Government's stress on food production efforts has hiked agriculture's share in the net national product

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Part of Business Day Special Report

Title
Government's stress on food production efforts has hiked agriculture's share in the net national product
Language
English
Year
1975
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Page 24 Business Dey L Thursday, September 11, 1975 I REAKDOWN OF AGRICULTURAL CREDIT GRANTED BY DBP AND PRIVATE DEVELOPMENT BANK (thousand pesos) Period 1974 TOTAL Palay or Rice Coconut Livestock & Poultry Sugar Others January February March April May June July August September October November December 1975 January February March April May • June • July • August • September • October • November • December 9,827 o,007 6,615 12,140 19,498 20,726 11,23 22,019 14,096 21,505 46,014 19,837 I 2,341 1,363 1,405 > 2,303 8,130 7,239 3,430 ,232 4,181 10,204 8,602 3,982 y J o 911 952 959 1,507 1,569 4,226 1,171 2,879 2,580 2,117 2,031 1,933 3,910 3,593 2,783 5,310 6,455 4,461 3,583 5,36 3,638 5,521 8,498 4,501 1,563 372 675 1,157 1.297 1,331 1,305 2.297 1,052 1,134 1,741 2,312 1,102 1,727 793 1,863 2,047 3,469 1,749 3,243 2,645 2,529 25,142 0 7,109 Governments stress on food production efforts has hiked in the net agriculture’s share national product 79,124 26,375 50,390 130,933 47,20 79,12 4,605 90,082 95,559 101,036 106,513 111,990 I I I Q o •: 21,835 o o 28,235 26,338 28,047 29,756 31,465 33,174 34,883 36,592 ,305 3,271 4,645 5,567 6,243 4,232 5,123 5,368 5,613 5,858 6,103 6,34 6,593 1 9,387 I► Q O 6,80 13,965 110,224 ,377 38,600 41,920 45,240 48,560 51,880 55,200 58,520 1,746 2,386 2,904 1,683 1,583 2,238 2,302 2,366 2,430 2,494 2,558 2,622 3,864 5,144 6,119 4,478 4,781 6,829 6,968 7,107 7,246 7,385 7,524 7,663 To combat inflation, monetary and fiscal measures were centered on agricultural development, especially rice production. Hence, July and August, which are traditionally lean months (September included), have passed without any major food crisis this year. It is unlikely that the country will experience any during September and the remaining months of 1975. This was also true for 1974. i The main reason for such an optimistic outlook springs from the many forms of assistance the agricultural sector has received from the government. The greater availability of funds for agricultural projects supported by the necessary inputs, credits and technical supervision hectares target for the same have greatly improved the phase. A sister project of the Masagana 99 rice production program is the “Masaganang Maisan” of which Phase II was started in January and ended in March this year. This program is said to have surpassed the 95,640 hectare target by 37 per cent or 35,640 hectares in the corn and feedgrain planting. Total credit assistance for the Masaganang Maisan amounted to P37.14 million. The PNB’s tasks have been enlarged to include the J J <- - output of the agricultural sector. Figures from the Central Bank show that total loans granted to the agricultural sector by the banking system from 1970-1974 amounted to P18,458.3 million. On the other hand, total loans granted by the non-bank financial institutions for the same period amounted to P375.8 million. Of the total loans granted, commercial banks contributed the largest amounting to P13,348.3 million or 72 per cent with the massive financing for rice rural banks contributing and com production. For P4,461 or 24 per cent; dev- 1974 alone, PNB had a total elopment banks P641.9 or 3 lending outlay of P6.27 bilper cent and savings banks lion for agri-business. It has P7.1 or .03 per cent. extended P500 million to * * PROJECTIONS * As projected by Business 382,849 rice farmers under Day, total loans to be grant- the Masagana 99 program, ed by the banking system For white com and feedfor 1975 will amount to grain, PNB extended P137.3 P5,415.4 million as compared to P5,189.3 million in I i million in production loans to finance crops planted to 1974. This is an increase of 285,117 hectares. P226.1 million. Philippine National Bank loans alone amounted to Pl,951.4 million in 1974, reflecting an increase of Pl,050.2 or 115 per cent over 1973’s figure of P901.2 million. Masagana 99 As the grains industry grows, so grows the nation. And keeping the growth of this pivotal industry constant is the task to which the NGA is actively involved. r. r; * Propelled by today's breed of young, dynamic and achievement-oriented work force, the NGA has steadily paved the way for a stronger, healthier, and food-sufficient Philippines. The grains industry is growing. The NGA helps make it grow. I NATIONAL GRAINS AUTHORITY The growth-oriented agency In rice production, Masagana 99, Phase V projects a total harvest of 88 million cavans. assuming a conservative yield of 80 cavans per hectare. This program involves more than Pl billion worth of production loans under the supervised credit scheme. Masagana 99, Phase V also aims to plant rice in 56 provinces with a total area of 1.1 million hectares. Under this program, about 700 thousand small farmers are expected to be-the beneficiaries. G O. 47 Varied measures have Deen undertaken by the government in its concern for food production. One is General Order No. 47 which requires all corporations, whether foreign or domestic, with more than 500 ■ employees to either produce or import rice for their employees at low prices set by the government. As of July 23, there were 117 firms in actual rice production in compliance with the presidential order. Another 132 firms as of July 2 had taken concrete steps towards compliance. The 117 firms in actual rice production are expected to produce an approximate 3,228,160 bags of palay (one bag equals 50 kilos). Studies are being conducted as to the possibility of broadening the coverage of the G.O. 47 to cover J •I* i •I* A review of Phase IV (Nov. 1974-Apr. 1975) of firms with at least 100 employees. San Miguel Corporation, one of the country’s the 580,000 major employers whose actthe Masagana 99 program reveals a total area of 620,000 hectares utilized. This represents a 10 per cent increase over i . Thursday, September 11, 1975 •It tit tie i 178, I • zy r, ivities range from mining, manufacturing, and the services, intends to go into agricultural production itself. It plans to open up agricultural areas for corn and rice cultivation which would pr uce enough supply for the 30,000 people it now employs. Planters Products, Inc., on the other hand, Asia’s biggest fertilizer firm, has joined hands with the government to increase food production. Planters will train special distributors for its fertilizers and agricultural chemicals. Letter of Instructions No. eventually makes the end users of the fertilizers part owners of Planters. Boosts A great boost to food production was the reduction of fertilizer prices by-25 per cent. Before this subsidy, which amounts to P350 million, there was a 29 per cent decrease in the use t of fertilizer due to high rices. Another boost was P29 million which was released to the Department of Agriculture. Part of this amount will be used in the purchase of early-maturing seed varieties. Some will be spent for the department’s rat extermination program, while the rest will be used to hire additional farm production technicians to augment the department’s field force. The Central Bank, on the other hand, in June released guidelines on how farmers can become part owners of rural banks they are borrowing from. These guidelines implement PD No. 584. This adds to the various incentives offered by governf ment to hike production. In ;X;<« L'-' 4 ’ ‘«*x<: r . ■■ 1 - z.^- ... >: ’«■.' 4 ’* *, » V o *'.‘Z.'X-’-* • >w; >z < z. <y<; V:. r r • vx > /;X». ■ ■f-y-'X •!'» s ‘ 1 . • ' .V - * Is i: I f ' i- —I - i Z*'* / ■> < V ■ll B?v *’ ' \-O: , s'7'.< •»> ■ •.'<■ •'. ’ . .V >T;<£ • . ,.y /A.. » •j V A July, the DBP approved an emergency financing program of P50 million for the acquisition of tractors and farm machinery. The Land Bank also set aside P24 million for the same purpose, the LOI No. 298 provided for the allocation of P18.2 million from the calamity fund for the purchase of vaccines. To further help farmers meet obligations, the Land Bank has completed the implementing guidelines for LOI No. 273 which concerns liberalized payments for small landowners of tenanted rice and corn lands transferred to tenant-farmers. Masaganang Samahan, a Land Bank subsidiary, will assist farmer-beneficiaries to greatly increase their production capacity and thereby improve their incomes by making available to them vital agri-business services like the leasing of tractors, rice thresher and other agricultural machineries; provision of farm inputs; warehousing; rice milling; certified seed products and management and consultancy services. Also, the abaca production in the country was given a boost such that the Fertilizer Industry Authority had been asked to include abaca as one of the priority commodities in allocating subsidized fertilizer. Furthermore, the Department of Agriculture is procuring new additional stripping machines for distribution to selected abaca farm associations. The Royal Savings and Loan Association also has initally set aside P3 million for backyard livestock fattening projects in three (Continued on page 26) / tie I F' • ■-’1 •* * i f ’ - . • • •' Z?.' . / /. a* * *" zz.-zr zX' A F |r ■ -• ’Zz 5®: : ’*%’< / < •za bK< Z* V. <z • • Z •• X ... i • < * Ii fef < ZA'X<V/X < >’ >z*z ■ * ■vZ •.’•<< >■€- ■'/ \• ■.'.’*•.•/*<• X*. z. ;v-7-." • .».■.. -xk'" ■ flHBa. . ^k. yy‘‘\ -<rv:‘ > •<-« khz • ■ ’'’A>s Y • ■’'« • J. :3 & 7 /.< w ’< • 4* • • • Your Ii Cool. B find happipe do what you For your spe ' < z -z / / ’ '.£> : ^5L S? «• :> ■r • . M ■L ': ■ Ek 9r-' - F F:;.V . •• • ■X • *. .• | &•& Barong — COOl. In .w..w—.....^ ,.wm aaav... the silkiness and sheen of polyester. Free. Onto a great moving, free flowing barong fabric - Ramie Royale! The new Barong for the New Lifestyle! Ramie Royale comes in vivid new patterns and designs and the softest pastel shades ever. 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EDUCATIONAL SYSTEMS DEVELOPMENT CORPORATION 7th Floor, Merchants Bank Bldg., 313 Buendia Ave. Makati, Rizal Tel. 87-85-86 *i * Page 26 Thursday, September 11, 1975 (Continued from page 25) Southern Luzon provinces. Under this program, a borrower is entitled to a maximum of P3,000 loan payable from a year to three years. til M u Other sectors Likewise, the agriculture secretary has been instructed by the President to create an inter-agency committee to look into the sugar industry and increase its productivity. The government has also launched a trade offensive to mplement the effort. Presidential Decree 791, issued last September 4, grants tax exemptions for five years on importations of machinery and spare parts used in sugar production. Presidential Decree No. 788, which increased by P0.10 to Pl. 10 the “stabiliztion” fee collected for every picul of sugar produced in the country, reflects increasing government attention to the welfare of sugar farm workers. The collection will be used to see to it that labor laws relating to sugar workers are strictly enforced. • . * • • • • I THOUSAND PESOS 1101 LIVESTOCK & POULTRY 10 60 ✓ ✓ » 50-1 40 3020 4 • 2 • AGRICULTURAL CREDIT GRANTED BY DBP And PRIVATE DEVELOPMENT BANK 1974 - 1975 PALAY OR RICE I * I COCONUT 1975 M • T-----» F M 6 ■ - ■ ■ -1— J •PROJECTIONS •II * Th e President likewise a u t h orized the Philippine Virginia Tobacco Administration to undertake a joint project with the University of the Philippines (Los Banos) for the training of manpower and cooperative research. The President has similarly directed the Central Bank, through the rural banks, to make available to Virginia tobacco growers an initial amount of P20 million to help them increase their production. Likewise, PD 389 or the Forestry Reform Code of the Philippines, has been revised by PD 705. This gives certain incentives to qualified persons who will engage in industrial tree planting and farming. The Bureau of Forest Development, as an added incentive, will give free technical advice and as* sistance to persons who will develop their private lands into industrial free plantations and farms. The Fisheries Decree of 1975, likewise, gives the Bureau of Fisheries and Aquatic Resources complete til * / II I II jurisdiction and sole responsibility in the management of all fisheries and aquatic resources throughout the country except in municipal waters. The President also appropriated P21 million to the Bureau, Pl million of which shall be operational expenses of the council for the current fiscal year and the balance to constitute a Fishery Loan and Guarantee Fund. The government’s intensified action regarding food production is clearly shown in the national budget for FY 1976. A breakdown of the budget shows the Department of Agriculture getting an allotment of P212.5 million for its various programs. Similarly, the Bureau of Animal Industry gets P63.5 million, the Bureau of Fisheries and Aquatic Resources P77.2 million, and the Bureau of total of P142.3 I I I ii I* Forestry illion. Summing up, all indications point to more action on the food production front forl976. II SUGAR 1 4 % t *