Social and equity implications and public policy dimensions of innovative rice and corn technologies: the Philippine experience

Green Revolution (Masagana 99) is said to be successful in attaining its physical targets. Rice production increased and the Philippines was able to address its food security problems. However, it failed to sustainably improve the socioeconomic status of the small farmers and instead benefited only the large and already better-off landowners. The supervised and subsidized credit programs failed to make the borrowers accountable for their loans and the government investments were not recovered. By mid-1980s, millions of bad debts were condoned by the government and it had to take full responsibility for paying the loans to international financial institutions. Many innovative policy instruments were employed under GR1/Masagana 99 to be able to effectively deliver the services that farmers needed. These include: a) supervised and subsidized credit, b) membership in a cooperative was an eligibility requirement to be able to access credit support, c) program approved planting calendar, d) loan in kind (e.g. fertilizer, pesticide) – loan that will be used to pay labor cost were released in cash. The possible negative impacts of these policy instruments were, a) it gave rise/strengthened farmer-trader relationship and institutionalized credit and marketing which is disadvantageous to farmers, b) subsidized credit, low efficiency in credit collection and the eventual condonation of loans under the Masagana 99 program may have triggered or strengthened the dole-out mentality which is blamed to be the cause of the downfall of many credit cooperatives, c) as a consequence of compelling farmers to organize themselves into or join cooperatives to be able to access credit and delivery of government support-through organizations: 1) farmers tend to organize themselves for the purpose of obtaining credit and government support while those who preferred not to join these organizations were deprived of such an opportunity, 2) these cooperatives were not voluntarily organized, and 3) loan repayment rate was low. The organic farming experience show that farmers can be convinced to adopt a particular technology and take part in its promotion even without any incentive from the government. The positive factors are: a) farmers are given opportunity to meaningfully participate in rice breeding, b) technology dissemination through the 'farmer-extensionist' concept, c) freedom to choose the rice variety they would like to propagate, d) personalized style of information and education campaign adopted by the NGOs [non-governmental organizations] apparently appeal to the farmers' sense of commitment, e) approach is not only output- but outcome-oriented, f) extension agents are not only salaried workers but are committed to certain principles such as environmental conservation, self-reliance and poverty alleviation, and g) much can be learned from the NGOs and the organic agriculture movement in terms of technology dissemination. Government support to Organic Agriculture was much less than GMA [Ginintuang Masaganang Ani Program] rice and corn in terms of financial assistance to farmers, infrastructure, administrative and policy support. Promotion of modern biotechnology is still a sensitive issue in the Philippines due to the a) negative public perception about modern biotechnology/GMO [genetically modified organism], b) efforts by some sectors to conceal the identification of the kind of corn seeds available in the market added to the confusion, and c) use of creative labeling and product marketing strategies helped improved the farmers' acceptance of GM corn varieties more than the promise of high yield and reduced exposure to chemical pesticides, IBR [inbred rice] are preferred by most (51%) of the rice farmers because seed cost was much lower. Although yield net returns of HR [hybrid rice] were much higher particularly during the dry season. Farmers who can afford to pay for HR seeds usually shift from in-bred to hybrid during the dry season to take advantage of the yield difference. The participatory planning principle, however, is not yet fully operationalized on the ground. Many LGUs [local government units] merely implement program downloaded to them by the national government. System of support service delivery has negative social and equity implications.