A legislator on Wednesday expressed optimism that the country’s rice production would further improve this year despite the expected prolonged dry spell, due to the El Nino phenomenon.
Bicol Saro party-list Rep. Bryan Raymund Yamsuan based his optimism on the P31 billion government subsidy earmarked for palay farmers under the 2024 General Appropriations Act (GAA).
A total of P30,889,904,000 has been allocated for the National Rice Program (NRP) of the Department of Agriculture (DA) under the national budget, up by more than half-a-billion pesos from last year’s P30,296,993,000.
Yamsuan, a member of the House Committee on Appropriations, said the budget for the NRP is on top of the allocations for other national initiatives related to rice production and locally funded projects to benefit palay producers under the GAA.
Small rice producers are also assured of cash aid of over P15 billion from the 2023 tariff collections from rice imports, Yamsuan noted.
Under the law, rice import tariff collections in excess of P10 billion should go directly to farmers tilling two hectares of land and below in the form of cash grants. As of November 2023, the Bureau of Customs (BOC) has collected P25.55 billion, representing a surplus of at least P15.5 billion that will go to small rice planters this year, Yamsuan said.
“We are confident that not only the agriculture department, but other agencies across all other concerned sectors would be fully prepared for this prolonged dry spell to ensure that our rice farmers get all the support they need to continue improving their productivity and income amid this challenge,” said Yamsuan, who has proposed several pro-farmer measures in Congress.
Among them was House Bill (HB) 9129, which seeks to institutionalize the use of crop climate calendars tailor-made to each specific locality, as a way to help farmers harness the power of science and technology in adapting to the disruptions triggered by climate change and other extreme weather events like the El Niño.
Under the NRP, the budget for production support services rose by over P1 billion from P22.87 billion in 2023 to P24.11 billion in 2024. These services include establishing community seed banks, support to Regional Integrated Agricultural Research Centers, buffer seed stocking, insurance coverage for disaster response, and pest control measures.
Yamsuan also pointed out that irrigation network services under the NRP received a significant increase of 40 percent from P721.25 million in 2023 to P1.01 billion in 2024, in anticipation of the dry spell arising from the El Niño, which could last until the first half of 2024 according to projections by the Department of Science and Technology (DOST).
On top of the increase in the budget the NRP’s irrigation network services, Yamsuan also pointed out that the allocation for extension support, education and training services under the NRP grew from P1.26 billion in 2023 to P2.04 billion for this fiscal year.
These services will aid farmers in arming themselves with knowledge on sustainable agriculture practices and new planting technologies to increase production, Yamsuan said.
Aside from the NRP, other national programs and locally funded projects, rice farmers will also get a windfall of support under the Rice Competitiveness Enhancement Fund (RCEF), Yamsuan noted.
Revenues collected by the BOC from rice import tariffs pay for the annual requirement of P10 billion for the RCEF until 2024 as mandated under Republic Act (RA) 11203.
Half of the P10 billion goes to the Philippine Center for Postharvest and Mechanization for the procurement of new equipment. The RCEF also invests P3 billion in the Philippine Rice Research Institute for the propagation of inbred seeds; P1 billion in state-owned banks to finance a credit facility for palay farmers and their cooperatives; and another P1 billion in various agencies to develop mechanisms on modern farming techniques and rice crop production.
As mandated under RA 11598 or the Cash Assistance for Filipino Farmers Act enacted in December 2021, tariff collections from rice importations in excess of P10 billion would be given directly to rice farmers as cash aid.
Yamsuan lauded the recent successful initial implementation of this law, which he said would be a big help for small farmers struggling to survive amid the rising prices of basic goods.
To ensure that farmers would continue to receive cash aid even after their retirement, Yamsuan pushed the approval of his proposed measure under HB 7963, which aims to set up a fund to provide pensions benefits for them.
The excess rice tariff collections in 2022 amounted to P12.7 billion, which President Ferdinand R. Marcos Jr. approved last week for distribution to over 2 million farmers tilling two hectares and below of land. Each beneficiary will be given P5,000.
Executive Order No. 50 issued by the President last December 22 extended the reduced tariffs on rice and other food items until end-2024 to keep prices stable amid the threat of El Niño in the months ahead.
Under this directive, the tariff rate for rice will remain at 35 percent, which enables the BOC to continue collecting import duties from rice importations.
Last September, the President thumbed down proposals to temporarily reduce or suspend tariffs on imported rice, a move that Yamsuan supported to spare small farmers “an act of grave cruelty” amid the peak harvest season.
