Sipalay consists largely of rice and corn farming with fruit production/orchard gradually being developed in the uplands in conjunction with agro-forestation. Banana, coconut, mango and  coffee are already produced in Sipalay, as well as pineapple, guava and citrus.  Planting of rootcrops, vegetables, and legumes are also done using the Bio-Intensive  Gardening System (BIGS) and Communal Garden approaches. The areas along the  river delta, which cover Barangay 3-Poblacion, Gil Montilla, Manlucahoc,  Cabadiangan, Mambaroto, and Nauhang are suitable for the planting of these  vegetables.

      Out of the total land area devoted to rice production, only 44 percent is currently  irrigated. There are already six existing  irrigation systems and a program to improve  irrigation facilities is being implemented through the National Irrigation Administration  (NIA) tapping the Sipalay River as the main source of water to irrigate an additional  300 to 400 hectares or 35 percent of the irrigated rice land.

      Various credit institutions such as the Land Bank of the Philippines-Sipalay  Branch, NGOs, the City Government, the Provincial and the National Government  and the Sipalay Multi-Purpose Cooperative provide the necessary assistance to  farmers' cooperatives and small/ medium enterprises and commercial establishments.  However, credit is still largely sought by the majority of the population from informal  lenders charging high interest rates. This is due to the relative ease of securing loans  from them without the need for so much documentation and bureaucratic delays often  encountered when applying for formal credit.

      Aside from farming, fishing is also a major source of income for the people of  Sipalay. Some 2,548 households (21.31 percent of the total households) are  engaged  in fishing in Sipalay. Municipal fishing vessels fish along the stretch of the  city coastline  facing the western side of the Sulu Sea while Barangay 4, Maricalum,  and Cayhagan  are frequented by commercial fishers.