359-Article Text-678-1-10-20160924 PDF
359-Article Text-678-1-10-20160924 PDF
359-Article Text-678-1-10-20160924 PDF
Andrea Santiago a *
De La Salle University
Fernando Roxas b
Asian Institute of Management
Submitted July 20, 2014 / Revised September 15 and December 26, 2014, and January 25, 2015 /
Accepted May 1, 2015 / Published online August 25, 2015
Citation: Santiago, A., & Roxas, F. (2015). Reviving farming interest in the Philippines through
agricultural entrepreneurship education. Journal of Agriculture, Food Systems, and Community Development,
5(4), 15–27. http://dx.doi.org/10.5304/jafscd.2015.054.016
farmers bear all the production risks even if they urban areas is a phenomenon typical of many
gain only small margins. It thus makes sense for developing countries, the Philippines included.
farmers to integrate forward, alone or in partner- Urban migration places a strain on resources which
ship with entrepreneurs, and become agricultural have to be diverted to addressing the ills of densely
entrepreneurs. populated areas, such as increasing criminality and
Smit (cited in Richards & Bulkley, 2007) unsanitary conditions (Tacoli, 2011). The attraction
believes that entrepreneurship should be at the of moving to the cities has also led to young people
core of farming. If a farm can be considered a firm, leaving the farms they grew up on, leaving the till-
and the farmer the owner, then certainly the farmer ing of the soil to the older generation, who have no
must be equipped with entrepreneurial skills to one to pass the farms to. Some farmers near cities
manage the farm profitably and to surmount the are able to sell their land to investors who convert
challenges faced by the agricultural sector. We refer the land to non-agricultural uses (Vallianatos, Gott-
to these special skills as agripreneurial skills, while lieb, & Haase, 2004), but the rest simply cultivate
we label the farmer turned entrepreneur as the agri- their farms for subsistence purposes alone. Conse-
cultural entrepreneur or agripreneur. We provide quently, there are fewer agricultural producers
new terminology for ease in referencing, as the feeding a growing population. It is said that devel-
generic terms of entrepreneur, entrepreneurial, and oping countries would need to almost double their
entrepreneurship are usually associated with indus- agricultural production to meet their population
trial or non-farm activity (Richards & Bulkley, levels in 2050 (FAO cited in AMIS, 2011). Togeth-
2007; Singh & Krishna, 1994). We also need to er with increased productivity, improving farm
differentiate the farmer and farm manager from the incomes through entrepreneurial means contrib-
agripreneur. A farmer is concerned with cultivating utes to the economic sustainability of agricultural
land, a farm manager oversees farm operations, but communities.
an agripreneur finds opportunities to make the Since the economy of many developing coun-
most of agricultural output. tries is agriculture-based, we believe that various
Following the proposition that increased entre- sectors in society should collaborate in a more
preneurial activity can break the poverty cycle, we focused manner to arrest urban migration. This
expect that the rise of agripreneurs will improve collaboration is possible by supporting agricultural
the standard of living of the rural poor. This entrepreneurship (or agripreneurship) education.
debunks the common misconception of youth that Beyond farming and farm management training,
farming is a poor person’s job. When agripreneurs emphasis should be given to the entrepreneurship
are able to utilize business processes and resources side, providing skills related to opportunity seeking,
to convert agricultural commodities into higher- value creation, risk management, resource genera-
margin products, they can compete even in the tion, and commercialization, among others
export market. Value creation at the farm level (Knudson, Wysocki, Champagne, & Peterson,
stimulates greater farm production, bringing more 2004; O’Neill, Hershauer, & Golden, 2009). With
income to the agripreneurs. Improving the pur- more individuals exposed to agripreneurship,
chasing power of agripreneurs and farmers makes developing countries can generate more agripre-
them a viable consumer market base, thus further neurs, who will be able to create more value for
stimulating economic activity (Timmer, 2005). An their produce.
ideal outcome of agripreneurship education would
be the stabilization of rural populations, numbers The Case of the Philippines
of farms, and farm acreage under production. Moves by the Philippine government to support
An aditional benefit might also include less agripreneurship are timely. Despite efforts to
congestion in urban areas: currently, rural dwellers increase farm productivity, crop production from
abandon farmlands in favor of employment in 13 milion hectares of land grew marginally from 87
urban cities to obtain predictable income streams million in 2011 to 88 million metric tons in 2012.
(McElwee & Annibal, 2009). The migration toward Despite the increase in output, crop production in
2012 was valued at P797 million, down from P802 outcomes if the farmers remain focused only on
million in 2011 (Philippine Statistics Authority land cultivation. While agricultural productivity is
[PSA], 2013). Even for rice, a basic staple of Fili- important, training programs must emphasize the
pinos, unmilled rice production reached only 18 development of entrepreneurial qualities. We
million metric tons, resulting in only 11 million believe farmers and their next generation kin need
metric tons of rice. Assuming an average annual to be equipped not only with farming skills but,
consumption of 115 kilograms per person, the more importantly, with entrepreneurial skills. This
Department of Agriculture estimates that produc- allows a shift from producing more of the same
tion should reach at least 20 million metric tons to crops to selling value-added produce.
feed close to 100 million people (Cai, 2013). The It is encouraging that the Philippines Depart-
difference between what is milled and what is ment of Agriculture has finally recognized the
needed for consumption has been covered so far importance of agripreneurship, as embodied in the
by importation. Milled rice is imported primarily Philippine Agriculture (PA) 2020 plan. This strate-
from Vietnam, which produces rice at a small gic plan aims to have a “farmer-focused, market-
fraction of Filipino rice production cost (Bordey driven agriculture that attempts to transform tradi-
& Litonjua, 2013). tional small farmers into entrepreneurs” (Santiago,
The Department of Agriculture has boldly 2014). With this aim clearly in place, we are hope-
promised that the Philippines will be self-sufficient ful that other government agencies and lending
in rice, but continued exposure to natural disasters institutions will give Filipino agripreneurs a fighting
threatens this goal, even assuming that rice self- chance to rise above poverty.
sufficency is an efficient economic policy
(Fernandez-San Valentin & Berja, 2012). Indeed, Addressing the Gap with Education
climate change has not made it easy on Filipino Education plays a critical role in changing mind-
farmers, who have to contend with hotter dry sets. For the PA 2020 plan to be achieved, the
seasons and wetter rainy seasons, even in areas formal education system will need to emphasize
previously unaffected by unpredictable weather the relevance of agricultural entrepreneurship. In
conditions. Efforts continue to enhance agricul- the Philippine education system, the Department
tural as well as fisheries productivity, however. of Education supervises basic education, the Tech-
Enabling laws have been enacted to introduce nical Education and Skills Development Authority
reform in agriculture, such as the Organic Agricul- supervises technical and vocational training, and
tural Act of 2010 and the Agriculture and Agrarian the Commission on Higher Education supervises
Reform Credit and Financing System through higher education. A problem with the basic educa-
Banking Institutions. known as the Agri-Agra tion sysyem is that for decades it has focused on
Reform Credit Act of 2009. Despite the law preparing students for college. This emphasis is to
compelling banks to allocate ten percent of their encourage students to take the route of higher
loan portfolio to the agricultural sector, the Philip- education to improve their employability. Unfor-
pine Central Bank reports that there is a huge tunately, not all college graduates are able to obtain
shortfall in lending, forcing banks to comply with employment in their field of study (Rosero, 2013).
their legal mandate by channeling funds to infra- Often they are overqualified for available jobs. This
structure projects in the agricultural sector (Martin, is one of the reasons why the Department of
2014). Education has adopted a 12-year basic education
We believe that one of the main causes of the program, beginning with the academic year 2012-
failure of government initiatives to grow the agri- 2013, which introduced a two-year senior high
culture sector has been the focus on productivity school program that allows high school students to
rather than on entrepreneurial activity. Investments choose tracks other than college preparation
in better technology, improved irrigation systems, (Okabe, 2013).
disaster-resistant crop species, and even in better For this analysis, we focused on two tracks
farm-to-market roads will not result in expected introduced by the Department of Education in the
the school system, the Pilipinas Shell Foundation FFS concept with slight variations in target
Inc. (PSFI) introduced the Sanayan sa Kakayahang market and delivery. Instead of providing an
Agrikultura (SAKA) project in the mid-1990s, alternative high school, the FBS aims to teach
which helps out-of-school youth to transition into agricultural entrepreneurship to out-of-school
agripreneurship. Similarly, the Management youth who have finished their secondary
Association of the Philippines (MAP) has also education, and who are not necessarily
introduced its version of the FFS, but this time children of farmers. FBS students have a
catering to high school graduates who were unable study-now, pay-later plan. The privately
to pursue higher education. funded school led by the Meralco Foundation
Inc. (MFI) is located on a 60-hectare farm,
SAKA Program. Recognizing the need to where students immediately apply what they
support agriculture education, the PSFI learn (Morales, 2008). The MFI collaborates
originally designed a two-year, non-degree with the University of Rizal System, so that
program for out-of-school youth that even- students who finish their coursework can
tually became a one-year program. In the continue to a college degree in entrepreneurial
program, 70 percent of the time the students management (MFI, 2009).
are in the field. Graduates of the SAKA The MFI expects students to spend one
program earn a certificate in farm manage- month in school and three months in a farm
ment. The PSFI then helps them gain access selected by the school, a cycle followed six
to microcredit to implement their back-to- times through the program. Thus, students
farm projects. receive exposure to six different farms in two
Habaradas (2012) presents many stories of years (R. Gayo, MFI executive director, per-
how SAKA has influenced the lives of its sonal communication, July 16, 2012). When in
graduates. For instance, Warlito Ligot, a native school, students learn management and entre-
of Cagayan Valley, studied under the SAKA preneurship skills. After completing the
program supervised by Cavite State University program, the graduates either pursue further
in 1995. He immediately applied what he education in agriculture and manage small
learned by setting up a modest farm. He was farms.
able to make his farm productive even when
the entire province where his farm was located Young adults pursuing higher education
suffered from a drought. He learned he had to generally prefer to enroll in programs that will lead
spread production risks so he engaged in a to employment. The latest education report of the
variety of farm activities. In 1999, the Depart- Philippine Statistics Authority reveals that 3.3 mil-
ment of Agriculture named him “Most Out- lion students enrolled in tertiary education for
standing Young Farmer.” Marinez Seracarpio- academic year 2012–2013. The top five discipline
Dingcol, a 1998 SAKA scholar who studied at groups with an aggregrate enrolment of 2.4 million
Pampanga Agricultural College, used a liveli- students were business administration, education,
hood loan she availed herself of from the Land engineering, information technology, and medicine.
Bank of the Philippines upon her graduation to The discipline group of Agriculture, Forestry,
convert her father’s idle farmland into an Fisheries, and Veterinary Medicine had a total of
integrated animal-plant agricultural system. She 81,000 students. For the last eight years, enrollment
quickly turned around her investment, earning for this group has been constant at two percent of
enough to purchase her own farm. As she the higher education population (PSA, 2015).
gained repute for her skills and knowledge, The low enrollment in the agricultural disci-
other farm owners invited her to manage their pline group, despite its priority status, reflects a
farms. disinterest in pursuing a life in agriculture (Suarez,
2012). Packaged as a bachelor of science in agri-
Farm Business Schools. The FBS uses the culture program with an emphasis on crop
production, it has been a course of study for those sustainable community development, “Silicon
interested in research, and thus does not have Valley” for social entrepreneurship, and
general appeal. “Disneyland” for social tourism (GK, 2014).
The Commission on Higher Education For its first site, GK invited families to
approved the offering of a bachelor of science in relocate to an unproductive farmland, where
entrepreneurship in 2005, and a bachelor of science volunteers built their homes in an adjacent
in agribusiness in 2007. A review of the entrepre- area. Then, GK invited young college
neurship program shows specialized subjects that graduates to start enterprise using the
hone some entrepreneurial skills, as well as one farmland produce as the main ingredients of
possible elective on Agricultural Entreprenuership, their products or to employ the community
while the agribusiness degree offers agriculture and members. In exchange, the entrepreneurs
management courses, but no subjects on entrepre- could sell their farm-processed goods in the
neurship. A gap still exists, because entrepreneurial village farm, which attracts thousands of local
activites in the agriculture sector require an appre- and foreign tourists weekly through various
ciation of the cultivation side⎯a mastery of activities organized by GK. From the social
managerial responsibilities⎯as well as the skills innovation concept arose Bayani Brew, a
and determination of an entrepreneurial mind. This brand of healthy drinks; Golden Duck,
gap can be addressed by the introduction of a producer of turmeric-soaked salted duck eggs;
bachelor of science in agricultural entrepreneur- Gourmet Keso, producer of artisan cheeses;
ship. No Philippine university or college is offering Theo&Philo Artisan Chocolates, producer of
this course. In the absence of such a degree, how- artisan chocolates; and Human Nature,
ever, the Gawad Kalinga Foundation, a nongov- producer of personal care products.
ernmental organization, has created an agriculture The CEO of GK, Antonio Meloto, claims
laboratory where university graduates are given that the GK Enchanted Farm is the first farm
opportunities to venture into agribusinesses. village university in the world (personal
communication, August 20, 2012). Meloto,
Social Enterprise Model. The Gawad explained that the GK model uses its village
Kalinga Foundation (GK) is a nongovern- farms as a live business incubator for budding
ment organization that sprang from a desire entrepreneurs from middle-class families in
to help build community. It began with urban areas. He targeted the middle-class
volunteers building houses for the poor and because he believes they have more means to
eventually evolved to include education, pursue entrepreneurial activities than the
health, environment, and livelihood lower classes. He has personally convinced
(Habaradas & Aquino, 2010). In 2011, GK graduates of prestigious universities in the
officially launched the GK Center for Social Philippines to invest in agriculture-related
Innovation (CSI). Its target is to generate businesses.
500,000 social entrepreneurs who will create The young entrepreneurs are required to
five million jobs in agriculture, technology, follow fair-trade policies, and by doing so are
and tourism⎯ending poverty for five mil- able to market their produce as GK brands.
lion⎯by 2024 (Meloto, 2011). GK launched As their businesses prosper, the communities
the program in the GK Enchanted Farm, they work with prosper as well. Meloto
which serves as a business incubator for envisions that the community workers will
enterprises in agriculture. The 34-hectare farm develop entrepreneurial skills due to their
in Angat, Bulacan, is the first of 24 such sites exposure to the young entrepreneurs. Once
that the CSI hopes to establish in major they have saved enough, the community
provinces. workers can start their own enterprises
The three components of the GK (Meloto, personal communication, August 20,
Enchanted Farm are the university village for 2012). Already, community workers have
begun to venture into small home-based educated farmers tend to be more productive since
businesses (Dehesa, 2013). they are receptive to new technology. Research by
To encourage the younger generation to Corbett (2005) indicates that prior knowledge,
take an interest in the agricultural sector, GK creativity and cognitive mechanisms contribute
has started a campaign called “AgriCool” significantly to the process of opportunity
designed to show that agriculture is trendy (C. identification and exploitation—the foundations of
Atilano, GK entrepreneur, personal commu- entrepreneurship. This supports the case not just
nication, August 20, 2012). Through this for universal education, but also for education
program, GK sponsors the education of 44 focused on the needs of farmers.
students taking undergraduate degrees in This commentary presented four models intro-
agriculture or agribusiness. Eventually, they duced by various sectors in Philippinne society.
will be able to use the GK farm as a business Each model is appropriate for particular groups,
incubator. but the scale is too small and the length of program
too short to expect any real impact in the imme-
A good deal of work still needs to be done to diate future. This means that the country does not
change mindsets. In August 2014, a group of expect to have a sudden upsurge of young, edu-
young women with roots in the Philippines opened cated agripreneurs yet. The almost simultaneous
the School for Experiential and Entrepreneurial introduction of these programs is gaining attention,
Development (SEED), a countryside college for however, and it is important to sustain the
social entrepreneurs. SEED aims to address the momentum.
entrepreneurial skills shortage via practical and The advantage of the family farm school is that
experiential rural-based education. Partly influ- it takes into account the farming cycle. When
enced by the GK model, US-born Leslie Espinosa children of farmers are pulled out of school to help
convinced foreign-based friends Laurence their parents during planting and harvesting time,
Defontaines and Vicki Cabrera to join her in the these children are unable to complete their studies.
mission in providing quality, practical education for Consequently, they fail to develop holistically and
those with the least opportunity, mostly children of do not gain confidence about their abilities. The
subsistence farmers. They envision that this agri- FFS alternative learning system, integrating farming
entrepreneurial school will produce 20,000 social operation with school activities, encourages contin-
entrepreneurs and innovators in the province of ued classroom education of the children while
Bulacan, where the school is based. For two years, inculcating in children a love for the farm. Com-
the initial group of 47 young scholars who reside bined with values education for both children and
near Gawad Kalinga, will be exposed to the various parents, this model helps build stronger family
aspects of agriculture and enterepreneurship bonds, which supports the Filipino value of love
(Graham, 2014). for family. While there are only anecdotal accounts
about how young students and graduates eventually
Discussion and Implications pursued agriculture, the Philippine government has
Effective focus on building an entrepreneurial acknowledged that this applied farming education
mindset among agriculturalists is still lacking. The model is appropriate in rural areas and thus legis-
usual response of governments to improve output lated the establishment of one public farm school
in the agricultural sector is to invest in physical in each of the 80 provinces in the country (RA
structures or to provide training for better farm 10618, 2013). Establishment of public farm schools
productivity. These efforts are important but will complement the 15 or so farm schools
wasteful if not paired with a shift in mindset currently managed by the private sector.
(Audinet & Haralambous, 2005). Farmers need to The FFS is a farm school without a farm
become more equipped to help themselves so that within the school premises, attracting children of
they can rise above poverty (UNDP, 2008). farmers to study and live in the school compound
Atchoarena and Gasperini (2003) conclude that during classroom sessions and return to their
families on designated farm weeks (Bolido, 2014). families, they generally have the means to start
The Farm Business School, on the other hand, is businesses quickly. The young entrepreneurs work
aimed at attracting out-of-school youth who do not within the existing farm community and help
necessarily belong to farming families. The improve the income stream of the community.
students reside on the campus grounds, and rather Through persistent observation and shared
than return to their families, learn about farming activities, the community workers learn from the
on the school’s farm land. They also train for three entrepreneurs how to account for their time and
straight months with agripreneurs who have part- resources, how to care for the quality of the
nered with the school. The immersion of students produce, and how to deal with buyers. This gives
who have had no prior exposure to farming with them more confidence to begin businesses of their
agriprenurs who have transformed their farmland own. Meloto (personal communication, August 20,
into highly profitable ventures, exposes these stu- 2012) relates how some women have begun
dents to innovative farming practices and provides processing jams from organically grown produce
opportunities to become familiar with the value and marketing these in the university village after
chain. This training with agripreneurs cycles six observing how the young entrepreneurs conducted
times through the curriculum. their operations.
Working as apprentices, these students learn The GK model works because the organiza-
from successful agripreneurs; it is hoped that this tion is highly credible. The organization is multi-
apprenticeship will translate into establishing their awarded and its founder, Antonio Meloto, is an
own farms. The Meralco Foundation Inc., pro- internationally recognized social entrepreneur who
ponent of the FBS, has yet to report officially on has won several awards. He inspires young adults,
the status of its graduates; however, from a popu- investors, and government leaders to support his
lation of six students when it first opened in 2009, cause. He believes that it is possible to end poverty
enrollment has risen to 200. in the Philippines if the poor become more pro-
Similar to FFS and FBS, the SAKA program ductive. Since many of the poor are located in rural
integrates classroom learning with actual field areas, it makes sense to encourage entrepreneur-
work. Habaradas (2012) reported several success ship in agriculture.
stories of graduates who started agriculture entre- The foregoing discussions clearly show that
preneurial ventures with funding support from the Philippines is gaining headway in agripreneur-
financiers who had been tapped by the Pilipinas ship. Government officials and legislators are
Shell Foundation, which manages SAKA. Upon picking up from the initiatives of the private sector
finishing their SAKA education, these scholars are by enacting laws in support of agripreneurship
older than typical graduates from the FFS and FBS education and developing programs in harmony
programs. This age difference could explain why with those mentioned in this paper. The Agri-
the SAKA scholars are more likely to pursue cultural Training Institute (ATI) of the Department
agricultural ventures within a shorter time after of Agriculture as well as the Technical Education
graduation. For FFS and FBS graduates, it would and Skills Development Authority (TESDA) have
appear that they would pursue advanced education redesigned some offerings to ensure that agricul-
in farm management or serve as apprentices while tural education takes into account the realities of
looking for opportunities. the rythms of farm life (TESDA, 2011). The
The Social Enterprise Model of Gawad current approaches described show how cohort
Kalinga is different from the first three in that the progression is improved by allowing students to
nonprofit organization targets fresh graduates from spend time on farms and by involving the family in
prominent schools in Manila and encourages them the education process.
to pursue entrepreneurial activities within the Likewise, agripreneurship curriculum design
organization’s 34-hectare farm, called the farm addresses the gap in the skill set of existing agri-
village university. Because graduates from promi- culture programs. Opportunity seeking and oppor-
nent schools are likely to come from well-to-do tunity screening aptitude, and development of
enterprise and marketing skills, are required for graduates who can finance entrepreneurial
agripreneurs to be able to create value on farms. businesses in the farm village university.
Rather than for the government to focus on farm We believe that investing in agricultural entre-
productivity, only to have depressed prices render- preneurship is one answer to the poverty gap that
ing a bumper crop useless, an education that hones exists in agriculture-based communities where poor
the skills for spotting opportunities and looking Filipinos are heavily represented. Farmers need to
towards value-creating products and services may learn to become innovators and risk managers.
be more sustaining. This specialized education They need to be more market-oriented and focused
becomes even more valuable as the Philippines on adding value to produce rather than just farm-
opens its doors to Association of Southeast Asia ing and selling their produce at farm-gate prices.
Nations (ASEAN) economic integration. Since the This is where education⎯not only for current
Philippines is not likely to be price- competitive farmers but also for next-generation agripre-
compared to Malaysia, Indonesia, Thailand, and neurs⎯comes in.
Vietnam, which have economies of scale or Obviously, agripreneurs would need more than
efficient logistics chains, the country would be just skills to make a significant impact in far-flung
better off competing on the basis of product agricultural communities. The government con-
differentiation rather than farm productivity and of tinues to invest in the farm-to-market roads,
innovation rather than lower prices. This scenario bridges, and nautical highways required for
can be achieved if Filipino farmers become more efficient and effective inter-island transfer of goods
entrepreneurial. in an archipelago of 7,000 islands. These invest-
ments constitute the “hardware” needed to
Conclusion empower agripreneurs. The Department of Edu-
Despite being a predominantly agriculture-based cation and the Commission on Higher Education
economy, the Philippines has become a net need to make available the “software”⎯the
importer of agricultural goods. Part of the problem agripreneurship curriculum⎯to those Filipinos
is the apparent disinterest to till the soil, largely willing to stake their future in agricultural
because farming is not viewed as exciting and communities.
worthwhile. Previous education techniques have Poverty in the Philippines continues to be a
focused only on the technical aspects of agricul- rural phenomenon. While the desire of government
ture. To enhance interest in agriculture, there is a to educate the rural poor and make them self-
need to invest not only in agriculture education, reliant is strong, the resources needed for such a
but also specifically in agricultural entrepreneurship program are wanting. Thus, the participation of
education. civil service organizations and the private sector is
This commentary presents various ways of a tremendous boost in this direction. There are
marrying agriculture and entrepreneurship as many approaches to take, which are not mutually
drawn from small pockets of nongovernment exclusive. What is clear is the goal of making the
intervention in the Philippines. There is the FFS agricultural poor more productive by equipping
model for young children of farmers who attend them with entrepreneurial skills and making
classroom work and who can help their parents in available financial resources to do so.
their farms during pre-determined alternate Finally, the various models presented were
periods. There is the FBS model for older out-of- initiated by the private sector at different times.
school youth who are trained in farms managed by The FFS model has taken much more time to gain
successful agripreneurs, also with alternate momentum than the GK model. Yet all four
classroom-field sessions. There is the SAKA model models seem to converge. It would be interesting
for even older adults, who earn an associate or full for researchers to map the progress of each of
degree in agripreneurship and who may be more these models and to assess their impact. The results
prepared to begin agricultural ventures. And there of the FFS model can also be compared to its
is the Social Enterprise Model, targeted at young counterparts in France and Spain, where the
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