P12 billion aid to rice farmers out by September

MANILA, Philippines — The Department of Agriculture (DA) has committed to complete the distribution of P12 billion in cash assistance to rice farmers by September.

The amount is part of the nearly P20-billion excess tariffs collected by the government last year from 3.6 million metric tons of rice imports.

Under existing laws, the government can use rice tariff collections in excess of P10 billion for cash assistance, crop diversification land titling and expanded insurance program for rice farmers.

Total rice tariff collections reached nearly P30 billion in 2023.

The DA is opting to use P12 billion of the total excess rice tariffs for cash assistance since it is sufficient to cover the 2.384 million rice farmer-beneficiaries of its rice farmers financial assistance program.

Rice farmers tilling two hectares and below will receive P5,000 each under the program.

“We are rushing it and hopefully… I am targeting (that by) September (we are done distributing the whole) P12 billion,” Agriculture Secretary Francisco Tiu Laurel Jr. said at a recent forum organized by the Philippine Chamber of Commerce and Industry.

Tiu Laurel said the DA is allocating P7 billion for crop diversification by rice farmers toward high-value crops and P1 billion for land titling.

This is the first time the government will use excess rice tariffs for other programs allowed under the Rice Tariffication Law. Since 2020, the DA used all excess rice tariffs for its financial assistance program.

“It is about time (to allocate excess tariffs) for high-value crops, which is part of the law,” said Danilo Fausto, president of the Philippine Chamber of Agriculture and Food Inc.

Fausto proposed that uncompetitive rice farmers shift to high-value crops suitable in their respective areas.