LAW

 REPUBLIC ACT NO. 10601, An Act Promoting Agricultural

and Fisheries Mechanization Development in the
Country
 This Act shall be known as the “Agricultural and Fisheries
Mechanization (AFMech) Law”.
 The provision of this Act shall apply to the research,
development and extension, promotion, distribution,
supply, assembling, manufacturing, regulation, use,
operation, maintenance and project implementation of
agricultural and fisheries machinery and equipment.
 Approved by President Noynoy Aquino on June 5, 2013
 4. ORGANIC AGRICULTURE ACT OF 2010
• Republic Act 10068, An Act Providing for the
Development and Promotion of Organic
Agriculture in the Philippines and for other
purposes
• This act shall be known as the “Organic Agriculture
Act of 2010”
DA Secretary PROCESO J. ALCALA is a former
Representative of 2nd District of Quezon. He is considered as
the 'Father of Organic Agriculture' in the Philippines, being the
principal author of the Organic Agricultural Act of 2010 (RA
10068) and signed in to law by Pres. Rodrigo Duterte through
R.A. 11511 or the amendments to Organic Agriculture in
December 20, 2020
 RA 7607: MAGNA CARTA OF SMALL
FARMERS
The policy recognizes the right of small farmers and farm
workers, as well as cooperatives and independent farmers'
organizations, to participate in the planning, organization,
management, and implementation of agricultural
programs and projects especially through the Bayanihan
spirit. It shall support agriculture through appropriate
policies, research, technology and training, and adequate
financial, production, marketing, and other support
services to enhance agricultural productivity. In addition, it
shall provide incentives and reward systems to small
farmers so as to accelerate agricultural productivity and to
promote self-sufficiency and full development of
agricultural potentials.
This law was signed into law by President Fidel V.
Ramos on June 4, 1992
RA 8175: THE CHARTER OF THE PHILIPPINE
CROP INSURANCE CORPORATION
REPUBLIC ACT NO. 8175 - An act further amending
presidential decree no. 1467, as amended,
otherwise known as the charter of the Philippine
Crop Insurance Corporation (PICC), in order to
make the crop insurance system more stable and
more beneficial to the farmers covered thereby
and for the national economy.

RA 8175 was signed into law on December 29,

1995 during the presidency of Fidel V. Ramos
 RA 10000: THE AGRI-AGRA REFORM
CREDIT ACT OF 2009
RA 10000 aims in providing agriculture, fisheries
and agrarian reform credit, insurance and
financing system to improve the productivity of
the agriculture and fisheries sectors.

The Act consists of loans to support activities and

purposes pertaining to agriculture as stipulated under
the Agriculture and Fisheries Modernization Act
(AFMA) and the Agrarian Reform Code of the
Philippines.
RA 10000 was signed into law on February 23,
2010 during the presidency of GM Arroyo.
 RA 6657: COMPREHENSIVE AGRARIAN
REFORM LAW OF 1998 (CARL)
RA 6657 aims to promote social justice and
industrialization. This law recognizes not only
farmers but all landless workers as beneficiaries
with the condition that they will cultivate the land.
Additionally, this law states that the land owner
shall retain not more than five (5) hectares of
agricultural land.
RA 6657 was signed into law on June 10, 1998 by
former Pres. Corazon Aquino.
 RA 11203: RICE TARIFFICATION LAW
RA 11203 An Act liberalizing the importation,
exportation, and trading of rice, lifting for the
purpose the quantitative import restriction on rice,
and for other purposes"

RA 11203 was signed into law on February 14,

2019 under the presidency of Pres. Rodrigo R.
Duterte and Sen. Cynthia Villar being the
sponsor and principal author of bill.
POLICY FORM DATE/President TITLE/DESCRIPTION
PN 261 s. 2000 2000- JE Estrada The National Fisherfolks Day (May 31st)
PN 33 s. 2000 2000- JE Estrada Farmers’ and Fisherfolks’ Month (May)
Dec. 27, 2005- Promotion and Development of
EO 481 s. 2005
GMA Organic Agriculture in the Philippines
PD No. 1467 s June 11, 1978- Decree Creating The Phil. Crop
1978 FEM Insurance Corporation
PD No. 717 May 29, 1975-FEM The Agri-Agra Law
Feb. 11, 1998 –JE
RA 8485 Animal Welfare Act of 1998
Estrada
RA 8048 June 7, 1995-FVR Coconut Preservation Act of 1995
PD 1433 s. 1978 June 10, 1978-FEM Plant Quarantine Law of 1978
RA 10611 Aug. 13, 2013-BS
Aquino III (DA sec
Food Safety Act of 2013
Alcala and DOH
Sec Janet Garin
THANK YOU AND
GOD BLESS ON
YOUR BOARD
EXAM…
Nothing is impossible
The word itself says “I’M POSSIBLE”
-Audrey Hepburn