AFMA

Group 2:
CASTANEDA, AIVAN JAMES
IBANA, RENZO
SERRANO, GABRIEL PAUL
VENIDA, ARIENNE
YAMADA, SHUNTARO

Agriculture and
Fisheries
Modernization
Act

Background
AFMA

(Agriculture and Fisheries Modernization

Act) is also known as R.A. 8435
It was enacted by then President Fidel V.
Ramos on December 22, 1997.
Main purpose:
- Modernize the agriculture and fisheries
sectors of the Philippines and make them
competitive in the market.

Principles Under AFMA

1.
2.
3.
4.

5.
6.
7.

Poverty Alleviation and Social Equity

Food Security
Rational Use of Resources
Global Competitiveness
Sustainable Development
People Empowerment
Protection from Unfair Competition

Main Objectives
To

modernize the agriculture and fisheries

sectors by transforming these sectors from
a resource-based to a technology-based
industry (4)
To enhance profits and incomes in the
agriculture and fisheries sectors,
particularly the small farmers and
fisherfolk, by ensuring equitable access to
assets, resources and services, and
promoting higher-value crops, valueadded processing, agribusiness activities,
and agro-industrialization (1).

Main Objectives continued

To ensure the accessibility, availability and

stable supply of food to all at all times(2);
To encourage horizontal and vertical
integration, consolidation and expansion of
agriculture and fisheries activities, group
functions and other services through the
organization of cooperatives, farmers' and
fisherfolk's associations, corporations, nucleus
estates, and consolidated farms and to
enable these entities to benefit from
economies of scale, afford them a stronger
negotiating position, pursue more focused,
efficient and appropriate research and
development efforts and enable them to hire
professional managers(6)

Main Objectives continued

To

promote people empowerment by

strengthening people's organizations,
cooperatives and NGO's and by
establishing and improving mechanisms
and resources for their participation in
government decision-making and
implementation(6);
To pursue a market-driven approach to
enhance the comparative advantage of
our agriculture and fisheries sectors in the
world market(4)

Main Objectives continued

To induce the agriculture and fisheries sectors

to ascend continuously the value-added
ladder by subjecting their traditional or new
products to further processing in order to
minimize the marketing of raw, unfinished or
unprocessed products (3, 5)
To adopt policies that will promote industry
dispersal and rural industrialization by
providing incentives to local and foreign
investors to establish industries that have
backward linkages to the country's agriculture
and fisheries resource base (1)

Main Objectives continued

To

provide social and economic

adjustment measures that increase
productivity and improve market
efficiency while ensuring the protection
and preservation of the environment and
equity for small farmers and fisherfolk
(1,3,5); and
To improve the quality of life of all sectors
(3,4)

Production and Marketing Support

Services
1. Strategic Agriculture and Fisheries
Development Zones (SAFDZ)
- are areas or centers where development
in agriculture and fisheries are catalyzed
in an eco-friendly and socio-cultural
sound manner
This consists of an integration plan consisting
of production, processing, investment,
marketing, human resources and
environmental protection components

SAFDZ
The SAFDZ analysis should result in two
maps:
The first one will display all SAFDZ areas.
The second map will present a layer of the
SAFDZ areas of importance, where the
Network of Protected Areas for
Agricultural and Agro-industrial
Development (NPAAAD) are the areas
that are classified as prime agriculture
land

SAFDZ
First map

SAFDZ
Second map

- The second map shows the NPAAAD, drawn with a hatching

pattern to indicate that urban land use is not allowed in the
area.

SAFDZ
SAFDZ of the City of Tacuorong City in
Sultan Kudarat

SAFDZ
NPAAD of the City of Tacuorong City in
Sultan Kudarat

Production and Marketing Support

Services
2. Agriculture and Fisheries Modernization
Plan (AFMP)
Focuses on the following concerns:
Food Security
Poverty Alleviation and social equity
Income enhancement and profitability
Global Competitiveness
Sustainability

Production and Marketing

Support Services
The

AFMP provides the strategic

framework to harmonize and unify the
various agriculture and fishery
development programs, projects and
activities.
It likewise affords the Congress and DBM
the sound bases for the review and
support of the annual budget proposals in
support of agriculture and fisheries sector
modernization

Credit
Directed

Credit Programs (DCPs)

Provision for the Agro-Industry
Modernization Credit and Financing
Program (AMCPP)
Financial Institutions: Land Bank of the
Philippines (LBP) Philippines Crop
Insurance Corporation (PCIC), Guarantee
Fund For Small and Medium Enterprises,
Quedan and Rural Credit Guarantee
Corporation (Quedancor) and Rural
Credit Guarantee Corporation,
Agricultural Credit Policy Council

Irrigation
Rationale:

Prevent further destruction of

watersheds, rehabilitate existing irrigation
systems and promote the development of
irrigation systems that are effective,
affordable, appropriate, and efficient
Concerned Govt Agencies: National
Irrigation Administration (NIA),
Department of Environment and Natural
Resources (DENR)

Information and Marketing

Installation

of a market information system

National Marketing Assistance Program
- leads in the creation of a national
marketing umbrella
National Information Network (NIN)
- links various research institutions for easy
access to data on agriculture and
fisheries research and technology
- from the national down to the municipal
offices

Other Infrastructures
Farm-to-Market

Roads
Public Infrastructures
Private Infrastructures
Rural Energy
Communications
Water Supply
Research and Technology
Post-harvest facilities
Public Market and Abattoirs
Agricultural Machinery
Fishports, Seaports and Airports

Other Infrastructures
Concerned

agencies: Department of
Public Works and Highways (DPWH),
Department of Transportation and
Communications (DOTC), Philippine Ports
Authority, Philippine Fisheries
Development Authority, Department of
Energy (DOE), National Electrification
Administration (NEA), National Power
Corporation (NAPOCOR), LGUs

Products Standardization and

Consumer Safety
Adherence

to and implementation of
products standards
- to ensure food safety
- to promote competitiveness of
agriculture and fisheries products
Bureau of Agriculture and Fisheries
Product Standards (BAFPS)

Output-Oriented Performance
Standards

Primary instrument for institutional evaluation

All public and private universities and
colleges, that are designated as centers of
excellence, shall cause to be installed a
computerized monitoring and evaluation
system that periodically collects and regularly
measures variables indicating institutional
performance based on the Output-Oriented
Performance Standards.

Evaluation System
All

NCEs in agriculture and fisheries will

undergo a third party evaluation once
every 5 years
Evaluators consists of educational and
management experts and/or
representatives from DOST, DENR and
NEDA

UPLB

As the countrys leading educational

institution in agriculture, UPLB is mandated to
help the government in modernizing the
agriculture and fisheries sectors in the
country thru:
- Research
- Technology Development
- Extension

Benefits
Agriculture

and fisheries grew by almost 3.5

percent annually between 1999 and 2005,
its best record since 1970s
Improved food security
Sugar started to become competitive
However, there seems to be a modest
increase in the yield of irrigated rice from
pre- to post-AFMA years (David, 2008)

Disadvantages
There

were no significant product

breakthroughs in the export market over the
past six years.
Farm incomes, especially for coconut farms,
did not increase as there was little flow of
resources.
Job creation did not improve
The engineering performance of existing
gravity irrigation facilities continued to be
mediocre (David, 2008)

Issues, Problems and Challenges

Which

is modern and which is not?

- Obsolescence
Over-commitment
Trying to do many things with too many
agencies
Lack of resources
Implementation problems
Rural poverty
There were no significant product
breakthroughs in the export market over
the past six years

Issues, Problems and Challenges

Farm incomes, especially for coconut farms,
did not increase as there was little flow of
resources
Resources prioritization
- production was given priority rather than
marketing and R & D
Small and aggregated farms
Agriculture modernization is an ambitious goal
- It took at least 20 years for some Asian
countries to achieve broad-based high
agriculture productivity

Issues, Problems and Challenges

Laggard

growth, lack of diversification and

competitiveness, tepid productivity growth,
and persistent poverty among farmers
(Briones, 2013)
The lack of technical and financial capabilities
of LGUs, however, is a major problem (Dacio
and Malaluan, 2001)
- their role in the planning and
implementation of agricultural development
programs has been minimal

Key Success Factors of Asian

Agriculture and Fisheries

Strategic directions that remained

unchanged despite changes in political
leadership;
Continuity in leadership, anchored by a
bureaucracy that values professionalism
and meritocracy;
A bureaucracy that is not subject to the
vagaries of political leadership;
A marketing infrastructure that links
producers to buyers at reasonable and
speed;

Key Success Factors of Asian

Agriculture and Fisheries (AFMA Review, 2007)

A well-budgeted R & D program,

accompanied by human resource
development of scientists and researchers,
that engages universities and private sector;
A market information system with timely,
accurate and accessible information
Producers that are mostly organized and
learned on the dynamics of the market place
cost, quality and supply reliability; and
An investment climate that welcomes local
and overseas investors

References

http://www.cookbook.hlurb.gov.ph/book/export/html/
887
http://nafc.da.gov.ph/afma/about.php
http://nafc.da.gov.ph/afma/primer_en.php
http://cocafm.gov.ph/wpcontent/uploads/downloads/2011/02/AFMA-Primer1998.pdf
http://nafc.da.gov.ph/afma/index.php
http://www.da.gov.ph/index.php/lawsissuances/republic-act-and-proclamations/2782republic-act-no-8435-agriculture-and-fisheriesmodernization-act-afma
http://www.da.gov.ph/images/PDFFiles/LawsIssuances
/RA/afma.pdf

References

Amellar Solutions
AFMA Review 2007
David W.P. (2008).Impact of AFMA on Irrigation
and Irrigated Agriculture. The Philippine
Agriculturist
Briones, R. M. (2013). Impact Assessment of the
Agricultural Production Support Services of the
Department of Agriculture (DA) on the Income of
Poor Farmers/Fisherfolk: Review of the Evidence.
Department of Budget and Management.
Philippine Institute for Development Studies.

References
Dacio,

J. & N. Malaluan (2001). Agriculture

and Fisheries Modernization: Remaining a
Pipe Dream. Philippines: NAPC