BEA J.

VECINAL BSED MATH 1A

CHAPTER 1
Basic Concepts, and Economic Performance of Agriculture in the Philippines

LEARNING OBJECTIVES:

In this learning experience, the students are expected to:

1. Discuss the definition and importance of Agriculture to the existence and civilization of
humanity;

2. Determine the significant events in the development of Agriculture in the early age and
in the present times; and

3. Discover the important milestones in Philippine Agriculture as well as the pressing

problems it hurdles.

INTRODUCTION:

Agriculture was the key development in the rise of sedentary human civilization,
whereby farming of domesticated species created food surpluses that nurtured the
development of civilization. The study of agriculture is known as agricultural science. The
history of agriculture dates back thousands of years, and its development has been driven
and defined by greatly different climates, cultures, and technologies. Industrial agriculture
based on large-scale monoculture farming has become the dominant agricultural
methodology.

Modern agronomy, plant breeding, agrochemicals such as pesticides and fertilizers,

and technological developments have in many cases sharply increased yields from
cultivation, but at the same time have caused widespread ecological damage and negative
human health effects. Selective breeding and modern practices in animal husbandry have
similarly increased the output of meat, but have raised concerns about animal welfare and
the health effects of the antibiotics, growth hormones, and other chemicals commonly used
in industrial meat production. Genetically modified organisms are an increasing component
of agriculture, although they are banned in several countries. Agricultural food production
and water management are increasingly becoming global issues that are fostering debate on
a number of fronts. Significant degradation of land and water resources, including the
depletion of aquifers, has been observed in recent decades, and the effects of global
warming on agriculture and of agriculture on global warming are still not fully understood.

The major agricultural products can be broadly grouped into foods, fibers, fuels, and
raw materials. Specific foods include cereals (grains), vegetables, fruits, oils, meats and
spices. Fibers include cotton, wool, hemp, silk and flax. Raw materials include lumber and
bamboo. Other useful materials are also produced by plants, such as resins, dyes, drugs,
perfumes, biofuels and ornamental products such as cut flowers and nursery plants. Over
one third of the world’s workers are employed in agriculture, second only to the service
sector, although the percentages of agricultural workers in developed countries has
decreased significantly over the past several centuries.

DISCUSSION:

AGRICULTURE, IT’S MEANING

 the word agriculture is a late Middle English adaptation of Latin agricultūra, from
ager, “field”, and cultūra, “cultivation” or “growing”.
 is defined as an art and science of growing plants and animals. It is an art because it
entails proper design, preparation, and arrangement of raising crops and animals
which reflect aesthetic value and improvement of the environment. It is also a
science because it requires necessary knowledge and skills in the application of the
principles and practices in crop production. The improvements in agricultural
technology that result in the increase of farm products are usually founded on a
research.
 is the growing of animals and cultivation plants and fungi for food, fiber, biofuel,
medicinal plants and other products used to sustain and enhance human life.
 To practice agriculture means to use natural resources to “produce commodities
which maintain life, including food, fiber, forest products, horticultural crops, and their
related services.”

Activity 1: From the stated definitions of Agriculture, what do you think are the 3 most
important keywords that is associated with Agriculture and why?

IMPORTANCE OF AGRICULTURE

 provides food for humanity and serves as backbone of the nation’s economy. Prior to
industrialization era, agriculture served as the foundation in the development and
progress of every country. Strengthening agricultural production of crops and
livestock in any country will promote food sufficiency and wellbeing of the people;

 in the course of economic development among developing countries, agriculture

provides employment either in crops and livestock production thus improving the
family’s standard of living and reducing poverty level.

 With the advent of science and technology, the production capacity of farmers
increased. The business industries engaged in the processing of farm products and
so some agricultural products are now exported and imported in different parts of the
world.

Activity 2: There are many other essential contributions of Agriculture especially to us,
humans. In your personal experience, how Agriculture plays a significant role and
contribution to your family’s wellbeing?

BRIEF HISTORY OF AGRICULTURE

 Agriculture began independently in different parts of the globe, and included a
diverse range of taxa. At least 11 separate regions of the Old and New World were involved
as independent centers of origin. Wild grains were collected and eaten from at least 105,000
years ago. Pigs were domesticated in Mesopotamia around 15,000 years ago. Rice was
domesticated in China between 13,500 and 8,200 years ago, followed by mung, soy and
azuki beans. Sheep were domesticated in Mesopotamia between 13,000 and 11,000 years
ago. From around 11,500 years ago, the eight Neolithic founder crops, emmer and einkorn
wheat, hulled barley, peas, lentils, bitter vetch, chick peas and flax were cultivated in the
Levant. Cattle were domesticated from the wild aurochs in the areas of modern Turkey and
Pakistan some 10,500 years ago. In the Andes of South America, the potato was
domesticated between 10,000 and 7,000 years ago, along with beans, coca, llamas,
alpacas, and guinea pigs. Sugarcane and some root vegetables were domesticated in New
Guinea around 9,000 years ago. Sorghum was domesticated in the Sahel region of Africa by
7,000 years ago. Cotton was domesticated in Peru by 5,600 years ago, and was
independently domesticated in Eurasia at an unknown time. In Mesopotamia, wild teosinte
was domesticated to maize by 6,000 years ago.

In the Middle Ages, both in the Islamic world and in Europe, agriculture was
transformed with improved techniques and the diffusion of crop plants, including the
production of sugar, rice, cotton, and fruit trees such as orange to Europe by way of Al-
Andalus. After 1492, the Columbian exchange brought New World crops such as maize,
potatoes, sweet potatoes and manioc to Europe, and Old World crops such as wheat,
barley, rice and turnips, and livestock including horses, cattle, sheep and goats to the
Americans. Irrigation, crop rotation, and fertilizers were introduced soon after the Neolithic
Revolution and developed much further in the past 200 years, starting with the British
Agricultural Revolution. Since 1900, agriculture in the developed nations, and to a lesser
extent in the developing world, has seen large rises in productivity as human labor has been
replaced by mechanization, and assisted by synthetic fertilizers, pesticides and selective
breeding. The Haber-Bosch method allowed synthesis of ammonium nitrate fertilizer on an
industrial scale, greatly increasing crop yields. Modern agriculture has raised political issues
including water pollution, biofuels, genetically modified organisms, tariffs and farm subsidies,
leading to alternative approaches such as the organic movement.

Activity 3: Using a Timeline Chart, present the significant events in the history and
development of Agriculture. Research on additional relevant information so you will arrive
at detailed presentation.

BRIEF HISTORY OF PHILIPPINE AGRICULTURE

The first inhabitants to live in the Philippines were the Pygmies called “Negritos”,
“Aetas” or “Itas”. They emanated from Central Asia, and they depended on the nature’s
resources for their foods in order to survive. The mode of collecting their food was fishing,
hunting, using their bows and arrows and gathering edible wild fruits. Then later, another
group the Indonesians and Malays who were more advanced in culture than the Aetas came
to the Philippines. They introduced the crude method of Agriculture “Kaingin” known as
“slash and burn” and became a practice. Kaingin was done by cutting trees, shrubs and
bushes left to dry and burned. Using a pointed stick, holes were made into the soil and
planted with rice, corn and vegetable seeds. After a period of 1 to 2 croppings, they
transferred to another area or place utilizing the same mode of farming “Kaingin”. The
second method of farming was done by cultivating and pulverizing the soil to kill the weeds
using the wooden plow and harrow drawn by carabao. It gave rise to the improvement in
farming practices included domestication of animals other than growing variety of crops.

Agricultural practices have continuously improved. Various farm implements and

highly mechanized practices are already used. Technologies like genetic engineering and
biotechnology in raising crops and animals are introduced.

AN OVERVIEW OF THE PHILIPPINE AGRICULTURAL ECONOMY

Economic Performance. The country’s Gross Domestic Product (GDP) increased by 6.2
percent in 2018. The Gross Value Added (GVA) in the agriculture and fishing sector
recorded a 0.8 percent increment during the year. This sector contributed 8.1 percent to the
GDP.
Production Performance in Agriculture. Agriculture grew by 0.59 percent in 2018. Gains
in production were noted in livestock and poultry while declines in outputs were registered in
crops and fisheries. Crops registered a 0.99 percent reduction in output. Palay and corn
suffered as production dropped by 1.09 percent and 1.81 percent, respectively. Sugarcane
production declined by 15.56 percent. Coconut posted a 4.82 percent growth in output.
Increases in production were noted in the other crops such as banana, pineapple, peanut,
mongo, tomato, eggplant, abaca and rubber. Meanwhile, downtrends in outputs continued in
coffee, mango, tobacco, cabbage and calamansi.
Livestock production increased by 1.90 percent in 2018. Hog and dairy came up with
corresponding output gains of 2.42 percent and 4.11 percent. In contrast, production of
carabao, cattle and goat went down by 0.88 percent, 1.12 percent and 0.50 percent,
respectively. Poultry recorded a 5.75 percent increment in production. Chicken production
maintained its uptrend of 5.20 percent while that of duck continuously declined by 0.92
percent. Egg production increased by 8.43 percent for chicken and by 2.60 percent for duck.
Fisheries recorded a 0.98 percent reduction in output. Downtrends in production were noted
among the major species such as roundscad, yellowfin tuna, milkfish and tiger prawn.
Prices. In 2018, the prices received by farmers for their palay production were higher by an
average of 12.03 percent than the previous year’s record. Farmgate prices went up by 13.27
percent for white corngrain and by 20.78 percent for yellow corngrain. All livestock
commodities exhibited increases in prices in 2018. Goat posted the highest price hike at
10.29 percent. For poultry, farmgate prices of chicken (broiler) grew by 8.59 percent while
that of duck went up by 12.20 percent in 2018.
On the other hand, the prices paid by consumers for food and non-alcoholic beverages
increased by an average of 6.8 percent.
Agricultural Trade. The country’s earnings from agricultural exports, which accounted for
8.83 percent of the total exports revenue, declined by 7.02 percent in 2018. Fresh banana,
coconut oil and tuna were the top agricultural export products. These contributed 48.27
percent to the total value of agricultural exports. The major export destinations were still
China and Japan for fresh banana, United States of America (USA) and the Netherlands for
coconut oil, and United Kingdom and Japan for tuna.
The 2018 expenditures for agricultural imports expanded by 19.89 percent. It shared 12.50
percent to the country’s total value of imports. Wheat (including spelt) and meslin, soyabean
oil/cake meal, and milk and cream and cream products recorded higher payments than their
import values in the previous year. Collectively, these shared 28.34 percent to the total value
of agricultural imports. USA was the top supplier of wheat (including spelt) and meslin and
soyabean oil/cake meal. The bulk of the imports of milk and cream and products were
sourced from New Zealand.
The Philippines continued to record a negative agricultural trade balance. While it sustained
an agricultural trade surplus with Japan, it remained to register trade deficits with the other
major trading partners such as Australia, ASEAN countries and the European Union. After a
series of trade deficits, the country had trade surplus with the USA in 2018.
Employment. In 2018, a total of 43.46 million persons were in the country’s labor force, of
which 94.7 percent were employed. The agriculture sector employed 10.00 million persons
and it represented a share of 24.30 percent to the national employment.
Agricultural Support Services. Government expenditures for the agriculture sector
amounted to PhP 142.74 billion pesos in 2018. This was higher by 26.97 percent compared
with last year’s record. Agricultural expenditures accounted for 3.79 percent of the country’s
government expenditures.
Irrigated farmlands in 2018 totalled 1.92 million hectares and this comprised 61.39 percent of
the estimated total irrigable area.

Activity 4: Comment on the Economic and Production Performance of Agriculture in our

country.

THE ROLE OF AGRICULTURE IN THE ECONOMY

Gross-Domestic Product
 Gross domestic product (GDP) is the monetary value of all finished goods and
services made within a country during a specific period.
 GDP provides an economic snapshot of a country, used to estimate the size of an
economy and growth rate.
 GDP can be calculated in three ways, using expenditures, production, or incomes. It
can be adjusted for inflation and population to provide deeper insights.
 Though it has limitations, GDP is a key tool to guide policy-makers, investors, and
businesses in strategic decision-making.
Table 1. Share in GDP, 2010-2020 (Philippines)

Activity 5: From the figures presented in Table 1 above, reflect on the percentage
contribution of agriculture to the overall economy of the country.

SELECTED STATISTICS ON AGRICULTURE

Table 2. Volume of Production (Crops)

 Table 3. Value of Production (Crops)

Activity 6: From the figures presented in Tables 2 and 3 above, calculate the percentage
contribution of the different production systems to the total agriculture earnings and list
them with the high earners at the top. (Use the 2018 data)

Table 4. Volume of Production (Livestock and Poultry)

Table 5. Value of Production (Livestock and Poultry)

Activity 7: From the figures presented in Tables 4 and 5 above, calculate the percentage
contribution of AND
AGRICULTURE the different
NATURAL production systems
RESOURCES to the total
SECTOR agriculture earnings and list
ASSESSMENT
them with the high earners at the top. (Use the 2018 data)
A. Sector Performance, Problems, and Opportunities

1. Sector importance and growth potential. Although the share of agriculture, natural
resources, and environment in total gross domestic product at constant 1985 prices declined
from about 20% in 2000–2001 to slightly over 18% in 2007–2009, the sector continues to
play an important role in the Philippines economy. The sector is important for inclusive
growth, with agriculture being the key driver of the economy in the rural areas where most
Filipinos live (but where poverty incidence remains high). Agriculture remains a major source
of employment, with about 36% of the total employed population working in the sector. Total
agricultural exports reached about $3.9 billion (8% of total Philippine exports) in 2008, driven
largely by vegetables and fruits ($1.10 billion), fixed vegetable oils and fats ($1.04 billion),
and fish and fish preparations ($0.64 billion). The crop subsector is dominated by low-value
crops such as rice, maize, and coconut, despite potential for diversification to high-value
products. The annual value-added growth rate from livestock and poultry declined from 5.2%
in 2001–2002 to about 1.5% in 2003–2009, primarily due to the continuing decline in cattle
production. As a consequence, the country continues to import substantial volumes of meat
products. With its extensive coastline and coastal and oceanic waters, the Philippines ranks
12th among fish-producing countries. The contribution of fisheries in gross value added in
agriculture at constant 1985 prices averaged 21.8% in 2000–2009. The fishery subsector is
a net earner of foreign exchange. Forestry contributed only 0.5% of the total gross value
added of the sector in 2000–2009, while annual exports of forestry products represent only
0.1% of total Philippine exports.

2. Rice importation. The production of Palay (unmilled rice) increased on average by about
3.9% from 2000 to 2008, but the Philippines continues to import large volumes of rice. The
inability to meet the demand from increasing rice consumption is attributed to relatively low
yields, low cropping intensity, high post-harvest losses, and damage due to floods and
typhoons. The average rice yield from all farms has increased from about 2 tons per hectare
(ha) in the 1980s to about 3.8 tons/ha in 2008, but remains lower than in neighboring
Association of Southeast Asian Nations (ASEAN) countries and well below the maximum
potential of about 7–11 tons/ha, depending on the type of seed used. The government’s rice
production incentives and marketing policies are conflicting, costly, and generally ineffective.

3. Natural resource degradation. The country’s total land area of 30 million ha is made up
of 14.2 million ha of certified alienable and disposable lands, 15.0 million ha of classified
forestland, and 0.8 million ha of unclassified forestland. Forest cover was estimated in 2003
at about 7.2 million ha, or only 41% of the amount of classified forestland. The average
reforestation rate of just 18,000 ha per year remains a concern. Less than 5% of the 25,000
square kilometers (km2 ) of coral reefs remains in good condition. Mangroves decreased
from around 4,500 km2 in 1918 to only about 1,380 km2 in the 1990s. Lack of alternative
livelihoods, inadequate environmental management programs, and lax implementation of
environmental laws contribute to continuing natural resource degradation. The continuing
degradation of forests also contributes to low yields and the low rate of land utilization, as it
results in an inadequate water supply during the dry season and exacerbates damage to
crops, fisheries, and rural infrastructure as a result of typhoons and increasing flooding
during the wet season.

4. Binding constraints on sector development. The main binding constraints on the

development of the sector are low productivity, limited connectivity, and weak resilience.
Sector development is further inhibited by inadequate support services such as access to
affordable finance, business development services, supply chain enhancements, and
extension services. Compounding all these issues are policy, institutional, and governance
concerns. A problem tree for the sector is provided later in this document.

5. Low productivity. Land productivity in the Philippines is lower than in other countries in
Southeast Asia. Limited land productivity is a result of many factors such as small farm size;
underutilization of land due to water supply issues resulting from watershed degradation; low
operational efficiency of existing irrigation systems; a deficit of rural infrastructure,
particularly irrigation works, farm-to-market roads, and post-harvest facilities; the high cost of
farm inputs; competing uses of agricultural lands; and weak links between smallholders or
producers and enterprises. The majority of existing irrigation systems is old and deteriorated
due to inappropriate designs, inadequate operation and maintenance budgets, and the lack
of funds for timely rehabilitation of facilities damaged by seasonal floods and typhoons. In
fisheries, establishment and/or improvement of regional and municipal fish ports and
landings, ice plants and cold storage facilities, and marketing support facilities are essential
to reducing post-harvest losses.

6. Limited connectivity. Lack of quality rural transport, particularly farm-to-market roads,

discourages farmers from increasing production. The total length of farm-to-market roads in
the country is estimated at about 124,000 km, of which more than 90% are gravel and earth
roads, the majority of which are barely passable during the wet season. Adoption by farmers,
particularly smallholders, of new and value-adding technologies has been slow due to the
lack of access to information on production technologies. As a consequence, farmers’
knowledge of diversified farming technologies is limited, and market linkages remain weak.

7. Weak resilience. The sector lacks resilience in a number of aspects. It is highly

vulnerable to climate-change-related risks such as flood, typhoons, and droughts. The
altitude in a large part of the country—the upper river basins (URBs)—is significant, and
intense high rainfall events tend to occur in much of the Philippines; these can cause severe
erosion given certain soil, vegetation, and slope conditions (such as those present in the
URBs). A number of watersheds in the URBs are under continued threat of deterioration due
to unregulated extraction of natural resources and the effects of climate change. This poses
a danger to the stability and sustainability of downstream investments and economic
activities. Longer dry seasons put an additional burden on water supplies for irrigation and
seriously impair agricultural productivity. Smallholders are also affected by market price
volatility. While the government sets the support price for palay, the actual average farm
gate price varies from month to month and is usually lower than the government support
price. The same is true for vegetables. Since vegetables are perishable and the market is
fragmented, prices are highly volatile. Small vegetable farmers tend to supply only local
traditional wholesale and retail markets, while large farmers are able to realize higher returns
by becoming part of more sophisticated supply chains.

8. Inadequate support services. The insufficient provision of key support services affects
productivity. The devolution of functions—such as extension, construction and operation and
maintenance of farm-to-market roads, small-scale irrigation systems, and other rural
infrastructure—to local government units (LGUs) remains incomplete due to the technical
and financial constraints facing LGUs and incompatible priorities between them and national
agencies. Opportunities exist for private sector participation in areas such as certified seed
production and distribution, laboratory analysis and certification, market information analysis
and dissemination, technology dissemination, and supply chain enhancements. Pricing and
delivery arrangements for these services often generate disincentives to private sector
involvement. In addition, the majority of private sector enterprises active in the rural sector
are small and financially weak and do not have access to comprehensive business
development support, which makes promotion of public–private partnerships difficult. Two
other critical factors have added to the low productivity: (i) lack of access to credit by farm
households and small and medium-sized enterprises, and (ii) inadequate diffusion of
agricultural research due to funding shortages and inappropriate implementation
arrangements.

9. Policy, governance, and capacity issues. Institutional fragmentation weakens planning

and service delivery. Unclear and overlapping functions of key government agencies and
insufficient planning and results monitoring systems impact on the effectiveness and
accountability of service delivery. The three primary departments involved in the sector (the
Department of Agriculture, Department of Agrarian Reform [DAR], and Department of
Environment and Natural Resources [DENR]) include in their organizational structures
bureaus, councils, and government owned and controlled corporations that handle specific
but, to some extent, overlapping activities. In addition, weak governance and changing local
priorities due to likely changes in governing officials every 3 years add to the risks.

10. Recent policy directions. Specific to natural resources management, the following
policies have been recently issued: (i) Executive Order 23: Declaring a Moratorium on the
Cutting and Harvesting of Timber in the National Forests; and (ii) Executive Order 26:
National Greening Program, which attempts to consolidate and harmonize all greening
efforts and initiatives of government, civil society, and the private sector in the one program.
In 2010, a joint memorandum circular between the Department of Agriculture, DENR, and
DAR adopted a convergence initiative to integrate and strengthen the development
framework between and among the national government, local government agencies, and
other stakeholders.

Problem Tree Analysis for Agriculture and Natural Resources

 Activity 8: Evaluate the Performance of Agriculture in your locality/barangay. Make a
problem tree using the data, information, and observations you gathered.

GUIDE MAP FOR PLANTING

Instruction: Follow the following snapshots that will serve as your guide to access and
navigate the Farmers Guide Map.
Step 1: Just type farmers guide
map in your bowser or go directly
to
http://farmersguidemap.da.gov.ph/
Step 2: Set boundary. Choose political and choose Region, Province, and Municipality.
Step 3: Choose crop from the list to determine its suitability to the chosen location.

Step 4: Determine the Land-based and water-based hazards for the chosen crop.
Step 5: Determine the intensity and specific hazards of planting selected crop in the
specified locality/ barangay.

Activity 9: Choose 3 barangay within your municipality. From the list of crops in the map,
which are the 3 most suitable crops to plant in that area? Justify your answer after
examining the land-based and water-based hazards.

REFERENCES:

1. Arya, R.L., Arya, S., Arya, R. and Kumar, J. 2015. “Fundamentals of Agriculture”,
Scientific Publishers, India

2. Dohentry, C. 2017. “Agricultural Engineering: Principles and Applications”, Larsen

and Keller Education Publishing

3. Romo, S.B., Romo, C.G. 2014. “Crop Production: An Exploratory Course”, Lorimar
Publishing, Inc
4. Habito, C.F., and Briones, R.M. Philippine Agriculture over the Years: Performance,
Policies and Pitfalls.
https://www.researchgate.net/publication/265248373_Philippine_Agriculture_over_th
e_Years_Performance_Policies_and_Pitfalls_1/link/5566851808aeab77721cbce6/
download
5. Share in GDP, 2010-2020 (Philippines)
https://www.statista.com/statistics/578787/share-of-economic-sectors-in-the-gdp-in-
philippines/
6. 2019 Selected Statistics on Agriculture https://psa.gov.ph/sites/default/files/Selected
%20Statistics%20on%20Agriculture%202019.pdf
7. AGRICULTURE AND NATURAL RESOURCES SECTOR ASSESSMENT.
https://www.adb.org/sites/default/files/linked-documents/45406-001-vie-ssa.pdf
8. Farmers’ Guide Map for Planting Crops. http://farmersguidemap.da.gov.ph/