DA hopeful agricultural production up 2% in Q1

MANILA, Philippines — The Department of Agriculture is looking at a positive start for the year as it sees a two-percent farm output growth in the first quarter to be driven by the improved crops sub-sector, its top official said.

Agriculture Secretary Emmanuel Piñol said agriculture output may record a two-percent growth despite the typhoons that hit the Philippines in the latter part of 2016.

"Our first quarter output will still be affected by the typhoons that hit us late last year, but I think we will still be able to post positive growth," Piñol told reporters Monday afternoon.

"I wouldn’t be very optimistic but I would be happy with two percent as long as we don’t get hit again by typhoon since, with climate change, you cannot predict anything," he added.

In 2016, agricultural production fell 4.53 percent in the first quarter, weighed down by the poor output of the crop and fisheries sub-sectors as a result of the prolonged dry spell and typhoon damages.

The Agri chief is banking on the higher production in the crops sub-sector and the export market.

According to the Philippine Statistics Authority, palay (unhusked rice) and corn production is expected to significantly bounce back in the first half of 2017 due to an increase in harvest area and enough water supply following the end of the dry spell.

PSA said palay production for January to June may reach 8.54 million metric tons (MT), up 12 percent from the 7.65 million MT output last year.

Production in the first quarter alone is expected to jump 15 percent while second quarter output is seen to grow by almost eight percent.

Meanwhile, corn production for the first quarter is expected to grow by 25 percent to 2.4 million MT from 1.92 million MT last year and harvest area may be larger by about 11 percent.

"We are also expecting that there would be greater productivity after March. We will already be releasing the survival and recovery loans to the victims of typhoon that would serve as capital for production," Piñol said.

Survival and recovery loans

The Agri chief is referring to the creation of the Survival and Recovery Loan Program aimed at lending to farmers who will be hit by calamities.

The SURE program will be a two-package loaning program that is targeted to cover the areas that will be placed under state of calamities by local government units.

For the first component (survival), Agricultural Credit and Policy Council executive director Jocelyn Alma Badiola noted that farmers can borrow up to P15,000 to address immediate and emergency requirements. The money will be released within 10 days.

The second component, meanwhile, will allow farmers to borrow up to P20,000 to finance requirements for rehabilitation of livelihood activities and can be released within 30 days.

Both packages will have zero-percent interest.