Rice farmers get cash aid from excess tariffs

MANILA, Philippines — The Department of Agriculture (DA) has started distributing nearly P12 billion in cash aid to 2.38 million rice farmers – equivalent to P5,000 each – sourced from excess tariff collection to help sustain their productivity.

The DA’s Rice Industry Development said that as of Dec. 28, 458,435 farmers’ accounts have been credited the cash aid despite the many bank holidays of the past week.

Meanwhile, 44,719 farmers have withdrawn their cash, through the efforts of the Development Bank of the Philippines (DBP) and remittance giant Universal Storefront Services Corp. (USSC), a Bangko Sentral ng Pilipinas-licensed e-money issuer.

Farmers from the Cordillera Administrative Region, Caraga and Mimaropa were among the first to receive their cash assistance, and this is expected to increase in the next days as the letters of instruction from the DA’s regional offices are issued.

The DA said more farmers are expected to avail themselves of the cash assistance in the coming days by going to any of the more than 700 stores of USSC nationwide, or by withdrawing from any BancNet ATM.

DA Undersecretary for rice industry development Leocadio Sebastian said the smallholder rice farmers can use the cash they receive for daily subsistence and personal needs.

Farmers are able to withdraw cash with their Interventions Monitoring Card (IMC), an innovative product jointly developed by the DA, DBP and USSC.

The IMC contains both an EMV chip (for secure transactions in ATMs) as well as a unique QR code linked to the individual rice farmer registered in the Registry System for Basic Sectors in Agriculture.

USSC, formerly known as RCPI, is one of the country’s largest remittance companies and is known for its partnership with Western Union, as well as with other global remittance companies.

“We pride ourselves in making sure our rice farmers get the cash assistance, stipulated by law, in the fastest, most convenient way possible,” USSC president and CEO Jose Xavier Gonzales said.

“Through our partnership with DBP, we have issued e-wallets to the rice farmers, ensuring that they are finally included in our financial system. Because of this, they can now reap the benefits of quick cash transfers to their account, which they can access at any time, any day of the week, through our mobile app or through any BancNet ATM,” he said.

As mandated under Republic Act 11598 or the Cash Assistance to Filipino Farmers Act of 2021, the Rice Farmers Financial Assistance Program – an unconditional cash grant for farmers tilling below two hectares – is funded through the excess tariff collection from rice importations in 2022, totaling P12.7 billion.

President Marcos had approved the release of the P12-billion financial package to rice farmers owning two hectares and below, saying this would “help them cope with the increasing cost of production and sustain their productivity even in the face of challenges like the coming El Niño.” 

Mitigating El Niño

The DA has commenced implementing measures to mitigate the impact of El Niño on food production, and on farmers and fisherfolk to be adversely affected by the weather phenomenon.

Interventions undertaken by the DA include the repair and rehabilitation of irrigation canals, cloud-seeding, dispersal of farm animals and provision of alternative livelihoods to farmers and fishermen, implementation of low-water use technology for rice farming and quick-turnaround strategy, Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement.

“We are leaving no stone unturned in our effort to ease the impact of El Niño on our farmers and fishermen as well as consumers by ensuring food production is sufficient and supply is secure during the expected dry spell that could affect a majority of provinces and millions who depend on agriculture and fisheries,” he said.

Of the 843-kilometer irrigation canals target, 740 kilometers have been improved and constructed as of November.

Meanwhile, 40 units of small-scale irrigation systems covering 1,477.5 hectares have been repaired and rehabilitated to distribute water more effectively and efficiently.

The DA’s Bureau of Soil and Water Management has also requested P112 million for cloud-seeding operations for 2024 to supplement the water requirement of standing crops during periods of low rainfall.

The agency said cloud-seeding operations will be done in collaboration with the Department of Science and Technology and Department of National Defense, which will provide information for optimum cloud-seeding operations and aircraft, respectively.

Through the Philippine Native Animal Development Program, the DA will distribute 56,169 animals to 297 farmer groups and 470 individual farmers.

Alternative livelihood and technologies adaptive to climate change will also be provided to fishermen in Bicol, Central Visayas and Zamboanga peninsula.

Laurel said the DA will entice more rice farmers to use alternative wetting and drying technology to save water.

He said the technology has been successfully used by over 1.2 million farmers and implemented on 9,210 hectares of rice fields.

The agriculture chief said 17,660 hectares of rice fields have been targeted for implementation of the quick-turnaround strategy, wherein all rice farmers will immediately replant rice without waiting for months to take advantage of the remaining moisture in the soil.

Moreover, the DA has tasked the Philippine Crop Insurance Corp. to indemnify affected farmers.

Between June and November this year, it has insured 1.27 million farmers, around 76 percent of the target group. 

From January to June next year, PCIC has set aside P1.8 billion to insure a total 916,759 farmers and fishermen.

The DA chief said the PCIC has also set aside P500 million as credit support under its Survival and Recovery Loan Program of the Agriculture Credit Policy Council for some 20,000 borrowers who may be affected by calamities, including the El Niño phenomenon.