The national government is moving to jumpstart long-delayed gains in the coconut sector, with the recently revised Coconut Farmers and Industry Development Plan (CFIDP) now aiming to address implementation bottlenecks and low fund utilization that have hampered efforts to uplift the lives of millions of coconut farmers.
The updated CFIDP, issued through Memorandum Circular No. 84 and signed by President Ferdinand Marcos Jr. last 21 May, seeks to inject urgency and clarity into the operationalization of Republic Act 11524, the Coconut Farmers and Industry Trust Fund Act. The law, signed in March 2021, was designed to manage and distribute the estimated P100-billion coconut levy fund in a way that boosts income and productivity among the country’s 3.5 million coconut farmers and revitalizes the broader coconut industry.
Former Senator Cynthia Villar, who authored the measure as chairperson of the Senate Committee on Agriculture and Food, envisioned the trust fund as a means to finally bring justice to smallholder coconut farmers who for decades awaited the return of the levy collected during the Marcos dictatorship.
The law mandates the formation of a Trust Fund Management Committee composed of representatives from the Departments of Finance, Budget and Management, and Justice to oversee the fund. Implementation plans are drawn by a reconstituted Philippine Coconut Authority (PCA) Board, which includes farmer representatives from Luzon, Visayas, and Mindanao to ensure inclusive policy formation.
The original CFIDP was issued as Executive Order No. 172 in 2022 under then-President Duterte and has now been revised to accelerate overlapping deliverables.
Initial implementation, however, has been marred by what stakeholders describe as lackluster performance in key components such as health and medical assistance, planting and replanting of hybrid seedlings, intercropping, cooperative development, and downstream processing. These failures have stalled impact, both in terms of disbursement and tangible improvements in farmers' livelihoods.
To address this, the revised CFIDP introduces key adjustments aimed at improving agency coordination and accountability. These include clearer guidelines on shared facilities and infrastructure rollout, expanded hybrid seed and nursery programs, and increased support for intercropping with high-value crops and livestock. The PCA is also tasked to administer health and medical benefits distinct from PhilHealth’s regular offerings.
The fund is structured for multi-sectoral allocation, with yearly releases beginning at P5 billion. This covers components such as seedling distribution, scholarships, market promotion, farmer training, and farm diversification, among others.
Despite the ambitious scope of the plan, the actual performance of implementing agencies will determine whether the revised roadmap can deliver on its promise. Key business sectors – from agri-inputs to rural banking and agro-processing – are closely watching the rollout, given the sector’s untapped potential and contribution to rural economies.