Agriculture

and Rural
Development
Economic Development:
Lesson 9
Rural Development
The development of areas outside the urbanized
economic system is what rural development is all
about. The center of development of rural areas is the
exploration of natural resources such as agriculture,
forestry, and fisheries.
Rural Development
In the Philippines, the
agriculture, forestry, and
fisheries (AFF) sector is crucial
in contributing to the
employment of almost one-third
of the country’s workforce in
addition to providing raw
materials to sectors like
manufacturing and services.
Rural Development
Thus, it cannot be denied that developed agriculture
and rural areas add to productivity and economic
development.
Modernization and
Industrialization of Agriculture
Agriculture in economic growth and development
means the income is higher and the food is cheaper
and easier to obtain.
Modernization and
Industrialization of Agriculture
Efficiency in agriculture and
rural development is defined by
sustainable food production in
one’s country relative to the costs
of its production.
Modernization and
Industrialization of Agriculture
Examples of these costs to produce agricultural
products are:

Raw
Labor Costs Materials
Used

Overhead
Supplies
Costs
Modernization and
Industrialization of Agriculture
Nowadays, specialization is evident in almost all
facets of production in agriculture, forestry, and
fisheries.

To be more efficient in the business of agriculture,

farms are becoming more specialized in terms of
production to optimize the costs and realize the
maximum profit.
Modernization and
Industrialization of Agriculture
A farmer might need to manage
different crops ad various
livestock all at the same time, like
raising chickens, cows, and other
land animals while composting for
the crops such as vegetables, fruit-
bearing trees, corn, rice, and the
like.
Modernization and
Industrialization of Agriculture
With specialization, farm
enterprises specialize in one or
two production/s focusing their
knowledge, skills, and abilities
to narrow the range of tasks, not
to mention capitalizing on fewer
machines and equipment in
producing more of a limited
product.
Modernization and
Industrialization of Agriculture
In addition, specialization paved
the way for genetically
improved species of plants and
animals to produce more and
supply the increasing need for
food and raw materials.
Modernization and
Industrialization of Agriculture
For example, chickens are genetically enhanced to
have exaggerated traits like larger breasts that are
sought after by most restaurant and fast-food chains.
However, this is much debated mostly by the process
and ethical consideration.
Modernization and
Industrialization of Agriculture
The increasing population translated into a more
demand for food that is available in the market. This
can only be fulfilled if we can produce and harvest
more AFF products fast and efficiently.
Modernization and
Industrialization of Agriculture
Mechanization allows
tremendous production of
food and raw materials
compared to human labor.
Repetitive tasks that may be
performed by machines
undeniably cut the time by
more than 80% and further
eliminate wastage to its
minimum.
Modernization and
Industrialization of Agriculture
There is an increasing reliance of farms on synthetic
and mineral fertilizers as well as pesticides to boost
production and eliminate the cause of possible
diseases and pests.
Modernization and
Industrialization of Agriculture
In addition, the use of some pharmaceuticals like
antibiotics and other chemicals is becoming widely
common in meat, milk, and egg production facilities
to ensure that the animals are protected and, to some
extent, increase their weights and eradicate bacteria
and viruses.
Modernization and
Industrialization of Agriculture
There is price to pay with industrialization, and in this
case, there are consequences on the health of the
livestock as well as the consumers and possible
degradation of the ecosystem because of pollution.
Modernization and
Industrialization of Agriculture
Most government policies in
Asia encourage the
consolidation of farms into
one large farming facility
to enjoy the economies of
scale as well as speed up the
processes involved in the
production of agricultural
products.
Modernization and
Industrialization of Agriculture
Under the Duterte Administration, the Department
of Agriculture (DA) introduced an intervention in
consolidating backyard hog raisers into clusters to
fight the African Swine Fever (ASF). Unfortunately,
the effect of consolidating gets smaller farms going
out of business.
Modernization and
Industrialization of Agriculture
Everything that we enjoy today as brought by
industrialization is always preceded by agricultural
revolution. The need to have cheap and readily
available food is the most influential factor to
advance technology and processes that serve as a
catalyst to boost economic activities and a a better
quality of life.
Economic Promotion
Exportation of AFF products
is a conjoined effort of different
agencies of the government
relevant to production,
marketing, improving, and
transporting raw materials and
processed goods to other
countries.
Economic Promotion
According to the website of the DA, the Philippines
only has two agricultural products earning $1 billion
per year, and mostly in oil form – these are bananas
and coconuts – compared to Thailand having thirteen
types, Indonesia having five, and Vietnam having
seven products, earning the same amount in a year.
Economic Promotion
The main goals in the exportation of AFF products
is generating high quality goods in large amounts that
would suffice the need of the international trading
partners.
Economic Promotion
The prices of a good that is exported really shows
how borders take so much factorization from the
source to the receiving country in terms of price.
Economic Promotion
For example, the USA does not have warm weather
all year around; hence, during winter, the tomatoes
that are available in the market are imported from
other warm countries. The bigger, more even, juicier,
and easier-to-pack tomatoes are prices with a factor
of at least three times than where the source is.
Infrastructure Development
Infrastructure is beneficial to agricultural and rural
development as it serves as the backbone of the AFF
industry and stabilizes the movement of products
within and outside the rural areas.
Infrastructure Development
One of the major concerns of farmers is how to
transport goods and some services from their area to
be sold to markets.
Hence, the program farm-to-market-roads, bringing
the farmers’ produce in the most efficient way, and
attempting to reduce middlemen to ensure cost, is
minimized, and revenue is optimized.
Infrastructure Development
Countries that consist of island need to consider the
roll-on/roll-off or RORO ships designed to carry
heavy loads from island to island. This ships allow
the produce to be safely carried to the consumers in a
timely manner.
Infrastructure Development
Another infrastructure that
needs to be continuously
developed is the irrigation
for land farmers – projects
such as small and large
irrigation – to meet the needs
even of small or backyard
farmers.
Infrastructure Development
Success in agriculture infrastructure
development may be attributed to
building the right roads and
markets, rural education,
intensive research and
development in agriculture, and a
more stable economic
environment for agriculture to
flourish.
Genetically Modified
Organisms (GMO)
Genetically modified organisms (GMO) are
organisms in which the genetic material is altered
using modern biotechnology, typically a combination
of deoxyribonucleic acid (DNA) to create new genes.
Genetically Modified
Organisms (GMO)
The top value GMOs in the USA are cotton, soy, and
corn, followed by rice and other crops.
Genetically Modified
Organisms (GMO)
Many scientists claim that there is no serious
negative impact on the health in its consumption
and that it does not destroy the environment.
Genetically Modified
Organisms (GMO)
In fact, it is easier to integrate micronutrients into
GMOs, may be designed as insect, fungus, and
virus resistant, and does not need pesticide, hence,
helping the environment.

It is also found out that high yielding GMOs are

actually less of a burden to the declining supply of
arable land.
Genetically Modified
Organisms (GMO)
These types of crops are greatly opposed by mostly
western countries out of politics and unknown fears.

Since African countries are largely partnering with

Europe, they are refusing the use of GMO crops for
fear that the European partners will stop accepting
products from their countries.
Green Revolution
The term “green revolution” is
attached to a Nobel Peace Prize
winner, Norman Borlaug, in
his attempt to improve crop
yield in South America and
later brought to Asia through
Pakistan and India.
Green Revolution
Essentially, green revolution
is the combination of more
modern mechanized vehicles,
better crops and hybrids,
larger farmlands, and the
application of large-scale
business management skills to
growing food.
Green Revolution
In the early 1960s, India and Pakistan adopted crops
in Mexico, particularly wheat and hybrid rice. This
was allowed by their governments and eventually
reached the developing countries of Asia that
augmented the problem on more food and crops for
business purposes.
Green Revolution
Micronutrients are another product of green
revolution. It is the idea of infusing more nutrients
into the produced crops. This is the solution to the
ever-growing problem of malnutrition that greatly
causes more deaths and productivity, hence market
inefficiency.
Green Revolution
The identified nutrients that were earlier given focus
on are iodine, vitamin A, and iron, folate, which is
also known as vitamin B9, and zinc.
Green Revolution
In the Copenhagen Consensus,
priority in improving life is
given to developing countries,
which identified that adding
micronutrients in food largely
improves the health of the
people.
Green Revolution
However, it was noted that there was a lack of
substantial and coordinated effort by the
government and the farmers, hence, agreed to have
more education and awareness on the matter.
Green Revolution
The Philippines determined the high value crops and
created a roadmap to develop these industries. They
are the abaca, banana, cacao, coffee, mango, and
rubber industries, having a clear strategic plan for
the years 2018 to 2022.
Green Revolution
Buyers in urban and rural areas and sellers
(usually in the rural areas) may use the platform
that is launched by the Philippine Department of
Agriculture (RP-DA) to assist urban areas
nationwide.

Payment may be made via cash-on-delivery (COD) or

bank transfer and now negotiating for a more online
transaction such as credit card payments and delivery
service providers.
Any Questions?