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“Agriculture, which employs the majority of Filipinos, is grudgingly grew disproportionately at about 0.5 percent in the first quarter against the 5.7 percent overall economic expansion
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Daily Tribune“Agriculture, which employs the majority of Filipinos, is grudgingly grew disproportionately at about 0.5 percent in the first quarter against the 5.7 percent overall economic expansion
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Employing the Bayanihan concept in the development of agriculture might just be the medicine needed to boost growth in the sector, which is a dismal laggard that is keeping the economy from realizing its full potential.
The Department of Agriculture (DA) is tapping the acumen of the private sector in its goal of attaining food security through the agro-industrial path.
Such a joint effort is not new, and the known expertise and network of Agriculture Secretary Francisco Tiu Laurel Jr. will be valuable to the new thrust.
Agriculture, which employs the majority of Filipinos, grudgingly grew disproportionately at about 0.5 percent in the first quarter against the 5.7 percent overall economic expansion.
The DA is tapping the support of the private sector to achieve economies of scale through farm consolidations.
Among the reforms the DA recently introduced is the clustering and consolidation of farms patterned after Thailand and Vietnam which are global agricultural dynamos.
Both nations achieved efficiency in their farms through consolidation that created clusters of about a hundred hectares for rice and corn.
In contrast, local farms are individually tilled at an average size of about one to two hectares which makes inputs and the use of machines expensive, resulting in lower efficiency.
Clustering through the help of big private businesses is expected to reduce the cost of inputs.
Economies of scale make the cost of production cheaper.
Milling losses in rice should be reduced to at least five percent to 10 percent to give farmers a bigger income.
Milling losses range from 15 percent to 20 percent, which is equivalent to 342,000 metric tons per year.
According to experts, milling losses should not exceed 10 percent to attain a reasonable income to cover expenses for the next planting season.
Private firms can provide the means for farmers to benefit from more efficient rice mills.
The DA is looking at suggestions to increase milling efficiency by making varieties of rice uniform in each region.
Different rice varieties when milled together produce more broken rice, which is also a factor in reducing farmers’ incomes.
While the DA is working for a bigger budget for the improvement of drying, milling and post-harvest facilities, the private sector can step in to further trim production losses.
The DA is proposing around P13.1 billion for its post-harvest related machinery and facilities procurement from P4.2 billion this year.
Also for next year, the department is seeking a budget for farm-to-market road projects of P50 billion and over P200 billion for irrigation.
The bulk of the assistance to tillers will come from the Rice Competitiveness Enhancement Fund which will be funding mechanization programs and provision of inputs.
Under Republic Act 11203 or the Rice Tariffication Law, around P10 billion in proceeds from the rice tariff goes to the RCEF, while collections are given as financial aid to small rice farmers.
In 2023, the tariff collections from imported rice reached P29 billion from P22 billion collected in 2022.
Despite the tariff cut on imports, the assistance to farmers will be maintained. The National Food Authority (NFA), in turn, will continue to buy local palay from farmers at a “reasonable” price under the amendments to the Rice Tariffication Law.
The NFA buys palay at from P17 to P23 per kilo and P23 to P30 per kilo, respectively, for dry and clean palay.
In infrastructure buildup, the private-public partnership proved effective in the country’s effort to play catch-up with its neighbors.
The partnership may just be as effective in reviving the sluggish farm sector.
