The government should administer the rice fund and subsidy mechanisms properly and efficiently to pave the way for a modern Philippine agriculture sector.
Many subsidy programs in the past have failed to accomplish their respective goals because the funding became more of a dole that kept the recipients poor and dependent on the handout. The proverbial fisherman fed himself for a lifetime only after learning how to fish.
The same is true with our rice and other farmers. Without government support and basic training on marketing and on how to increase productivity, Filipino farmers will be stuck in their own poverty cycle and will always be at the mercy of hoarders and opportunistic traders.
The Rice Tariffication Law, or RTL, has accomplished its initial goals. Rice prices have gone down after the law liberalized imports. The law has assured ample rice supply, restored the confidence of consumers and put the economy back on a more solid track.
The RTL has a netted a tariff revenue of P11.4 billion in just seven months since it was implemented, exceeding the P10 billion earmarked per year for the Rice Competitiveness Enhancement Fund. The excess fund has enabled the government to create two-year unconditional cash transfer program for small farmers affected by falling palay farm gate prices.
Modernizing the agriculture sector and encouraging farmers to shift to more profitable crops through the rice fund, however, is the tricky part. The Department of Agriculture and other relevant institutions must synchronize their acts to meet the other objectives of the RTL
Land Bank of the Philippines, for one, is starting off on the right foot. It just launched a new credit program to support the financial needs of farmers, cooperatives and agri-entrepreneurs planning to shift to modern farming through greenhouse farming technology.
Greenhouse technology allows farmers to produce off-season crops all year round in a climate-controlled environment. It helps protect crops from extreme weather conditions, such as floods, droughts, super typhoons and rising temperatures amid global warming and climate change.
High value crop production is key to farm modernization. Post-harvest facilities, more farm-to-market roads and the right credit mix will go a long way in making Filipino farmers competitive and more productive. Government institutions must nurture the transformation of our farmers until they become self-reliant and ready to face competition.