Coconuts are one of the most important crops in the Philippines. With about 27 percent of total national agricultural land planted with coconuts and some 3.5 million coconut farmers, we are the second-largest coconut producer in the world, accounting for 26.6 percent of global production. Moreover, 25 million Filipinos, or nearly one-fourth of the population, are directly or indirectly dependent on the coconut industry. Ironically due to years of neglect and ineptitude of those leading the government agencies who are supposed to look after their welfare, our coconut farmers are considered among the poorest of the poor. They remain one of the most vulnerable segments of the population compared to their counterparts in the agricultural sector. In comparison with the average farmer who earns a meager P23,000 a year, coconut farmers earn an even more deplorable P15,000 an average per year.
Coco farmers have also been burdened with both natural and politically motivated storms that have doubly made their plight more difficult. Unlike farmers of other agricultural products like sugarcane, rice, and tobacco farmers who have been afforded the necessary legislation (like like RA 7171 for tobacco farmers) relative to their interests and welfare, coco farmers have none of the sort.
One of the most long drawn-out issues that has affected our farmers is the coco levy issue. The controversial funds came from taxes that were collected from coconut farmers during the martial law years, when then President Marcos issued Presidential Decree No. 755, authorizing the Philippine Coconut Authority (PCA) to use the levy funds to acquire 72.2 percent of First United Bank (FUB), which was later renamed UCPB. UCPB became the administrator of the Coconut Industry Investment Fund, which consequently acquired numerous assets including the shares in San Miguel Corp. When the Marcos administration was deposed, the government sequestered the fund and a lengthy court battle ensued. Coconut farmer groups have long lobbied for the funds to uplift their lot and help them improve their livelihood.
Last week, President Noynoy Aquino signed two executive orders (EOs) relating to the controversial Coco Levy Fund. The first, EO 179, directs the Presidential Commission on Good Government to coordinate with other government agencies to identify all known coco levy assets within 60 days from the effectivity of the order.
The second, EO 180, requires government agencies to protect and recover the government’s rights and interests in coco levy assets. Accordingly, both EOs are in line with the Supreme Court decision on the issue. This should help facilitate the transfer and re-conveyance of the coco levy assets to the government together with the shares of stock of UCPB, the Coconut Industry Investment Fund (CIIF) companies and CIIF holding companies, San Miguel Corp. (SMC) and those named to the Presidential Commission on Good Government (PCGG) –“solely and exclusively for the benefit of all the coconut farmers, and development of coconut industry.”
Under the EOs signed by the President, however, control rests solely on the government and our coco farmers will only be engaged and consulted when the “would-be” government program (whatever shape or variety this would take) is already being implemented. This means our coco farmers will not have any voice on the type of program the government would undertake.
I therefore believe that we should heavily scrutinize these new EOs to fully determine and safeguard the welfare of our farmers. If we are not careful, instead of improving the lives of coconut farmers, the entire exercise might end up benefiting unscrupulous parties.