Rethinking agriculture to break the cycle of rural poverty

Severe flooding inundated vast areas of Laguna and Bulacan last month, submerging fields and devastating the livelihoods of thousands of smallholder farmers.

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Women farmers in Laguna reported losses of up to P20,000 per hectare, while partial agricultural losses in Bulacan were estimated at over P50 million. Many crops in these areas are not covered by insurance, leaving farmers without financial relief.

This disaster underscores the systemic vulnerabilities of Philippine agriculture, which accounts for less than eight percent of GDP yet employs over 25 percent of the labor force. Despite decades of government programs and donor support, poverty remains high among farmers, tenants, landless workers, and fisherfolk-at around 30 percent. In fact, fisherfolk and farmers consistently register the highest poverty incidence at 27.4 percent and 27 percent, respectively. Compounding these challenges, agricultural productivity has lagged in the past decade, growing by only 1.1 percent compared to 2.2 percent in Vietnam and 1.8 percent in Thailand.

These numbers tell a simple truth: if agriculture remains unproductive, rural poverty will persist. Traditional programs — irrigation, farm-to-market roads, input subsidies, technology transfer, crop insurance, and others — have been helpful, but not transformative. The challenge is structural, demanding a different approach.

Why current interventions fall short

Research have shown that three critical weaknesses undermine our agricultural sector:

1. Fragmentation of farms and resources — Smallholders operating in isolation cannot achieve economies of scale.

2. Low productivity and high post-harvest losses — Crop yields have been decreasing, while poor logistics and storage facilities waste up to 30 percent of harvests.

3. Vulnerability to climate risks - Typhoons, floods, and droughts repeatedly wipe out livelihoods, trapping farmers in debt and poverty.