REPUBLIC OF THE PHILIPPINES THE SURVEY ON AGRICULTURAL INFORMATION SUPPORT SYSTEM WITH THE USE OF ICT FINAL REPORT MARCH 2012 JAPAN INTERNATIONAL COOPERATION AGENCY SAP SANYU CONSULTANTS INC. JR 12-028 China MAP OF SURVEY AREA PHILIPPINES Manila Isabella Prov. Malaysia Nueva Ecija Manila IIoilo Prov. Agusan del Norte Bohol Prov. Legend Luzon Visayas Mindanao Proposed Sites of NISRIP Pilot Areas of ATI-IRRI’s “NMRice” ATI PCIC Regional Office REPUBLIC OF THE PHILIPPINES THE SURVEY ON AGRICULTURAL INFORMATION SUPPORT SYSTEM WITH THE USE OF ICT FINAL REPORT TABLE OF CONTENTS MAP OF SURVEY AREA TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS LIST OF TABLES LIST OF FIGURES CHAPTER 1 INTRODUCTION.................................................................................................. 1-1 1.1 Basic Concept of the Survey................................................................................................ 1-1 1.2 Background and History of the Survey................................................................................ 1-2 1.3 Objectives, Survey Area and Concerned Agencies of the Survey ....................................... 1-3 1.4 Methodology of the Survey ................................................................................................. 1-3 1.5 Staffing................................................................................................................................. 1-7 1.6 Structure of the Report......................................................................................................... 1-7 CHAPTER 2 CURRENT SITUATION OF AGRICULTURE SECTOR ................................. 2-1 2.1 Agriculture........................................................................................................................... 2-1 2.2 Irrigation .............................................................................................................................. 2-2 2.2.1 Policy, Institution and Programs ................................................................................... 2-2 2.2.2 Irrigation Development................................................................................................. 2-3 2.2.3 Irrigators Associations and Farmer Beneficiaries ......................................................... 2-6 2.2.4 Situation in Selected National Irrigation Systems Visited ............................................ 2-7 2.2.5 Irrigation Service Fee (ISF) .......................................................................................... 2-9 2.2.6 Challenges in Irrigation Service Fee (ISF) Collection ................................................ 2-12 2.2.7 Irrigation Management Transfer (IMT) Program........................................................ 2-14 2.2.8 Issues, Concerns and Opportunities in Irrigation Development.................................. 2-18 2.3 Agricultural Extension....................................................................................................... 2-20 2.4 Agricultural Marketing ...................................................................................................... 2-21 2.4.1 Policy and Institution ...................................................................................................2-21 2.4.2 Local Marketing and Trading Activities ......................................................................2-24 CHAPTER 3 CURRENT SITUATION OF ICT UTILIZATION............................................. 3-1 3.1 ICT Utilization..................................................................................................................... 3-1 3.1.1 Communication Circumstance ...................................................................................... 3-1 i 3.1.2 ICT in the National Development Strategy and Agricultural Development Strategy.... 3-8 3.1.3 Law and Institution...................................................................................................... 3-12 3.2 ICT Current Utilization in Agriculture............................................................................... 3-14 3.2.1 General ......................................................................................................................... 3-14 3.2.2 Irrigation....................................................................................................................... 3-16 3.2.3 Agricultural Extension.................................................................................................. 3-28 3.2.4 Agricultural Marketing.................................................................................................3-62 3.2.5 Others ........................................................................................................................... 3-68 3.3 Supports of Donors for Introduction of ICT ...................................................................... 3-73 3.4 Activities of Other Organizations for ICT Introduction..................................................... 3-73 3.4.1 ICT Introduction by Academic and Private Sector........................................................ 3-73 3.4.2 Mobile Banking ............................................................................................................. 3-74 CHAPTER 4 CURRENT SITUATION OF CROP INSURANCE ............................................. 4-1 4.1 Philippine Crop Insurance Corporation (PCIC)................................................................... 4-1 4.2 Weather Index Based Insurance (WIBI) .............................................................................. 4-5 4.3 Area Based Yield Insurance (ARBY) .................................................................................. 4-8 4.4 CLIMBS Weather Protect Product..................................................................................... 4-15 4.5 MicroEnsure’s Typhoon and Drought Index-based Insurance........................................... 4-19 4.6 Philippines Climate Change Adaptation Project (PhilCCAP) ........................................... 4-22 4.7 Weather Infrastructure in the Philippines........................................................................... 4-23 4.8 Insurance Commission (IC) ............................................................................................... 4-26 4.9 Issues and Concerns: A Summary...................................................................................... 4-29 CHAPTER 5 PROPOSED PROJECTS/PROGRAMS ............................................................... 5-1 CHAPTER 6 PARTICIPATION OF PRIVATE SECTOR AND POSSIBLE IMPLEMENTATION SCHEME UNDER JAPAN’S ODA............. 6-1 6.1 Participation of Private Sector .............................................................................................6-1 6.2 Possible Implementation Scheme under Japan’s ODA........................................................ 6-3 CHAPTER 7 LESSONS LEARNED AND RECOMMENDATIONS ........................................ 7-1 7.1 Lessons Learned................................................................................................................... 7-1 7.1 Recommendations................................................................................................................ 7-2 ATTACHMENTS: Attachment-1 Proposal on Priority Project (Agricultural Marketing) Attachment-2 Proposal on Priority Project (Irrigation) Attachment-3 Proposal on Priority Project (Agricultural Insurance) Attachment-4 Presentation Materials on the Project Formulation Workshop on 30 Jan. 2012 Attachment-5 Minutes of Meeting on the Project Formulation Workshop Attachment-6 Pictorial Record ii ACRONYMS AND ABBREVIATIONS 2G 2nd Generation 3G 3rd Generation AO Administrative Order A/P Action Plan ACEF Agriculture Competitiveness Enhancement Fund ACPC Agricultural Credit Policy Council ACSP Agricultural Credit Support Project AF Agriculture and Fisheries AfDB African Development Bank AFEN Agriculture and Fisheries Extension Network AFMA Agriculture and Fisheries Modernization Act AFMIS Agriculture and Fisheries Market Information System AFNR Agriculture, Forestry and Natural Resources AFSIS ASEAN Food Security Information System AGFP Agricultural Guarantee Fund Pool AMAS Agribusiness and Marketing Assistance Service AMCFP Agro-industry Modernization Credit and Financing Program AFMP Agri-Fishery Microfinance Program AMRIS Angat-Maasin River Irrigation System ARB Agrarian Reform Beneficiaries ARBY Area Base Yield Insurance Product ARIS Agricultural Resources Information System ASEAN Association of Southeast Asian Nations ATI Agricultural Training Institute ATM Automated Teller Machine B2B Business-to-Business B2C Business-to-Consumer B2G Business-to-Government BAS Bureau of Agricultural Statistics BFAR Bureau of Fisheries and Aquatic Resources BOP Base of Pyramid BSP Bangko Sentral ng Pilipinas (Central Bank of the Phlippines) BSWM Bureau of Soils and Water Management C2C Consumer-to-Consumer CATV Cable Television CBAP Cooperative Bank Agricultural Lending Program CE Collection Efficiency CeC Community Electronic Center CFIA Confederation of Irrigators Associations CICT Commission on Information and Communications Technology CIS Communal Irrigation System CLIMBS Coop Life Insurance & Mutual Benefit Services CLP Credit Lending Program CSF Credit Surety Fund DA Department of Agriculture DAR Department of Agrarian Reform iii DBP Development Bank of the Philippines DICT Department of Information and Communications Technology DLP Digital