November 18, 2014

Why We Should Encourage Agriculture Business in the Philippines?

Agriculture in the Philippines
Photo by Rowena Harbridge/AusAID via Wikimedia Commons

As the economy shifts from agriculture to service, many would probably ask, why agriculture business will be the thing of the future. Many people in our country no longer want to dig the soil, simply because that doing other job or business would be more profitable.

In one of the scenario, a farmer tills the soil to send his children to school and feed his family. In some cases, the farmer would need to loan money to sustain the education of his children. After his children finished school and found job in the city, the farmer would stop tilling the soil. He would sell his lot to land banks – and would receive a significant amount of money he has never received in his entire life. A portion of what he earned from selling the agriculture lot would be used in buying a tricycle (a motor cycle with a side car); he will use this to earn money by providing a transportation service to the community, while the rest of the money will be used to pay the school debts and the remaining will be saved in the bank.

In the scenario above, why did the farmer shifted to service sector only after his children finished college? The answer is the “safety net” – something that will provide you income whatever happens. During the past, the farmer considers his land as his safety net; now he considers his children as his safety net. Moreover, the farmer had fulfilled his goal (to make sure that his children finished college), and with that he is better off and can now take the risk of selling his agriculture lot.

You might ask, what is the point of the scenario? Is not that the farmer better off now? He has a small transportation business (the tricycle), his children are working on the city, and he has a savings. Yes, the farmer is better off now; but, this is not about the future of the farmer - this is about the future agriculture business – the future of our society. Imagine if most of the farmers in the country are thinking the same – time will come that supply of agriculture product will decline and prices of basic goods will start to climb up (this could result to harmful inflation).

We need to understand the basic reason why many people no longer want to dig the soil and that is basically related to profit in the industry – specifically the profit of the farmers. Thus, there should be an incentive to dig the soil – the farmer should be able to send his children to school without loan, while sustaining the basic needs of his family. To do this, the government should find ways to maximize the profit of soil diggers (by building cooperatives and the likes), by making sure that market price communicated to this people. The introduction of advance technology in seeds and agriculture methodology could also help in enhancing the productivity and profit of the farmers.

Agriculture sector should never be left behind because this is the basic foundation of the economy.

1 comment:

  1. Farming can be improved by modernizing the equipment and incubation of the agriculture sector.


Subscribe to Philippine Economist via Email