DA eyes P20B excess rice tariffs in 2023 for farmers’ cash aid, crop diversification

The Department of Agriculture (DA) is eyeing to distribute the excess tariffs collected from rice imports in 2023, which are automatically allotted for the Rice Competitive Enhancement Fund (RCEF), for rice farmers’ financial assistance and crop diversification initiatives.

“Last year’s excess was at P20 billion, P12 billion from that will be given as cash, P1 billion will be for land titling that can be given to DAR (Department of Agrarian Reform) for our farmers’ lands to have titles and the remaining P7 billion for crop diversification to high value crops,” Agriculture Secretary Francisco Tiu Laurel Jr. said.

Citing data from the Bureau of Customs, the DA said total tariffs collected from rice imports last year stood at P29.93 billion.

The Rice Tariffication law, which allowed liberalized rice trade, provided a P10 billion annual appropriation for six years starting from 2019, which will be sourced from rice import tariffs collected.

The annual P10-billion allocation or the Rice Competitiveness Enhancement Fund (RCEF) should be used to provide farm machinery and equipment, credit assistance, seed development, and training to increase local rice farmers’ yield and competitiveness.

Rice tariff collections in excess of P10 billion would go to the Rice Farmers Financial Assistance (RFFA) program.

The RFFA is an unconditional financial assistance for farmers tilling below two hectares of land as mandated under Republic Act (RA) No. 11598, or the Cash Assistance to Filipino Farmers Act of 2021.

Tiu Laurel said the DA is rushing for the release of funds to cover the cash aid for rice farmers.

“I’m targeting September,” he said.

Last year, President Ferdinand Marcos Jr. approved the release of P12.7 billion, sourced from from excess rice import tariff collections in 2022, for the distribution of P5,000 financial assistance to help over two million small rice farmers.—RF, GMA Integrated News