8 Policy Interventions in Agriculture PDF

Department of Agricultural and Applied Economics College of Economics and Management University of the Philippines Los Baños 4031 College, Laguna, Philippines AAE 10: Policy Interventions...

Department of Agricultural and Applied Economics College of Economics and Management University of the Philippines Los Baños 4031 College, Laguna, Philippines AAE 10: Policy Interventions in Agriculture  This Photo by Unknown Author is licensed under CC BY-SA Basic Definitions A policy is a settled (definite) course or plan of action that may be adopted by an individual, body, institution, or government to guide present and future decisions toward achieving certain goals and objectives This Photo by Unknown Author is licensed under CC BY-SA Public policy - the course of action chosen by government towards an aspect of the economy, including the goals that the government seeks to achieve, and the choice of methods to pursue those goals This Photo by Unknown Author is licensed under CC BY- NC-ND What is agricultural policy?  A settled course of action adopted by the government to influence the decision-making environment of producers, consumers, and marketing agents in order to achieve certain goals and objectives  Collectively, it refers to all public measures for addressing the needs of the agricultural sector Why is agricultural policy needed? General: To achieve certain goals and objectives relating to agriculture such as:  food security  high farm income and equitable income distribution  price stability  environmental protection  high product quality  consumer protection  1. To address the needs and issues (technology, inputs, markets, best farming practices) affecting the agriculture sector, make it efficient and sustain its economic viability (efficiency) , and maximize its contribution to economic development – if agriculture Why is develops, the economy develops agricultural 2. To ensure food security and meet the policy growing, changing and diversified needs needed? of consumers and protect their interest towards adequate nutrition 3. To promote resource conservation and protect the environment (externality issues) This Photo by Unknown Author is licensed under CC BY  4. To provide the public goods and services (irrigation, RDE, markets, roads and port facilities, market intelligence) that otherwise are unattractive Why is investments to private sector agricultural 5. To address market imperfections that lead to unequal market power among policy sectors of society needed? 6. To achieve equity in income distribution and improve quality of life of all sectors This Photo by Unknown Author is licensed under CC BY Examples of Philippine Agricultural Policy Examples of Agricultural Policies in the Philippines 1. Policies that are adopted at different levels global: trade liberalization under the WTO National: Agriculture and Fisheries Modernization Act (AFMA or Republic Act 8435), Organic Agriculture Act of 2010 (RA 10068), Comprehensive Agrarian Reform Law (RA 6657) Local: municipal ordinance banning the use of plastics, promoting household vegetable gardening or no parking in specific areas; “Joy of Urban Farming Program” of Quezon City launched in 2010 This Photo by Unknown Author is licensed under CC BY-NC Examples of Agricultural Policies in the Philippines 2. Policies that are formulated and/or implemented by different government entities Philippine legislature or Congress (Republic Acts or national laws, signed by the President) Philippine Executive department, issued by the President as General Order, Presidential Decree, Executive Order Specific agency like Department of Agriculture, the Secretary issues Administrative Order, Memorandum Circular or Special Order LGU, the Governor’s Office issues a Sangguniang Bayan ordinance to control cutting of coconut trees in the province This Photo by Unknown Author is licensed under CC BY-NC Some Policies and Guidelines Affecting the Philippine Agriculture and Fisheries Sectors This Photo by Unknown Author is licensed under CC BY-SA Some Policies and Guidelines Affecting the Philippine Agriculture and Fisheries Sectors 1. RA 8435: Agriculture and Fisheries Modernization Act, December 1997 2. RA 8550: Philippine Fisheries Code | February 17, 1998 3. RA 8048: Coconut Preservation Act | June 7, 1995 4. RA 11203: Rice Tariffication Law | February 14, 2019 This Photo by Unknown Author is licensed under CC BY-SA  Some Policies and Guidelines Affecting the Philippine Agriculture and Fisheries Sectors 6. Executive Order (EO) 481, series of 2005: Promotion and Development of Organic Agriculture in the Philippines | December 27, 2005, 7. DA Memorandum Circular (MC) 04, s2020: Institutionalization of Climate Resilient Agriculture (CRA) | February 20, 2020 8. DA MC 15, s2020: Guidelines on Food Safety for Philippine Agriculture and Fishery Sector During COVID- 19 Pandemic| May 13, 2020 This Photo by Unknown Author is licensed under CC BY-SA  Classification of Agricultural Policy 1. According to effect on output or input (e.g., price support, fertilizer subsidy) 2. According to stage of economic activity (production, postharvest and processing, marketing and trade) 3. According to commodity or subsector (food, non-food, export crops, livestock and poultry, grains, vegetables, fisheries, root This Photo by Unknown Author is licensed under CC BY-SA crops) 4. Others: credit, agrarian reform, irrigation, mechanization, R&D, cooperative development  policy agenda setting and problem/issue identification Role of Agricultural formulation, design and analysis of policy options Economist in adoption and implementation of policies and Policy-making programs policy monitoring and evaluation Role of Agricultural Economist in Policy-making Specifically in policy analysis, the agricultural economist is expected to: provide a better understanding of the various issues concerning the given problem identify and measure the economic consequences or impacts (ex- ante or ex-post) of alternative policies adopt a theoretical framework to show/ explain the economic relationships use the analytical tools including quantitative techniques to provide empirical evidence as basis for recommended policy choices References Pabuayon, IM (undated) AECO 151 Lecture Notes. Department of Agricultural and Applied Economics, College of Economics and Management, University of the Philippines Los Baños Pabuayon, IM et al (2013) Agricultural Policy: Perspective from the Philippines and Other Developing Countries. University of the Philippines Press. Diliman, Quezon City Ancog, RC et al (2020). Policy Imperatives to Promote Urban Agriculture in Response to COVID-19 Pandemic Among Local Government Units in the Philippines. SEARCA Policy Paper 2020-3 at https://icleiseas.org/wp- content/uploads/2020/06/SEARCA_Policy- Paper-2020-3.pdf AAE 10: Policy Interventions in Agriculture