GROWTH AND

DEVELOPMENT OF
AGRICULTURE
Growth and development
• Philippines faces many problems in the agricultural sector. This sector employs
around 37 percent of people in the country, being a major source of income for
many households.
• this sector’s share in the country’s GDP has gone down over the years, showing
a decline. The Philippines government is also decreasing funding on agriculture.
Starting in 2011, agriculture only makes up about 4 percent of the national
budget. This makes agricultural development in the Philippines questionable.
• the Philippines is notoriously vulnerable to natural disasters, facing around 20
typhoons each year.
• The lack of financial support coupled with frequent natural disasters leaves
farmers in a compromising state.
The lack of financial support coupled with frequent natural
disasters leaves farmers in a compromising state.
• high poverty rates can be attributed to underemployment.
• Almost 70 percent of underemployed Filipinos work in agriculture, forestry or
fishery.
• many farmers and agricultural workers are searching for employment, the
Government of the Philippines seems to be moving away from reliance on local
farmers, turning to imports instead.
• In 2016, the Philippines was the biggest rice importer in the world, with close to
2.45 million tons of imported rice.
• The lowered funding and employment of Filipino farmers put more than 12 million
people who work in the agricultural sector at risk.
IRRI and IPAC
• International Rice Research Institute (IRRI), for example, has developed a rice
variety that can survive natural disasters, especially floods. With funding from the
Gates Foundation, the IRRI hopes to increase rice yields by 50 percent in the next
10 years. Based on an Indian rice variety called Swarma, this climate-smart rice has
an additional flood-resistant gene.
• Philipinnes government is also working towards agricultural development by
implementing the Inclusive Partnerships for Agricultural Competitiveness (IPAC)
Project. Funded partially by the World Bank, the project works on expanding the
capacity of small farmers to make a living.
• commercial agriculture and improved infrastructure, small-holder farmers can
increase their incomes and slowly become more self-reliant. Developing irrigation
systems in rural farming lands which is an important aspect of the project, makes
farming more efficient for the people of the Philippines. The project plays an
important role in reducing poverty, with 20 percent of the beneficiaries being poor
farmers.
IFAC Projects in the Philippines
• International Fund for Agricultural Development (IFAD) has funded 16 projects
that aid farmers from the Philippines.

• IFAD provides investment and business plans to 55,000 farming households in the
poorest parts of the Philippines. Through educating and guiding farmers,
especially with the use of sustainable farming methods, IFAD hopes to increase
their incomes and reduce poverty in the Philippines.

• the combined efforts of organizations and the government, the issue of poverty
among farmers in the Philippines is being addressed.
Government support Agriculture Sector
• Share of Agriculture, Forestry, and Fishing to Gross Domestic Product
In 2022, AFF remained as the least contributor among the three major economic
sectors. At constant 2018 prices, GVA in AFF amounting to PhP 1.78 trillion,
accounted for a lower share of 8.9 percent compared with its previous year’s share
of 9.6 percent in the GDP. At current prices, AFF was valued at PhP 2.10 trillion. It
also recorded a lower share of 9.5 percent from its 10.1 percent share to the GDP in
2021.
• The GVA in AFF at constant 2018 prices rebounded from the -0.3 percent decline in 2021
and posted a 0.5 percent growth in 2022. (Table 2b and Figure 2) Collectively, the
agricultural crop industry registered a -1.1 percent decrease in 2022, a turnaround from
the 2.2 percent growth in 2021. Among the agricultural crops, the following registered
negative growth in 2022, a reversal from their positive performances in the previous
year:
• a. palay, -1.0 percent;
• b. sugarcane including muscovado sugar-making in the farm, -17.5 percent;
• c. banana, -0.6 percent;
• d. mango, -4.2 percent;
• e. coffee, -1.6 percent;
• f. rubber, -2.7 percent;
• g. tobacco, -0.7 percent; and
• h. other agricultural crops n.e.c., -0.7 percent.
Output and Productivity
Area Harvested
• For the period 2017 to 2021, palay area
harvested decreased annually by an
average of -0.02 percent, while corn area
harvested expanded be average of 0.1
percent. Among the references crops, the
area harvested for cacao showed a
continuous uptrend over the five year
period and resulted to the biggest
increment in area harvested which
averaged to 16.0 percent annually.
Production
• Annually, the production levels of
palay nd corn from 2017 to 2021 grew
by an average of 0.9 percent and 1.2
percent, respectively. Among the
other agricultural crops, cacao
maintained positive growth rates
during the reference years and had
the biggest average annual growth of
9.3 percent.
Yield
• In 2021, palay yield was
4.15 metric tons per
hectare and corn yield at
3.24 metric tons per
hectare, both indicate
4.6% increase from their
respective 2018 levels.
Livestock and poultry
• Production indices measure the growth of each
livestock and poultry component in a given
period compared with that of the base year.
• In the year 2021, the production levels of all
livestock commodities, except dairy, were lower
than their repective 2018 output records. Hog
production 1.70 million metric tons reported the
biggest decline of -26.9% from its base year
level. Followed by cattle losses of -10.3%. Lower
than the base year production levels cararao at -
9.6% and goat -5.1%, on the other hand, growth
in production was registered in dairy at 11.0% in
2021.
Fisheries
• The volume of aquaculture
production in the 2021 at
2.25 million metric tons
registerd a reduction of -
2.5% from the 2018 record.
Among aquaculture, the
production level of marine
pen posted the biggest
decline of -89.5%.
Agricultural resources
• Among the regions Western Visayas was the major contributor of swine which
recorded an increased share of 12.2% in 2021. Central Visayas and CALABARZON
followed which shared 11.8% and 10.8% to the total swine inventory, respectively.
The biggest suppliers of cattle in 2021 were found in the Central Visayas at 11.5%,
Ilocos region at 11.4%, and CALABARZON at 10.2%
Agricultural Exports
and Imports
Agricultural Exports
Total Agricultural Trade
• Total agricultural trade drops at a faster rate The country’s
total agricultural trade in the first quarter of 2020, which
amounted to USD 4.40 billion, slid at an annual rate of
11.6 percent. This was faster than the previous quarter’s
annual drop of 0.5 percent, while slower than the 13.2
percent annual increase in the first quarter of 2019.
• Agricultural trade balance continues to decrease The total
balance of trade in agricultural goods was USD 1.19 billion
in the first quarter of 2020, which manifested a deficit with
an annual decrease of 37.8 percent. In the fourth quarter
of 2019, trade deficit fell at a slower rate of 12.0 percent,
while in the first quarter of 2019, it was slightly slower at
34.1 percent. (
Agricultural Export
• Agricultural export increases by 4.7 percent The country’s
agricultural export revenue rose to USD 1.61 billion or by 4.7
percent in the first quarter of 2020, from USD 1.53 billion
agricultural export in the first quarter of 2019. The value of
agricultural export for the first quarter of 2020 reflected a
share of 10.2 percent to the total export of the country during
the period.
• Agricultural export of edible fruit and nuts; peel of citrus fruit
melons commodity group accounts for the largest share to
total agricultural export The total agricultural exports of the
top 10 commodity groups amounted to USD 1.54 billion or
96.1 percent of the total agricultural export revenue in the first
quarter of 2020. The combined export value of these top 10
commodity groups posted an annual growth of 5.7 percent.
Among the commodity groups, edible fruit and nuts; peel of
citrus fruit melons, valued at USD 663.07 million, contributed
the largest share of 41.3 percent to the total agricultural
exports.
Malaysia leads as trading partner in exports
among ASEAN member countries
The country’s agricultural exports to ASEAN
member countries in the first quarter of 2020
amounted to USD 153.41 million which
accounted for 6.0 percent of the total exports
to ASEAN member countries. Among the
ASEAN member countries, Malaysia was the
top destination of agricultural exports worth
USD 56.48 million or a share of 36.8 percent to
the total agricultural exports to ASEAN
member countries.
Tobacco and manufactured tobacco substitutes
group leads export of agricultural commodities
to ASEAN member countries
• The top three major agricultural commodities
exported to ASEAN member countries in the first
quarter of 2020 were:
• a. tobacco and manufactured tobacco
substitutes, USD 55.48 million;
• b. animal or vegetable fats and oils and their
cleavage products; prepared edible fats; animal
or vegetable waxes, USD 24.69 million; and
• c. preparations of cereals, flour, starch or milk;
pastrycooks’ products, USD 15.80 million.
Netherlands is the country’s major trading
partner in export of agricultural goods among
EU member countries
• Exports of agricultural goods to EU member
countries in the first quarter of 2020
reached USD 301.23 million which
accounted for 16.3 percent of the country’s
total exports to EU member countries.
• Among the EU member countries,
Netherlands was the country’s top buyer of
agricultural commodities worth USD 141.17
million or 46.9 percent of the total
agricultural exports to EU member
countries.
Animal or vegetable fats and oils and their cleavage
products; prepared edible fats; animal or vegetable
waxes commodity group is the top export agricultural
commodity to EU member countries
• The top three major agricultural commodities
exported to EU member countries in the first quarter
of 2020 were:
• animal or vegetable fats and oils and their cleavage
products; prepared edible fats; animal or vegetable
waxes,USD 118.25 million;
• b. preparations of meat, of fish or of crustaceans,
molluscs, and other aquatic invertebrates, USD 63.72
million; and
• c. preparation of vegetables, fruit, nuts or other parts
of plants, USD 50.13 million.
Agricultural Import
Agricultural import posts 18.9 percent decrease
• The total agricultural imports amounted to USD 2.79 billion or a share of 12.0
percent to the country’s total imports. Total agricultural imports declined by 18.9
percent from its value of USD 3.44 billion in the first quarter of 2019.
Cereals account for the highest value of
agricultural imports
• Among the major commodity groups,
cereals, with a value of USD 573.01 million,
comprised the largest share of 20.5 percent
to the total agricultural imports in the first
quarter of 2020.
Vietnam accounts for the highest import value among ASEAN member
countries
• The country’s agricultural imports from ASEAN member countries in the first
quarter of 2020 amounted to USD 1,023.05 million which accounted for 15.8
percent of the total imports from ASEAN member countries. Vietnam, which
contributed 27.0 percent to the total agricultural imports from ASEAN member
countries, was the major supplier of agricultural products in the first quarter of
2020
Miscellaneous edible preparations commodity group leads agricultural
commodities imported from ASEAN member countries
• The top three imported agricultural goods from ASEAN member countries
• were: a. miscellaneous edible preparations, USD 253.51 million; b. animal or
vegetable fats and oils and their cleavage products; prepared edible fats; animal or
vegetable waxes, USD 228.50 million; and c. cereals, USD 215.17 million.
Netherlands leads EU member countries on agricultural imports
• The country’s agricultural imports from EU member countries reached USD 298.17
million or a share of 17.2 percent to the total imports from EU member countries in
the first quarter of 2020. Among EU member countries, Netherlands was the
country’s top supplier of agricultural commodities worth USD 66.53 million or a
share of 22.3 percent to the total agricultural imports from EU member countries.
Meat and edible meat offal commodity group ranks first in terms of import from
EU member countries
• The top three agricultural commodities imported from EU member countries
were:
• a. meat and edible meat offal, USD 74.29 million;
• b. cereals, USD 55.09 million; and
• c. dairy produce; birds’ eggs; natural honey; edible products of animal origin, not
elsewhere classified, USD 46.93 million.
EMPLOYMENT AND WAGES IN THE AGRICULTURE SECTOR

Employment in Agriculture
• The number of gainfully employed persons
in agriculture measures the extent of
absorption of the available manpower
supply in agriculture and its contribution to
the total economy. Meanwhile,
information on the employment of male
and female agricultural workers indicates
gender differences in the use of
agricultural labor.
• At the regional level, Western Visayas still
registered the highest employment in
agriculture. However, the number declined to
873,000 persons in 2019. Declining agricultural
employment was observed in most regions. On
the other hand, increases in the number of
workers employed in the agriculture sector were
noted in Central Visayas with 657,000 persons,
Northern Mindanao with 776,000 persons,
SOCCSKSARGEN with 800,000 persons, and
BARMM with 697,000 persons. In contrast, the
least count continued in NCR with 25,000
persons in 2019.
• Except Caraga, all regions exhibited decreasing proportion of agricultural
employment to the region’s total employment in 2019. BARMM exhibited the
biggest proportion at 57.8 percent. This was followed by Cagayan Valley at 45.9
percent, SOCCSKSARGEN at 40.5 percent, CAR at 39.6 percent, and Zamboanga
Peninsula at 38.6 percent.
• BARMM had the biggest share of 65.4 percent of the region’s total male
employment who were working in agriculture.
• female agricultural workers in BARMM accounted for a highest share of 39.1
percent of region’s total female employment in 2019.
• Higher proportions of agricultural employment were also registered in Cagayan
Valley at 53.1 percent for the males and in CAR at 33.7 percent for the females.
• CALABARZON, agricultural workers who were males comprised 10.5 percent and
those who were females, at 3.6 percent.
• NCR had the least shares of employment in agriculture at 0.7 percent for males
and 0.1 percent for females
Agricultural Employment by Class of Worker
• In 2019, the number of employed persons in agriculture classified as own account
workers was reduced to 5.07 million. They comprised 52.2 percent in the country’s
total agricultural employment. The bulk of the own-account workers were self-
employed workers at 4.38 million equivalent to 45.2 percent of the total
employment in agriculture. The wage and salary workers who worked for private
household/ private establishment /own family-operated farm or business
numbered 3.3 million and they corresponded to 33.6 percent of the total
agricultural employment. The unpaid family workers increased to 1.4 million,
constituting 14.1 percent of the total agricultural employment
Daily Basic Pay of Wage and Salary Agricultural Workers
• The country’s average basic wage and salary paid to workers in the
agriculture sector increased to PhP 247.81 per day in 2019. It increased
yearly by an average of 6.0 percent growth from 2015 to 2019.
• Agricultural workers engaged in fishing and aquaculture activities
received higher basic wage and salary at an average of PhP 262.42 per
day, than those involved in agriculture and forestry whose payment
averaged PhP 246.62 per day. From 2015 to 2019, the basic pay of
wage and salary workers in agriculture and forestry grew by an
average of 6.0 percent, slightly faster than the average yearly wage
increment of those in fishing and aquaculture at 5.8 percent
Agricultural technologies
• Farmers are optimising agricultural planting, irrigation, and pest management by
employing GPS technology, drones, and satellite imagery. This not only enhances
crop yields but also saves resources and has a lower environmental impact.
There are four types of climate base on
Modified Corona’s System.
• Type I Two pronounced seasons, dry from
November to April; wet during the rest of the year.
The entire province in the western part of the islands
of Luzon, Mindoro, Negros, and Palawan.
• Type II No dry season with a very pronounced
maximum rainfall from November to January.
The areas covered are Catanduanes, Sorsogon, The
eastern part of Albay, the Eastern and Northern part
of Camarines Norte and Camarines Sur, a great
portion of Eastern part of Quezon, the eastern part of
Leyte and a large portion of Eastern Mindoro
• Type III No very pronounced maximum rain period Only a short dry season lasting
from one to three months.
Covers the Western part of Cagayan (Luzon), Isabela, Nueva Vizcaya, the southern
portion of Mountain Province, Southern Quezon, the Bondoc Peninsula, Masbate,
Romblon, Northeast Panay, Eastern Negros, Central and Southern Cebu, Part of
Northern Mindanao and the most Eastern Palawan.
• Type IV Rainfall more or less evenly distributed throughout the year. There is no
dry season and no very pronounced rainy.
Covers Batanes Provinces, Northern Luzon, Western Camarines Norte and
Camarines Sur, Albay, Eastern Mindoro, Marinduque, Western Leyte, Nortern
Negros, and most of Central, Eastern and Southern Mindanao.
• December-May This interval is hot… it’s the dry season.
The March-May period is the hottest… the best time to go to beaches and water resorts.
The prevailing wind in this period is the Amihan, which comes from the east.

• June-November This period is rainy… it’s the wet season, it’s the typhoon regime.
During this period, an average of 21 typhoons hit the country. A few times, it reaches 23. Typhoons
in November are much less and when they come… they are really ugly and very destructive.
The prevailing wind in this period is the Habagat, which comes from the west.
• Of the total rainfall recorded annually, 47% is attributed to the occurrence of the tropical cyclones
(especially from June to December).
Tropical cyclones are generally from the North Pacific Ocean region and generally move in West
Northern direction towards the country.
The annual humidity ranges from 74% to 85% while the annual mean temperature is between
19,5°C to 28°C and annual rainfall ranges from 1,893 to 3,855.2 millimeters.
• The majority of the Philippines’ soil resources
are best suited for cultivated crops
(Inceptisols), some soil types (Entisols,
Vertisols, and Mollisols) are economically
important for rice and other major crop
production.
Some are considered problem soils (Ultisols)
because of high erodibility and low nutrient
content but still has potential for agricultural
production.
• An average of 20 typhoons enter the
Philippines in a year.
Public Storm Warning Signal
PSWS #1 - Tropical cyclone winds of 30-60
km/h are expected within the next 36 hours.
PSWS #2 - Tropical cyclone winds of 60-100
km/h are expected within the next 24 hours.
PSWS #3 - Tropical cyclone winds of 100-185
km/h are expected within the next 18 hours.
PSWS #4 - Tropical cyclone winds of greater
than 185 km/h are expected within 12 hours.
• Government priorities Despite positive growth and gains in productivity, there
has been almost no change in the welfare of almost 6.4 million people who are
dependent on agriculture and fisheries. In the latest national Development Plan,
the Government states that improving productivity and efficiency in the
agriculture sector is critical to maintaining the affordability of food and reducing
poverty.

• Reaffirming their commitment to achieving food self-sufficiency by 2019, the

Government has increased its 2020 agriculture budget by 50 per cent compared
to last year. The money will be spent on constructing and rehabilitating irrigation
systems and repairing roads, in addition to boosting the budgets of national
programmes designed to boost production of rice, maize, vegetables, fisheries
and livestock.
•
• Government priorities Despite positive growth and gains in productivity, there has been
almost no change in the welfare of almost 6.4 million people who are dependent on
agriculture and fisheries. In the latest national Development Plan, the Government states
that improving productivity and efficiency in the agriculture sector is critical to maintaining
the affordability of food and reducing poverty.

• To improve food security and rural incomes, the Government is working to improve rural
infrastructure (including roads, post-harvest facilities and markets), strengthen extension
systems, improve access to credit, increase investment in research, and encourage
investment from the private sector. The Government is also promoting integrated water
resource management, sustainable land management, restoration of fishing grounds, and
strengthening crop and fisheries insurance schemes, to increase resilience to climate
change.
• https://
www.psa.gov.ph/publication/agricultural-indicators-system%3A-economic-growt
h
• https://psa.gov.ph/statistics/agriculture/aspbi
• https://www.psa.gov.ph/system/files/main-publication/%2528ons-cleared%2529_
1.%
2520FO%25201_AIS%2520Government%2520Support.pdf
• https://www.fao.org/3/ae946e/ae946e03.htm
• https://
www.philippinesmarketresearch.com/insight/agribusiness-growth-in-the-philippin
es
• https://borgenproject.org/agricultural-development-in-the-philippines/