Monday, September 29, 2008 Corporate farming solution to woes: Biz group
CITY OF SAN FERNANDO -- The country's continuing problems in agriculture can be solved by the private sectors' support to farmers through the introduction of corporate farming, according to a business group leader here.
But for this to happen, Pampanga Chamber of Commerce and Industry (PamCham) president Renato Romero said serious government legislation is needed to bring both agricultural and business sectors together in mutual cooperation.
He said his group believes that the problems of funding and professionalizing the agricultural sector can be addressed through collaboration with the business sector.
Corporate farming is a concept wherein the business sector or entities would pour in financial and administrative aid to farm producers. This, in turn, would translate to more financial power on the part of the farmer and sure marketing revenue for both producer and business partners.
Romero said recently that the agricultural sector has been "long at odds" because of the lack of effective fiscal plans, specifically among farmers.
He said the rights of farmers to better receive the market benefits of their products is through an "agricultural corporate" arrangement that would help farmers in the business aspect of the farming process.
Romero said farmers find it more and more difficult to produce farm products and recover from the cost of production because of low value goods and poor marketing.
He said the ailing government programs for farmers could be compensated by the business sector through an enabling legislation that would set the provisions for corporate farming.
Romero said legislation should make corporate farming possible.
Options, he said, should be given for corporations to either directly manage the farming or can enter into contract with farming cooperatives and other related institutions or some joint venture arrangements, especially with those who are agrarian reform beneficiaries.
"The agriculture sector has a direct effect on all other areas of business. Any amount of development among our businesses would not be entirely felt if our people could not have food security and stable food prices," he said, adding that once agriculture is given the professionalism of mainstream business, it would not be long to see more affordable agricultural products.
The PamCham president added that government should also make sure that basic farm to market roads, driers, and other support infrastructure are in place to make any collaborative plans effective.
While there is no enabling law, Romero said PamCham is doing its part in the province to contribute to the development of the agricultural sector. He said PamCham is encouraging its member enterprises to focus attention on agribusiness.
"Private sector subscribes to the idea that the path to food security is through increasing agricultural productivity by removing policy biases against agriculture and making agriculture more conducive to investments," he added. (IOF)
