The second quarter growth was also positive at 4.68 percent, compared to 1.62 percent from the same quarter last year.
The Department of Agriculture (DA) said both the crops and fisheries sub-sectors performed strongly.
The crops sub-sector posted a growth of 5.63 percent from last year, bannered by palay production which increased by 12.21 percent to 6.04 million metric tons (MT), from 5.38 million MT last year.
Corn production likewise surged 14.08 percent to 2.33 million MT from 2.04 million MT during the first semester in 2003.
"We are close to achieving self-sufficiency in rice and corn. We achieved the record output even after we reduced irrigation services in areas covered by Angat Dam, the water level of which had dropped below critical levels due to low rainfall," said outgoing Agriculture Secretary Luis Lorenzo Jr.
He attributed the gains in palay production to an increase in the number of farmers who shifted to higher-yielding hybrid varieties and certified seeds.
Sugarcane output during the period also went up 18.3 percent to 1.83 million MT, from 1.551 million MT last year.
The fisheries sub-sector also performed extensively well, turning in a growth 14.23 percent for the first semester, led by a hefty 28.74 percent growth in the aquaculture sector to 843,460 MT from 655,189 MT in 2003.
Farm prices during the period improved by about 10 percent.
Total farm and fisheries output was valued at P696.1 billion at constant prices, up 5.63 percent from P659.04 billion in 2003. The strong growth in the first semester boosts hopes that the agriculture sector could exceed this year’s growth target of four percent, assuming that budgetary support is provided to keep critical interventions possible.
Agriculture analyst and executive director of the University of Asia and the Pacific Rolando Dy said, however, that the agriculture sector will have to contend with the surge in fuel prices, rising cost of imported inputs and a strained government budget.
Dy said the record-breaking 7.7-percent growth in the first quarter bolsters hopes of achieving this year’s projected full-year growth target of four percent. The UA&P projection is even rosier at four percent to five percent.
However, Dy said the DA has to pay attention to pressing concerns hounding the agriculture sector. One major concern is the dwindling budgetary support. Another is the soaring crude prices in the world market that have made it more expensive to bring imported raw materials for farm production into the country.