Best Research Paper: A case study of diaspora farm resort building the future on agriculture

A CASE STUDY OF DIASPORA FARM RESORT: Building the Future on Agriculture Authors: Alena Francine M. Eballo 18, BS Economics, University of the Philippines – Diliman, Origin: Malolos Bulacan, Philippines; Christie Joy B. Bucton 20, BS Business Administration, University of the Philippines – Diliman; Surigao, Philippines Adviser: Ms. Christine Gomez

Abstract Given the importance of agriculture as “the backbone of an economy which provides the basic ingredients to mankind and now raw material for industrialization”, and the fact that the Philippines can trace its roots to agriculture, this paper aims to show how the country’s future can be carved with agriculture playing a more central role. Its main thesis is the need for agricultural modernization, i.e., to achieve a paradigm shift in the people’s perception of farming. Concepts like agripreneurship, agritourism, integrated and diversified farming, organic farming are explored to see their role in promoting a more positive mindset about agriculture. The case study of Diaspora Farm resort showed that agriculture can indeed be the key to a more progressive future through the concept of healthy farms – productive, economically viable and environmentally sustainable. Further research on other beneficial changes to modernize agriculture is recommended. Advances in agricultural education, Research and development, Established partnerships and coordination with private organizations, are some of the other initiatives to focus on.

Introduction Begin with the end in mind. This habit, made popular by author Stephen Covey, is key to rethinking the future. Clarity of purpose is the key to fruitfulness. But in its turn, identity sheds light on purpose. What one will be depends on what one is and is meant to be.

For its topography, the Philippines is clearly marked out as an agricultural country. 1 Moreover, the country’s climate is tropical and monsoonal, with relatively constant temperature during the year. This factor also contributes to the country being suitable for agriculture.

Curiously however, the Philippines has not seemed to have capitalized on this distinct characteristic. On one hand, colonization may have had a part in this. The first colonizers, the Spanish elite, focused on the galleon trade which provided higher profits through less efforts. For their part, the Americans focused mainly on government, education, and establishing new institutions. The Japanese didn’t have that much time to make a lasting change.

In the modern era, due perhaps to foreign examples, succeeding governments prioritized the industries and the services sector. As of the first quarter of 2017, Manufacturing, Trade, and Other Services were the main drivers of growth in GDP. 2 As a result, agriculture was pushed to the background and farmers were marginalized. Almost imperceptibly, there developed a certain negative stereotype around farming and farmers. With this, few young people dream of a future in this sector.

Given the importance of agriculture as “the backbone of an economy which provides the basic ingredients to mankind and now raw material for industrialization” 3, and the fact already established that the Philippines can trace its roots to agriculture, this paper aims to show how the country’s future can be carved with agriculture playing a more central role.

This paper’s main thesis is the need for agricultural modernization, i.e., to achieve a paradigm shift in the people’s perception of farming. Concepts like agripreneurship, agritourism, integrated and diversified farming, organic farming will be explored to see their role in promoting a more positive mindset about agriculture.

A number of related studies on the topic have shown the direct correlation between agricultural advancement and economic development. One study entitled: Role of Agriculture in the Economic Development of a Country, from the website www.economics.net states that: The lessons drawn from the economic history of many advanced countries tell us that agricultural prosperity contributed considerably in fostering economic advancement. It is correctly observed that, “The leading industrialized countries of today were once predominantly agricultural while the developing economies still have the dominance of agriculture and it largely contributes to the national income.”

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Philippines, Encyclopedia Britannica retrieved from: https://www.britannica.com/place/Philippines#toc23724 Bersales, L (2017) Philippine Statistics Authority retrieved from: https://psa.gov.ph/content/philippine-economy-posts64-percent-gdp-growth-first-quarter-2017 2

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Prof. Kinderberger, Todaro, Lewis and Nurkse etc., ways agriculture makes its contribution to economic development, retrieved from an article by Pragyandeepa; Role of Agriculture in the Economic Development of a Country; http://www.economicsdiscussion.net/economic-development/role-of-agriculture-in-the-economicdevelopment-of-a-country/4652

Another study entitled “Importance of agricultural sector in a country’s economic development” authored by Muharram Macatta in the IPP Media website, maintains that increased agricultural output and productivity tend to contribute substantially to an overall economic development of the country; it will be rational and appropriate to place greater emphasis on further development of the agricultural sector.

“Agriculture makes its contribution to economic development in the following ways: by providing food and raw material to non-agricultural sectors of the economy, by creating demand for goods produced among rural people … by providing employment to a vast army of undeducated, backward and unskilled labor.” 4 To back up the thesis previously mentioned, the paper focused on a case study of Diaspora Farm Resort which provides a prototype of agricultural modernization and is changing perceptions among the youth about farming.

Objectives The main objectives of this paper are: To show the importance of agriculture in a country’s development, showing how the country’s future can be carved with agriculture playing a more central role.

To give a concrete example of a practice which pioneered in this advocacy - modernizing agriculture in the Philippines.

To show new methodologies on successful farming, bringing light on how these new techniques may ignite new interests in farming and agriculture.

The researchers’ main vision is to initiate and give hope to the future of the agricultural sector of the Philippines, calling for a renewed interest on the Filipino youth and on the future generations.

Significance of the Study This study explores possible ways that our traditional farmers should do in order to be more profitable and sustainable which eventually would improve their way of living. Furthermore, this study also looks into the condition of the agricultural sector in the past and the possible outcome in the years to come given its declining condition. With the youth of today, which would be the future workforce and leaders, it is imperative to come up with solutions that focuses on achieving a paradigm shift in people’s perception in farming so as to invigorate the agricultural industry once more.

Scope and Limitations This study is mainly focused on Diaspora Farm Resort, a successful enterprise that gives possible, concrete methodologies that the researchers believe are helpful in modernizing agriculture.

The paper revolves around these three shifts: From traditional farming to agripreneurship and agritourism, From monocrop farming to integrated and diversified farming, From conventional to organic farming. Further scientific explanations and technicalities (e.g vermiculture, scientific names of integrated plant and animal species, irrigation techniques) were not included in the paper. Further research was recommended for these aspects. Furthermore, further research on preferences of youth regarding their interests and prospecting careers was also recommended to cater on the limitations of the study.

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Macatta, M. (2016) Importance of Agricultural Sector in a Country’s Economic Development. Retrieved from: http://ippmedia.com/en/features/importance-agricultural-sector-country%E2%80%99s-economic-development

Conceptual Framework

On the premise that maximizing the potential of agriculture is key to economic development, this paper posits that the first step to this could be the modernization of agricultural practices. In the first place, this will help promote heightened interest and involvement among the Filipino people, especially the youth, who are generally drawn to novelty. Three main elements of modernization were proposed in this paper based on the case study of the Diaspora Farm Resort: (a) Agripreneurship and Agritourism, (b) Integrated Diversified Farming, and (c) Sustainable Organic Farming.

Agripreneurship and Agritourism aim to widen the coverage of agriculture to include new sectors like entrepreneurship and tourism.

Integrated Diversified Farming broadens the scope of agricultural products which answers the need for variety on one hand and efficient land use on the other.

Lastly, sustainable farming touches on responsibility for the environment since it involves organic farming that does away with chemicals that are inimical not only to the land, but also to the products and the consumers.

These three elements are crucial to agricultural modernization and may hold the key to heighten awareness of and interest in agriculture especially of the young generation who in turn will be crucial players in pushing agriculture as a component of economic development.

Definition of Terms Agriculture comes from the Latin word “agre” which means field and “cultura” meaning cultivation. It is the science of farming and/or field cultivation, along with rearing of animals to provide products in sustaining human life.

Modernization is the process of updating something or making it work in a contemporary setting. It is the process of change whereby less developed societies acquire characteristics common to more developed societies. It is a continuous and open-ended process, a dynamic principle 5.

Development is a specified state of growth, advancement, and progress. It constitutes a new change in a particular situation.

Entrepreneurship is a concept that encompasses transforming an idea or vision into a “new business or new venture creation, by an individual, a team, or an established business. 6 Agripreneurship is entrepreneurship in agriculture. It has the potential to contribute to a range of social and economic development such as employment generation, income generation, poverty reduction and improvements in nutrition, health and overall food security in the national economy. It has potential to generate growth, diversifying income, providing widespread employment and entrepreneurial opportunities in rural areas. 7 Agri-tourism or also referred to as “farm tourism” is a form of tourism activity conducted in a rural farm area which may include tending to farm animals, planting, harvesting and processing of farm products. It covers attractions, activities, services and amenities as well as other resources of the area to promote an appreciation of the local culture, heritage and traditions through personal contact with the local people. 8 Integrated and Diversified Farming is the the practice of producing a variety of crops or animals, or both, in one farm, as distinguished from specializing in a single commodity. 9 Organic Farming is an integrated farming system that strives for sustainability, the enhancement of soil fertility and biological diversity whilst, with rare exceptions, prohibiting synthetic pesticides, antibiotics, synthetic fertilizers, and genetically modified organisms. 10

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https://www.britannica.com/topic/modernization Reynolds et. al. 1999, cited by Global Entrepreneurship Monitor 7 Bairwa,S., Lakra, K., et. al., Agripreneurship Development as a Tool to Upliftment of Agriculture 8 Section 1 Chapter 1, Executive Order No. 292 of the Republic of the Philippines 9 http://www.dictionary.com/browse/diversified-farming 10 H. Martin, Ontario Ministry of Agriculture, Food and Rural Affairs Introduction to Organic Farming, ISSN 1198-712X 6

Methodology This research is a case study about a successful undertaking that captures the objectives of this research, Diaspora Farm Resort. According to Zaidah Zainal, associate professor in Universiti Teknologi Malaysia, a case study explores and investigates contemporary real-life phenomenon through detailed contextual analysis of a limited number of events or conditions, and their relationships. She further added that a case study is considered a good research method when a holistic and in-depth investigation is required.

Case studies use data from different sources such as documents, archives, interviews, and videos and weave it together to come up with a comprehensive research paper. This particular research utilized existing articles about the business, available videos about its farm operations, and useful interviews with the owner, Ms. Anette Patdu.

Results and Discussion The population of farmers in the Philippines is declining and aging. According to a study recently conducted, the average age of Filipino farmers is already 57 years old. Moreover, Filipino youths are increasingly dissuaded in pursuing opportunities in the agricultural sector due to the persistent poverty levels seen in agricultural areas (Santiago, 2015). This view has been reinforced by other factors such as its perceived hardships as described in a famous Filipino song “Magtanim ay Di Biro” (Planting is not a Joke), and its negative reputation as an inferior college course hence, the perennial statement of Filipino teachers to underperforming students, “go back to the province and plant kamote (sweet potato)”.

If this trend continues, Philippines might suffer from numerous consequences such as loss of farm lands to rapid urbanization, climate change and the most troublesome, food insecurity. The Philippine government has long known these consequences and has been exerting efforts to address it especially through agricultural modernization. Laws and programs are implemented to entice people, especially the youth, to venture into agricultural sector.

One successful business that benefited from these programs and laws is Diaspora Farm Resort.

Diaspora, owned by the couple Agie and Annette Patdu who are both natives of Pampanga, is a mango and livestock-based integrated and diversified farming system situated in Sta. Barbara, Bacolor, Pampanga. It is the first agri-tourism farm site in Pampanga that has been accredited by the Department of Tourism. It is also a learning site of the Dept. of Agriculture - Agricultural Training Institute Region III (DA-ATI R3).

The farm is a literal example of rising from ashes, volcanic ashes. Its location, Bacolor, was the hardest hit town in the Philippines when the volcano Mt. Pinatubo erupted in year 1991, considered the world’s second-largest terrestrial eruption of the 20th century. The area was made a sacrificial town; various engineering interventions diverted the lahar flow to Bacolor in order to save other towns in Pampanga and nearby provinces. Otherwise, the damage would have been greater.

The location was covered with over twenty meters of lahar rendered uninhabitable for around fifteen years. The area was of no value for some time.

Mr. Agie Patdu, a visionary, grabbed the opportunity from the low-valued land and bought the area adjacent to theirs, then, he let experts test the soil. According to them, volcanic soil is good and very fertile. With this knowledge, he and his wife did preliminary interventions and soil conditioning to ensure that plants would thrive. The efforts were paid off as the business is now growing smoothly.

Mrs. Patdu attributes the present success of Diaspora to the three changes they have adapted: from basic farming to agricultural entrepreneurship, from monocrop farming to integrated and diversified farming, and from conventional farming to organic farming.

From traditional farming to agricultural entrepreneurship. Ms. Annette Patdu said, “Filipino farmers’ mindset should be, ‘I think and act like a businessman.’” She expressed that one of the reason why farmers in the Philippines remain in poverty is that they are focused only on productivity. While productivity is important, entrepreneurial skills are crucial to move their produce and translate it to income.

One of the practices she does is that she avoids middlemen in selling their farm produce.

With this, she joins trade fairs and mango festivals where she can personally meet the buyers, engage with them, and market her exceptional mangoes and produce. Many of these events are free and are organized by the local government units and/or government agencies. Through this, she is able to get firsthand consumer insights from the market. One insight she got is that many Filipinos are already global, hence she marks higher prices for imported variants. Furthermore, her selling point is always their GAP (Good Agricultural Practices) certification.

Other than these, Mrs. Patdu also practices value-adding processes to maximize all their produce and to transform them into a more valuable one. One of the value-added products they sell is apple cider vinegar. This practice helps the business increase its profits, fill a specific demand, and create more awareness of said products among the people.

Her shift to agripreneurship is very much in line with the government’s thrust. The Philippine Department of Agriculture has already recognized the importance of entrepreneurial skills among the farmers, as embodied in the Philippine Agriculture (PA) 2020 Plan. It is a strategic plan which aims to have a “farmer-focused, market-driven agriculture that attempts to transform traditional small farmers into entrepreneurs” (Santiago, 2014).

Agripreneurs are considered to be the new breed of businessmen who will initiate a change in the sector through innovations, serving new markets and creating new ways of farming (Bairwa et. al., 2015).

Monocrop to integrated and diversified farming. Diaspora Farm Resort is primarily a mango-based farm. They have different varieties of mangoes including those that are foreign.

However, they knew that mangoes take several years to start bearing fruit. So, while waiting for the harvest time, they decided to diversify their products to cover their operational costs.

The invested in a non-agricultural component i.e. the resort. Later on, they ventured into other revenue streams that include offering an events place, a farm store, farm tourism, a training center, a learning site, livestock and poultry, and vegetable orchards. The most recent is the learning site. With this, they provide training for mango production and cultural management, farm tourism,

good agricultural practices, and climate smart farm business to youth, farmers, and other interested people. Mrs. Annette Patdu tries to share all that she has learned from the numerous trainings and seminars she’s been and her experiences in operating the farm. She also shares new technologies with other farmers to help them augment their income and rise from poverty.

Other than mangoes, they also produce other fruits such as guyabano, duhat (java plum), and papaya. They also have different farm animals like carabaos, cattles, goats, sheeps, chickens, geese, turkeys, and native pigs.

Also, Diaspora Farm Resort has already benefited from the recently approved law, Farm Tourism Development Act of 2016, which aims to uplift the situation of the farmers as well as to entice Filipino youth to go into agriculture. This law aids the provision of financial assistance, nonfinancial assistance, infrastructural assistance, and human resource development among others to those who are interested to venture. Diaspora receives training and assistance from the government to improve their business. Currently, they offer educational tours i.e. lakbay aral, and leisure activities. They ensure that people have something to do, something to see, and something to buy.

These diverse offerings, from agricultural to non-agricultural, are integrated to minimize the risks from adverse natural elements. For instance, if there’s a strong typhoon and all their mangoes will be wiped out, they have other sources of income they can depend on as revenue source.

From conventional to organic farming. In the year 2013, Diaspora Farm Resort shifted to organic farming. “If we want to care for the health of the worker, the farmer, the consumer, the environment, and the next generation, there’s no alternative but to go organic” said Mrs. Patdu.

Currently, they produce their own fertilizers. One of those is vermicast, one of the best fertilizers, through the practice of vermiculture,a process of using worms to decompose organic food waste, turning the waste into a nutrient-rich material capable of supplying necessary nutrients to help sustain plant growth. In addition, they employ pest management in their farm to prevent unwanted insects and pests from thriving. They grow plants that are naturally insect-repellent. Furthermore, they do crop rotation so that the insects won’t be able to adapt the farm environment.

With this move, apart from being certified as having good agricultural practices (GAP) by the Department of Agriculture, Diaspora Farm Resort is now processing their certification for organic farming.

Apart from the health benefits, organic farming is turning out to be revenue generating.

People nowadays are becoming more health conscious and are willing to pay for a premium price.

Diaspora Farm Resort is trying to share all their practices to interested people for they hope to encourage more farmers, more agripreneurs, more Filipinos into agribusiness. They hope to see changes in the agricultural sector. They want to see the lives of the farmers improve. They know that there should be people who will continue to produce our food otherwise there will be a problem in food security.

Conclusion The case of Diaspora Farm Resort is a testimony that agriculture holds the key to a brighter future on many fronts which can be summed up in a phrase: healthy farms.

The future of farming is what scientists call agro-ecological agriculture, but we simply call it “healthy farms.” Healthy farms must be: Productive enough to ensure abundant, affordable food; it should also produce a wide variety of foods important to health; Economically viable—capable of providing a good living for farmers and farm workers while contributing to a robust regional economy; Environmentally sustainable, using and replenishing resources in a way that maintains the fertility of the soil—and the health of the surrounding landscape—for future generations.

In other words, the future farm is multifunctional, regenerative, biodiverse, and interconnected with the natural and human landscape.11 For this to take place, certain systems must be set in place. First, there is a need for us Filipinos to realize that agriculture forms a central part of our national identity: our land, to a certain extent, define us: our lifestyles, our distinct characteristics. There is a certainly a need to foster pride in this because only then will we be able to discover and unleash its wealth of potentials.

Such conviction will lead us to pass on to the next generations that pride, knowing that the future belongs to them. But it is not enough to pass on convictions. It is imperative that the generations to come be empowered with knowledge and skills to till the land and maximize its yield for the common good.

As we began so we end. The future is built on a clear knowledge of who we are so that we can work towards what we can be based on that identity. For the Filipinos, rethinking agriculture shows the way to a brighter future.

Recommendations With the findings of this paper, it is recommended that the national and local government should give more incentives to farmers and farming so as to increase motivation and interest to it.

Additionally, greater attention should be given to the training of the youth in agriculture starting with making more attractive propaganda and modern training resources and materials that are apt to their generation to supplement the efforts being done to entice them to go into this sector. Furthermore, more promotion of farms like Diaspora Resort Farm in trade fairs, exhibits, etc. is necessary in order to reach more people. It is also recommended that further research on other beneficial changes to modernize agriculture should be done. Some other initiatives to focus on include, advances in agricultural education, research and development, and established partnerships and coordination with private organizations.

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The Future of Farming is Now, by Brian Middleton http://www.ucsusa.org/publications/catalyst/su13-thefuture-of-farming-is-now.html#.WjPQYvCWbIU

References: Bairwa, S., et. al., Agripreneurship Development as a tool to upliftment of Agriculture, International Journal of Scientific and Research Publications, Volume 4, Issue 3, March 2014 ISSN 2250-3153 Barbieri, C., Valdivia, C. (2014) Agritourism as a sustainable adaptation strategy to climate change in the Andean Altiplano, a case study. Tourism Management Perspectives 11 (2014) 18–25.

Bersales, L. (2017) Philippine Economy Posts 6.4 Percent GDP Growth in the First Quarter of 2017. Retrieved from: https://psa.gov.ph/content/philippine-economy-posts-64-percent-gdpgrowth-first-quarter-2017 Gayo, J. R. (2015, July 06). Future of PH Agriculture: How can we compete in the Asean Economic Community? Retrieved from: http://business.inquirer.net/194680/future-of-ph-agriculture-how-can-we-compete-in-theasean-economic-community Macatta, M. (2016) Importance of agricultural sector in a country’s economic development.

Retrieved from http://ippmedia.com/en/features/importance-agricultural-sector-country%E2%80%99seconomic-development Pragyandeepa; Role of Agriculture in the Economic Development of a Country. Retrieved from http://www.economicsdiscussion.net/economic-development/role-of-agriculture-in-the-ec onomic-development-of-a-country/ Times, T. M. (2013, June 22). Aging Filipino farmers to affect food security. Retrieved from http://www.manilatimes.net/aging-filipino-farmers-to-affect-food-security/12166/ Vermiculture Composting. (n.d.). Retrieved from http://www.wormpoop.com/composting/composting.htm

Appendix Diaspora Farm Resort