Tuesday, August 10, 2004
DAR study: Land ownership increases farmer’s income
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Poverty is not always tied to the lot of farmers. Poverty incidence actually decreases when land tillers are already installed and productively working in the lands awarded to them through the Comprehensive Agrarian Reform Program (CARP).
Results of the Department of Agrarian Reform’s (DAR) ARCs Level of Development Assessment (ALDA) showed that average annual agrarian reform beneficiaries (ARBs) income increased by 11% in 2003 to P82,036.85 from P73,845.18 in 2001.
On a monthly average, this means that an ARB’s income rose to P6.836.40 in 2003 from P6,153.765 in 2001 or to P262.93 from P236.68 divided in 26 days.
ARB families who already own the lands they till enjoy income which in 2003 is 38% higher than the P4,961 monthly income requirement in the meeting food and non-food basic needs of a family of fived based on the 2002 annual per capital threshold rate released by the National Statistical Coordination Board early this year.
In the most landholdings nationwide where the land acquisition and distribution (LAD) phase of the CARP has already been completed, the biggest contribution to ARBs total household income is from farm income.
In the last three years, farms income’s contribution to total household income was 59%, while the rest came from off the farm and non-farm income.
The ALDA result resembles the conclusion of a study done by the Philippine Institute of Development Studies in 2002 authored by Celia Reyes titled "Impact of Agrarian Reform on Poverty."
Using data from about 1,500 farm households, the study concluded that "agrarian reform has had a positive impact on farmer beneficiaries... (which) led to higher per capital incomes and reduced poverty incidence between 1900 and 200."
The study further noted that: "Compare to non-agrarian reform beneficiaries tend to have higher incomes and lower poverty incidence. Moreover, complimentary inputs such as irrigation, credit and government services tend to increase the chances of farmer-beneficiaries to be non-poor."
Increase in the CARP budget for LAD and government support services would guarantee improved sources of livelihood among farmer-beneficiaries.
To date, there are still 800,000 hectares – mostly composed of private agricultural landholdings – that need to be distributed to ARBs.
ALDA results for 2003 meanwhile showed that in terms of support services to ARBs in 5,525 agrarian reform communities (ARCs) nationwide, 34% of these ARCs still need access to power supply, 6% remain without access to portable water supply, remaining 37% require farm-to-market roads, 57% need bridges, 40% require irrigation system, 22% need access to pre and post harvest facilities, 38% still have no access to livelihood loans and 68% on multipurpose loans.
ARBs in other Asian countries enjoyed increase in their incomes after the successful implementations of their respective land reform programs.
In Taiwan, for instance, the post World War II land reform, increased rice yields by an average of 60% and farm incomes by 150%. Taiwanese farmers also increased the wealth of their neighbors as they spent yearly 50% more on clothing, 155% more on bycicles, 418% more on building new homes and 174% more on renovating new ones.
In Japan, land reform is said the world’s most successful poverty alleviation program as it gave former tenant farmers new incentives which paved the way for the rapid growth of Japanese agriculture.
Meanwhile, in China, a rapid return of the land to individual small holders was made in the 80s which later led to the success of promoting market-oriented agriculture.
July 08, 2004, Manila Bulletin
Results of the Department of Agrarian Reform’s (DAR) ARCs Level of Development Assessment (ALDA) showed that average annual agrarian reform beneficiaries (ARBs) income increased by 11% in 2003 to P82,036.85 from P73,845.18 in 2001.
On a monthly average, this means that an ARB’s income rose to P6.836.40 in 2003 from P6,153.765 in 2001 or to P262.93 from P236.68 divided in 26 days.
ARB families who already own the lands they till enjoy income which in 2003 is 38% higher than the P4,961 monthly income requirement in the meeting food and non-food basic needs of a family of fived based on the 2002 annual per capital threshold rate released by the National Statistical Coordination Board early this year.
In the most landholdings nationwide where the land acquisition and distribution (LAD) phase of the CARP has already been completed, the biggest contribution to ARBs total household income is from farm income.
In the last three years, farms income’s contribution to total household income was 59%, while the rest came from off the farm and non-farm income.
The ALDA result resembles the conclusion of a study done by the Philippine Institute of Development Studies in 2002 authored by Celia Reyes titled "Impact of Agrarian Reform on Poverty."
Using data from about 1,500 farm households, the study concluded that "agrarian reform has had a positive impact on farmer beneficiaries... (which) led to higher per capital incomes and reduced poverty incidence between 1900 and 200."
The study further noted that: "Compare to non-agrarian reform beneficiaries tend to have higher incomes and lower poverty incidence. Moreover, complimentary inputs such as irrigation, credit and government services tend to increase the chances of farmer-beneficiaries to be non-poor."
Increase in the CARP budget for LAD and government support services would guarantee improved sources of livelihood among farmer-beneficiaries.
To date, there are still 800,000 hectares – mostly composed of private agricultural landholdings – that need to be distributed to ARBs.
ALDA results for 2003 meanwhile showed that in terms of support services to ARBs in 5,525 agrarian reform communities (ARCs) nationwide, 34% of these ARCs still need access to power supply, 6% remain without access to portable water supply, remaining 37% require farm-to-market roads, 57% need bridges, 40% require irrigation system, 22% need access to pre and post harvest facilities, 38% still have no access to livelihood loans and 68% on multipurpose loans.
ARBs in other Asian countries enjoyed increase in their incomes after the successful implementations of their respective land reform programs.
In Taiwan, for instance, the post World War II land reform, increased rice yields by an average of 60% and farm incomes by 150%. Taiwanese farmers also increased the wealth of their neighbors as they spent yearly 50% more on clothing, 155% more on bycicles, 418% more on building new homes and 174% more on renovating new ones.
In Japan, land reform is said the world’s most successful poverty alleviation program as it gave former tenant farmers new incentives which paved the way for the rapid growth of Japanese agriculture.
Meanwhile, in China, a rapid return of the land to individual small holders was made in the 80s which later led to the success of promoting market-oriented agriculture.
July 08, 2004, Manila Bulletin
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