Effects of land-use conversion on local agriculture: The case of Cavite, Philippines

For years, the Philippines’ bid toward NIChood has been invariably transforming
the once serene rural landscape into a bustling hub of human activity, inducing the
massive conversion of hundreds of hectares of productive farmlands into various urban
uses. Unexpectedly, the process has brought about mixed results spawning a serious
debate on the real merits of agricultural land conversion. Thus, the significance of the
current level of farmland conversion relative to local agriculture and rural communities
was examined.
Based on the results of the study, there were some 856 land conversion petitions
filed in Cavite from 1986 to 1994 covering nearly 12,414 ha. Of this number, about 698
petitions consisting of some 9,963 ha were either approved or exempted. Assuming
then that the majority of those applications under process would also be eventually
approved or exempted, then the total size of agricultural land that may have already
been lost to urban uses could amount to approximately 12,060 ha over the past nine
years. However, while this loss of agricultural land may be regarded as sizable, it was
not as serious and critical as widely perceived considering that it accounted for nearly
10 percent of the total stock of agricultural land in Cavite in 1986. Moreover, of the total
area of farmlands converted, a greater part of it (95 %) were composed mainly of the
rainfed areas, of which some 30 percent were made up principally of idle lands. Further
data analysis also showed that of the total area petitioned for agricultural land
conversion, 45 percent were exclusively for residential purposes, whereas industrial
areas, mixed-uses, and recreational/commercial/institutional/service areas each
accounted for only 16, 21, and 6 percent, respectively.
The study also revealed that aside from the direct loss of productive capacity, the
successive land conversions that have taken place in the past has also negatively
influenced whatever little agriculture remained. These externalities were generally
reported to have taken several forms which imposed additional burdens on existing
farming conditions even if the remaining agricultural lands were not physically altered in
any major way. On the other hand, results of the cost-benefit analysis indicated that
agricultural land conversion were both financially and economically justified. Even when
the results were evaluated using different discount rates, time horizons, and varying
combinations of different agricultural lands converted, the winners have consistently
gained more than what the losers lost; and there were substantial positive net gains for
society as a whole. Thus, in general, results of the study bared that the positive side of
land conversion could substantially offset its obvious disadvantages.


INTRODUCTION
For years, the Philippines’ bid toward NIC status has been invariably transforming the
once serene rural landscape into a bustling hub of human activity. Spurred by the constant
urge to attract foreign investments, generate more employment opportunities, and decongest
major population centers, the government tolerated the rampant conversion of hundreds of
hectares of productive farmlands across the country to various urban uses. Unexpectedly,
the process has brought about both mixed results engendering a serious debate on the real
value of agricultural land conversion. Hence, the significance of the current level of
farmland conversion relative to local agriculture and rural communities was examined.
The study was restricted to Cavite which was then the country’s leading province in
terms of agricultural land conversions. It covered a period of nine years from 1986 to 1994
and was conducted in three phases lasting from January 1995 to March 1996. Phase I
consisted of collecting both primary and secondary data on the existing institutional
arrangements, status, extent, and nature of farmland conversions in Cavite from the DAR,
HLURB, and the provincial Assessor's Office. Based on the results of Phase I, a rapid rural
appraisal (Phase II) on the effects of land conversion on different members of the local
community was undertaken using key informants from seven selected barangays which were
most severely affected by land conversion. Phase III, on the other hand, delved on the
financial and economic analysis of agricultural land conversion using the BCA approach. To
achieve greater confidence on the findings of the study, results of the economic analysis
were further subjected to sensitivity analysis.


RESULTS AND DISCUSSION
Status of Agricultural Land-Use Conversion
From 1986 to 1994, there were some 856 land conversion applications filed in Cavite
covering some 12,414 ha (Table 1). Of this number, about 698 petitions consisting of some
9,963 ha were either approved or exempted. Assuming then that the majority of those
applications under process would also be eventually approved or exempted, then the total
size of agricultural lands that may have already been lost to urban uses could amount to
approximately 12,060 ha over the past nine years. Collectively, this accounts for nearly 97
percent of the aggregate agricultural area in Cavite already earmarked for conversion to
nonagricultural purposes.

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