Utilizing data from surveys conducted in Albay, Camarines Sur and Sorsogon, this paper shows that a decline in farm income with the shift of workers from farm to non-farm activities has been accompanied by unfavorable changes in farm productivity. It also identifies the changes in the structure to allow clearer perspectives of income that in turn, can be influenced by policies intended to improve the rural poor. This is in conjunction to the aim of identifying the government’s action toward the advancement of rural welfare.