Recto: PH needs more private sector financing to aid ailing agri sector

The administration of President Ferdinand Marcos, Jr. must rethink its agriculture strategy by pushing for laws that would allow more private sector investments to the sector, House Deputy Speaker Ralph Recto said Monday.

Recto said the P177 billion budget for the agriculture sector under the proposed P5.768 trillion budget for 2024 will not be enough to address the problem, mainly low production of rice which is the country’s staple food.

“P177 billion [is the budget, up by P8.5 billion [from 2023], but it is not enough. It is really very difficult [at that  budget given that] 60%, if not more of the household budget goes to food....primarily rice. The average size of farm land nowadays is just 1.2 hectares,” Recto said in an ANC interview.

“We should rethink agriculture strategy already. Our agrarian reform budget is just around P8 billion to P9 billion which is a small amount, and the farmers’ children don’t want to be farmers. Because it is so hard to plant rice. It is like running a marathon on a daily basis with bent hips. We have to think about how to mechanize, and you need the private sector [funding for the agriculture sector]. You cannot rely on the government alone. You need to do more corporate farming,” he added.

Recto said under existing laws, a farmer is only allowed to own five hectares of agricultural land which is  very limiting for a productive farmer.

“A productive farmer should be able to expand his land from five to 10 hectares,” he pointed out.

“We have to rethink our strategy because in fairness to the President, the agriculture sector posted growth, but still not on pace with the growth of our total population,”  Recto added, referring to the President’s concurrent position as secretary of the Department of Agriculture (DA).

The lawmaker said that the agriculture sector employs a little less than 30% of Filipinos, its contribution to the country’s total Gross Domestic Product (GDP) is just at measly 8%.

“We need to rethink our agriculture strategy and allow for private sector investments in agriculture, [allow for] amendments in the law  which could make the land more productive,” Recto said.

“It is hard to mechanize when your average farm size is 1.2 hectares,” he added.

One of then presidential candidate Marcos Jr.’s campaign promises is to bring down the price to P20 per kilo.

The price of rice per kilo nowadays ranges from P45 to 70 per kilo.

DA Undersecretary Leocadio Sebastian earlier told the House appropriations panel that even with 95% rice sufficiency, he cannot answer if reducing rice prices to P20 per kilo is achievable.—Llanesca T. Panti/AOL, GMA Integrated News