DA to spend P1.3B for crop diversification

By Jasper Y. Arcalas, Businessmirror, 26 Feb 2020

Farmers in Buguias, Benguet, are rushing to harvest their white radish in this photo. The Department of Agriculture is implementing a program that will encourage rice planters to cultivate other crops.

The Department of Agriculture (DA) said it will spend P1.3 billion for its crop diversification program which will focus on assisting uncompetitive rice planters shift to high-value commercial crops so they can earn more.

Agriculture Secretary William D. Dar said the amount will come from the P2.3 billion in excess rice tariffs collected under the rice trade liberalization law (RTL), which took effect on March 5, 2019.

“We will regularize this program [crop diversification] by 2021 using the excess tariffs [from rice imports],” Dar told reporters in an interview on Monday.

Under Republic Act 11203, rice tariff collections exceeding P10 billion could be used for “productivity-enhancement programs for rice farmers seeking to diversify production toward other crops.”

“A portion of the excess tariff revenues shall be released to the DA, and shall be used for productivity-enhancement programs for rice farmers seeking to diversify production toward other crops,” the law’s implementing rules and regulations (IRR) read.

Dar said the DA is set to discuss and finalize the crop diversification program as part of the measures it is implementing in line with the enactment of the RTL law. Initially, rice planters would be shifted to planting high value crops suitable in their province or region.

Under the draft Philippine Rice Industry Roadmap, a total of 23 provinces will shift from planting rice to other crops which will allow farmers to earn more.

The road map indicated that the 23 identified non-priority rice provinces would be transitioned to various commodities and industries, such as abaca, banana, cassava, cattle, coconut, high-value vegetables, livestock, poultry and rubber.

Non-priority rice provinces that would shift to planting other crops are Catanduanes (abaca), Abra (banana), Apayao and Tawi-Tawi (cassava), Batanes, Guimaras, Sulu (banana), Eastern Samar (coconut) and Benguet (high-value vegetables).

Rizal, Marinduque, Romblon, Camarines Norte, Siquijor, Northern Samar, Camiguin, Surigao del Norte, Dinagat Islands, Cebu and Batangas will shift to hog rearing and poultry-raising.

Farmers in Mountain Province will be encouraged to plant potatoes and high-value vegetables. Those in Zamboanga del Norte will be asked to go into poultry-raising, while Basilan planters will cultivate rubber.

Dar added that the remaining P1 billion excess rice tariffs collected last year will go to crop insurance, which is also a program identified under the RTL law.

“A portion of the excess tariff revenues shall be released to the Philippine Crop Insurance Corp., and shall be used for the provision of crop insurance to qualified rice farmer-beneficiaries under its existing agricultural insurance programs,” according to the law’s IRR.

The Department of Finance on Monday reported that tariffs collected by the Bureau of Customs from importers of rice under the RTL law reached P1.71 billion as of February 14. In a report to Finance Secretary Carlos G. Dominguez, the BOC said the figure is 23.1 percent lower than the P2.22 billion it collected in the same period last year.

The DOF noted that the RTL was not yet in effect in January to February 14 last year.

“The government has ample means to do even more to make our agricultural production more efficient and extend direct aid to small farmers,” Dominguez said in a statement.