Over-Regulated and Under-Marketed: Smallholders and the Wood Economy in Isabela, The Philippines - Smallholder Tree Growing for Rural Development and Environmental Services - page 165

2001; Wahyuni 2007), the case study area presents no technical difficulties to do
so, since all gmelina is plantation-grown and easy to distinguish from natural forest
species. Key to it all, therefore, is for DENR to deeply address the challenges of
this situation and to implement a clear and rational policy that conforms to its pub-
lic mandate of natural forest protection and sustainable wood provision. A blanket
logging ban needs to be re-enacted and re-implemented even though this would cost
a few non-recovered logs or blocks the establishment of plantations of indigenous
species in the region for the time being.
Such a policy rectification would free the smallholders from over-regulation and
illegal competition. They would, however, still be 'under-marketed'. The policy
rectification should therefore be seen as the necessary foundation to address the
remaining, market-related issues concerning the gmelina market. Our field inter-
views revealed several of those. Smallholders complained much about the high
transportation cost due to poor road conditions, for instance. Other constraining
factors are unpredictable demand, lack of access to credit, and low prices fixed by
the middlemen especially when the producers are indebted to them. Many farmers
expressed a need for more market information and training. Even though there is a
paucity of research on the scaling up of agroforestry (Franzel et al. 2001), these
problems would not appear to be overwhelming, if we assume that the basic policy
rectification is implemented indeed and a free, fair and stable market for gmelina
would arise. Farmers in the region have proven to be well motivated and able to
invest in new land use if basic circumstances are inspiring (Romero 2006). Well-
organized support from DENR, knowledge and development agencies and banks
could already help much, especially if reinforced by Local Government Units for
political backing, roads maintenance and possibly some tax exemptions.
7.6 Conclusion
This study has explored the institutional-economic interactions between farm-
based tree growing, illegal natural forest logging and regulatory policies. We have
shown that the present structures in this triangle are detrimental to the forest, the
smallholders and DENR's public mandate alike. At the same time, however, good
options exist to rectify these relationships and unburden the smallholders from
unnecessary regulations and illegal competition. On that basis, improving the
smallholders market situation will be feasible, so that the timber provision of the
region may become sustainable (plantation-based) and equitable (smallholder-
based), and the region's unique natural forests may be saved for biodiversity and
future generations.
Acknowledgments The authors wish to thank Mr. Anold Macadangdang for the data gathering
and the CENRO Cabagan staff for their valuable assistance. This study was funded by the
Cagayan Valley Program on Environment and Development and the Isabela State University-
College of Forestry and Environmental Management under the Center of Excellence (COE)
Program of the Commission on Higher Education (CHED).