By Krystal Anjela H. Gamboa, Special Features and Content Writer
For decades, Philippine agriculture has carried a paradox. It remains one of the country’s most essential sectors, feeding millions, supporting rural livelihoods, and sustaining local economies, yet it continues to lag behind many of its Southeast Asian neighbors in productivity, modernization, and competitiveness.
For Southeast Asian Regional Center for Graduate Study and Research in Agriculture Director Dr. Mercedita A. Sombilla, the answer lies not in a single reform, but in a coordinated push involving technology, education, policy reform, financial literacy, and stronger partnerships between government and the private sector.
“Agriculture contributes only 9%-10% of our GDP, but it’s the bloodline of our people, supporting over 7 million living in the rural area,” Dr. Sombilla stated during the first fireside chat of this year’s BusinessWorld Economic Forum last May 18.
While agriculture’s economic contribution may appear modest compared to the services and industrial sectors, its social importance remains immense. However, agriculture here is observed to be continuously struggling with long-standing systemic problems.
“Growth in agriculture has been elusive for systemic reasons, like climate change, weak infrastructure, [and] technology has not been really adapted. Mechanization [in the Philippines] is the lowest among ASEAN countries,” Dr. Sombilla explained.
The Philippine agricultural sector has long suffered from low productivity compared to neighboring ASEAN countries such as Vietnam and Thailand. Many Filipino farmers still rely on labor-intensive methods, making production slower, less efficient, and more vulnerable to disruptions.
Weak farm-to-market infrastructure further compounds the problem. Poor road networks, inadequate irrigation systems, and limited cold storage facilities increase post-harvest losses and reduce farmers’ profitability.
Climate change has also intensified the vulnerabilities of the sector, with stronger typhoons, irregular rainfall patterns, droughts, and flooding threatening both crops and livelihoods.
These challenges demonstrate that agricultural reform cannot focus solely on increasing production. It must also address the broader ecosystem surrounding farmers, from land policies and financing systems to climate adaptation and digital transformation.
Rethinking land use and farm scale
Dr. Sombilla raised land fragmentation as one of the most pressing structural concerns in Philippine agriculture.
Under existing agrarian reform policies, many farmers operate on small plots of land that limit economies of scale and discourage large-scale investment in technology and mechanization.
“One of the reforms we need to look into is to enable farmers to get out of that five-hectare limit. Farmers would be able to lease the land that can potentially improve the scale,” Dr. Sombilla said.
Fragmented landholdings make it difficult for farmers to maximize productivity or attract private investment. Modern machinery, precision agriculture systems, and efficient irrigation technologies are often expensive and impractical for very small farms.
By allowing more flexible land leasing arrangements, farmers may gain opportunities to consolidate operations, improve efficiency, and participate in larger agricultural value chains. Larger-scale farming could also encourage agribusiness partnerships, contract farming models, and more strategic investments in post-harvest facilities.
“The problem is the fragmentation of land. If we could solve that, the farmers would know how their lands will develop,” Dr. Sombilla stressed.
Dr. Sombilla emphasized that solving land fragmentation could unlock stronger private sector participation. Private companies can help introduce technology, improve logistics, strengthen supply chains, and create more stable markets for farmers. However, long-term investments often require greater predictability and operational scale.
Digitalization and modernization
Across Southeast Asia, agriculture is rapidly becoming more technology-driven. Countries are increasingly investing in precision agriculture, climate monitoring systems, artificial intelligence, drone technology, automated irrigation, and digital marketplaces.
For the Philippines to remain competitive in the region, Dr. Sombilla emphasized that modernization can no longer be optional.
“We really need to invest in [technology] and digitalization,” she said.
Digitalization can improve nearly every stage of agricultural production. Farmers can use weather forecasting applications to plan plating schedules, digital payment systems to access financial services, and online platforms to connect directly with buyers.
Mechanization and smart farming tools can also reduce labor costs while increasing yields. In climate-vulnerable areas, digital systems may help farmers anticipate weather disruptions and respond more quickly to disasters.
Beyond improving productivity, digital transformation can make agriculture more attractive to younger generations who are already immersed in technology.
Dr. Sombilla also highlighted the importance of ensuring that Philippine agriculture aligns with broader regional goals.
“I would also want to emphasize that our agriculture should be aligned with ASEAN strategies to perform that will enable them to compete with our ASEAN partners,” she said.
ASEAN member-states have increasingly prioritized regional food security, sustainable agriculture, and climate resilience. Aligning Philippine agricultural policies with regional frameworks may help improve trade competitiveness, encourage knowledge sharing, and facilitate cross-border investments.
Encouraging the next generation
Besides land fragmentations and modernization, another urgent concern Dr. Sombilla noted is the aging population.
“The average age of farmers is now 55 to 60 years old. We need to tell the youth [that in joining the agriculture sector], they are contributing to sustainability, preservation of natural resources,” she said.
Many young Filipinos perceive agriculture as physically demanding, financially unstable, and lacking long-term career opportunities. As a result, fewer young people are entering the sector, raising concerns about the future sustainability of local food production.
Changing this perception requires more than simply encouraging youth participation. Agriculture must also become more innovative, profitable, and technologically advanced.
Modern agriculture now involves data analytics, drone operation, agribusiness management, biotechnology, logistics, and sustainability practices. By positioning agriculture as a field linked to innovation and environmental stewardship, policymakers and educators may be able to attract younger talent.
Youth engagement is also closely tied to climate action as younger generations are increasingly concerned about sustainability and environmental protection—areas where climate-smart agriculture can play a critical role.
Scaling climate-smart agriculture
As climate risks intensify across Southeast Asia, climate-smart agriculture practices are increasingly becoming important.
“What we really need is to strengthen our training so we can scale out these climate-smart practices,” Dr. Sombilla said.
Climate-smart agriculture includes techniques that improve productivity while strengthening resilience against environmental threats. These practices may include drought-resistance crops, water-efficient irrigation systems, and sustainable land management.
However, adoption remains uneven due to limited training opportunities, inadequate extension services, and lack of access to financing.
Dr. Sombilla highlighted the need for stronger institutional coordination in helping farmers adapt to changing climate conditions.
“All of these agencies should work together—Department of Agriculture, PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration),” she added. “We should ask, ‘How should farmers respond to that?’.”
Interagency coordination could help farmers receive more timely and practical information, particularly in preparing for typhoons, droughts, and shifting weather patterns. Weather data alone is insufficient if it does not translate into actionable guidance for farmers.
Building financial literacy, farmer capacity
Access to financing remains another major obstacle for many farmers.
While loan programs and agricultural credit facilities exist, financial inclusion in rural communities remains limited. Some farmers struggle to manage loans effectively, increasing the risk of debt.
“They need to improve their financial literacy. Teaching farmers how to open accounts and save can help,” Dr. Sombilla explained.
Financial inclusion can also help farmers become more resilient during crises. Savings accounts, crop insurance, digital banking, and better access to credit may allow rural communities to recover more quickly after natural disasters or market disruptions.
