1. Effects of agricultural liberalization on farmers

2. Multiple liberalization policies ► IFI Sructural adjustment prescriptions  For Philippines first SAP in 1980 ► WTO AoA ► AFTA

3. Philippines response ► Social safety nets ► Modernization – Agriculture and Fisheries Modernization Act  Reduction of cereals production  Promotion of HVC  Agribusiness – farmer-peasant nexus ► Problems  Framework on agricultural development  Resources and government capacity

4. Philippines agriculture performance under trade liberalization Philippine Agricultural Production (1990-2003) Philippine Agricultural Production (1990-2003) Volume in million metric tons; growth rates in percent Volume in million metric tons; growth rates in percent YearVolumeGrowthRate YearVolumeGrowthRate 199061.57 199061.57 199164.11 4.131991 199164.11 4.131991 199263.84 0.421992 199263.84 0.421992 199365.77 3.021993 199365.77 3.021993 199468.53 4.201994 199468.53 4.201994 199562.16-9.281995 199562.16-9.281995 199669.1311.201996 199669.1311.201996 199768.30-1.201997 199768.30-1.201997 199857.93 -15.181998 199857.93 -15.181998 199965.7613.511999 199965.7613.511999 200068.11 3.582000 200068.11 3.582000 200168.00-0.172001 200168.00-0.172001 200267.02-1.432002 200267.02-1.432002 200371.61 6.852003 200371.61 6.852003 Average65.84 1.45 Average65.84 1.45

5. Agricultural Production Per Capita, 1990-2003 ('000 metric tons)

6. Balance of Agricultural Trade (FOB Value in million US dollars)

7. Agricultural Employment (1990-2003)

8. Assumed Implications on agricultural sector ► Import surges and dumping ► Price competition ► Pressure on farmgate prices ► Restructuring in agricultural production ► Restructuring in control over land

9. ACTUAL EFFECTS – Different levels of development - not just between countries - but also among crop and agricultural sectors

10. Different levels of agricultural development in Philippines ► Subsistence and commercial food production by small farmers ► Traditional export crops ► Modern corporate agribusiness

11. Subsistence and commercial food production by small farmers ► Subsistence food production  Cereals and tropical vegetables ► Small scale commercial domestic food production  Small scale, relatively low input commercialcrops such as vegetables, poultry and livestock ► Negative effects of dumping and import surges of cheap imports ► Cumulative effects of cheap imports on farmgate prices without reducing production costs

12. Subsistence and commercial food production by small farmers ► Farmer bankruptcies further complicated by resulting increasing tenurial issues and merchant dominance, further reducing profitability for small farmers ► Restructuring through crop conversion combined with contract growing, plantation leases and corporative schemes lead to peasant and farm worker economic and even physical displacement

13. Traditional Commercial crop production ► Traditional export crop  Predominantly produced in small farms  Relatively low input export crop production such as sugar, coconut oil, hemp ► Economic failure due to uncompetitive-ness in international markets and even in domestic market ► Bankruptcies for small farmers and inefficient mills, displacement of farm workers ►

14. Expansion of TNC agribusiness ► Modernization program and thrust for efficiency and competitiveness essentially favorable for TNCs without resorting to high government intervention in technology, capital, trading ► Increase or re-concentration of land to TNC- comprador/landlord concerns through various schemes