Like other rapidly growing and urbanizing middle-income countries, the Philippines is experiencing a structural transformation of its economy. Structural transformation has progressed slowly in the Philippines, however, indicating that Philippine agriculture is not performing to its potential and therefore not fully delivering to the national (and rural) economy. The new strategic vision for the agricultural sector is a food-secure and resilient Philippines with prosperous farmers and fisherfolk. This new thinking for accelerating agricultural transformation recognizes both the limitations of and potential for the agricultural sector in the COVID-19 (Coronavirus) context. This report outlines policy and investment options to promote the development of a more diversified agriculture and food system that will enhance the welfare of the rural population and improve food security for the population at large. This report considers the major programs of the department of agriculture (DA) and trends in spending patterns over the last few years, although it is not a comprehensive review of agricultural policies and public expenditures, owing to a lack of data. This report comprises five chapters. Chapter one is introduction. Chapter two provides an overview of the agricultural sector, highlighting important trends over time, the current situation, and challenges. Chapter three reviews programs of the DA and attached agencies, including the major banner programs. Chapter four discusses policy reforms, institutional changes, and investments that have produced transformational change in the agri-food sector in other countries and explores how the Philippines can use lessons from these experiences. Chapter five presents recommendations for future policy directions.

The Philippine economy has grown rapidly since 2010, but despite this growth, poverty and inequality remain high. Two-thirds of the poor live in rural areas, and the weak performance of the agriculture sector has contributed to the slow improvement in livelihoods. The challenge for agriculture will further increase, with climate change posing a growing threat to the sector. But agricultural transformation to spur sustained growth and reduce poverty is still possible under climate change with aggressive institutional reforms and implementation of the right mix of policies and programmes. The identification of the suitable policy and programme combination requires an accurate assessment of the key drivers of agricultural growth and food security; the impacts of climate change on agriculture and the overall economy; and the effectiveness of policies for adaptation and growth. This book addresses these big issues, focusing on enhancing the adaptation capacity of the Philippine agriculture sector. It is designed to provide a much-needed base of knowledge and menu of policy options to support decision- and policymaking on agriculture, climate change, and food security. The volume uses newly generated data, modelling outputs, and innovative analyses to provide a scientific basis for a variety of adaptation measures under different sets of climate change scenarios to guide decision-makers in strategic planning and policy formulation. “As we have actually experienced in Leyte, an island province in the Visayas where Super Typhoon Yolanda (Haiyan) struck, disasters caused by natural hazards could completely negate economic gains, devastate families and shatter dreams. Our greatest challenge is to make ourselves better prepared for and be more resilient to such disasters. Natural hazards need not always lead to loss of so many lives and properties. This book shows us ways and provides tools to draw up climate change and socioeconomic scenarios at the regional and provincial levels, allowing us to identify strategies for mitigating climate change risks.” — Ernesto M. Pernia, Secretary of Socioeconomic Planning, National Economic and Development Authority, Philippines “This book by top Philippine researchers combines state-of-the-art biophysical and economic modeling of climate impacts and adaptation policies with in-depth synthesis of agriculture, natural resources, climate trends, and policies. It provides a comprehensive assessment of climate change impacts on agriculture and the broader economy to provide important insights for Philippine policymakers.” — Dr Cynthia Rosenzweig, Head, Climate Impacts Group, NASA Goddard Institute for Space Studies and Co-Founder of the Agricultural Model Inter-comparison and Improvement Project (AgMIP)

FOR MOST COUNTRIES, HIGH PRODUCTIVITY GROWTH IN THE AGRICULTURAL SECTOR HAS BEEN A KEY DRIVER of structural transformation promoting long-term economic growth. Historically, low agricultural productivity growth has hindered economic growth and employment creation in the Philippines, where agriculture—which accounts for one-third of employment—remains a key sector. Climate change has the potential to disrupt crop productivity, and in turn affect domestic agricultural production, consumption, and food security. Moreover, the global impact of climate change could stimulate changes in international and domestic commodity prices, ultimately having negative effects on both Philippine agriculture and the country’s overall economy. Developing agricultural adaptation and growth strategies is of utmost importance, not only to maintain domestic agricultural production, but also to underpin broader economic growth and structural transformation. Sustaining agricultural production growth to help achieve inclusive growth and poverty reduction is a key goal for the Philippine government.

Rainforests are rapidly being cleared in the humid tropics to keep pace with food demands, economic needs, and population growth. Without proper management, these forests and other natural resources will be seriously depleted within the next 50 years. Sustainable Agriculture and the Environment in the Humid Tropics provides critically needed direction for developing strategies that both mitigate land degradation, deforestation, and biological resource losses and help the economic status of tropical countries through promotion of sustainable agricultural practices. The book includes: A practical discussion of 12 major land use options for boosting food production and enhancing local economies while protecting the natural resource base. Recommendations for developing technologies needed for sustainable agriculture. A strategy for changing policies that discourage conserving and managing natural resources and biodiversity. Detailed reports on agriculture and deforestation in seven tropical countries.