DA plans to use excess P2.1-B rice tariff collection for crop diversification, insurance

The Department of Agriculture (DA) is planning to use the P2.1-billion excess rice tariff collected in 2019 for crop diversification and expanded crop insurance programs.

The Bureau of Customs (BOC) has earlier reported that tariffs collected from imported rice last year amounted to P12.1 billion.

Under the Rice Tariffication law (RTL), of the total tariff to be collected annually, P10 billion is automatically appropriated for the Rice Competitiveness Enhancement Fund (RCEF).

The P10-billion RCEF is divided in four components, namely farm machinery and equipment at P5 billion, certified inbred seeds at P3 billion, credit at P1 billion, and training and extension at P1 billion.

Meanwhile, the excess will fund other initiatives to make Filipino rice farmers more productive and competitive. 

These include crop diversification, crop insurance, agricultural land titling, and other programs as deemed appropriate by the DA.

"We have been encouraging rice farmers, particularly those tilling rainfed and marginal lands, to plant other crops that would generate bigger income, and more importantly instill in them the need to insure their crops," Agriculture Secretary William Dar said.

"It is auspicious that we can pursue both initiatives using the excess tariff collections from imported rice, as provided under the Rice Tariffication Law (RTL) or RA 11203," Dar said.

The Department of Budget and Management (DBM) earlier in the year has released P10 billion to the DA to fund the four RCEF program components, which are already in full swing.

"In April 13, 2020, we  requested DBM Secretary Wendel Avisado to release the excess rice tariff collections to fund our crop diversification program and expanded crop insurance program on rice," Dar said.

With the recent BOC report, farmers' groups are clamoring for the immediate release of the excess rice tariff collections amounting to P2.1 billion.

Of the said excess rice tariff collected, the DA is requesting the DBM to allot P1 billion for the crop diversification program and P1.1 billion for the expanded crop insurance on rice, which will be implemented by the department’s high value crops development program, and DA-Philippine Crop Insurance Corporation (PCIC), respectively. 

Now on its second year, the RCEF program is vigorously implemented despite momentary setbacks due to COVID-19 community quarantine protocols nationwide.

“We were able to devise strategies to ensure that we continue to rollout the RCEF program components. So far, we are doing very well through the help of our partner-agencies and local government units,” Dar said.

"Our initial efforts are paying off, as the country’s production of palay (rice paddy) reached 4.12 million metric tons (MMT) in the second quarter of 2020, up by 6.85 percent from the same period last year, according to the Philippine Statistics Authority," he said.

To date, the DA-PhilRice reported a total of 2,341,433 bags of high quality seeds were delivered to 710,178 farmer-beneficiaries, in 983 municipalities and cities, in 55 provinces.

The agency also delivered 21,643 bags of seeds to 3,046 farmer-beneficiaries, tilling 1,772 hectares, in Lanao del Sur and Maguindanao, in Bangsamoro Autonomous Region in Muslim Mindanao (BARRM).

Using the P5-billion 2019 RCEF farm mechanization budget, the DA-PhilMech has awarded 2,938 units of farm machinery and equipment worth P2B to 625 farmers’ cooperatives and associations (FCAs) nationwide.

A second batch of 4,996 units worth P3B is under bidding process and expected to be completed by July 31, 2020, said DA-PhilMech director Baldwin Jallorina. 

Thereafter, the farm machines and equipment will be given to a second batch of 1,068 FCAs.

For the 2020 P5 billion RCEF farm mechanization budget, the DA-PhilMech has to date validated 2,587 FCA applicants, of which 1,259 FCAs have been shortlisted and qualified to receive 4,543 units of farm machinery.

For his part, DA-Field Operations Service Director Roy Abaya said they expect to obligate the total released budget of P10 billion for mechanization before the year ends, to procure and distribute the targeted 15,000 units of various farm machines and equipment.

On credit, the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP) have already lent out their respective P500-million RCEF credit fund to 5,214 individuals and FCAs. Both banks are currently disbursing the 2020 RCEF credit fund to qualified beneficiaries.

On training and extension, both the DA-Agricultural Training Institute (ATI) and TESDA have granted a total of 16,245 scholarship slots to farmer field schools, rice machinery operation, drying and milling plant servicing, and small engine servicing —from the 2019 fund and 3,733 slots for 2020.

The DA-ATI also established 50 farm schools cum agri-tourism sites across the country.

Together with TESDA, the DA through ATI, PhilMech and PhilRice has trained five batches of rice specialists; 86 batches of trainers; 579 batches of farmers; and 24 batches of seed growers, inspectors, analysts, and other extension intermediaries —with a total of 18,350 participants.

The agencies also disseminated more than 2.8 million copies of information and communication materials on rice production and other crops, and agricultural and livelihood projects, benefiting thousands of farmers and their families nationwide. —KG, GMA News