The Policy Environment of Vegetable-Agroforestry System in the Philippines: Are there incentives for smallholders?

Abstract

Vegetable-agroforestry (VAf) is a viable farming system that integrates vegetables in tree-based system, or vice-versa. However, its viability is constrained by myriad factors, including farmers’ inability to invest in the system, inadequate institutional structures to facilitate information flow, and lack of market incentives. Policy incentives are thus needed to stimulate smallholder investments in VAf. In the Philippines, the policy environment is supportive of VAf, but is insufficient in stimulating smallholder investments. Incentives for smallholders are limited while disincentives persist. Large farmers benefit more from national-level policies than smallholders because they have more access to information and can leverage the costs of implementation. Some issues are better resolved through national-level policies, while others can be effectively addressed through locally-formulated policies. For the vegetable sector, price regulation, commodity protection, cost reduction across the value chain, removing non-tariff barriers, and global trade issues can be addressed through national-level policies, whereas transaction costs, land tenure and resource rights, and domestic and international market incentives are for the tree sector. At the local level, promoting smallholder investments in VAf requires policies that address extension issues particularly on technology provision, market linkages and infrastructure support. Where national-level policies do not effectively address the needs of smallholders, locally-crafted policies are needed to offset this gap. Policy linkages between national and local levels need to be established, and policymakers need to mobilize adequate responses at both levels. Finally, the viability of VAf depends on a whole set of policies that government can provide. It is therefore a political imperative.