The Department of Agriculture (DA) has announced significant progress in the Philippine rice sector since the implementation of the Rice Tariffication Law (RTL) in 2019. The law has fostered a collaborative environment among farmers, local governments, and other stakeholders, leading to notable advancements in rice farming.
Key to these improvements are initiatives like the Rice Competitiveness Enhancement Fund (RCEF) and the National Rice Program (NRP), which have been instrumental in empowering farmers and promoting the use of modern agricultural technologies. The RCEF, established under Republic Act 11203, has expanded its reach from 57 to 77 provinces by 2023, aiding over a million farmers, including those in remote areas.
The Philippine Center for Postharvest Development and Mechanization (PHilMech) has reported that, as of March 2024, 6,385 farmers’ cooperatives and associations (FCAs) and 368 local government units (LGUs) have benefited from the RCEF’s Mechanization Program, receiving essential farm and postharvest technologies. This program has significantly increased the mechanization of rice farms, resulting in lower costs and higher productivity.
Additionally, the Philippine Rice Research Institute (PhilRice) distributed free high-quality inbred seeds to 1.77 million farmers by August 2024. Between 2019 and 2024, the RCEF Mechanization Program provided 29,599 units of farming equipment, including machines for land preparation, harvesting, and milling. These efforts have reduced labor costs by PHP2 per kilogram of palay and increased farm income by approximately PHP9,000 per hectare, while also reducing annual postharvest losses by 31,841 metric tons, saving PHP541.3 million and enhancing food security.
The modernization efforts have boosted the mechanization level of rice farms to 2.77 horsepower per hectare from 2.68 in 2019. The DA highlighted that these technological advancements have contributed to a record-high palay production of 20.06 million metric tons in 2023, driven by increased yields in both irrigated and rainfed areas. From 2019 to 2023, dry-season yields rose from 3.63 to 4.34 metric tons per hectare, and wet-season yields increased from 3.69 to 4.03 metric tons per hectare. Production costs also decreased by PHP1.65 per kilogram in the dry season and PHP0.42 per kilogram in the wet season.
Despite these successes, the rice sector continues to face challenges such as frequent typhoons and extreme climate events like El Niño and La Niña, along with high input prices, which remain significant concerns for farmers and industry stakeholders.