Agriculture sector to slow in 2018

MANILA, Philippines — The agriculture sector is seen to slow down this year, but is expected to bounce back next year amid better rice production with the entry of more funds as a result of the liberalization of the industry.

Agriculture Secretary Emmanuel Piñol said the farm sector would likely grow 2.5 percent by yearend, much lower than the four percent increase recorded in 2017.

From January to September, the agriculture sector only grew 0.15 percent compared with the 4.64 percent expansion in the same period a year ago.

This, however, will increase to as much as 3.5 percent by 2019 as local farmers are assured of P10 billion financing from the Rice Competitiveness Enhancement Fund (RCEF) which will be used to improve on mechanization and seeds input.

“We are maintaining the growth as per the economic managers. They asked us to maintain at least two percent to keep up with the population growth of 1.7 percent,” Piñol said during DA’s yearend briefing.

“I think two percent is doable. We’re confident we can hit it given the fact that we already have specific interventions,” he added.

Palay production is seen hitting 20 million metric tons (MT) next year from the projected 19.1 million MT this year.

This year’s expected production is still lower than last year’s 19.3 million MT following typhoons that hit the country which damaged more than P30 billion in agricultural products during the second half.

“It is still not as bad as we thought. Our forecast would have been 19.4 million MT this year, the highest in the history of the rice industry but with the series of typhoons, we reduced it to 19.1 million MT,” Piñol said.

Next year’s palay production may still increase in anticipation of the removal of the quota on rice importation and the imposition of tariffs, a portion of which will go to the agriculture sector.

“We have not yet taken the RCEF into account which can provide additional P10 billion for the rice industry for machinery and quality seeds. This will actually boost our production for next year,” Piñol said.

“In fact, if implemented properly the RCEF could make our farmers competitive and further increase production,” he added.

The DA aims to increase the national average yield for palay to 4.28 MT per hectare per harvest from 3.87 MT per hectare this year.

“Our target by 2020 is an average of six MT per hectare per harvest and we are on track as far as our projections are concerned,” Piñol said.