Five major thrusts in agriculture

Agriculture,including food processing, accounts for two thirds of our gross domestic product - that's how huge this sector is and how vital it is to our economy. In three years, our population will grow to about 100 million, and we have to find ways to feed all of them. This poses a great challenge to our agriculture sector.

Before the Agriculture and Fisheries Modernization Act (AFMA) was passed, our agriculture was growing at a very slow rate of less than two percent a year. After the passage of AFMA, it grew to about 3.7 percent, which is no laughing matter in itself.

Still, we need to keep pace with the country's rising demand for food due to our burgeoning population. I propose that we start with five major thrusts: a post-harvest network, better logistics, better access to credit, market access and stepped up research and development(R&D) efforts.

Because of our lack of a post-harvest network, we are wasting about 20% of our grains and fisheries. Post-harvest facilities can reduce agricultural loss and wastage in palay by as much as one million tons, or the equivalent of our yearly rice import of US$500 million.

We also need to improve logistics in order to transport fruits and vegetables from the countryside to market. The nautical highway that is now on the works is good, but we need more access roads for places that are up to now still out of reach.

Moreover,we must rationalize our credit system. Credit is essential to the growth of our agricultural sector, but here in the Philippines,the cost of credit is one of the highest in Asia. Less than four percent of funds available for borrowing is lent to agriculture. Small farmers have little or no access to affordable credit.

Further,we are a laggard in Southeast Asia in terms of protecting our export market. Thailand,Vietnam, and Indonesia are quick to protect their market and they are now reaping the benefits of a booming export market. We have to enter into bilateral trade agreements to protect our export market.

Lastly,we must step up our agricultural research and development (R&D) efforts. Technology will save us. We cannot expand our agricultural productivity except through technology. It is the key to enriching our seas,expanding our land and increasing our yield. We must constantly develop new varieties and cultural practices to improve productivity.

Agriculture is the most fundamental of all sectors in any economy, and policymakers should never forget that.