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Transforming Philippine Agriculture During Covid-19 and Beyond

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Transforming Philippine Agriculture During Covid-19 and Beyond Transforming Philippine Agriculture Public Disclosure Authorized During Covid-19 and Beyond JUNE 2020 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Transforming Philippine Agriculture During Covid-19 and Beyond JUNE 2020 Standard Disclaimer This report is a product of the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Photo credit: Cover page: by Scott Sporleder for TAO Philippines, Organic farm in Palawan Chapter pages: Department of Agriculture, Philippine Rural Development Project 1 Acknowledgments This report was produced by a team from the World Bank Group, led by Eli Weiss and co-led by Anuja Kar, and comprising John Nash, Steven Jaffee, Roehl Briones, Carolina Figueroa-Geron, and Paula Beatrice Macandog. Additional inputs were received from Joop Stoutjesdijk, Maria Theresa Quinones, Roberto Martin N. Galang, and Victor Dato. The assessment related to agricultural extension was prepared by a team from the Food and Agriculture Organization (FAO) of the United Nations, led by John Preissing and comprising Jim Hancock, Katarzyna Pankowska, and Alberto Tordesillas Torres. Kathryn Swartz and Kelly Cassaday edited, and Herbert Navasca formatted the report. Mildren Penales and Elezor Trinidad provided administrative and logistical support. Madhur Gautam, Michael Morris, and Stephen Mink suggested improvements through peer review comments. Additional guidance was received by Clarissa Crisostomo David and David Llorico Llorito. Dina Umali-Deininger, Madhu Raghunath, and Achim Fock provided oversight for the work. The team would like to thank the Department of Agriculture (DA) for the excellent collaboration, including organization of the mission and meetings, and provision of the information and inputs requested. Special thanks go to the Office of Policy and Planning and the Office of Regional Field Operations. Finally, the team would like to thank all of the focal points and staff of the various agencies and all other actors from the public and private sector as well as from academia, who were engaged, participated in the various meetings and phone calls, and provided written and oral inputs for this report. Currency Equivalent Exchange rate effective as of June 3, 2020 Currency unit = Philippine peso (PHP) US$1.00 = 50.0 i Acronyms and Abbreviations ADB Asian Development Bank AI Artificial insemination ALPAS-COVID-19 Ahon Lahat, Pagkaing Sapat (ALPAS) Kontra sa COVID-19 ("Plant, Plant, Plant," the Philippine government’s response to the COVID-19 pandemic) AMAS Agribusiness and Marketing Assistance Service ASA Advisory Services and Analytics ASEAN Association of Southeast Asian Nations AFSIS ASEAN Food Security Information System ATI Agriculture Training Institute BAI Bureau of Animal Industry BAR Bureau of Agricultural Research BFAR Bureau of Fisheries and Aquatic Resources BPI Bureau of Plant Industry CARP Comprehensive Agrarian Reform Program CPAR Community-based Participatory Action Research CQ community quarantine CSA Climate-smart agriculture DA Department of Agriculture DAR Department of Agrarian Reform DILG Department of the Interior and Local Government DIS Direct Income Support DPWH Department of Public Works and Highways DTI Department of Trade and Industry ECQ Enhanced community quarantine FAO Food and Agriculture Organization (FAO), FERG Foodborne Disease Burden Epidemiology Reference Group FPA Fertilizer and Pesticide Authority FSRF Financial Subsidy to Rice Farmers FSSP Food Staples Sufficiency Program GAA General Appropriations Act GDP Gross domestic product HVCDP High-Value Crops Development Program ICT Information and Communication Technology IFAD International Fund for Agricultural Development LGU Local Government Units MOM Management, operation, and maintenance NACCFL Nepal Agricultural Cooperative Central Federation NCCAP National Climate Change Action Plan NEAP National Extension Agenda and Programs NFA The National Food Authority NFRDI National Fisheries Research and Development Institute NGO nongovernmental organizations NIA National Irrigation Authority NMIS National Meat Inspection Service ii NSIC National Seed Industry Council OECD Organisation for Economic Co-operation and Development OSec Office of the Secretary, Department of Agriculture PAFES Province-led Agriculture and Fisheries Extension Systems PCAF Philippine Council for Agriculture and Fisheries PCC Philippine Carabao Center PCIP Provincial Commodity Investment Plan PES Payment for ecosystem services programs PhilFIDA Philippine Fiber Industry Development Authority PhilMech Philippine Center for Postharvest Development and Mechanization PhilRice Philippine Rice Research Institute PHP Philippine peso PRDP Philippine Rural Development Project PRIME Pest and Disease Risk Identification and Management PSA Philippine Statistics Authority R&D Research & Development RCM Rice Crop Manager RFO Regional Field Office SFLF Small Farmers, Large Field program SOE state-owned enterprises SPS sanitary and phytosanitary TFP Total factor productivity iii Contents ACKNOWLEDGMENTS ....................................................................................................................................... I ACRONYMS AND ABBREVIATIONS .................................................................................................................... II EXECUTIVE SUMMARY ................................................................................................................................... VII CHAPTER 1. INTRODUCTION ............................................................................................................................. 1 CONTEXT ....................................................................................................................................................................... 2 OBJECTIVES, AUDIENCE, AND SCOPE OF THE REPORT ............................................................................................................. 2 APPROACHES AND METHODOLOGIES .................................................................................................................................. 4 CHAPTER 2. PHILIPPINE AGRICULTURE: A GLASS HALF FULL ............................................................................... 7 ECONOMY-WIDE AND SECTOR TRENDS ............................................................................................................................... 8 Growth and structural transformation.................................................................................................................. 8 Diversification within agriculture ........................................................................................................................ 10 Logistical constraints to competitiveness............................................................................................................ 13 Food safety is a continuing challenge ................................................................................................................. 13 SOCIOECONOMIC TRENDS .............................................................................................................................................. 14 THE COVID-19 PANDEMIC AND PHILIPPINE AGRICULTURE .................................................................................................. 20 CHAPTER 3. LEGACY PROGRAMS AND THEIR LIMITATIONS FOR AGRICULTURAL TRANSFORMATION ................. 22 THE CHALLENGES OF LEGACY AGRICULTURE AND SHIFTS TOWARD REFORM ............................................................................. 24 RECENT FINANCING AND INVESTMENT TRENDS FOR AGRICULTURE ......................................................................................... 27 AGRICULTURE PROGRAMMING AND THE PANDEMIC RESPONSE ............................................................................................. 30 A CONCEPTUAL FRAMEWORK FOR UNDERSTANDING AND IMPLEMENTING THE “NEW THINKING” IN AGRICULTURE PROGRAMMING .. 31 The “New Thinking” vision and paradigms ......................................................................................................... 31 Evidence of the “New Thinking” in the agriculture portfolio .............................................................................. 32 A mechanism for holistically implementing the “New Thinking” ........................................................................ 42 CHAPTER 4. INTERNATIONAL EXPERIENCES WITH AGRICULTURAL TRANSFORMATION: LESSONS FOR THE POST- COVID CONTEXT............................................................................................................................................. 43 TRANSFORMATIONAL REFORMS IN HISTORICAL PERSPECTIVE: CHILE, TURKEY, AND NEW ZEALAND .............................................. 44 Chile: From policies of protection and self-sufficiency to outward orientation .................................................. 44 New Zealand: Life after subsidies? Not so bad! .................................................................................................
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