An important problem in the Philippines is that of determining the fair prices of farm products and thereby achieve certain objectives of national development which are to raise the farm people's income level, promote social and economic stability and increase agricultural efficiency and national productivity. An imbalance in the development of the economy exists is clearly shown by the wide gap in levels of living between the agricultural sector of the country and its urban sector on the other. This unmistakably points to a potentially dangerous situation of the Philippine economy. This study intends to show how a balanced development of the economy may be made easier in bringing it about. It is confined to the presentation and justification of two things: (1) a proposal for the integration of the agricultural and industrial sectors of the economy; and (2) a method of implementation of the proposal, using a farm parity formula. It is proposed in this study to (1) promote agricultural efficiency, and (2) help ensure for the farmers an equitable reward for their production.