Full-year agri growth forecast at 3-3.5%

MANILA, Philippines - DAVAO CITY – Full-year farm growth for 2011 is likely to range from three percent to 3.5 percent, Agriculture Secretary Proceso J. Alcala and Bureau of Agricultural Statistics (BAS) director Romeo Recide said yesterday.

Alcala and Recide said growth this year will be pulled down by an expected dismal fourth quarter performance which was adversely affected by typhoons Mina, Quiel, Pedring, Juaning and Falcon.

Alcala had been previously optimistic that the agriculture sector would be able to post a full-year growth of five percent this year following the 5.48 percent growth realized in the first half of the year.

Alcala pointed out that the sector performed better than projected, with the third quarter posing a 4.28 percent growth.

Unfortunately, Alcala admitted, the 4th quarter growth is expected to diminish the previous three quarters’ gains, even though he refused to project the fourth quarter performance.

Meanwhile, Alcala yesterday assured closer coordination with the World Bank and local government units in ensuring that foreign-assisted projects and programs are implemented more quickly.

During a joint regional meeting here, it was revealed that loan disbursements for the Mindanao Rural Development Program 2 has improved to 25.42 percent with total disbursements of $21.29 million out of the disbursement target of $83.752 million.

Physical accomplishment is placed at 23.91percent.

It was revealed that the low disbursement in the past was due to some disagreements among the National Government agencies and the LGUs regarding cost sharing.

The National Economic and Development Authority (NEDA) had previously set a 50-50 cost sharing.

Unfortunately, World Bank executive Mark Woodward said, poor LGUs do not have the same financial capacity as rich LGUs, thus necessitating a more “nuanced” approach to cost sharing.

Woodward acknowledged though that under the leadership of Secretary Alcala, the issue of cost sharing is finally being resolved.