Q&A: Agriculture Secretary Domingo F. Panganiban

TWO MILLION HECTARES FOR AGRIBUSINESS
BusinessWorld via SEAMEO SEARCA

BusinessWorld reporter Beverly T. Natividad sat recently with newly appointed Agriculture Secretary Domingo F. Panganiban to discuss his plans for Philippine agriculture. Interview excerpts below:

BW: what will be your general plan of action at the Department of Agriculture?

DP: basically I will pursue the program of government that Agriculture Secretary Yap pursued. I will continue everything he crafted in line with the government's plan. It has to continue because changing plans now will deteriorate the flow of what has been started. For example, we can't change the rice production schedules. We also have to sustain efforts to coordinate with the local government units since a timetable has been created since January. If we disrupt that now, there will be a hiatus and it will n ot be good for the agriculture sector.

BW: As an old hand at DA, are there any problems you would like to prioritize now?

DP: The Department of Agriculture's lack of funding - we'll have to go through the Cabinet with this, I can't address this alone. The DA gets an appropriation of about P11.5 billion to P13 billion yearly. About 40% of that goes to general administration expenses and 30% is spent on obligations with lending agencies - these are loans used for irrigation projects. This means that only 30% is left for the development goals of the department. For example, some much-needed funding for the Agriculture and Fisheries Modernization Act, allocated since 1997, have yet to be given until now.

BW: How much additional funding do you reckon DA needs?

DP: If the funding for agriculture can be increased to about P24 billion, then we will have a lot of leeway to develop irrigation systems in the countryside. We will tell this to the [Department of Budget and Management] and Congress - policy makers need to appreciate the problems of the DA.

BW: Has President Macapagal Arroyo spoken with you? What is her directive to you?

DP: She wants the continuation and full implementation of Mr. Yap's programs, and the fast-tracking of the development of two million hectares of new lands for agribusiness.

BW: How should DA position itself on the administration's medium-term development goals?

DP: Everybody talks about implementing programs when everybody should be doing them instead. This will be the main thrust. We will also push for more participation by local government units in the provinces. The programs are designed for the farmers, but implementing these programs should be within a partnership between the national government and local government units.

BW: How do you plan to achieve rice self-sufficiency?

DP: The basic ingredients are water and seeds. If we can improve the seeds to germinate 95% of the time, then that will be ideal. As for hybrid seeds, since they are now coming on line even abroad, we have to develop specific areas in the country that are climate-responsive to hybrid rice seeds: Cagayan Valley region, Mindoro, Quezon in the Southern Tagalog region, one province in the Bicol region, one province in Visayas and about five provinces in Mindanao. If that will be the mode, then we can tell the President Arroyo that the rice program will be on track by 2007.

BW: Will your office support private proponents of genetically engineered crops or genetically modified organisms?

DP: That is the general direction of the rest of the developing world, so we will continue it. The introduction of GMOs to farmers shows that they can reap higher profits from planting [the genetically engineered corn variety]. Farmers who have experienced higher production from planting such corn will never quit planting it. Farmers who use GMOs produce up to seven tons of corn while, comparatively, the use of the traditional variety will only give them up to three tons. Also, the use of GMOs adds about P40,000 to farmers' gross income.

BW: What changes can we expect at DA with you at the helm? Will there be restructuring or reorganization?

DP: There will be a slight reorganization in line with the goal to make everybody work on the implementation of the DA's programs.

BW: Some farmers' group and non-government organizations are concerned your programs will not be "pro-small farmers". Any comment?

DP: I don't know why they say that since I'm a farmer myself. I've worked with them and I continue to work with them. If I was anti-farmer then Masagana 99 would not have worked for the benefit of the farmers then. But my office will always be open to dialogues with farmer groups, we will never close our doors to them.

BW: This early, do you foresee any problems?

DP: The cost of farm inputs, although this is not a local phenomenon. The high prices of pesticides and fertilizers are felt all over the world. For this, we need to tap local companies that are manufacturing organic pesticides and fertilizers and harness their capability to produce for a wider consumption in the agricultural sector.

BW: How do you plan to achieve the DA's growth target for the agriculture sector of 3.8%-4% for 2005?

DP: Agriculture is a multi-sectoral activity and the government's role is regulatory in scope. But I can see the fishing sector to bring higher growth. In the Bureau of Fisheries and Aquatic Resources, for example, we have to sustain a lot of technology to improve the fishing sector. The concentration of the department is usually on rice. But rice is only one of the many components of agriculture. Growth in the fish and livestock sector is more achievable compared to rice production because you have to increase only the number of cattle, or fingerlings, so increase production. And after only 90 days you have produced a new supply already. Whereas with rice, you have to contend with a limited area.