KORONADAL CITY, South Cotabato (PIA) – The Department of Agriculture in SOCCSKSARGEN (DA Region 12) has implemented an initiative to ensure farmers receive fair prices for their produce during challenging times.
The Price Protection Program (PPP) “is designed to stabilize agricultural prices, ensuring that farmers receive fair compensation for their produce, particularly during market fluctuations,” DA Regional Executive Director Roberto T. Perales emphasized in his presentation during the program launch in Koronadal City recently.
PPP “is a vital safety net that protects farmers against price drops, enables sustainable livelihoods, and fosters agricultural resilience in a competitive market,” Perales went on to explain.
Emma Narca, the DA’s rice focal person in the region, also emphasized that the DA will intervene by connecting farmers to markets that offer better prices when the price of palay (unmilled rice) falls below P17 per kilogram.
“If, on the other hand, the buying price of palay rises above P17/kg, we give farmers the right to choose where they want to sell their produce,” Narca added.
The intervention also takes effect when the price of corn cobs falls below P9 per kilogram.
Narca said, if this initiative succeeds, the program may be expanded in other areas and may be replicated in other regions.
Regional Technical Director Zaldy Boloron told the Philippine Information Agency that PPP with corn farmers was recently rolled out initially in Malandag, Sarangani, while the PPP for rice farmers will officially be launched in June in time for planting season but will initially be rolled out in Lambayong, Sultan Kudarat, later this month.
According to the DA, the PPP for rice will be piloted on 1,100 hectares in the SOCCSKSARGEN region: 500 hectares in Sultan Kudarat and 200 hectares each in Sarangani, South Cotabato, and Cotabato provinces.
The PPP for corn will initially be implemented on 1,000 hectares each in South Cotabato and Cotabato Province, as well as on 200 hectares in Sarangani.
Similar to the contract farming program of the National Irrigation Administration (NIA), the PPP will provide startup capital and interventions without interest to farmer cooperatives, associations, or clustered farmers in pilot areas.
Since PPP is a convergent program, the Field Operations Division of DA in Region 12 mainly makes sure that essential supplies like fertilizers and seeds are provided by the Rice Program and Corn Program to the production sites that are enrolled in the program.
The DA’s Agribusiness and Marketing Assistance Division will, on the other hand, take the lead in market linking and market matching.
To alleviate farmers’ constant concerns about financial loss during difficult times, the Philippine Crop Insurance Corporation “shall automatically cover the palay-planted areas and/or rice clusters enrolled in the Price Protection Program with insurance premium coverage, ensuring that rice and corn farmer-beneficiaries have financial security in the event of unexpected calamities.”
The NIA will also provide a schedule for water release to ensure availability throughout the cropping season. Meanwhile, the National Food Authority must procure the participants’ yield when the price of palay falls below P17/kg.
The Agricultural Training Institute will then oversee field monitoring to ensure that appropriate technology packages are delivered, while the Agricultural Credit Policy Council will provide affordable credit options for farmers through lending, providing loans to purchase supplemental inputs and services.
Finally, local government units, along with their agriculture offices, shall provide technical assistance, field monitoring, and the submission of monthly reports. (DED, PIA Region 12)
