Thursday, August 01, 2013

Editorial

by ERNESTO T. SOLIDUM

Farm Modernization Requires 
Structural Reform At DA

Farm modernization program in the provinces will be boosted by releasing agricultural machineries and post harvest facilities from the Department of Agriculture (DA). This is announced by Mr. William Castillo, Provincial Agriculturist. In Aklan, the 2013 inventory includes 5 units hand tractor with trailer, 7 units rice thresher, 6 units reaper harvester, 1 unit combine harvester and 1 unit seed cleaner with acquisition cost of P4.06 million. 

Post harvest facilities are 8 units flatbed dryer, 6 units palay shed, 20 units collapsible dryer case, 3 units  warehouse construction, 4 units shredder, 2 units hermetic cocoon, 2 units seeding machine, 300 units seedling tray, 1 unit grass cutter, 1 unit rice processing center 2 and 1 unit rice processing center 1 totaling P33.36 million.

According to Castillo, this is the third year that Aklan will receive farm machineries. The first was in 2011 valued at P4.8 million and machineries worth P24.0 million in 2012. The target beneficiaries are farmers who are bonafide members of registered and functional cooperatives or associations. While recipients of post harvest facilities do not need equity, farm machineries must have a counterpart of 15 percent of the total cost. The total equity of 15 percent for farm machineries is payable by recipients cash on delivery.

The policy behind the counter parting scheme is that farmers will be more responsible and could appreciate the value of proprietary ownership. Definitely, 99 percent of farmer’s cooperative and associations could not afford to enter into such contractual agreement with the government but this is crucial to sound business operation, Castillo pointed out.

Considering that most farmer’s coop or associations lack enough cash, LGU’s must shoulder the equity requirement in acquiring farm machines. Our national target of rice self-sufficiency by 2016 motivates us to exert all out efforts to achieve 7.1 percent increase from the present average yield of 3.7 MT per hectare. Otherwise, the Philippines will have more food imports and hungry Filipinos.

Farm modernization program started since the end of World War II. The DA through the abolished Bureau of Agricultural Extension attempted to mechanized agriculture with agricultural equipment from Japan was distributed in all provinces for demonstration in the 1970’s and 1980’s. It gathered impetus with Sec. of Agriculture Edgardo Angara in 1997. The shortage of fund however impeded its full implementation. The P37.42 million allocation for the province of Aklan this year is 35.8 percent higher than in 2011. It could be most appreciated if farmer recipients take reasonable care in the operation and maintenance of these expensive equipment. 

Increased yield, high quality produce and profit can only be achieved with farm modernization. Unfortunately, only small fraction of existing farmers’ organizations in Aklan are highly qualified to manage these farm projects.

A classic example of misadministration are the post harvest facilities in Tondog, Tangalan and Calangcang, Makato, Aklan where they are idle, neglected and deteriorated for the last 10 years. (How about the field level grain center established in Laguinbanua, Ibajay, Aklan? Is it operating now?) These need thorough inquiry if the LGU’s are competent to manage agriculture extension program. Lackluster performance of DA to address national road security and stability of 64 million farmers is traced to the devolution of the Agency’s functions and responsibilities under RA 7160 or the Local Government Code of 1991.

Mr. Fred Romero, Pres. of Aklan Seed Growers Association seriously doubts whether rice self-sufficiency will be achieved by the Aquino Administration in 2016. He said, “in 2012 NFA importation was only 0.5 million MT. Yet total imports for the year based on UN Trade data was 1.5 million MT. In other words, two-thirds of our importation was done by the private sectors which often smuggle or evade paying taxes.”

It is pertinent to note that Philippine rice imports averaged 2.2 million MT for 2008-2010 at an average price of US$675 per ton. Our moderate importation in 2012 (no thanks to rice smugglers) allowed the country to avert rice crisis because of a series of devastating storms that damaged leading rice producing areas of the Philippines.

The Philippines produces 15.2 million MT of rice per year said Eufemio Rasco, Executive Director, Philrice. However, we have a fast increasing population whose hungry mouths devour 115 kilograms of rice per person per year. It is in this context that strengthened farm modernization and needed structural reform at DA be implemented at the soonest time possible. /MP

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