Lellith Garcia

r A FEASIBILITY STUDY ON PEACE PROGRAM FOR THE ENHANCEMENT OF AGRICULTURE TOWARDS COMMUNITY EMPOWERMENT Department of Agrarian Reform Province of TAWI -TAWI Year 2018 to 2020 i TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................II LIST OF TABLES ..................................................................................................................... IV ACRONYMS .............................................................................................................................. V I. INTRODUCTION ...................................................................................................................1 -. GENERAL INFORMATION ......................................................................................................1 EXECUTIVE SUMMARY .........................................................................................................2 BACKGROUND OF THE STUDY ..............................................................................................2 OBJECTIVES OF THE STUDY .................................................................................................5 METHODOLOGY OF THE STUDY ............................................................................................5 II. SITUATIONAL ANALYSIS...................................................................................................6 III. THE BENEFICIARIES .........................................................................................................6 IV. PROGRAM COMPONENTS .............................................................................................11 COMMUNITY – DRIVEN DEVELOPMENT (CDD) ........................................................................11 AGRICULTURE AND ENTERPRISE DEVELOPMENT (AED) .........................................................14 1. MARKET ..............................................................................................................................15 1.1. Consumption ...................................................................................................................15 1.2. Production .......................................................................................................................21 C. BUSINESS DEVELOPMENT SERVICE (BDS) ............................................................................25 D. COMMON SERVICE FACILITIES (CSF) ....................................................................................27 E. ECONOMIC INFRASTRUCTURE (EI) .........................................................................................28 F. RURAL INFRASTRUCTURE (RI) ..............................................................................................29 G. SUSTAINABLE LIVELIHOOD PROJECT (SLP) ..........................................................................30 H. ISLAMIC MICRO-FINANCE (IMF) ............................................................................................31 I. REGIONAL AND PROVINCIAL PROGRAMMING, PLANNING, MONITORING, AND SUPERVISION (RPPMS OR PPPMS) ................................................................................................................31 A. B. V. BUDGETARY REQUIREMENT .........................................................................................32 VI. SOCIO-ECONOMIC IMPACT ...........................................................................................33 VII. RECOMMENDATIONS ....................................................................................................33 ii VIII. CONCLUSIONS ..............................................................................................................33 IX. ANNEXES.........................................................................................................................34 1. A. B. 2. FINANCIAL REQUIREMENTS FOR SOME VIABLE PROJECTS .....................................................34 COCONUT PRODUCTION .......................................................................................................34 CORN PRODUCTION .............................................................................................................34 TAWI-TAWI ARC MAP .......................................................................................................36 iii LIST OF TABLES Table 1 Tawi-Tawi ARC Profile ...................................................................................................6 Table 2 Tawi-Tawi ARC Agricultural Area by Commodity ............................................................8 Table 3 Tawi-Tawi ARC Agricultural Volume of Production .........................................................9 Table 4 Tawi-Tawi ARC Agricultural Production Value ..............................................................10 Table 5 CDD Budgetary Requirement -) ...................................................................11 Table 6 CDD Proposed Budget per Beneficiary -) ....................................................13 Table 7 AED Budgetary Requirement -) ...................................................................14 Table 8 Historical Demand (MT),- .............................................................................15 Table 9 Projected Demand (MT),- ............................................................................15 Table 10 Historical Supply (MT),- .............................................................................16 Table 11 Projected Supply (MT),- .............................................................................16 Table 12 Demand-Supply Gap (MT) .........................................................................................16 Table 13 Historical Demand (MT),- ...........................................................................17 Table 14 Projected Demand (MT),- ..........................................................................17 Table 15 Historical Supply (MT),- .............................................................................17 Table 16 Projected Supply (MT),- .............................................................................17 Table 17 Demand-Supply Gap (MT) .........................................................................................18 Table 18 Historical Demand (MT),- ...........................................................................18 Table 19 Projected Demand (MT),- ..........................................................................18 Table 20 Historical Supply (MT),- .............................................................................19 Table 21 Projected Supply (MT),- .............................................................................19 Table 22 Demand-Supply Gap (MT) .........................................................................................19 Table 23 Historical Demand (MT),- ...........................................................................20 Table 24 Projected Demand (MT),- ..........................................................................20 Table 25 Corn Historical Supply (MT),- .....................................................................20 Table 26 Corn Projected Supply (MT),- ....................................................................20 Table 27 Corn Demand-Supply Gap (MT) .................................................................................21 Table 28 Area Harvested (Hectares),- ......................................................................21 Table 29 Area Harvested (Hectares),- ......................................................................22 Table 30 Area Harvested (Hectares),- ......................................................................22 Table 31 Area Harvested (Hectares),- ......................................................................23 Table 32 Coconut (with Husk) Production Volume (MT),- .........................................23 Table 33 Production Volume (MT),- ..........................................................................24 Table 34 Production Volume (MT),- ..........................................................................24 Table 35 Production Volume (MT),- ..........................................................................24 Table 36 BDS Trainings by Number of Batches -) ....................................................25 Table 37 BDS Proposed Budget per Training -) .......................................................26 Table 38 BDS Proposed Budget per Beneficiary -)...................................................26 Table 39 List of Common Service Facilities -) ..........................................................27 Table 40 CSF Budget per ARC -) .............................................................................27 Table 41 Economic Infrastructure Subprojects -) ......................................................28 Table 42 EI Budget per ARC -).................................................................................29 iv Table 43 RI Budgetary Requirement -) .....................................................................30 Table 44 SLP Budgetary Requirement -) ..................................................................31 Table 45 Total Budgetary Requirement for PEACE -)...............................................32 Table 46 Coconut Production Total Project Cost .......................................................................34 Table 47 Coconut Production Projected Income Statement ......................................................34 Table 48 Corn Production Total Project Cost ............................................................................35 Table 49 Corn Production Projected Income Statement ............................................................35 ACRONYMS AAGR AED AGR ARBs ARBOs ARA ARC ARMM BDS CARP CDD CSF CSO DAR DARPO EI FGD IRA IMF KII LBP LGU MARO MLGU MT OM PARO PEACE PGR PLGU PSA Annual Average Growth Rate Agriculture and Enterprise Development Annual Growth Rate Agrarian Reform Beneficiaries Agrarian Reform Beneficiaries Organizations Agrarian Reform Association Agrarian Reform Community Autonomous Region in Muslim Mindanao Business Development Services Comprehensive Agrarian Reform Program Community-Driven Development Common Service Facilities Civil Society Organization Department of Agrarian Reform Department of Agrarian Reform Provincial Office Economic Infrastructure Focused Group Discussion Internal Revenue Allotment Islamic Micro-Finance Key Informant Interview Land Bank of the Philippines Local Government Unit Municipal Agrarian Reform Officer Municipal Local Government Unit Metric Tons Organizational Maturity Provincial Agrarian Reform Officer Program for the Enhancement of Agriculture towards Community Empowerment Population Growth Rate Provincial Local Government Unit Philippine Statistics Authority v RI RPPMS SLP TPC Rural Infrastructure Regional Programming, Planning, Monitoring, and Supervision Sustainable Livelihood Project Total Project Cost vi I. Introduction 1.1. General Information Title Program for the Enhancement of Agriculture Towards Community Empowerment (PEACE) Location Province of Tawi-tawi Duration of the Project CY 2018 to CY 2020 Total Project Cost P 432,620,430.00 No. of Direct Individual Beneficiaries Investment Cost per Beneficiary Components Name of ARCs Tarawakan Magsaggaw Lambog Buan Karaha Parang - Pantay Marang - Marang Tandubanak Ungus - Ungus Tongehat Talisay Bagid Expanded South Ubian Baldatal Islam Kula Kula Himba Boki Paranta Sapah Lake Total No. of ARBs- N M m e b o g B u a n P a r a n g M o a k a n a g s a g g a L a m K a r a - P a a r a n g - M a T a n d u b a n a U n g u s - U n g T o n g e h a t T a lis a y -,154 B a g id E x p S o u t h U b ia B a ld a t a l K u la K u la - B o k i P a r a n S a p a h T o P 200,845.14 a. b. c. d. e. f. g. h. i. a T a r a w Community – Driven Development (CDD) Agriculture and Enterprise Development (AED) Business Development Service (BDS) Common Service Facilities (CSF) Economic Infrastructure (EI) Rural Infrastructure (RI) Sustainable Livelihood Project (SLP) Islamic Micro-Finance Regional and Provincial Programming, Planning, Monitoring, and Supervision (RPPMS or PPPMS) 1 t a l Is L a k 1.2. Executive Summary Program for the Enhancement of Agriculture towards Community Empowerment (PEACE) is a program conceptualized to help the Agrarian Reform Beneficiaries keep and develop their acquired lands given through Comprehensive Agrarian Reform Program by providing assistance in a holistic approach. To make it a project from the people, pulong-pulongs and conferences were held to capture the real needs of the beneficiaries in the community. From that, different projects were proposed for approval to Regional Economic Board. This study was prepared through briefings from DAR-ARMM on the specific details of the program. Focused group discussions were conducted to verify the needs of the community and to have a grasp of the actual situation of the beneficiaries. Secondary data were then gathered from Philippine Statistics Authority. All information are then used to come up with the analysis of the study. The main source of income in the province of Tawi-tawi is farming which is quite not enough to provide decent lives for their families. For some women to be able to help, they went overseas to work as domestic helpers. Through implementation of the PEACE Program, these women can be given livelihood and opportunity to provide for their families and be close to home. Farming will then be given a boost as farm-to-market roads will be provided to have easy access upon delivery of crops and other value-added products. New technologies will be shared to farmers and beneficiaries through trainings and seminars. The eight program components for PEACE are a) Community-Driven Development, b) Agriculture and Enterprise Development, c) Business Development Services, d) Common Service Facilities, e) Economic Infrastructure, f) Rural Infrastructure, g) Sustainable Livelihood Projects, h) Islamic Micro-Finance, and i) Regional and Provincial Programming, Planning, Monitoring, and Supervision. These will address many aspects to alleviate poverty in the province. Through the PEACE Program, more people will be given livelihood and additional income. More taxes can be collected by the government that can be provided in return as social services to the constituents. More products will then be produced which will eventually reduced the cash outflows of the province as they can produce their own products and increase cash inflows by producing more to supply market outside Tawi-tawi. More businesses will be established to supply the household, farm and enterprise needs of the locality. 1.3. Background of the Study The Comprehensive Agrarian Reform Program (CARP) or Republic Act No. 6657 (R.A. 6657) of 1986 envisioned a nation with equitable land ownership and empowered agrarian reform partners (ARPs). The implementation of the law was enhanced and strengthened in 2009 through the enactment of R.A. 9700 otherwise known as the Comprehensive Agrarian Reform Program with Extension and Reforms (CARPER). The laws mandated the Department of Agrarian Reform (DAR) to implement land acquisition and distribution, provide appropriate support services and oversee the delivery of agrarian justice. 2 The Agrarian Reform Community (ARC) strategy was adopted by the Department to concentrate on contiguous areas so that interventions can have maximum impact and can better be felt by the community. One such intervention is the Program for the Enhancement of Agriculture towards Community Empowerment conceived by the DAR-ARMM in consonance with the ARMM Roadmap-. To date, the DAR in Tawi-Tawi has so far distributed a total of 20,595 hectares of agricultural land out of a total target scope of 31,662 hectares or about sixty-five percent (65%) accomplishment. This benefited about 3,004 agrarian reform partners (ARPs) in eighteen (18) agrarian reform communities (ARCs) and twenty-four (24) ARP organizations (ARPOs) province wide. The development of these ARPs into successful farmer-entrepreneurs leading towards poverty reduction and increased farm/household income is a major challenge to the stakeholders. Various development interventions are needed to meet the challenge through proper planning and programming. As the small farmers are unable to access financial assistance from banks due to higher qualifications and numerous requirements, their only source of financing are the local lenders which charge a high interest rate and prevent the farmers to sell their products to other buyers who offer higher prices. With this situation, farmers will never break from this chain and forever be poor if no proper intervention will be done. In addressing the above situation, Program for the Enhancement of Agriculture towards Community Empowerment was conceptualized and developed by Department of Agrarian Reform – Autonomous Region in Muslim Mindanao. This is a holistic approach in alleviating rural poverty, giving opportunities for livelihood and employment for the locals by introducing various economic activities. Main beneficiaries of the program are the Agrarian Reform Communities. PEACE will enable them to till their land and make it more productive for them to keep for a long time, if not for good. Projects were proposed by the beneficiaries during the conducted pulong-pulong and provincial conferences. Through the implementation of the program, many lives will be changed as they will be provided with opportunities to earn more and give them self-respect as they become more involved in the community. Salient Features of PEACE:  An integrated, strategic and holistic support service delivery mechanism to ARCs/ARAs in ARMM that will contribute to the overall goal of rural poverty reduction especially in agrarian reform areas in ARMM;  Product of several consultations from Pulong-Pulongs to ARB Provincial Conferences to the ARMM Sectoral Consultation on the Regional Road Map;  Partner CSOs in the provinces especially in Tawi-Tawi and Maguindanao validated PEACE. 3  Consolidation of the validated ARC/ARA development plans co-owned by the farmers, with DAR providing technical assistance; and  Diversified farming system integrated to maximize utilization of lands. Policy Framework of PEACE:  1987 Constitution: Pursuant to Art. XIII, Sec. 5 of the 1987 Constitution, PEACE employed participatory and empowering mechanisms to identify the unique training needs and facility requirements of each ARBO in ARMM, and enabled them to make informed decisions about their livelihood. PEACE was drafted after the conduct of pulong-pulongs in all ARCs in ARMM and the five (5) Provincial Conferences of the ARBs, thus rendering it a program from the people.  Comprehensive Agrarian Reform Program (R.A. 6657 & R.A. 9700): CARP and CARPER recognize the need to integrate land distribution efforts with the provision of support services, and to reduce the poverty situation in agrarian reform communities and agrarian reform areas in the country.  Based on the 8-point economic agenda of the incoming administration, particularly No. 4 which states, “Provide support services to small farmers to increase productivity and improve market access. Provide irrigation and better support services to farmers”. PEACE can be one of the strategies to articulate ARMM’s stance in service delivery to small farm holders like the ARBs. Objectives of the Program Within five years from start of implementation of the project, the following shall be contributed to the ARMM rural poverty reduction goal by improving the economic condition of the ARBs through: 1. Provision of an integrated, holistic and strategic intervention to retain the awarded lands of agrarian reform beneficiaries (ARBs) in ARMM through increased production and engagement in agri-based and related enterprises; 2. Capacitating the ARBs in making them credit ready and credit worthy in accessing financial assistance from micro-finance providers; 3. Increase in the number of amortizing ARBs to LBP by 50% (which is less than 10% as of today), by improving their capacity to pay through improved farm productivity and increased household income; and 4. Strengthening their farmer organizations to collectively improve volume of production, achieve leverage and have bargaining power in entering profitable agriculture venture agreements 4 The program is anticipated to run for three (3) years, starting year 2018 to year 2020, with allocated yearly budget for the components’ subprojects and beneficiaries as identified and deliberated by the Department of Agrarian Reform Provincial Office of Tawi-tawi. 1.4. Objectives of the Study The general objectives of the study are to show the viability of the PEACE program and how will it contribute to the inclusive growth in the province of Tawi-tawi. Specifically:  To increase the current annual income of P67, 323 by 50% per beneficiary through increased in production, value-adding, lesser post-production losses, and efficient farm to market road projects;  Lessen post-production losses up to 10% by providing common service facilities and infrastructures;  Market linkage for the produce of the ARBOs;  Lessen the transportation expense by about 20% through farm to market roads;  Concreting of 26 km roads for efficient delivery of products;  To develop 8, 428.35 hectares of farm lands;  To increase by at least 25% of production for cassava, coconut, banana and corn; and  Provide a total of 42 trainings under CDD, and 25 trainings under BDS for capacitating the ARBs in handling socio-economic enterprises. 1.5. Methodology of the Study Consultants from Balay Mindanao Foundation, Inc. were briefed by DAR-ARMM about the PEACE Program. Detailed explanation was given on the impact of the program for its beneficiaries and the rural community. Focused-group discussions were then conducted for random beneficiaries to assess their status, verify needs and concerns, and evaluate the community. The activities were helpful in verifying the information to be written in the feasibility study for it to reflect what the beneficiaries’ needs are. Also, secondary data were gathered from the Philippine Statistics Authority (PSA) in terms of population, per capita consumption, and crops production volume and area planted/harvested. These data are utilized to come up with the preparation and analysis of the study. 5 II. Situational Analysis Tawi-tawi is located in the southern part of the Philippines and one of the five provinces (other four provinces are Maguindanao, Lanao del Sur, Basilan and Sulu) of Autonomous Region in Muslim Mindanao. It is composed of 11 municipalities and 203 barangays with a total population of 390, 715 (growth rate of 1.22%) as of 2015; 197, 040 are male and 193, 675 are female. Number of households are 67, 529 with average household size of 5.8. Overseas workers are pegged at 6, 385; literacy rate is 87.2%; and registered voters are 183, 879. Internal revenue allotment for 2011 of Tawi-tawi is 580.5 Million; there are four banks in the province with total bank deposit liabilities of 2, 453 Million. Main source of income is agriculture with total agricultural land of 30, 144 hectares, planted to permanent crops are 19, 586 hectares while planted to temporary crops are 9, 093 hectares; the remaining agricultural land are either idle or covered with forest growth. Top four commodities (2016 data) of the province based on area planted are coconut (40, 057 hectares), cassava (18, 934 hectares), banana (724.13 hectares) and corn (593 hectares). Also, the top four livestock in terms of number of heads are chicken (152, 601), goat (18, 197), duck (6, 648) and cattle (3, 130). III. The Beneficiaries As per Department ofl Agrarian Reform- Tawi-Tawi, there are 18 Agrarian Reform Communities (ARCs) in the Province and a total of 24 Agrarian Reform Beneficiaries Organizations (ARBOs). As of 2016, total area coverage of the ARCs is 73,425 hectares with 2,483 ARBs and 23,881 households (Table 1). Out of the total 18 Agrarian Reform Communities (ARCs), 15 ARCs will be included in the program. See Annex for the ARC map of Tawi-Tawi. Table 1 Tawi-Tawi ARC Profile Municipality Bongao Panglima Sugala Languyan Sibutu Name of ARC Tarawakan Lakit-Lakit* Magsaggaw Lambog Buan Karaha Parang -Pantay Tubig Dakula-Sikullis* Marang-Marang Tandubanak Ungus-Ungus Tongehat No. of ARBS No. of H.H. Annual HH Income 477 395 ₱61,320.00 Total Land Area (Has) 2,189 - -,476 351 ₱58,084.00 ₱108,000.00 ₱61,474.00 ₱63,280.00 ₱52,500.00 2,087 2,860 3,760 14,330 2,075 4 355 789 282 ₱90,600.00 ₱58,084.00 5,751 2,183 4 - 1,517 1,206 ₱74,945.00 ₱50,000.00 3,218 1,020 6 Sitangkai Talisay Tumindao* Simunul South Ubian Bagid Expanded South Ubian Sapa-Sapa Tandubas Baldatal Islam Kula Kula-Himba Boki Paranta Sapah Lake Total/Average Source: ARC Profile year 2016 Note: *Not included in PEACE Mapun 22 1,911 ₱59,180.00 5,013 13 43 1,209 5,392 ₱83,600.00 ₱83,600.00 916 10,390 65 12 4,872 310 ₱102,000.00 ₱52,500.00 8,809 2,101 1 59 30 2,483 183 1,-,881 ₱59,940.00 ₱73,800.00 ₱54,700.00 ₱69,311.50 2,143 2,548 2,032 73,425 The Agrarian Reform Beneficiaries (ARBs) have an average household income of P69,311.50 which is P50,688.50 short of the national threshold of P120,000.00.Eight (8) ARCs have average annual household income below P60,000.00, five (5) have P60,000.00 to P80,000.00, and five (5) are above P80,000.00. Most of the ARBs’ income comes from off-farm, and onfarm, with 39% and 38% of the total income, respectively. Current Economic Activities Based on the interview conducted during the focus group discussions (FGD) with the ARBOs’ officers, most of the ARBOs are newly re-organized or newly formed; hence the ARBOs are not yet engaged in any economic activity as organizations. Most of the ARBOs are merely formed for data purposes, thus government interventions are needed to educate the leaders and strengthen the organizations. ARBs in the province practice individual farming, with outdated practices which leads to disadvantage in financial capacity, and weak market positioning of the beneficiaries that further result to unsecured markets and lower prices of their produce. Another constraint faced by the ARBs is the lack of farm-to-market roads (FMRs), in which ARBs find it hard to transfer their goods from the farm to the designated dropping point. Based on the interview done by the researchers with the proponents, most of the farm sites are located in remote areas, wherein there are no road accesses. In most cases, the farmers’ produce are travelled using carabaos, and boats on the extremely remote areas which take a day or two to reach the market. On the other hand, ARBs near the market also suffer from high fare prices due to sludgy roads in most of the areas. As per Tawi-Tawi ARC Profile as of 2016, annual agricultural production of ARBs in the province has a total value of P 2.01 billion. Most of the ARBs are into cassava and coconut production of which cassava tops the chart accounting to P1.03 billion in 208, 000 MT of produce, having annual average production of 19.71 MT per hectare. Farmers practice low maintenance farming wherein weeding is done manually with less fertilizers and pesticides. They are mainly producing cassava for human consumption that will be further processed into cassava powder. Major problems in cassava production include attack of wild boars, lesser amount of buyer compared to volume of production which results to low selling price during peak seasons, and high transportation cost due to lack of accessible roads. Second most planted crop is the coconut which has total annual production value of P913.3 million, in 50,403 7 MT of produce. Average annual production volume per hectare is recorded at 2.44 MT (copra). Coconuts are sold in the form of copra, which are produced by drying the coconut meat. Other commodities produced are as follows: vegetables: P 19.7 million (850 MT); and banana: P3.9 million (180 MT). Agricultural Area As presented in Table 2, ARCs in Tawi-Tawi have a total agricultural area of 46,285.7 hectares, wherein a total 19,196.8 hectares are still to be developed. Major agricultural commodities of ARBs include coconut, cassava, banana, and vegetable (unidentified types). Coconut tops the chart with a total area of 20,646.6 hectares, followed by cassava with 10,559.6 hectares, vegetables with 148 hectares, and banana with 120 hectares. Table 2 Tawi-Tawi ARC Agricultural Area by Commodity ARC Coconut Agricultural Area (in Hectares) Total Cassava Vegetable Banana Area Tarawakan Lakit-Lakit* - - Magsaggaw 120.0 Lambog Buan Karaha Total Available 2,189.0 2,087.0 1,- 850.0 2,050.0 1,080.0 1,507.0 1,616.0 1,360.0 1,230.0 1,880.0 8,311.0 5,465.0 Parang –Pantay Tubig DakulaSikullis* 1,350.0 680.0 2,075.0 45.0 890.0 328.0 2,087.0 869.0 Marang-Marang 1,703.0 1,360.0 2,004.0 - Tandubanak Ungus-Ungus Tongehat 1,053.0 467.0 1,500.0 - 714.0 70.0 714.0 - Talisay 170.0 155.0 4,515.0 4,070.0 Tumindao* 598.0 107.0 50.0 650.0 - Bagid Expanded 1,850.0 38.0 23.0 7,792.0 5,881.0 South Ubian Baldatal Islam 1,690.0 1,072.0 - 846.7 2,084.0 82.0 Kula Kula-Himba Boki Paranta 1,072.0 1,790.0 - 1,842.0 2,149.0 - Sapah Lake Total 1,850.0 20,646.6 458.0 10,559.6 1,510.0 46,285.7 19,196.8 20.0 55.0 120.0 148.0 120.0 Source: ARC Profile year 2016 Note: Final amounts may vary due to some commodities being intercropped *Not included in PEACE 8 Volume of Production Table 3 shows the annual production volume of agricultural commodities of ARBs in the province of Tawi-Tawi. Commodity performance are as follows: cassava (208,111.2 MT), coconut (50,403 MT), vegetables (850 MT), and banana (180 MT). Table 3 Tawi-Tawi ARC Agricultural Volume of Production Annual Production (MT) ARC Coconut Cassava Tarawakan 5,190.00 489.90 5,679.90 Lakit-Lakit* 3,206.00 23,200.00 26,406.00 Magsaggaw 240.00 17,000.00 17,240.00 Lambog 3,814.00 27,200.00 31,014.00 Buan Karaha 3,232.00 24,600.00 27,832.00 Parang –Pantay Tubig Dakula-Sikullis* 2,700.00 13,600.00 16,300.00 1,780.00 9,840.00 11,620.00 Marang-Marang 3,404.00 27,200.00 30,604.00 Tandubanak Ungus-Ungus Tongehat 3,159.00 700.50 3,859.50 1,428.00 1,400.00 2,828.00 170.00 310.00 Tumindao* 1,196.00 3,210.00 750.00 5,156.00 Bagid Expanded 3,700.00 60.80 100.00 3,860.80 South Ubian 2,704.00 8,440.00 11,144.00 Baldatal Islam 2,144.00 18,600.00 20,744.00 Kula Kula-Himba 2,144.00 15,400.00 17,544.00 Boki Paranta 5,012.00 7,700.00 12,712.00 Sapah Lake 5,-,403.0 9,-,111.2 850.0 186.0 14,-,550.2 20,646.6 10,559.6 148.0 120.0 2.44 19.71 5.743 1.55 Talisay Total Total Area Planted (ha) Average Annual Production/Ha Vegetables Banana 186.00 Total 666.00 Source: ARC Profile year 2016 Note: *Not included in PEACE Value of Production Table below shows the annual production value of commodities produced by the ARBs. As a total, the ARCs have a gross income of PHP 2,009.89 million .Commodity performances are as follows: cassava (PHP 1,072.955 million), coconut (PHP 913.322 million), vegetables (PHP 19.697 million), and banana (3.906 million). 9 Table 4 Tawi-Tawi ARC Agricultural Va lue of Production ARC Annual Value of Production (Gross Income) in PHP '000 Coconut Cassava Vegetables Banana Total Tarawakan 72,660 3,919 - - 76,579 Lakit-Lakit* 54,502 116,000 - - 170,502 Magsaggaw 4,080 85,000 - - 89,080 Lambog 64,838 136,000 - - 200,838 Buan Karaha 54,944 123,000 - - 177,944 Parang -Pantay Tubig Dakula-Sikullis* 45,900 68,000 - - 113,900 53,400 78,720 - - 132,120 Marang-Marang 57,902 130,000 - - 187,902 Tandubanak Ungus-Ungus Tongehat 44,226 5,604 6,195 - 56,025 42,840 11,200 - - 54,040 2,380 2,480 - 3,906 8,766 Tumindao* 35,880 25,680 9,000 - 70,560 Bagid Expanded 55,500 2,432 4,502 - 62,434 South Ubian 81,120 7,520 - - 88,640 Baldatal Islam 36,448 93,000 - - 129,448 Kula Kula-Himba 36,448 77,000 - - 113,448 Boki Paranta 82,204 61,600 - - 143,804 Sapah Lake Total 88,060 913,332 45,800 1,072,955 19,697 3,906 133,860 2,009,890 Total Area Planted (ha) Gross Annual Sales/Ha 20,646.6 10,559.6 148.0 120.0 44.24 101.61 133.09 32.55 Talisay Source: ARC Profile year 2016 Note: *Not included in PEACE 10 IV. Program Components a. Community – Driven Development (CDD) Community-driven development is to promote strong community participation from planning and into managing community resources/activities especially in terms of social formation, organizational development, and good governance. As per Department of Agrarian Reform (DAR)-ARC Profile as of 2016, there are 24 Agrarian Reform Beneficiaries Organizations (ARBOs) with a total of 690 members in the province of Tawi-Tawi. Currently there is no available data on the organizational maturity level of the ARBOs, which is due to the ARBOs being in development stages, and/or under reorganization process. Predominantly, ARBOs are not engaged in any economic activity, although most of the organizations are with active leaders. The ARBOs are having monthly, quarterly and annual meetings through the guidance of the Municipal Agrarian Reform Officers (MAROs) and DAR Staff. With the current status of the ARBOs, they will need extensive trainings to equip the leaders and members with knowledge to strengthen the organizations for the organizations’ future business endeavors. Table 5 shows the needed CDD trainings in the province of Tawi-Tawi as identified by Agrarian Reform Provincial Office of Tawi-Tawi during the “Pulong-Pulong” and ARB Provincial Summit. There will be 42 types of trainings/seminars to be conducted in the three (3) years of the program that will need a total budget of PHP8, 183, 960.55. The proposed budget will cover the expenses on meals and snacks, training venue, training materials, honorariums of the resource persons, and transportation expenses of the participants (for ARBOS far from the venue of trainings). Table 5 CDD Budgetary Requirement by Trainings -) Trainings and Seminars ARB Provincial Summit Attendance to the Provincial Agrarian Reform Partners Summit Audit Management and Internal Control BAC Formation and Strengthening Basic Computer Program -,000.00 2019 2020 202,-,820.25 43,697.00 202,-,411.80 130,000.00 BOD Training Capability and Team Building 13,-,232.00 Capacity Building Communication Skills and Values Re-orientation Conflict Management Cooperative Development Seminar Cooperative Management and Governance 68,750.00 Total 100,000.00 253,929.05 43,697.00 130,-,697.00 249,122.00 13,-,765.80 79,411.80 68,-,425.00 105,425.00 130,-,000.00 43,-,000.00 79,411.80 253,-,000.00 115,232.00 204,122.00 79,411.80 398,765.80 11 Cooperative Standards Cooperative Vision, Mission and Strategic Planning Effective Communication Skills Entrepreneurial and Business Management Financial and Credit Management Financial Literacy and Debt Management Gender Sensitivity Training Human Resource Management Implementing Rules and Regulations of R.A 9520 Investments and Banking Procedures Leadership and Policy Formulation Leadership Enhancement and Organization Seminar Management Conflict and PBD Lawyering Members' Savings Operation Training Organizational Development and Management Orientation on Labor and Other Related Laws Policies, Systems and Procedures (PSPs) Installation Seminar Pre-membership Education Seminar Records Management Rules Formulation Rules Formulation and Conflict Management Simplified Bookkeeping and Parliamentary Procedure Seminar Simplified Bookkeeping Simplified Bookkeeping and Accounting Strategic Plan and Workshop System Installation (Bookkeeping 1 & 2) Team Building Exercises Training in Microfinance Values Orientation Values Re-Orientation Seminar 130,820.25 43,697.00 79,411.80 253,929.05 130,820.25 103,769.00 79,411.80 314,001.05 130,820.25 43,697.00 79,411.80 253,929.05 130,820.25 43,697.00 79,411.00 253,928.25 60,232.00 43,697.00 79,411.80 183,340.80 128,822.00 150,360.00 279,182.00 142,-,072.00 142,-,697.00 103,769.00 43,697.00 43,697.00 130,820.25 43,697.00 79,411.80 253,929.05 158,750.00 204,122.00 79,411.80 442,283.80 105,000.00 105,000.00 60,072.00 60,072.00 80,000.00 80,000.00 138,982.00 209,194.00 60,072.00 43,697.00 79,411.80 427,-,769.00 50,000.00 50,000.00 130,820.25 369,897.00 79,411.80 580,129.05 130,-,820.25 149,-,697.00 79,-,411.80 359,-,929.05 68,750.00 91,540.00 160,290.00 105,425.00 105,425.00 123,750.00 55,000.00 178,750.00 130,820.25 103,769.00 55,000.00 55,000.00 79,411.80 314,-,000.00 50,000.00 50,000.00 78,-,072.00 78,-,-,180.80 153,-,000.00 79,411.80 176,- Total 3,742,560.75 3,091,400.00 1,349,999.80 8,183,960.55 There will be a total of 212 batches for the 42 types of trainings. The CDD component will benefit 10 Agrarian Reform Communities (ARCs) in the province. Table 6 shows the CDD beneficiaries with the proposed amount needed for the trainings. The beneficiaries are identified by the Provincial Agrarian Reform Office of Tawi-Tawi. Budgetary requirement of CDD for- amounted to P8, 183, 961.00. For 2018, allocated cost is P3, 742, 561 for the eight beneficiaries; 2019 budget is P3, 091, 400 for the six beneficiaries; 2020 allotted cost is P1, 350, 000.00 for one beneficiary. Shown in the table below is the budgetary requirement of CDD. Table 6 CDD Budgetary Requirement by Beneficiaries -) MUNICIPALITY ARC ARBO AMOUNT 2018 Panglima Sugala Magsaggaw Bongao Tarawakan Languyan Parang-Pantay Simunul Bagid Expanded 1. Magsaggaw ARB Coop 2. Sitio Upper Malum ARB Producers Association 1. Tarawakan Producers Coop 2. Lapid-Lapid ARB Producers Coop 3. Luuk Tulay ARB Producers Coop Parang Pantay Jakarta ARB Producers Coop 1. Tampakan Farmers Coop 2. MLT Farmers Association TOTAL CDD FOR 2018 1,178,480 1,544,081 495,000 525,000 3,742,560.75 2019 1. Hidaya ARB Producers Coop 2. Pasague ARB Women Marketing Coop Sibutu Talisay 150,000.00 Mapun Boki Paranta Languyan Marang-Marang Panglima Sugala Lambug 873,940.00 Panglima Sugala Buan Karaha 300,360.00 575,360.00 Tumahubong Farmers Association TOTAL CDD FOR 2019 1,191,740.00 3,091,400.00 2020 South Ubian South Ubian One Tabawan Farmers Association 1,349,999.80 13 TOTAL CDD FOR TAWI-TAWI b. 8,183,960.55 Agriculture and Enterprise Development (AED) Through agriculture and enterprise development, viable community-managed business organizations and more market-oriented farming will be developed. This focuses on community formation and strengthening towards increased productivity, crop profitability, land tenure improvement, access to savings and credit services, and increased investments in the conflict affected areas. Tawi-tawi province is very rich in natural resources and fertile land and some of the agricultural lands are not yet developed due to unavailability of needed resources. Once these untapped resources will be utilized, market will be identified for the farm produce and value-added products. As shown in the table below, budget allocation for AED for the three-year duration period -) is P21, 757, 004. Out of the total, 2018 appropriation is P12, 375, 000; P8, 282, 004 for 2019; and P1, 100, 000 for 2020. Projects to be funded are for cassava production, coconut production, corn production, and chilli production. See annex for the financial requirements and financial analysis of some viable projects. Table 7 AED Budgetary Requirement -) MUNICIPALITY 2018 Panglima Sugala Bongao Languyan Simunul ARC ARBO 1. Magsaggaw ARB Coop 2. Sitio Upper Malum ARB Producers Association Tarawakan 1. Tarawakan Producers Coop 2. Lapid-Lapid ARB Producers Coop 3. Luuk Tulay ARB Producers Coop ParangParang Pantay Jakarta ARB Pantay Producers Coop Bagid 1. Tampakan Farmers Coop 2. MLT Farmers Association TOTAL AED FOR 2018 AMOUNT Magsaggaw 2,000,000 8,750,000 900,000 725,000 12,375,000 2019 Sibutu Talisay Mapun Languyan Panglima Sugala Panglima Sugala Boki Paranta MarangMarang Lambug Buan Karaha 1. Hidaya ARB Producers Coop 2. Pasague ARB Women Marketing Coop 1,442,857 300,000 Tumahubong Farmers Association TOTAL AED FOR 2019 2,000,000 3,932,857 606,290 8,282,004 2020 14 South Ubian 1. South Ubian One Tabawan Farmers Association TOTAL AED FOR 2020 TOTAL AED FOR TAWI-TAWI 1,100,000 1,100,000 21,757,004 Market It presents the demand, supply, and the demand-supply gap per commodity to evaluate if increased production is still viable in Tawi-tawi. 1.1. Consumption Consumption for coconut, cassava, banana, and corn will be presented in this section. 1.1.1. Coconut  Demand Data from PSA for the year- on the supply utilization of coconut are used which include consumption, processing and export. The data for 2017 and the projected demand are computed using the average annual growth rates. Shown in the tables below are historical demand and projected demand for coconut. Table 8 Historical Demand (MT),- Particulars Consumption Processing Exports Total -,028 14,911,032 1,741 15,863,801 -,887 14,431,463 2,984 15,354,334 -,166 13,813,801 1,331 14,696,298 -,668 13,849,385 3,136 14,735,189 -,162 12,992,826 5,092 13,825,080 -,035 12,556,807 7,816 13,363,658 Table 9 Projected Demand (MT),- Particulars Consumption Processing Exports Total  -,864 12,135,419 11,997 12,919,281 -,618 11,728,173 18,415 12,492,207 -,264 11,334,594 28,267 12,083,125 -,772 10,954,222 43,389 11,693,383 -,113 10,586,615 66,600 11,325,329 Supply Historical supply and projected supply are the production of coconut with husk for the Philippines, ARMM and Tawi-tawi. Decreasing trend of supply can be attributed to crop 15 diversification, diseases (e.g. cocolisap) and typhoons that caused lower production of coconut in the country. Shown in Tables 10 and 11 are the historical and projected supply of coconut. Table 10 Historical Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi -,863,801 15,354,334 14,696,298 14,735,189 13,825,080 13,361,630 1,311,219 1,327,299 1,356,182 1,393,168 1,376,545 1,393,533 162,562 164,798 165,462 165,578 150,614 147,907 Table 11 Projected Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi  -,913,715 12,480,816 12,062,429 11,658,067 11,267,260 1,410,731 1,428,141 1,445,766 1,463,609 1,481,671 145,249 142,639 140,075 137,558 135,085 Demand-Supply Gap Trend for projected demand is decreasing for the years-. However, due to unrecorded data of emerging products in the market, e.g. coconut sugar, coconut water, frozen meat and other value-added products that are being consumed and exported, figures do not capture the total demand for coconut. On the other hand, supply is also projected to decrease as discuss above. Nevertheless, demand-supply gap is increasing which can be an opportunity to revive the production of coconut and produce more value-added products. Table 12 Demand-Supply Gap (MT) Year- Projected Demand 12,919,281 12,492,207 12,083,125 11,693,383 11,325,329 Projected Supply 12,913,715 12,480,816 12,062,429 11,658,067 11,267,260 Gap 5,566 11,391 20,696 35,317 58,069 1.1.2. Cassava  Demand The data utilized to come up with the historical demand of cassava was gathered from PSA which includes feeds and waste, processing, food use and exports. It has an increasing demand from- wherein the main usage of cassava is for processing, followed by food use and lowest mark for exports. The Tables 13 and 14 show the historical and projected demand. The latter was computed using the average annual growth rates projected in five years. 16 Table 13 Historical Demand (MT),- Particulars Feeds & Waste Processing -,391 1,867,049 -,694 1,996,182 -,415 2,141,117 -,861 2,279,500 -,309 2,313,792 -,462 2,441,887 Total Net Food Disposable 222,237 238,531 255,417 271,329 275,413 290,661 583 2,223,260 1,031 2,377,438 1,744 2,550,693 656 2,714,346 641 2,755,155 771 2,907,781 Exports Total Table 14 Projected Demand (MT),- Particulars Feeds & Waste Processing Total Net Food Disposable Exports Total  -,122 194,316 205,076 216,430 228,414 2,577,073 2,719,743 2,870,311 3,029,215 3,196,917 306,754 323,737 341,661 360,577 380,540 928 1,117 1,344 1,617 1,946 3,068,876 3,238,913 3,418,391 3,607,840 3,807,817 Supply The supply of cassava from- has been gathered from PSA to get the average annual growth rates to be used for the computation of the projected supply. For the past five years, supply of cassava in the Philippines has been increasing. But in ARMM and Tawi-tawi, figures show minimal fluctuated volume due to drought that affected the said root crop. Shown in the tables below are the historical and projected supply for cassava. Table 15 Historical Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi 2012 2,223,182 1,018,969 96,482 2013 2,361,561 1,035,107 95,636 2014 2,540,254 1,045,233 94,802 2015 2,714,346 1,024,180 99,513 2016 2,755,146 1,007,822 96,534 2017 2,806,668 1,037,472 98,118 Table 16 Projected Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi 2018 2,930,990 1,035,295 98,163 2019 3,060,818 1,033,122 98,207 2020 3,196,398 1,030,954 98,252 2021 3,337,983 1,028,790 98,296 2022 3,485,839 1,026,631 98,341 17  Demand-Supply Gap Though the table shows an increasing supply of cassava from-, the larger increase of demand for cassava in the Philippines leaves gap for additional production. Table 17 Demand-Supply Gap (MT) Year- Projected Demand 3,068,876 3,238,913 3,418,391 3,607,840 3,807,817 Projected Supply 2,930,990 3,060,818 3,196,398 3,337,983 3,485,839 Gap 137,887 178,095 221,994 269,857 321,977 1.1.3. Banana  Demand It has been shown in the tables below that there are an increasing demands of bananas in the Philippines as well as abroad. Further, it shows a higher mark for food consumption followed by exports, and then by processing. The increasing demand for the next five years has been projected using the average annual growth rates. Table 18 Historical Demand (MT),- Particulars Feeds & Waste Processing Food Use Exports Total -,839 1,645,163 4,540,648 2,646,118 9,226,768 -,792 1,344,967 3,712,110 3,266,548 8,646,417 -,233 1,313,471 3,625,178 3,630,976 8,884,858 -,323 1,822,178 5,029,209 1,795,219 9,083,929 -,192 1,792,466 4,947,204 1,733,836 8,903,698 -,949 1,866,452 5,151,405 1,649,856 9,115,662 Table 19 Projected Demand (MT),- Particulars Feeds & Waste Processing Food Use Exports Total -,438 1,943,492 5,364,035 1,569,944 9,343,910 -,691 2,023,712 5,585,441 1,493,903 9,588,747 -,739 2,107,243 5,815,987 1,421,544 9,850,513 -,614 2,194,221 6,056,048 1,352,691 10,129,574 -,351 2,284,790 6,306,018 1,287,172 10,426,331 18  Supply The historical supply was collected from PSA which is then projected using the average annual growth rates. Shown in Tables 20 and 21 are the historical and projected supply of banana. Table 20 Historical Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi 2012 9,226,768 440,198 8,798 2013 8,646,417 459,606 8,443 2014 8,884,857 493,598 8,318 2015 9,083,929 531,048 7,985 2016 8,903,684 533,677 8,025 2017 9,166,334 569,716 8,060 Table 21 Projected Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi  2018 9,106,280 592,376 7,915 2019 9,046,618 615,938 7,772 2020 8,987,348 640,436 7,632 2021 8,928,466 665,909 7,494 2022 8,869,970 692,395 7,359 Demand-Supply Gap Projected demand from- has an increasing trend, while the projected supply goes in opposite direction. Hence, this resulted to an increasing gap in the market to be catered upon which indicates that bigger production of bananas in the Province of Tawi-tawi would create an opportunity to increase the income of ARBs and ARBOs. Table 22 Demand-Supply Gap (MT) Year- Projected Demand 9,343,910 9,588,747 9,850,513 10,129,574 10,426,331 Projected Supply 9,106,280 9,046,618 8,987,348 8,928,466 8,869,970 Gap 237,630 542,129 863,164 1,201,108 1,556,361 1.1.4. Corn  Demand Processing constitutes the bigger share for demand of corn given that it is processed to produce snacks and feeds (for livestock, poultry etc.). Historical demand increased from 7, 549, 000 MT in 2012 and increased to 8, 195, 476 MT in 2017. Using the average annual growth rates, projected demand for 2022 increases to 9, 311, 083 MT. Shown in Tables 23 and 24 are the historical and projected demand. 19 Table 23 Historical Demand (MT),- Particulars Consumption Processing Total 2012 1,746,000 5,803,000 7,549,000 2013 1,932,000 5,779,000 7,711,000 2014 2,242,000 6,088,000 8,330,000 2015 2,138,000 5,890,000 8,028,000 2016 2,375,000 5,655,000 8,030,000 2017 2,573,116 5,622,360 8,195,476 Table 24 Projected Demand (MT),- Particulars Consumption Processing Total  2018 2,788,200 5,589,909 8,378,108 2019 3,021,701 5,557,645 8,579,345 2020 3,275,192 5,525,567 8,800,759 2021 3,550,380 5,493,674 9,044,054 2022 3,849,118 5,461,965 9,311,083 Supply Supply for Tawi-tawi is very minimal in relation to the overall supply of ARMM Region even though it is the 4th largely produce crop of the province. In totality, Philippine supply is increasing with an average growth rate of 1.5%. Shown in Tables 25 and 26 are the historical and projected supply for corn. Table 25 Corn Historical Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi 2012 7,407,068 764,774 1,220 2013 7,377,293 667,104 967 2014 7,770,603 699,591 804 2015 7,518,756 673,036 837 2016 7,218,817 590,580 620 2017 7,914,908 841,618 660 Table 26 Corn Projected Supply (MT),- Particulars PHILIPPINES ARMM Tawi-tawi  -,031,129 8,149,056 8,268,715 8,390,131 8,513,329 872,857 905,255 938,855 973,703 1,009,- Demand-Supply Gap As it can be observed in the table next page, demand-supply gap is increasing for the projected years- which can be a good indicator that there is an absorbing market for corn and its value-added products. 20 Table 27 Corn Demand-Supply Gap (MT) Year- 1.2. Projected Demand Projected Supply 8,378,108 8,031,129 8,579,345 8,149,056 8,800,759 8,268,715 9,044,054 8,390,131 9,311,083 8,513,329 Gap 346,979 430,289 532,044 653,923 797,754 Production Topics discussed in this part are area planted, and production volume for coconut, cassava, banana and corn. 1.2.1. Area Planted 1.2.1.1. Coconut Shown in the table below is the area harvested for coconut in the Philippines, ARMM Region, and the provinces of ARMM. The country has the largest area planted with coconut as it suits the tropical climate in the country. However, most trees are senile and old which needs to be rehabilitated in order to increase the yield. That is why through the Philippine Coconut Authority, there are different interventions and programs in helping the coconut farmers revive and improve their farms to give them more income. Table 28 Area Harvested (Hectares),- Particulars PHILIPPINES ARMM Maguindanao Sulu Basilan Lanao del Sur Tawi-tawi 1.2.1.2. 2012 3,574,614 315,940 95,896 66,840 66,763 46,381 40,060 2013 3,551,299 322,677 104,526 66,950 64,763 46,381 40,057 2014 3,502,011 327,890 109,752 67,000 64,700 46,381 40,057 2015 3,517,743 328,640 109,752 67,750 64,700 46,381 40,057 2016 3,565,059 331,633 113,045 67,750 64,400 46,381 40,057 Average 3,542,145 325,356 106,594 67,258 65,065 46,381 40,058 Cassava In the Philippines, the principal cassava growing areas are located in Mindanao, of this, ARMM ranked first in terms of area planted with 97, 374 hectares. The area planted for cassava production in Tawi-tawi is 18, 938 hectares in year 2012, though decreases in 2016 to 18, 934 hectares. Yet, due to the increasing demand of cassava in the country, production is still expected to increase given the new varieties and techniques for cassava production. The table next page shows the area planted in ARMM and its five provinces. 21 Table 29 Area Harvested (Hectares),- Particulars ARMM Basilan Lanao del Sur Maguindanao Sulu Tawi-tawi 1.2.1.3. 2012 95,777 17,474 31,-,665 18,938 2013 97,486 17,479 33,-,325 18,937 2014 98,089 17,479 33,-,325 18,935 2015 97,266 17,479 32,500 1,000 27,350 18,937 2016 98,253 17,479 32,500 1,990 27,350 18,934 Average 97,374 17,478 32,500 1,057 27,403 18,936 Banana For 2016, Philippines have an existing production area of 442, 865 while Tawi-tawi has an area planted of 724 hectares composed of different varieties such as Lakatan, Cavendish and Saba. Shown in the table below is the area planted in the Philippines, the region of ARMM and its provinces. Table 30 Area Harvested (Hectares),- Particulars PHILIPPINES ARMM Basilan Lanao del Sur Maguindanao Sulu Tawi-tawi 1.2.1.4. -,262 32,488 7,104 5,205 16,942 2,511 726 -,017 32,728 7,119 5,208 17,162 2,516 723 -,751 33,732 7,104 5,322 18,077 2,504 725 -,370 33,731 7,104 5,208 18,192 2,504 723 -,865 33,768 7,104 5,208 18,225 2,507 724 Average 445,853 33,289 7,107 5,230 17,720 2,508 724 Corn The region of ARMM has a good soil suitable for corn production in which the area planted for 2012 reached 298, 812 hectares though it decreased in 2016 with 261, 157 hectares. Tawi-tawi has area planted of 1, 142 hectares on 2012 and also decreased on 2016 to 593 hectares. Decreased in area planted was a result of El Niño during the affected years and crop diversification to cassava. Shown in Table 31 is the area planted of corn in the Philippines, ARMM and its provinces. 22 Table 31 Area Harvested (Hectares),- Particulars PHILIPPINES ARMM Maguindanao Lanao del Sur Sulu Tawi-tawi Basilan 2012 2,593,924 298,812 181,525 114,507 1,129 1,142 509 2013 2,563,718 275,964 160,058 113,536 1,- 2014 2,611,432 277,590 172,032 103,293 1,- 2015 2,561,934 282,295 172,852 107,111 1,- 2016 2,484,465 261,157 152,942 106,067 1,- Average 2,563,095 279,164 167,882 108,903 1,- 1.2.2. Production Volume Presented below is the production volume for coconut, cassava, banana and corn for-. 1.2.2.1.1. Coconut Coconut with husk production volume has an average production of 14, 894, 941 MT -) for the Philippines, average production of 1, 352, 883 MT for ARMM and 161, 803 MT for Tawi-tawi. These figures are presented in the table below. Table 32 Coconut (with Husk) Production Volume (MT),- Particulars PHILIPPINES ARMM Maguindanao Sulu Lanao del Sur Basilan Tawi-tawi 1.2.2.1.2. - Average 15,863,801 15,354,334 14,696,298 14,735,189 13,825,080 14,894,941 1,311,219 1,327,299 1,356,182 1,393,168 1,376,545 1,352,883 563,371 590,191 621,104 664,088 706,927 629,136 206,918 207,883 210,234 215,471 210,186 210,138 174,346 171,247 177,145 184,781 185,224 178,549 204,023 193,180 182,236 163,251 123,594 173,257 162,562 164,798 165,462 165,578 150,614 161,803 Cassava Cassava is the most widely grown root crops in the Philippines. From 2012 to 2016, it has an average production volume of 2, 806, 668 metric tons. Of this volume, it is estimated that 5.99% is utilized for feeds and waste, 83.97% for processing, 10% for food use and .04% for exports (data is based on PSA). In the province of Tawi-tawi, year 2015 has the highest yield of produce which is 99, 513 metric tons but then decreases to 96, 534 metric tons on the following year. The table next page shows the trend of production volume of cassava in the Philippines, ARMM and the provinces of Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-tawi. 23 Table 33 Production Volume (MT),- Particulars PHILIPPINES ARMM Basilan Lanao del Sur Maguindanao Sulu Tawi-tawi 1.2.2.1.3. 2012 2,223,182 1,018,969 249,966 495,878 3,653 172,990 96,482 2013 2,361,561 1,035,107 257,532 505,129 3,835 172,975 95,636 2014 2,540,254 1,045,233 259,920 518,096 4,216 168,200 94,802 2015 2,714,346 1,024,180 254,150 497,681 4,236 168,600 99,513 2016 2,755,146 1,007,822 248,248 497,803 4,235 161,001 96,534 Average 2,806,668 1,037,472 267,109 502,925 5,122 164,198 98,118 Banana Banana is the leading fruit grown in the Philippines. It is grown throughout the tropics and is used for a variety of purposes. It is estimated that 50.14% is utilized for food consumption, 27.33% for exports, 18.17 % for processing and 4.36% for feeds. From the data gathered from PSA, 2012 recorded 9, 226, 768 metric tons of Philippine produce which is relatively higher compared to year 2013 to 2016. Shown in Table 34 is the production volume in metric tons in the country, down to the region of ARMM with its five provinces. Table 34 Production Volume (MT),- Particulars PHILIPPINES ARMM Basilan Lanao del Sur Maguindanao Sulu Tawi-tawi 1.2.2.1.4. 2012 9,226,768 440,198 23,789 105,857 283,940 17,814 8,798 2013 8,646,417 459,606 22,966 105,294 306,055 16,848 8,443 2014 8,884,857 493,598 23,524 108,777 336,244 16,735 8,318 2015 9,083,929 531,048 22,783 109,907 373,763 16,610 7,985 2016 8,903,684 533,677 20,970 110,767 378,487 15,429 8,025 Average 8,949,131 491,625 22,806 108,120 335,698 16,687 8,314 Corn For 2016, the production of corn for Philippines is 7, 218, 817 MT, ARMM with 590, 580 MT and Tawi-tawi with 620 MT. Shown in Table 35 is the production volume for corn for-. Table 35 Production Volume (MT),- Particulars PHILIPPINES ARMM Maguindanao Lanao del Sur Sulu Tawi-tawi Basilan 2012 7,407,068 764,774 492,737 269,458 1,021 1,220 338 2013 7,377,293 667,104 384,912 280,023 1,- 2014 7,770,603 699,591 464,984 232,513 1,- 2015 7,518,756 673,036 429,164 241,671 1,- 2016 7,218,817 590,580 350,133 238,625 1,- Average 7,458,507 679,017 424,386 252,458 1,- 24 c. Business Development Service (BDS) Business Development Service is a range of services that will improve the performance of the ARBOs’ agri-enterprise, its access to market and ability to compete. These are means to improve the long-term competitive performance of the enterprise and its day-to-day operations. Trainings to be provided for ARBOs are on the technical know-how of the projects to capacitate them on the process and operation of the respective business enterprises. Value-adding will be introduced to the beneficiaries to provide more stable income and neutralize the fluctuations of agricultural produce. Also, agricultural products are currently sold in the local market and local traders. When there is value-adding, products can be sold outside the locality as the shelf life will be longer. With this, marketing tie-up will be of great importance to identify and find buyers for the products. As a total, there will be 13 types of trainings to be included in the BDS component. The trainings will have a total of 25 batches for the three (3) years of the project. Shown in Tables 36, 37, and 38 are the types of trainings with corresponding number of batches, proposed amount per training, and proposed amount per beneficiary. Table 36 BDS Trainings by Number of Batches -) Types of Training Cassava Processing and Marketing Tieup Cassava Processing Tie-up Coconut Farming and Marketing Tie-up Corn Processing and Marketing Tie-up Durian Processing and Marketing Tie-up Mat Weaving Modern Vegetable Production Training and Marketing Tie-up Skills/Livelihood Training on Cassava Production and Demo and Marketing Tie-Up Training on Cassava Farming and Marketing Tie-up Training on Cassava Production and Marketing Tie-up Training on Chili Product Enhancement (Chili Paste, Pickles and Oil) Value Adding and Marketing Tie-up Value Adding on Cassava and Marketing Tie-up Total 2018 2019 2 1 3 1 1 2 1 1 2 2 1 2 1 1 2020 1 Total 2 2 3 3 1 1 1 2 3 1 1 12 1 2 3 1 1 12 1 25 25 Table 37 BDS Budgetary Requirement by Trainings -) Types of Training Cassava Processing and Marketing Tie-up Cassava Processing Tie-up Coconut Farming and Marketing Tieup Corn Processing and Marketing Tieup Durian Processing and Marketing Tie -up Mat Weaving Modern Vegetable Production Training and Marketing Tie-up Skills/Livelihood Training on Cassava Production and Demo and Marketing Tie-up Training on Cassava Farming and Marketing Tie-up Training On Cassava Production And Marketing Tie Training On Chili Product Enhancement (Chili Paste, Pickles And Oil) Value Adding and Marketing Tie-up Value Adding on Cassava and Marketing Tie-up Total 2018 2019 2020 Total 587,500.00 621,-,000.00 1,209,-,000.00 621,875.00 450,000.00 1,071,875.00 1,293,750.00 1,293,750.00 443,750.00 443,-,000.00 300,000.00 250,000.00 400,000.00 400,000.00 4,500,000.00 4,500,-,000.00 150,000.00 1,200,000.00 2,100,000.00 3,300,000.00 700,-,000.00 1,900,000.00 700,000.00 2,400,000.00 500,-,000.00 8,809,375.00 8,309,-,-,368,750.00 Table 38 BDS Budgetary Requirement by Beneficiaries -) Beneficiaries Tarawakan Marang-Marang Parang-Pantay Boki Paranta Buan Karaha Lambug Magsaggaw Talisay Bagid South Ubian Total -,000.00 2019 1,700,000.00 3,400,000.00 1,700,-,875.00 2,587,500.00 2,959,375.00 1,700,000.00 2,200,000.00 8,809,375.00 8,309,375.00 2020 Total 250,000.00 1,700,000.00 3,400,000.00 1,700,-,875.00 2,587,500.00 2,959,375.00 1,700,000.00 2,200,-,-,-,-,368,750.00 26 d. Common Service Facilities (CSF) Provision of Common Service Facilities (CSFs) such as farm implements, equipment and machineries to complement Business Development Services (BDS) will be provided. These are expected to increase farm productivity and income. CSF will be provided to augment the production and lessen post-harvest losses. Through these facilities, there will be efficiency and optimization of production which will result to higher incomes of ARBOs. As of today, the farmers in Tawi-tawi are still practicing conventional way of farming with very few facilities or nothing at all to use. In areas when there are some available machineries and equipment, not all farmers can use due to the limited numbers of facilities. By providing ARBOs the production, post-harvest, and processing facilities that they need, it will greatly help in aiding with the operations which will result to smooth operation, higher yield, and less production and post-harvest losses. Listed in the table below are the facilities proposed to be given to the beneficiaries. Table 39 List of Common Service Facilities -) Facilities Cassava and Corn SemiProcessing Plant Cassava Grater Cassava SemiProcessing Plant Drip Irrigation Farm Implements Farm Inputs Forward Hauling Truck Rain Collector Facility Tractor (35 HP) with Implements Weaving Total Units 2018 2019 1 8 Total 2,100,000.00 2,100,000.00 500,000.00 800,000.00 4,500,000.00 4,500,000.00 300,000.00 2 2020 1 1 3 2 1 1,100,-,000.00 2,000,000.00 4,200,000.00 1,000,000.00 2,000,000.00 2,000,000.00 1,100,-,000.00 6,000,000.00 4,200,000.00 1,000,000.00 7 5,200,000.00 3,900,000.00 9,100,000.00 2 28 100,-,-,-,950,-,000,000.00 2,100,-,050,000.00 For 2018, budgetary requirement for Common Service Facilities (CSF) amounted to P13, 950, 000.00 with eight beneficiaries; needed amount for 2019 is P13, 000, 000.00 for six beneficiaries; estimated amount for 2020 is P2, 100, 000.00 with one beneficiary. Total budgetary requirement needed for CSF component is P29, 050, 000.00. Shown below are the ARCs and the proposed budgetary requirement. Table 40 CSF Budgetary Requirement by ARC -) ARCs Bagid Expanded Boki Paranta 2018 2019 2,150,000.00 2020 Total 2,150,000.00 2,800,000.00 2,800,- Buan Karaha 1,600,000.00 1,600,000.00 Lambug 3,500,000.00 3,500,000.00 3,500,000.00 Magsaggaw 100,000.00 Marang-Marang Parang-Pantay 3,500,000.00 4,200,000.00 4,200,000.00 2,100,000.00 South Ubian 5,000,000.00 Talisay Tarawakan Total e. 100,000.00 2,100,000.00 5,000,000.00 4,100,000.00 4,100,000.00 13,950,-,000,000.00 2,100,-,050,000.00 Economic Infrastructure (EI) By providing the economic infrastructure needed by the community, lives of people will be made easier and efficient. It will aid in their farming and other economic activities to have the optimum benefits due to efficient post-production process. Economic infrastructure proposed for construction includes solar dryer with warehouse, multi-purpose building, irrigation, rain collector facility, water system, and processing plants. Shown in Table 41 and 42 are the facilities to be provided and total budgetary requirement per subproject and beneficiaries amounted to P51, 100, 000.00 for-. Budget allocation for 2018 is P18, 700, 000.00; 2019 estimated cost is P20, 200, 000.00; for 2020, allotted budget is P12, 200, 000.00. Table 41 Economic Infrastructure Subprojects -) Subprojects QTY Construction of Cassava Service Processing Plant Construction of Classroom Buildings Construction of Coconut Based Semi Processing Plant Construction of Health Center Building Construction of Hot Chili Provision Building Construction of Mini Irrigation Construction of Multi-Purpose Building Construction of Portable Water System Construction of Provision of Plastic Pater Closet Construction of Rain Collector Construction of Solar Dryer Construction of Solar Dryer w/ Warehouse Construction of Warehouse 2 3 Proposed Budget in PHP ‘-,000 2,400 2 1,500 - 2,000 2,000 1,500 3,000 2,000 2,300 2,000 2,300 2,000 3,300 4,100 1,000 3,300 8,400 9,200 7,100 1,300 4,100 1,000 3,300 8,400 3,600 3,300 Total in PHP ‘000 3,000 2,400 5,600 3,800 28 Total 18,700 20,200 12,200 51,100 Table 42 EI Budget Requirement by ARC -) ARC Bagid Bagid Expanded Baldatal Islam Boki Paranta Boki Paranta Kula-Kula Himba Magsaggaw Parang-Pantay Sapah Lake South Ubian Talisay Tarawakan Ungus-Ungus Tongehat Total f. 2018 2019 2020 3,300,000.00 4,200,000.00 500,000.00 3,300,-,000.00 3,300,000.00 3,300,000.00 3,300,000.00 8,500,-,000.00 3,300,000.00 2,100,000.00 8,800,000.00 3,300,000.00 2,100,-,700,-,200,-,200,000.00 Total 3,300,-,000.00 3,300,000.00 5,100,000.00 4,200,000.00 3,300,000.00 3,300,-,800,-,000.00 3,300,000.00 2,100,-,100,000.00 2,100,-,100,000.00 Rural Infrastructure (RI) Through Rural Infrastructure, post harvest losses will be minimal and farmers can then transport their products to the market in a timely and cost-efficient manner. In effect, RI will save expenses that will add up to beneficiaries’ income. For this component, to be constructed farmto-market roads is expected at 26 kilometers. For 2018, budget allocation for RI amounted to P60 million; 2019 estimated cost is also P60 million; allocated amount for 2020 is P180 million. Total budgetary requirement for Rural Infrastructure -) amounted to P300 million. Shown in Table 43 is the budgetary requirement for Rural Infrastructure. 29 Table 43 RI Budgetary Requirement -) MUNICIPALITY 2018 Bongao 2019 Languyan ARC ARBO Tarawakan TOTAL RI FOR 2018 Marang-Marang AMOUNT 60,000,000 60,000,000 Tumahubong Farmers Association 60,000,000 TOTAL RI FOR 2019 g. 2020 Simunul Bagid Expanded South Ubian South Ubian Tandubas Kula-Kula Himba TOTAL RI FOR 2020 TOTAL RI FOR TAWI-TAWI 1. Tampakan Farmers Coop 2. MLT Farmers Association One Tabawan Farmers Association 60,000,000 60,000,000 60,000,000 60,000,000 180,000,000 300,000,000 Sustainable Livelihood Project (SLP) In order to address the deficit in cash flow, sustainable livelihood projects will be necessary to provide a means for farmers to have daily, weekly, monthly and 45-days income to sustain the immediate needs of their families. It will render agri-enterprise ventures of the farmers a source for their savings, and help in the reduction of rural poverty. Sustainable Livelihood Projects will provide additional income for the beneficiaries for their immediate needs. They can sell it right away to buy foods, pay school contributions and give allowances for children, and other day-to-day needs. These proposed projects are duck raising, goat raising, native chicken raising, and cattle raising. Total budgetary requirement needed for SLP is P4, 210, 715.00; for 2018, it needs P2, 967, 858.00 for the eight beneficiaries; allocation for 2019 is P1, 242, 857.00 for the 2 beneficiaries. Shown in Table 44 is the budgetary requirement for Sustainable Livelihood Projects. 30 Table 44 SLP Budgetary Requirement -) MUNICIPALITY 2018 ARC ARBO Panglima Sugala Magsaggaw 1. Magsaggaw ARB Coop 2. Sitio Upper Malum ARB Producers Association Bongao Tarawakan 1. Tarawakan Producers Coop 2. Lapid-Lapid AB Producers Coop 3. Luuk Tulay ARB Producers Coop Languyan Parang Pantay Simunul Bagid AMOUNT 1,192,858 600,000 300,000 1. Tampakan Farmers Coop 2. MLT Farmers Association TOTAL SLP FOR 2018 875,000 2,967,858 2019 Mapun Boki Paranta Languyan Marang-Marang 864,428 Tumahubong Farmers Association TOTAL SLP FOR 2019 TOTAL SLP FOR TAWI-TAWI h. 378,429 1,242,857 4,210,715 Islamic Micro-Finance (IMF) Islamic Micro-Finance is responding to the need of providing a Shariah-compliant micro-finance facility. This shall serve as a support service that would essentially address the entire Islamic Finance Ecosystem. IMF will provide financial literacy program and referral to Islamic Microfinance Facility within ARMM. However, this component is not included for Tawi-tawi but other provinces will introduce IMF to its beneficiaries. i. Regional and Provincial Programming, Planning, Monitoring, and Supervision (RPPMS or PPPMS) This is a support to operations function focused in the planning of programs/projects/activities geared towards the total development of the 48,264 ARBs in the 81 ARCs and 4 ARAs, covering 156,- hectares of land distributed under CARP in ARMM, by delivering a holistic package of support services. It also intends to oversee and monitor the progress, process and impact of program implementation of the PEACE proposal. 31 V. Budgetary Requirement PEACE Program Total Project Cost for- amounted to P432, 620, 429, 55. For 2018 implementation, the budget needed is P120, 544, 793.75; 2019 budgetary requirement is P115, 075, 636.00; estimated budget for 2020 is the highest with P196, 999, 999. 80. Shown in the table below is the total budgetary requirement for- per component. Table 45 Total Budgetary Requirement for PEACE -) Components 2018 Community – Driven Development Agriculture and Enterprise Development Business Development Service Common Service Facilities Economic Infrastructure Rural Infrastructure Sustainable Livelihood Project Subtotal 2019 Community – Driven Development Agriculture and Enterprise Development Business Development Service Common Service Facilities Economic Infrastructure Rural Infrastructure Sustainable Livelihood Project Subtotal Total Project Cost 3,742,-,375,000.00 8,809,-,950,-,700,-,000,000.00 2,967,-,544,793.75 3,091,400.00 8,282,004.00 8,309,-,950,-,200,-,000,000.00 1,242,-,075,636.00 2020 Community – Driven Development Agriculture and Enterprise Development Business Development Service Common Service Facilities Economic Infrastructure Rural Infrastructure Sustainable Livelihood Project Subtotal 196,999,999.80 Total 432,620,429.55 1,349,999.80 1,100,-,000.00 2,100,-,200,-,000,000.00 32 VI. Socio-Economic Impact By implementing the program, many will be employed in agriculture and manufacturing sector (for value-added products) which will provide them additional income. Increase production of agricultural crops will give more food in the table and income for the farmers. When there is a progressive trade and commerce created, taxes can be collected by government and in turn provide social services to the people through education, health, infrastructure and others. Providing more goods in the locality would means less cash outflow; more disposable income would increase the buying capacity of the people, then a positive domino effect of economic activities could be created. VII. Recommendations  To introduce to farmers the latest technologies in farming since most of them are still practicing the old ways. To also provide farm implements and equipments to boost the crop production.  Farm – to market roads are the immediate need of the community which must be addressed first before focusing on the economic activities.  Presence of industrial buyers would create a more secure market of agricultural crops.  Promote and produce value-added products that can be marketed within and even outside the province of Tawi-tawi.  To only provide projects that can be handled by ARBOs to achieve a higher success rate of the program.  The aspect of community empowerment will need a great focus and attention.  Close monitoring and evaluation of the different projects and the implementation of PEACE as a whole. VIII. Conclusions PEACE is a holistic approach in terms of helping and empowering the community to be uplifted from its current state of poverty to transform into a progressive society. This is a vast program that needs the cooperation and efforts from the different implementing agencies to gain success. Progress will not be a walk in the park and will not happen overnight, but through passion, dedication, and cooperation in achieving the common goal, success will be at hand. 33 IX. Annexes 1. Financial Requirements for Some Viable Projects a. Coconut Production Coconut production would entail a total project cost of P68, 200 for the development cost and working capital. Return on investment is pegged at 89%; gross profit rate and net profit margin on the 6th year are 62% and 52%, respectively. Tables 46 and 47 are the Total Project Cost and Projected Income Statement for Coconut Production. Table 46 Coconut Production Total Project Cost Particulars Land Development Cost Working Capital Cycle ( 3 months) Farm Inputs Direct Labor Selling and Administrative Expenses Subtotal Total Project Cost Note: Land cost is not included in the computation. Amount 61,800.00 1,800.00 3,100.00 1,500.00 6,-,200.00 Table 47 Coconut Production Projected Income Statement Particulars Gross Sales Less: Total Production Cost Gross Profit Less: Selling & Admin. Expenses -10% of the Gross Sales Net Income before Tax Return on Investment (Ave. Net Income/ TPC) Gross Profit Rate (Gross Profit/Sales) Net Profit Rate (Net Income before Tax/Sales) Payback Period (Ave. Net Income + Depreciation/TPC) b. One Cropping (3 months) 14,500.00 5,600.00 8,900.00 Year 6 Year 7 Year 8 Year 9 Year 10 57,-,-,000.00 68,-,-,600.00 81,-,-,500.00 94,-,-,800.00 99,-,-,300.00 1,500.00 7,400.00 5,-,200.00 6,-,700.00 8,200.00 9,-,-,-% 66% 69% 71% 56% 59% 61% 1 Year and 10 Months 10,-,300.00 62% 52% 72% 62% Corn Production One cropping cycle of corn production which is equivalent to four months, would require a total project cost of P25, 138.01. Annual projected income is P41, 390.65; ROI is 173%, payback period of 7 months and net profit margin of 45.15%. Shown in the Tables 48 and 49 are the Total Project Cost and Projected Income Statement for Corn Production. 34 Table 48 Corn Production Total Project Cost Particulars Working Capital Cycle (4 months) Farm Inputs Direct Labor Farm Overhead Selling Expense Subtotal Amount 13,860.00 4,600.00 6,-,138.01 TOTAL PROJECT COST 25,138.01 Table 49 Corn Production Projected Income Statement Gross Sales Less: Production Cost Farm Inputs Direct Labor Farm Overhead Subtotal Gross Profit Less: Selling Expense Net Income before Tax Return on Investment (Net Income/TPC) Payback Period (TPC/Net Income) Net Profit Margin (Net Income/Gross Sales Gross Profit Rate (Gross Profit/Gross Sales) 91,-,720.00 9,-,-,-,684.76 1,-,-% 7 months 45.15% 46.57% 35 2. TAWI-TAWI ARC MAP N SL U US EA SUL U E SA O 10 20 O M K ILO M E TE R S P a r a ng - P a n t a y A R C S ap ah L ake A R C T ub ig D a k u l a - S i k u ll is ARC C A C A TA N I S L A N D B uk i P a ra nt a A R C SGB U AIP ASA GE K A N G T I PA Y A N D A K U L A IS L AN D C A G A Y A N D E T A W I - TA W I IS L A ND B a ld a t a r ARC M A PO N ( CA M A NIA CO L L AT IS L A ND S U G BA L I IS L AN D G A Y A N D E TA W I - T A W I ) B o a n K a ra ha A R C T UM BA G AA N IS L A ND KEY MA B UB UA N IS L AN D Him b a ARC M a r a ng - M a r a ng A R C L E G E N D : TANDUBAS M ag sag g ao A R C L A N G U YA N S O U T H U B IA N T ar a w ak a n A R C P r o v S O U TH U B I A N I S L A N D L a k i t - La k i t M a n d ul a n A R C BO NGAO TA N D U B A S IS LA N D M u n i TA B U A N I S L A N D S A P A -S A P A T U R T L E I SL A N D R iv e S A N G A -S A N G A IS L A ND P A N G L IM A S U G A L A ( B A L I M B IN G ) TA G A N A K I S L A N D S E C UB O NG IS L AN D N a t io M A NT AB UA N IS L A ND P r o v B A N A R A N IS LA N D B IL A T A N I S L A N D C it y L a m b og ( S P IC C nZ PA R C ) A R C S i bu t u A R C S IM U N U L U M A P OY I S L A N D B a gi d A R C A g ra r C o m m M A N U K M A N G K A W IS LA N D S ITA N G K A I T um i n da o A R C C T o w n Propos ARCP S IBU T U IS L A ND S I TA N G K A I IS L AN D L o c a tio n A g r a r ia n C om m u Ta w i - Ta nd u ba n a k A R C To n ge ha t U n g us U n g us A R C MINDANAOSEA J A PA N I CO O P E R 36