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Impact Assessment of the Agricultural Production Support Services of the Department of Agriculture on the Income of Poor Farmers/Fisherfolk: Review of the Evidence

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  • Briones, Roehlano M.

Abstract

Expenditures on agriculture have been rising over time, as expression of the state`s commitment to reduce poverty, raise rural incomes and household welfare, and promote food security. However, agriculture continues to exhibit disappointing performance, namely, laggard growth, lack of diversification and competitiveness, tepid productivity growth, and persistent poverty among farmers. There is basis for attributing this performance at least in part to faulty design and execution of agricultural programs. Private goods provided as production support, most notably input subsidies, are contra-indicated based on case studies of past failures. Moreover, a series of audit reports document leakages and anomalies in these types of programs. This is consistent with international evidence that favors a shift in public expenditure from provision of private goods to provision of public goods. Extension is flagged owing to problems in quality of services provided. Production support should be limited in duration and scope to goods characterized by market failure, most notably those embodying new technologies. Support for postharvest and processing facilities should be limited to strategic investments toward addressing coordination problems and facilitating market development. Among public goods (or goods with public good features), irrigation has not been found to be effective based on econometric evidence. This places in question the current plan to ramp up investment in irrigation, making it by far the largest single item for public spending on agriculture. Such investment plans should be reviewed given studies point to design flaws and other implementation problems in past irrigation projects. The public goods that do show evidence of impact on agricultural incomes and productivity are infrastructure such as roads, ports, electrification (under other infrastructure), regulatory services, and R&D for technological change and agricultural modernization.

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Bibliographic Info

Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2013-23.

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Length: 46
Date of creation: 2013
Date of revision:
Handle: RePEc:phd:dpaper:dp_2013-23

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Keywords: Philippines; public goods; farm subsidies; agricultural production support; impact assessment;

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References

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  1. Roehlano M. Briones, 2010. "Scenarios and Options for Productivity Growth in Philippine Agriculture An Application of the AMPLE," Development Economics Working Papers 23108, East Asian Bureau of Economic Research.
  2. Rosegrant, Mark W. & Kasryno, Faisal & Perez, Nicostrato D., 1998. "Output response to prices and public investment in agriculture: Indonesian food crops," Journal of Development Economics, Elsevier, vol. 55(2), pages 333-352, April.
  3. Llanto, Gilberto M., 2012. "The Impact of Infrastructure on Agricultural Productivity," Discussion Papers DP 2012-12, Philippine Institute for Development Studies.
  4. Butzer, Rita & Larson, Donald F. & Mundlak, Yair, 2002. "Determinants Of Agricultural Growth In Thailand, Indonesia And The Philippines," Discussion Papers 14979, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  5. Lopez, Ramon & Galinato, Gregmar I., 2007. "Should governments stop subsidies to private goods? Evidence from rural Latin America," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1071-1094, June.
  6. repec:phd:pjdevt:jpd_1986_vol._xiii_nos._1&2-b is not listed on IDEAS
  7. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.
  8. Gilberto M Llanto, 2012. "The Impact of Infrastructure on Agricultural Productivity," Working Papers id:4991, eSocialSciences.
  9. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D. & Datu, Maria Blesila G., 2010. "Chronic and Transient Poverty," Discussion Papers DP 2010-30, Philippine Institute for Development Studies.
  10. Israel, Danilo C. & Briones, Roehlano M., 2012. "The ASEAN Economic Community Blueprint: Implementation and Effectiveness Assessment for Philippine Agriculture," Discussion Papers DP 2012-18, Philippine Institute for Development Studies.
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