Rice planters would have to wait until the first quarter of next year for their free farm machines from the government as the budget impasse stalled the release of funds.
Philippine Center for Postharvest Development and Mechanization (PhilMech) Applied Communication Division Chief Rodolfo P. Estigoy said the agency just received P2.1 billion from the Department of Budget and Management (DBM) through a special allotment release order last July 22.
The amount is part of the agency’s share of P5 billion from the P10-billion Rice Competitiveness Enhancement Fund (RCEF) mandated by Republic Act (RA) 11203.
RCEF was created to help farmers cope with the adverse effects of the rice trade liberalization law.
Estigoy said PhilMech, an attached agency of the Department of Agriculture (DA), will start the survey of some 1,200 rice-producing municipalities which would receive free farm equipment from the government.
The survey aims to determine the required and suitable farm machines of each municipality to help planters improve their productivity and increase their income, he added.
“The P100 million will be used for extension services while the P2 billion will be used to purchase agricultural machines,” Estigoy told reporters in a news briefing on Thursday.
“PhilMech will adopt a needs-based approach wherein the agency will determine the most pressing needs [in terms of machinery] in the municipalities and provide these needs,” he added.
Citing a recent evaluation by PhilMech, Estigoy said the agency found that the most immediate need of rice farmers are equipment for land preparation, like hand tractors and dryers.
He said the agency expects to finish the survey and evaluation of the target beneficiaries within the month. PhilMech is targeting to kick off the bidding and procurement of farm equipment by September.
The agency is expected to start delivering the free farm equipment in February 2020.
Beneficiaries of the free machines include farmers’ groups in the 1,200 municipalities in 57 major rice-producing provinces that are in the DA’s database, Estigoy said.
Nueva Ecija, which accounts for 10.18 percent of national output, Isabela, Pangasinan, Cagayan and Iloilo are among the country’s top rice producers, according to PhilMech.
The agency will group rice producers into six clusters to facilitate the implementation of free equipment program. These clusters are Luzon A, Luzon B, Luzon C, Visayas, Mindanao A, and Mindanao B.
Estigoy said PhilMech expects to get the remaining P2.9 billion from the national government before the end of the year as the rice trade liberalization law mandates that the agency should get P5 billion annually in the next six years.
Money for the RCEF is being frontloaded by the government to cushion the impact of a more open Philippine rice market on planters. Starting next year, money from the RCEF will be funded by tariffs collected from rice imports.
The DBM said on its web site that it has released a total of P5 billion last July 18 to RCEF implementing agencies.
The Philippine Rice Research Institute (PhilRice) received P2.095 billion while the Technical Education and Skills Development Authority (Tesda) was given P700 million.
The DBM also released P100 million to the Agricultural Training Institute (ATI), another attached agency of DA.
Under RA 11203, PhilMech
must receive P5 billion for the distribution of free equipment to farmers,
while PhilRice woud be given P3 billion for the distribution of inbred rice
seeds. Tesda and ATI will get P1 billion each for credit assistance and
farmers’ training.