The sector remains an important part of and contributor to the economy.

Contribution to output and employment. From 2004 to 2010, agriculture and fisheries contributed an average of 18.4 percent to GDP and the sector grew at an average rate of 2.6 percent annually. This performance was significantly below the target of the previous Plan. Among the regions, the top contributors in 2009 have been Region 4-A (12.1%) followed by Region 3 (11%), Region 6 (10%), Region 10 (8.2%) and Region 12 (8.0%). In terms of employment, the sector employed an average of 11.8 million people. These account for almost 35.1 percent of the total work force (Table 4.1). If the whole agriculture value chain is considered, the contribution to GDP and total employment would reach 35 percent and 50 percent, respectively.

Contribution of subsectors. The sector's growth was driven primarily by fishery (1.21%), palay (0.40%), corn (0.31%), banana (0.22%) and poultry (0.22%) as shown in Table 4.2 in the next page.1 Growth in the fisheries sector is partly due to the expansion of aquaculture and robust demand for commodities such as seaweeds. The productivity of municipal fisheries, such as small-scale capture fisheries (less than 3 gross ton boats), has been declining, however. This can be partly attributed to overfishing and poor enforcement of fishery laws. The national stock assessment of the Bureau of Fisheries and Aquatic Resources (BFAR) suggests that two-thirds of the 12 major fishing bays in the country are already overfished.

Table 4.1. Agriculture and Fishery (with Forestry) Performance and Contribution to Economy: 2004-2010

Source: BAS, NSCB, 2011

Note: Revised growth target for 2008 and 2009 based on August 2008 DBCC Meeting

Table 4.2. Contribution of Sub-Sectors in Agriculture and Fishery Growth: 2004-2010

Source: BAS, 2011

The positive performance of palay and corn is due to the use of quality seeds, increase in yield, and rehabilitation of irrigation facilities. For banana, this is due to an expansion in area, an increase in yield, and good demand in the local and export markets.

Contribution to global trade. Between 2004 and 2010, agriculture and fisheries sector exports rose from US$2.5 billion to US$4.1 billion. The top agricultural exports, in terms of value are coconut oil, fresh banana, tuna, pineapple, tobacco, and seaweeds. The overall balance of trade in agriculture has become increasingly passive, with the deficit widening from US$837 million in 2004 to US$3.2 billion in 2010. The country recorded a favorable trade balance in some items, however, namely, vegetable and fruits (US$634 million), fishery products (US$497 million), and crude rubber (US$31.7 million) in 2010 (Table 4.3). There was no significant change in the structure of exports in the period.

Share to total land area and number of farmers. In terms of land area, a total of 4.8 million agricultural farms in the country occupy 9.7 million hectares (2002 Census of Agriculture and Fisheries). These account for almost 32 percent of the total land area of the country. The top four crops with the highest hectarage are coconut (3.33 million hectares), followed by rice (2.47 million hectares), corn (1.35 million hectares), and sugarcane (0.36 million hectares). In terms of number of farmers and fisherfolk, about 1.61 million farmers are engaged in fishing (25.1%), 1.4 million are in coconut (21.7%), 1.35 million in rice (21.0%), 0.68 million in corn (10.6%), 0.07 million in sugarcane (1.0%) and around 1.32 million in other commodities (20.6%).

Agribusiness land development. Through the efforts of three rural development agencies, namely the DA, DAR and DENR, under the National Convergence Initiative (NCI), over 1.83 million hectares of land have been developed for agribusiness, generating about 2.67 million jobs between 2005 and 2010 (Table 4.4).

The NCI is a strategic development approach that can contribute to sustainable development in the countryside through complementation of efforts in the rural sector. In December 2010, the three agencies signed the Joint Memorandum Circular (JMC) adopting a shared "Policy and Implementation Framework for the Enhanced National Convergence Initiative among DA, DAR, and DENR".

Table 4.3. Value of Philippine Agricultural Exports and Imports: 2004 and 2010 (in million $US)

Source: BAS, 2011

Note: *2010 figures are preliminary

Table 4.4. Agribusiness Lands (including Agroforestry) Developed: 2005-2010

Source: National Convergence Initiative Secretariat, December 2010

Table 4.5. Land Acquisition and Distribution Performance: 2004-2010 (in hectares)

Source: DAR, 2011

Note: *Targets based on approved/reenacted budgets

Extension of land reform. The accomplishment of land acquisition and distribution (LAD) for the period 2004-2010 compared to the funded target is at 88 percent. On the other hand, the accomplishment in terms of the previous Medium Term Philippine Development Plan (MTPDP) 2004-2010 target is around 65 percent (Table 4.5). The target projection in the previous Plan states the commitment to finish land distribution by the end of2008, the last year of the 10-year extension provided under the Comprehensive Agrarian Reform Program (CARP). A total of 807,298 hectares were distributed to 524,749 agrarian reform beneficiaries (ARBs) during the period. From 1987, the cumulative area distributed has now reached 4,113,347 hectares.

Extending the CARP for the second time was a challenge unlike the first when RA 8532 was passed by the legislative branch before the Ramos Administration ended on June 30, 1998. This time, no second extension law was passed by Congress after the 10-year extension period. From July 1, 2008 to June 30, 2009, CARP continued to be implemented only under a Joint House-Senate Resolution. On August 7, 2009, RA 9700, otherwise known as the CARP Extension with Reforms or CARPer, was signed into law mandating the completion of land distribution in five years. It also provided an additional appropriation of PhP150 billion for the implementation of the major components of CARP

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1  The values in parenthesis reflect growth rate as weighted against commodity share in the Agriculture, Fishery and Forestry (AFF) gross value added.