WHERE SHOULD THE WORLD BANK FUNDS FOR FARM MODERNIZATION GO?

WHERE SHOULD THE WORLD BANK FUNDS FOR FARM MODERNIZATION GO?

For many decades now, Filipino farmers have been complaining about the same old problems: lack of farm-to-market roads, lack of agricultural machinery, lack of irrigation, and lack of post-harvest facilities. The sad part is that despite billions of pesos spent through countless government programs, the complaints remain exactly the same.

Why?

Because we have been treating farm modernization as a series of disconnected handouts instead of building a complete agricultural ecosystem.

At the risk of oversimplifying the issue, I would say that the common denominator behind many agricultural problems is the lack of machinery and the lack of systems to maintain that machinery.

If farmers had access to working equipment, they could build small irrigation systems, improve rural access roads, process their harvests faster, and reduce post-harvest losses. Sadly, what often happens is that government agencies distribute tractors, harvesters, dryers, and other equipment to farmer groups without long-term maintenance programs.

At first, everybody was happy. There are ceremonies, ribbon cuttings, and photo opportunities. But after a few years, many of those machines become junk because nobody can afford repairs or spare parts.

In government language, these units are still “serviceable.” In reality, they are rusting in the backyards of cooperatives and municipal halls.

This is why I believe Bacolod businessman Ramon Uy Sr. has identified a practical solution through the Pandayan ng Bayan program.

A Pandayan starts as a small workshop capable of repairing farm tools and equipment. Eventually, it can grow into a machine shop or even a small foundry capable of fabricating agricultural machinery locally.

That is true modernization.

Not dependence, but self-reliance.

According to Mr. Uy, farmers could eventually manufacture their own shredders, dryers, milling machines, and even tractors through localized fabrication and repair systems.

If that vision succeeds, modernization will no longer stop whenever imported equipment breaks down.

This issue becomes even more important now that the World Bank has approved a $1-billion financing package for the Philippine Sustainable Agriculture Transformation (PSAT) Program. The project aims to modernize agriculture, improve food security, and strengthen climate resilience.

The good news is that this program reportedly follows a “Program-for-Results” model, meaning funds will supposedly be released only if measurable results are achieved. That sounds promising, because for too long we have focused more on spending money than on producing outcomes.

But where exactly should the money go?

To me, the answer is very clear.

The funds should prioritize:

  1. Farm mechanization with repair-and-maintenance systems;

  2. Cooperative-based machine pools;

  3. Community processing hubs;

  4. Cold storage and drying facilities;

  5. Digital agricultural databases;

  6. Soil rehabilitation and organic farming systems.

Most importantly, every mechanization project should include a Pandayan component.

Otherwise, we will simply repeat the same expensive mistakes.

I also believe that modernization should not focus only on rice. We should diversify into high-value crops, root crops, fruits, aquaculture, and climate-resilient agriculture. Why keep farmers trapped in low-income monocropping systems?

Another major problem is post-harvest losses. Some estimates suggest that the Philippines loses up to 20% to 50% of agricultural output because of poor handling, storage, and logistics.

Imagine the tragedy of farmers working for months only to see their harvest rot before reaching the market.

That is not merely an agricultural issue. That is a national economic failure.

The truth is that the solutions have long been available. What has been missing is long-term planning, integrated systems, and political will.

If the World Bank funds are used wisely, this could finally become the turning point for Philippine agriculture.

But if the money is wasted on fragmented projects, ceremonial handouts, and poorly maintained equipment, then we will still be hearing the same complaints from farmers another fifty years from now.

RAMON IKE V. SENERES

www.facebook.com/ike.seneres  iseneres@yahoo.com  senseneres.blogspot.com  09088877282/06-27-2027

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