An Assessment on the Implementation of R.

A 8435 (Agricultural and Fisheries Modernization Act

of 1997 or AFMA) Among Farmers of Aleosan

A Thesis Presented to the College of Arts and Sciences,

Notre Dame of Midsayap College,
Midsayap, Cotabato

In Partial Fulfilment of the Requirements for the Degree of Bachelor in Public Administration

JASON NEIL CLYDE H. CABAYA

RESEARCHER

October 2018
 CHAPTER I

INTRODUCTION

Agriculture remains a dominant economic activity for a greater number of the world’s

population. In the Philippines, with the passage of the Local Government Code of 1991, the

responsibility for delivery of agricultural services was devolved to the local government units The

Municipal Agriculture Office assumed applied research, extension and regulation functions to

ensure provision of services in production and marketing. The Agriculture and Modernization

Act of 1997 (AFMA) or Republic Act (RA) 8435 was implemented on 1999, served as the blue print

for making the agriculture sector globally competitive and sustainable and transforming the farmers

into food secure, prosperous and empowered citizenry. Given these goals, the paper investigated

how the farmers rated themselves in terms food security, farmer’s prosperity (perceived sufficiency

of income), empowerment (individual and collective voice) and sustainability (farming practices).

Agricultural extension has always prided itself with increasing production. However, the changing

conception of the role of agriculture from primarily production to multifunctional orientation

demands a reconceptualization of agricultural extension to include non- commodity outputs such as

food security, promoting rural way of life, environmental protection biodiversity and landscape.

This paper analyzed how Aleosan, classified as a third-class municipality in terms of income (with

first-class as the richest and sixth-class as the poorest), dealt with the management of challenges of

stimulating agricultural development and contributed to attainment of AFMA goals which included

non-commodity oriented goals such as environmental protection, empowerment and food security.

This led the researcher to conduct a study on the assessment on the implementation of R.A 8435 or

AFMA among the farmers of Aleosan, North Cotabato.

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Statement of the Problem

In the process, the research sought to identify important lessons pursuant to the

implementation of the agricultural development agenda. Specifically, the research aimed to:

1. What is the socio-economic profile of the respondents

2. What is the level of assessment of farmers on RA 8435 in terms of:

a. Food Security

b. Farmer’s Prosperity

c. Sustainability of Farming Practices

d. Empowerment

Significance of the Study

This study is beneficial to the following:

Farmers. The findings of this study may help them understand the importance of RA 8435 or AFMA

in their agricultural practices as well as to understand the importance in cooperating with the Office

of Municipal Agriculturist (OMAg).

Office of Municipal Agriculturist. The findings of this study may help them adopt, devise, or

integrate some strategies in the implementation of any program or projects that are anchored to the

implementation of R.A 8435.

Municipal Officials/ Administrators. The results of this study may help them plan and implement

policies that would improve the implementation of R.A 8435 and the famers’ welfare as part of their

constituents.
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Scope and Limitations

This study was conducted in the selected remote areas of the Municipality of Aleosan,

Cotabato: Barangays San Mateo, Dualing , Sta Cruz , Mingading and Katalicanan for the school

year 2018-2019. The respondents of this study were the local farmers of the said selected areas.

Definition of Terms

Assessment- refers to the evaluation or measurement of the implementation of RA 8435 or AFMA

among the farmers of Aleosan, North Cotabato

Empowerment- refers to the individual and collective social and political capabilities of the farmers.

Farm- refers to an area of land and its buildings used for growing crops and keeping livestock

Farmer’s Prosperity- refers to the perception on sufficiency of income from all agricultural sources.

Food Security- refers to the food situation of the farmers of Aleosan.

Local Government Unit- refers to Official local Government in the Philippines pertaining to Local

Government of Aleosan.

Sustainability- refers to the cropping practices (rice and corn farmers) use of fertilizers and

pesticides (rice, corn and vegetable farmers) and waste disposal (swine raisers) of farmer partners as

well as financing of farm activities and perceived desirability of farming as occupation.

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Literature Review

This purpose of the review of related literature and studies is to give several ideas on how

researchers formulate the purpose studies.

Related Literature

Extension as a Concept

Roling averred that extension is “unhandy and imprecise”. This is supported by Oakley and

Garforth who contended that there was no universally accepted definition of extension. A review of

the varied definitions emphasized two important concepts, one of which is the communication

dimension. Byerlee broadly defined extension as the provision of different types of information,

from estimates of future prices for farm products, new research products and its use. The other

important dimension of extension is the educational dimension. Leeuwis and van den Ban

emphasized the need to induce new patterns of coordination among stakeholders in order to help

actors solve problematic situations. Extension is seen as a necessary institution to create informed,

knowledgeable community members that would have better income, improved quality of life and

generally developed communities.

In the Philippine setting, extension is understood differently by various stakeholders. In a study

done in San Jose, Batangas, the municipal extension workers, provincial workers, regional field

units (RFUs) and the private individuals interpreted it differently. Under the Local Government

Code of 1991 the LGUs have the mandate to provide agricultural services in the areas of applied

research, extension and regulation. Examples of services included stock dispersals, research

dissemination, and conduct of on-site demonstration farms, inspection and monitoring of slaughter

houses. Most of the activities of the agricultural office were along the line of provision of technical

advice in the production phase.

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As such, both the municipal and the provincial offices understood extension in terms of its

informative and persuasive dimensions in the production phase of agriculture. Both offices

enumerated extension activities in terms of distribution of leaflets and brochures, conduct of techno-

demonstration farms, provision of advisory services in terms of visits, meetings and training and

provision of inputs such as seeds, vaccines and water pumps.

In addition to what is enumerated by the local government units, small livestock growers would

like to see them more active in the timely provision of market information and credit assistance. On

the other hand, large livestock growers would like to see the local government spearhead control of

diseases outbreaks, provision of market information and policies relevant to the industry,

international industry information and strategies in addressing industry-wide problems.

While local government is concentrated on the provision of support services in terms of

production processes and inspection, the private sector would like to see a more active role in

accessing credit, collaboration in terms of strategy identification to ensure global competitiveness,

assistance in the market aspect particularly provision of prices of their produce and updates on

policies relevant to the industry. Currently, LGUs provide support services in terms of production

processes and inspection though the private sector would like to see a more active role in accessing

credit, collaboration in terms of strategy identification to ensure global competitiveness, assistance

in the market aspect particularly provision of prices of their produce and updates on policies relevant

to the industry.

In the local parlance, the notion of extension as a conduit between information disseminators of

production technology and the wider community continues to dominate the practice of extension.

The informative, persuasive and formative dimensions of extension for technology transfer continue

to guide the local practice.

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Farrington 2001 et al., however, contended that extension has to go beyond its traditional roles

by understanding the conditions of the rural poor in terms of vulnerability and market conditions.

While he contended that privatization and removal of state subsidies have proliferated since state

involvement was greatly constrained by lack of funds, investments in poorly integrated areas remain

justifiable. Farrington 2001 et al. further contended that promotion of diversification of sources of

income and offering new options for livelihood strategies should be a major concern to minimize

vulnerability of the poorest sector of the economy. Extension has to adopt a pro-poor policy and in

so doing, ensure the promotion of livelihood diversification and product market integration locally

and globally.

Extension is primarily capacity building and community engagement where there is a shift from

being a primary provider of services to building partnerships as a way of empowering stakeholders.

Thus, the concept of extension has evolved and continues to evolve from a technology production

focus mainly through technology transfer. It has now moved to community capacity building and

engagement encompassing issues such as livelihood diversification and sustainable development to

achieve stakeholder empowerment.

The broadening of concerns of extension from primarily a delivery mechanism to a policy

instrument changed not only the methods and approaches in extension but also the theoretical bases

of extension. Given the pro-poor stance, Farrington 2001 et al . contended that decentralization

appears to be the policy reform trajectory with the greatest potential to be pro-poor. Incentive

structures therefore must be embedded within a number of organizations. Given this structural re-

arrangement, it follow that there should be initiatives to strengthen organizations to increase the

voice of farmers and in the process, empower them.

The Concept of Decentralization

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Decentralization is the transfer of responsibility for planning, management and resource raising

and allocation from the central government to field units of central government, subordinate levels

of government, semi-autonomous public authorities or corporations, area-wide regional or

functional authorities or organizations of the private and voluntary sector . It aims to improve

governance by democratizing decision making leading to increased accountability of those

governing to the governed bringing about cost effective services.

Within the public sector, decentralization focuses on the structure and processes of decision

making and on resource responsibility allocation among different levels of government. The five

major forms of decentralization include deconcentration, delegation, devolution, partnership and

privatization. Of late, the concept of extension privatization (cost-sharing, pay for service,

contracting, outsourcing, full or partial cost recovery, and consultancy) has been implemented in

various stages by different countries all over the world.

The Local Government Code of 1992 devolved the extension services to the local government

units. The devolution of extension is seen as a move to ensure people’s direct participation in

deciding priorities at the local level and ultimately, achieve empowerment. AFMA defines people

empowerment as:

“enabling direct participation or through their duly elected, chose or designated representatives

the opportunity to participate in policy formulation and decision making by establishing the

appropriate mechanisms and by giving them access to information” (Sec 2, f).

Thus, the main policy instruments that guides extension believes that decentralization provides

spaces for people to participate in decision making and therefore paves the way for people

empowerment. In the Philippines, decentralization in extension was actualized through devolution.

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The Concept of Participation

As a development strategy, participation has been used by local organizations, particularly the

non-government organizations as early as the 1970’s. If there is anything new, it is the emphasis on

participatory tools given by international funding agencies.

Participation has been understood both as a means and as an end depending on how it makes a

difference on program outcomes. It is considered as a means when the stress is on involving people

to improve project implementation and outcome. It is considered as an end when participation is

seen as ultimately enabling people take control of its own development process.

Theorists categorize the levels of participation

differently as summarized below:
Features Arnstein Deshler and Sock Pretty UNDP WB
Control by outsiders Manipulation Domestication Manipulative Manipulation Information
Therapy Passive Information sharing
Information Assistencialism Consultation Consultation
Consultation Material Incentives Consultation
Placation Functional
Joint
Joint control Partnership Cooperation Interactive Consensus Decision
building making
Delegated Decision
power making
Risk sharing
Partnership
Controlled by insiders Citizen Control Empowerment Self-Mobilization Self-management Initiation and
Control by
stakeholders

The Concept of Empowerment

Central to empowerment are the concepts choice, freedom, power and control. The World Bank

defined empowerment as the process of enhancing the capacity of individuals or groups to make

choices and to transform those choices into desired actions and outcomes. Central to this process are
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actions which both build individual and collective assets and improve the efficiency and fairness of

the organizational and institutional context which govern the use of these assets. (World Bank 2005)

Just like participation, the concept of empowerment is seen from various perspectives among

different cultures. In the World Bank empowerment framework, development outcomes are

influenced by the interaction between local and national support for empowerment and the assets

and capabilities of people and their organizations, both of which are influenced by the nature of

social and political structures. . (World Bank 2005)

Decentralization is about improving governance by democratizing power and control, thus

bringing about empowerment. This study uses the above concepts and frameworks in analyzing how

Magdalena conceptualizes, manages and evaluates its agricultural projects and as a result, how it

brings about agricultural modernization.

The Agricultural Development Plan

The Local Government of Aleosan and the Office of the Municipal Agriculturist (OMAg)

actively sought the following: improvement of the access to capital, agricultural inputs and

technology, marketing and human resource development. Past and present leadership of the LGU

and the OMAg believed that improvement in the lives of its constituents could be achieved primarily

through agricultural development as it was the primary industry of the municipality. OMAg

embraced an integrated family centered program anchored on the Total Family Approach. Hence,

OMAg conceptualized projects that aimed to harness the skills of all family members to ensure food

security and enhance productivity and income.

A key principle that guided OMAg was partnership. Through it, the following were

accomplished: construction of postharvest facilities accessed and secured loans and solicited funds.

OMAg was able to put up its rice mill, flat bed dryer and truck for its rice trading. At the same time,

investments were made in putting up a training center, slaughterhouse and piggery. Another
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principle subscribed to by OMAg was enterprise development. As such, it made sure that its

facilities were income generating programs and the expenses for the maintenance of its vegetable

and rice techno-demonstration site were sourced from the income of farm itself. Recently, farmer

participation made its imprint with the OMAg as farmer volunteers actually operated its rice techno-

demonstration farm.

Agricultural Extension Projects

Extension projects revolved around crop production and livestock raising. OMAg helped

manage rice, corn, vegetable projects and swine, cattle and carabao projects. Unique was its

integrated approach which started with interventions for improvement in access of capital, inputs

and knowledge and skills from “seed to shelf.” Extension methods used involve farm visits,

provision of individual technical advice and assistance, the conduct of techno-demo farm and

training programs which included farmer field schools and the conduct of educational tours.

Weighted mean followed by contribution to increasing income. The lowest mean was in

improving access to information though it fell within moderate level.

The most common extension support was technical advice, training, provision of agricultural

supplies and financial assistance. All of these activities were rated high in terms of usefulness,

timeliness and frequency. Despite being a third-class municipality, Aleosan was able to provide a

rice mill, mechanical rice drying facility and a truck for rice trading through active sourcing of loans

from various national government agencies. The Municipal Agricultural Officer (MAO) was

confident that they would be able to pay these loans as the facilities all earned income.

Farmers were highly satisfied with the rice milling and the mechanical rice drying facility.

They considered these facilities very helpful as the local government charged lower than other
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private milling companies. The drying facilities provided the farmers with the alternative to open

sun drying.

Majority of the farmers received reading materials on rice production which were all rated

highly effective. The reading materials were prepared by PhilRice, a rice research agency of the

Department of Agriculture. Most farmers believed that assistance could be improved by providing

more financial help.

A considerable number of farmers said that the major strength of the OMAg was their

monitoring of programs since staff made regular farm visits. Farmers also believed that the

provision of financial support was critical as most did not have enough financial capital. On the

other hand, farmers said that the OMAg was constrained by the lack of staff.

Price Fluctuation of Agricultural Products and its Impact on Small Scale Farmers

Development

Agricultural product prices have been fluctuating widely over the last for years, hunting both

consumers and producers (Ghanamen, 2011). United nation Food and Agriculture Organization

(FAO) show the price index of food have fluctuate widely over four years. The index show that

price rose from 122 in 2006 to 214 in June 2008.This was caused by the following factors changing

petroleum prices which result to high translation of food price like transportation cost, crop yield,

food stock levels as stock fall price rise, change exchange rate especially of major exporting

countries, trade policies, drought, low technology, demand of food is in elastic as small changes in

supply can cause big change is in prices, the role of speculation purpose and seasonal production

Also according to Global Market Report (2007) the agricultural commodity markets have

experienced extreme price fluctuation more and more frequently, the main reason for this changes
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are supply and demand factors this include population growth, weather condition this affect the

output related to price.

Hans (2000) argued that price contributes much toward achievement of small scale farmers’

development but this is measured by considering price if it covers the cost of production. For

example when the price of agricultural product is good or high compare to the cost production result

to the high profit to the producer of agricultural product. farmer maximize their profit this is due to

Return on Investment (ROI) which is high than cost of production, increase per capital income of

farmers hence reduce the poverty, increase the production (output) due to capital accumulation,

maximize market share, increase cash flow of the producer, effective planning and decisions making

on production and reduce the risk of loses.

Moreover, Ghanamen, (2011) suggest various methods which can be adopted by the

government and other stake holders in order to reduce price fluctuation of agricultural product,

effective of market management and control for example by maintain buffer stocks, high investment

in agriculture sectors particularly in research development and infrastructure that promote irrigation,

improvement of trade policies particularly agricultural subsidies, improving market transparency the

FAO should intensify its information gathering and disseminating information, Financing instrument

where by existing financial instruments such as the IMF must made more flexible and usefully for

developing countries during crises, commodity exchanges the regulatory frame works governing

must also be reviewed to reduce speculative behavior and thus limit volatility.

Price Fluctuation

Price fluctuation is a frequents rise and fall of commodity prices in the market as a result of

changes in the market situations, price fluctuation can be seasonal whereby prices of commodities

changes during certain season of the year due to the increase in supply and demand. Price

fluctuation in the market can take a short term due to a slight change in demand or supply of
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commodities in the market. But it can also last long due to the increased inflation rate which highly

affects the prices of commodities in the market and its effect last long and limit the ability of

customers to purchase commodities in the market (Mchopa, 2012).

Price fluctuation is not only harmful to consumers but also affects producers. Generally, poor

farmers do not have enough investment capital to sustain such unpredictability. This can result in

suboptimal investment decisions and compromise production in the long term. Higher food prices

have not necessarily translated into better prices for farmers in developing countries because non-

food Essentials such as cooking fuel, transport, rent, fertilizers, kerosene and agricultural inputs

have also become more expensive. Also, intermediaries are facing higher transportation costs which

they are in turn passing on to farmers (Baffes, 2011). A study by Oxfam and IDS13 suggests that

farmers in developing countries are producing fewer surpluses because of increased input prices.

‘High input costs have squeezed people’s purchasing power, which means that profits from growing

and selling food remain low for those with least scope to diversify and spread risk’. Due to the

observed effect of price fluctuation and its impact to small scale farmer’s development, this brings

the need to focus on how farmers can improve their agricultural investment in order to sustain

farmer’s development by use storage facilities like silos and this can be done during lowest price for

produce during harvest. Therefore, holding off the sale from harvest to a more opportune time will

more than pay for the storage.

Farmers, fishermen are PHL’s poorest

In its 2015 Poverty Statistics for Basic Sectors report, released on June 30, the PSA

identified farmers, fishermen and children as the sectors with the highest poverty incidence, among

nine basic sectors identified in the Social Reform and Poverty Alleviation Act, or Republic Act No.

8425. The other basic sectors are: self-employed and unpaid family workers; women; youth; migrant
 15

and formal sector workers; senior citizens, and individuals residing in urban areas. Poverty

incidence for the sector of farmers was recorded at 34.3%; fishermen, 34%; and children, 31.4%.

These sectors also consistently registered as the three sectors with the highest poverty

incidence in 2006, 2009 and 2012. The poverty incidence in these sectors also exceeded the national

average of 21.6%. Other sectors with incidence above the national average are the self-employed

and unpaid family workers, and women. Poverty however, decreased in all sectors from 2012-2015.

In contrast, poverty incidence numbers largely were increasing or unchanged in two comparative

periods: 2006-2009 and 2009-2012.National poverty incidence continued its declining trend, with a

decrease of 3.6%, higher than the 1.1% for 2009-2012 and 0.3% for 2006-2009.

The PSA report provides poverty incidence estimates using the income and sectorial data

from the combined Family Income and Expenditure Survey, which was used for classifying non-

poor or non-poor basic sectors, and the Labor Force Survey. Income refers to the total family

income and not the income of the individual in a particular sector. The total family income is

divided among the members to get the per capita figure. If the per capita income is below the

poverty threshold, all the members of the family are considered as poor and then classified into

sectors.

The basic sectors in the report are not mutually exclusive, thus overlaps exist. Women

farmers will be accounted for in both the women sector and in the farmer sector, for example. While

economic growth in the past few years brought about by policy reforms delivered jobs and lower

poverty incidence, poverty remains a major problem in the country. Earlier this year, the

government launched the Philippine Development Plan 2017-2022, which sets out programs and

measures to maximize potential growth and provide better opportunities.

(http://www.bworldonline.com/content.php?section=Economy&title=farmers-fishermen-are-

phl&8217s-poorest&id=147655)
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Food security in the Philippines

Socio-economic profile of the Philippines

In 2014, the Philippines was the 13th most populated country in the world, with a population

of about 107 million. Its Gross Domestic Product (GDP) growth rate for the last quarter of 2014 was

6.9%, more than the 6.3% of the same period in 2013, but less than the 7.2% of 2012. The full-year

GDP growth for 2014 was pegged at 6.1%. However, despite significant economic growth

(Philippines ranked 27th country in the world in 2013), 24.9% of Filipinos – 1 in 4 – lived below the

poverty line.

Hunger profile

There are several statistics that provide a quick glimpse of the country’s hunger profile and

all of them point to a reality that the country has a serious hunger problem. In addition, the growing

population and a steady decline of agricultural productivity and food production in the last three

years contribute to the persistent hunger and food insecurity problems in the country.

Severe and persistent hunger situation

In 2014, the Philippines’ Global Hunger Index (GHI) was 13.1. This index is based on three

indicators: undernourishment, child underweight and child mortality. It uses a scale of 0 (no hunger)

to 100 (hunger). The ideal score is less than 5, which indicates low hunger. The country is therefore

ranked 29th in the world, with its situation categorized as a “serious problem”. In the past 15 years

(1999-2014), the number of Filipino families who rated themselves as hungry (based on the Social

Weather Station’s self-rated hunger survey) rose from 8.3% to 18.3%.

Women and children’s faces

The people suffering from hunger in the Philippines are mainly children and women. There

was a minimal decrease in the number of underweight children— from 20.7% in 2003 to 20.2% in

2011. Further, alarmingly 33.6% of children under 5 years old are suffering from stunted growth in
 17

the same year, which placed the country 9th in the world rankings of stunted children. Pregnant

women in the Philippines also count amongst the people suffering the most from hunger. According

to the Food Nutrition Research Institute (FNRI), one-fourth of pregnant women with children aged

below 5 years are nutritionally at risk, while close to 12% of lactating mothers are underweight.

According to a 2013 UNICEF report, the Philippines ranked 5th among the countries with the most

cases of low birth-weight babies.

Exacerbating hunger: conflicts, extreme weather events and disasters

The regions that are the most affected by hunger and food insecurity are rural. This is the

case especially in conflict-affected areas of Central Mindanao and disaster-affected communities,

mostly in the Visayas. These are also areas where poverty incidence is much higher than the national

average.

Structural causes vs. hunger and food insecurity

Hunger in the Philippines is caused by various factors. One culprit is inflation. High retail

food prices makes food items unaffordable and hinders the ability of poor households to meet their

daily food and dietary needs. People working in the agriculture sector are more prone to hunger,

because of low rural incomes (whether as farmers or farm workers), lack of access to productive

resources such as land and capital, and the vulnerability of the sector to various shocks such as

climate change, extreme weather events, pests, and disease. Beyond the numbers and

macroeconomic indicators, liberalization has become the backbone not just of Philippine food and

agriculture policies but of development policy as a whole. This is despite implementing social

justice measures such as the Comprehensive Agrarian Reform Program, Indigenous Peoples’

Reform Act and Fisheries Reform Code. Since 1981, the Philippines has been pursuing a

comprehensive and radical program of trade liberalization. The impacts of this policy have been
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devastating to the agriculture sector, especially to food producers. This brings to the fore numerous

policy questions in food and agriculture over last three decades.

The centrality of access, control of land and security of tenure to a hunger-free Philippines

The absence of an effective land redistribution program spells doom for Filipinos relying on

agriculture for livelihood and undermines their capacity to feed the nation.

Current statistics on the country’s rural conditions illustrate the farmers’ bleak situation. Farmers,

the majority of whom are women, comprise four out of ten poor Filipinos. Poverty incidence is

particularly high among landless agricultural workers and farmers cultivating small plots of lands

and in areas where the concentration of land ownership remains with a few prominent clans. In

2013, the rural income of those employed in agriculture is way below the required food threshold or

the required minimum income/expenditure to meet the basic food needs and nutritional requirements

for socio-economic and physical activities for a family of five.

The Agriculture and Fisheries Modernization Act of 1997: A Collective Approach to

Competitiveness

Background

Republic Act 8435 or the Agriculture and Fisheries Modernization Act of 1997 simply

known as AFMA, was enacted on December 22, 1997. It is a policy instrument defining measures

to modernize Philippine agriculture for the country to compete in the global market.

The underlying principle behind this policy is to improve the living conditions of farmers and

fisherfolk and increase their productivity amidst the growing needs of the markets (local and

abroad). Most of the people depending on agriculture have small landholdings or are landless,

making a living out of agriculture alone very difficult. Their attention had been narrowly focused on

primary production. However, even with high farm productivity, incomes can remain low without
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the complementary supporting economic activities beyond the farm. Modernizing agriculture is the

way by which they can realize better income.

In general, AFMA aims to transform the agriculture and fisheries sectors to technology-based,

advanced and competitive industry; ensure that the small farmers and fisherfolk have equal access to

assets, resources and services; guarantee food security; encourage farmer and fisherfolk groups to

bond together for more bargaining power; strengthen people’s organizations, cooperatives and non-

government organizations by enhancing their participation in decision-making; pursue an aggressive

market-driven approach to make the products more competitive in the market; stimulate further

processing of agricultural products and make it more marketable; and implement policies that will

invite more investors to establish business in the country.

Agriculture and Fisheries Modernization Act of 1997

The law has broad based provisions covering 1) production and marketing support services;

2) human resource development; 3) research development and extension; 4) rural non-farm

employment; 5) trade and fiscal incentives; and 6) general provisions.

Production and Marketing Support Services.

The law provides for identification of Strategic Agriculture and Fisheries Development

Zones (SAFDZ) within the network of protected areas for agricultural and agro-industrial

development to ensure that lands are efficiently and sustainably utilized for food and non-food

production and agro-industrialization; formulation and implementation of a medium- and long-term

comprehensive Agriculture and Fisheries Modernization Plan (AFMP); and access to credit by small

farmers, fisherfolk, particularly the women involved in the production, processing and trading of

agriculture and fisheries products and the small and medium scale enterprises (SMEs) and industries

engaged in agriculture and fisheries.

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It provides for the development of irrigation systems that are effective, affordable,

appropriate and efficient; development of a market information system through the establishment of

a National Information Network designed to benefit the farmers and fisherfolk, cooperatives,

traders, processors and local government units, and development and use of product standards to

ensure consumer safety and promote the competitiveness of agriculture and fisheries products.

The development of rural infrastructure like farm-to-market roads, fishports, seaports and airports,

rural energy, water supply system, post-harvest facilities, public markets and abattoirs, water supply

system, agricultural machinery and communication infrastructure shall be addressed.

Human Resource Development.

AFMA provides for the establishment of a National Agriculture and Fisheries Education

System (NAFES) to upgrade the quality, ensure the sustainability and promote global

competitiveness, at all levels, of agriculture and fisheries education. This includes Education

Program for Elementary and Secondary Levels; Post-Secondary Education Program for Agriculture

and Fisheries; Establishment of Network of National Centers of Excellence in Agriculture and

Fisheries Education; formulation and implementation of National Integrated Human Resource

Development Plan in Agriculture and Fisheries which shall serve as an instrument that will provide

over-all direction in setting priorities in curricular programs, enrollment, performance targets, and

investment programs.

A Continuing Agriculture and Fisheries Education Program shall also be developed to

address the current education and training requirements of teachers, professors and educators in

agriculture and fisheries.

Research and Development.

This provides for consolidation of the National Research and Development System in

Agriculture and Fisheries by concerned agencies notably the Department of Agriculture and the
 21

Department of Science and Technology. Agriculture and Fisheries Research and Development

activities shall be multidisciplinary and shall involve farmers, fisherfolk and their organizations, and

those engaged in food and non-food production and processing, including the private and public

sectors.

The budget for agriculture and fisheries research and development shall be at least 1% of the

Gross Value Added (GVA). At least 20% shall be spent in support of basic research and not more

than 80% shall be used for applied research and technology development, of which at least 10%

shall be used for technology packaging and transfer activities

Rural Non-Farm Employment.

To rapidly shift towards industrialization, the Basic Needs Program is to be instituted with

the following components: education and training, rural industrialization and industry dispersal,

financing, health and nutrition, basic infrastructure and food security. This program intends to meet

the basic needs of rural households and assist workers, subsistence farmers and fisherfolk in

adjusting from an agrarian to industrial economy.

To complement the Basic Needs Program, the Rural Industrialization and Industry Dispersal

Program, shall be implemented. Under this program, the Board of Investments (BOI) is mandated to

grant highest priority on fiscal incentives to business and industries with linkages to agriculture.

Government agencies shall provide integrated services to prospective enterprises in the formulation

of investment priorities in the rural areas. Participating agencies may avail of free training, technical

and advisory services from any government agencies.

Trade and Fiscal Incentives.

The major objective of AFMA with regards to trade and fiscal incentives is to provide an

enabling policy for Philippine agriculture and fishery products to gain competitive edge in both the

domestic and global markets. To deliver this, the law mandates providing small farmers and
 22

fisherfolk with priority access to credit and promotion of strengthened cooperative-based marketing

system.

The law also provides for granting of tariff exemptions to agribusiness enterprises for the

importation of all types of agriculture and fisheries inputs, equipment and machinery including

fishing equipment and parts thereof. As a requirement, only the importing enterprise shall use the

agricultural and fishery imports and shall be penalized if otherwise.

General Provision.

AFMA has an appropriation of P20 billion on its first year of implementation (1999) and a

continuing appropriation of P17 billion annually in the next six years. The budget shall be

disbursed as: 30% irrigation, 10% post-harvest facilities, 10% agro-industry modernization

credit and financing, 10% other infrastructure, 10% research and development, 8%

marketing assistance, 6% salary supplement of extension workers/extension services, 5%

capability building, 5% National Agriculture and Fisheries Education system, 4% National

Information Network, 1.75% rural non-farm employment training and 0.25% identification

of SAFDZ.

To ensure all projects, programs and activities under AFMA are implemented; a

Congressional Oversight Committee on Agricultural and Fisheries Modernization is to be created.

Conclusion

AFMA laid down several reforms aimed at improving the agriculture and fisheries sector. It

created a collective approach that induces a variety of programs, services and activities to be carried

out by a diverse set of implementing agencies and organizations, both from the public and private

sectors, to enhance competitiveness of Philippine agriculture and fishery products. Being the

government’s centerpiece program in promoting growth and eliminating poverty in the rural sector,
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proper coordination across various levels and funding support shall be critical to achieve the

glorious future for agriculture.

Theoretical Framework

The study is anchored into two theories, Structuration Theory and Regionalization Theory.

In the application of this theory, it emphasizes the knowledgeability of individual agents in the

reproduction of social practices (Dyck and Kearns, 2006: 87). In the words of Gregory et al., (2009:

725) the structuration theory is a bridge theory that explains the intersections between agency and

the structures they are involved and ask social researchers to focus on social practice. This is

because routinized social practices with it structural properties allow the binding of time and space;

it is therefore possible for similar social practices to exist across time and space (Giddens, 1984: 16)

thus, making it possible to employ the theory for comparative study. Furthermore Burton and

Wilson (2006: 96) sees the structuration theory as a theory that bridges the division between the

macro and the micro and the actor and the structure. Structures are rules and resources which are

both enabling and constraining. Agent is considered as knowledgeable and capable actors who

perpetrate intentional social actions (Gregson, 2005:22). The knowledgeability of agents was

noticed by Jack (2005) in the study of UK post war agricultural accounting principles. She

illustrated how UK farmers, government and private consultant 9 services have all contributed to the

persistence of the agricultural accounting principles. Knowledgeable and purposive agents taught

and practiced the agricultural accounting principle which have resulted in it persistence in the UK.

Giddens indicated that, the agents make use of the resources in a particular society for social actions

but the society also constrains their actions by binding them to the resources provided (Giddens,

1984; Yaro, 2013: 84). This is evident in Ridgeway and Jacques study of the conflict between

Zapatista peasant farmers and the Mexican government over their right to agricultural land.
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Ridgeway and Jacques noticed that violence is carried out by purposive and knowledgeable agents

but the state or societal rules act as constrain on people to act violently. But the constitution of the

same state or society has laws and rules that give farmers the right to land. These rules farmers are

aware of thus the right to violence demonstration when their right is denied them (Ridgeway and

Jacques, 2002). Giddens identified two types of resources. They are authoritative and allocative

resources. Authoritative resources are capabilities that generate command over the human agent

(Cohen, 1989; Peet, 1998: 156). While allocative resources are derived from aspects of the material

world (Giddens, 1984). At the core of the structuration theory is the duality of structures. The

duality of structure is a recursive process in which structure is both a medium and an outcome of

reproduced social practices (Giddens, 1981; Dyck and Kearns, 2005: 87).

Helander (1999) noticed the recursive nature of structures in subsistence activities in his

study of Sami ptarmigan hunting. Helander illustrated that through the routinized international

hunting activities of Sami’s group of people, they are able to conceptualized places and spaces in

their localities. Through their hunting activities they are able to produce and reproduce their concept

of space over time. Ptarmigan hunters talk and teach their children about their established hunting

and space land system. Thus the law governing hunting becomes a medium and an outcome for

hunting reproduced through hunting, talking and teaching. The structuration theory provides a

framework for understanding that subsistence farmers make use of both authoritative and allocative

resources in their subsistence communities for subsistence agricultural activities but the subsistence

communities constrains farmers agricultural 10 activities by binding subsistence farmers to the

resources provided. In the northern Ghana the agency (subsistence farming or farmer) reveals a great

deal about the relation between roads and subsistence agriculture. Subsistence farmers are

knowledgeable and take all agricultural decisions but not out of the resources provided by their

communities.
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Second theory is Regionalization theory, Giddens continues that, the continuity of social life

is dependent on interactions with and between others who are co-present in time and in space

(Giddens, 1984, Peet, 1998). This is regionalization according to Gregory et al., (2009). The concept

of regionalization help explain that, the daily farming practices of subsistence farmers being it

production or marketing is sustained through interaction with others like transport service providers,

inputs providers, traders and agriculture extension officers and other subsistence farmers. This idea

elucidates the importance of subsistence farmers’ daily interaction among themselves and with other

actors through a means of transportation to shape subsistence agriculture. Effective and efficient

interaction between people and place depends very much on the means of transportation. In a nut

shell the structuration theory provides a framework for understanding the relation between roads and

subsistence agriculture through the study of the agency of subsistence farmers and their interactions

with others who are co-present in time and space.