The agriculture sector looks forward to the national government's consistent commitment to modernize farming as it seeks a P50-billion budget in 2010 which must include higher financing for research and development (R&D).

While the Department of Agriculture (DA) has obtained a P45-million budget for 2009, it maintains it needs a higher amount for 2010 even as agriculture should also be pouring in a bigger amount of investment for R&D consistent with the United Nations' recommended rate. DA Sec. Arthur C. Yap has been pushing for this budget in order to buttress its FIELDS program which includes those for good financing, extension and research, seeds, drying and other post harvest facilities.

"There's a report that budget may be reduced for next year. But we really need to implement AFMA (Agriculture and Fisheries Modernization Act)," to improve farmers' livelihood, according to DA-Bureau of Agricultural Research (BAR) Director Nicomedes P. Eleazar, in an interview at an R&D planning program.

At the estimated P600 to P700 million budget allocation for agriculture R&D, Eleazar said the Philippines is undermining the value of agriculture and agricultural R&D which exposes it to weakness and perhaps trade vulnerability from its neighbors.

"This is really an underinvestment if you compare it to Malaysia, Korea, Taiwan and Indonesia which are investing in research and development at a rate of two to three percent. At P600 to P700 million, this is just 0.3 percent of the gross value added (GVA) in agriculture. AFMA indicated this should really be raised to at least P2 billion per year," he said.

Nevertheless, government's investment in agriculture has widely improved since Sen. Edgardo Angara, a former DA Secretary, pushed for the passage and implementation of AFMA, he said.

Taiwan which has modernized its agriculture sector has been infusing an investment in agriculture research equivalent to a big 3.4 percent of its GVA. Thailand has been putting in 1.6 percent and Malaysia 1.1 percent. This is higher than the United Nations' recommended level which is at least one percent of gross value added in agriculture in order to create a significant impact in the sector.

DA is currently drafting its R&D Extension Agenda and Programs (RDEAP) for 2011 to 2015 which implements AFMA's goals.

This is sustaining its program to develop two million hectares of idle and marginal lands for agribusiness development.

Under this, priority crops for develoment are coconut, high value crops (mango, vegetables), sugarcane, abaca, corn, livestock, and fisheries products like tilapia, milkfish, seaweeds, prawn, abalone, and crab. The land expansion is under Goal 1.

Goal 2 involves cost reduction of wage goods. Priorities include rice, yellow corn for feeds, pork, chicken, chicken eggs, tilapia, bangus, tropical and semi-temperate vegetables.

"Other commodities which show bright market potential are also considered (including) rubber, palm oil, cacao, coffee and tea, root crops, fiber crops, and indigenous vegetables which are potent sources of natural medicine, said Eleazar.

"The RDEAP will be the basis in planning and implementing our RDE programs and projects for the medium term. SUCs (state universities and colleges) and local government units will use this as reference for program implementation."