Restoration of Philippine Native Forest by Smallholder Tree Farmers - Smallholder Tree Growing for Rural Development and Environmental Services - page 323

The case of malapapaya ( Polycias nodosa ) in Gumaca, Quezon is an example on
how ITS was promoted due to market forces. A processing plant which manufac-
tures chopsticks, popsicle sticks, veneer and bento box (Japanese lunch box, a good
substitute for styrofoam boxes) buys naturally-grown malapapaya trees from the
area. The presence of this market has encouraged the planting of the species in the
area. However, while planting has increased, production technology particularly of
planting stocks is not fully perfected. The Ecosystems Research and Development
Bureau and the company (MP Woods Inc.) have partnered together to conduct pro-
duction technology research for the species, but the technology has not reached the
smallholder tree farmers.

15.4.6 Policy Review and Reforms Coupled by Incentives

for Plantation Development

The Director of the Forest Management Bureau himself admitted that the develop-
ment of private industrial forest plantations has not progressed well despite the
incentives provided and the prescriptions of the Philippines Forestry Master Plan
(Acosta 2004). He enumerated the factors that hinder forest plantation in the
Philippines namely: (a) financial viability of plantation development; (b) security
of land tenure; (c) unstable forest policies (changing personnel who do not honor
previous commitments between government and investors).
Resource-limited farmers are always plagued by the lack of capital to finance
even the most essential components of their agroforestry farm. Financial assistance
at reasonable interest rates would augment the farmers' meager resources. However,
most upland farmers are non-bankable, i.e. practically no bank is willing to extend
credit to the tree farming business of this sector of the society. High risks associated
with environmental problems and low repayments are the major reasons. It would
be better if the farmers' organization itself will be the one to apply for credit.
The short land tenure scheme currently offered by the government (25 years renew-
able for another 25 years) does not encourage plantation investors to put in their money
to tree farming. The private sector is suggesting a tenure security close to private own-
ership or if possible complete privatization of state forest lands (Acosta 2004).
The same paper on plantation incentives (Acosta 2004) suggested the following
actions to tap into the potential of CBFMs for plantation development: (a) full
rationalization of forestry rules and complete devolution of forest management
functions to communities and people's organizations; (b) Research and develop-
ment and extension support to CBFM and; (c) strengthening the financing and
market links between corporate forestry entities and CBFM organizations .
Furthermore, he proposed the re-evaluation of the present ban on export of logs and
rough lumber from the natural forests and deregulation of harvesting, transport and
trade of plantation timber.
Another paper on financial and other incentives for plantation establishment
contends that financial incentives are effective but needs supporting policies and