Institutions and Social Capital Approach to Promote Agricultural Productivity

Agricultural productivity results from improved farming practices. Even assuming that superior technology is available, the bigger challenge is getting the farmer to adopt it, as adoption involves learning new technology, taking new risks, and fostering new relations. In 2002, the Cost and Returns Survey conducted by the Bureau of Agricultural Statistics reported that, while almost 90% of palay farmers claim to use high-yielding varieties (HYVs), only less than a quarter of them use certified seeds. The target then is to increase HYV utilization rate to about two-thirds of all palay farmers, from the current 21%. This is a tall order for program implementers. If this target were reckoned by year 2010, then this would have called for a threefold increase in utilization rate within the last eight years.