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Challenges in Agriculture: Poverty Among Farmers and Food Inflation

by Richie
12/18/2023
in Industry, Supply Chain

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Securing food security is a primary responsibility of the Agriculture Secretary, as articulated by Secretary Kiko Tiu Laurel, Jr. Beyond ensuring adequate food supply, he emphasizes the need to alleviate poverty among farmers, a demographic representing the most impoverished sector in society. With agriculture engaging 22% of the national workforce, the Philippine Statistics Authority reports a staggering 30% poverty rate among farmers.

Farmers, crucial in the battle for food security, face a grim reality of poverty, often leading their children to seek other professions. Contributing factors include limited access to inputs, credit, and markets. Farmers often fall into debt to traders who finance their seasonal needs but then purchase their produce at below-market prices, leaving farmers with no alternatives.

Education levels among farmers are generally low, and there is a lack of access to new agricultural knowledge and technologies. Post-harvest, farmers, now consumers, often struggle to find alternative sources of income and commonly experience hunger.

This cycle of hunger and poverty often passes down through generations. The recent reports on the country’s lagging performance in education highlight the impact of malnutrition on children’s learning abilities, exacerbating the issue.

Former NEDA Secretary Cielito Habito highlights the interconnection between agriculture and education governance. Secretary Laurel acknowledges his role in addressing the twin challenges of poverty and hunger among farming families.

The Secretary’s performance in his first year is scrutinized, particularly regarding rice supply management amidst El Niño and controlling food inflation. The Philippine Statistics Authority noted significant year-on-year and month-on-month inflation rates for rice.

De La Salle University Professor Marites Tiongco, referencing a study by PIDS senior research fellow Roehlano Briones, emphasizes that the poorest households spend about 60% of their income on food. Rising food prices can lead to malnutrition and health issues, as evidenced by the high rate of stunted growth among Filipino children under five.

Tiongco recommends a comprehensive approach to tackle high food prices, examining production, market, legislative, and institutional constraints.

Secretary Laurel aims to restructure the agricultural sector to benefit farmers. Initiatives include discussions with Landbank to provide better financing options for farmers and reconsidering government assistance methods. Post-harvest facility improvements and legislative support are also on the agenda.

Issues like land conversion, reducing rice-growing areas in Central Luzon, and the need to consolidate land for efficient farming are under review. The Secretary faces a daunting task in transforming the agricultural landscape within a limited timeframe.

Stay current with supply chain report news at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#FoodSecurityPhilippines #AgriculturePhilippines #FarmerPovertyRelief #PhilippineStatisticsAuthority #KikoLaurelJr #NEDA #RiceInflation #PovertyAndHunger #LandbankPhilippines #AgriculturalReform #FarmersSupport #ElNinoImpact #PhilippineFoodSupply #ChildNutritionPhilippines #DeLaSalleUniversity #PIDSResearch #SustainableAgriculturePH

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