FFF unconvinced about RCEF’s benefits

The Rice Competitiveness Enhancement Fund under Republic Act 12078 has been extended to 2031 from tariffs of imported rice and the annual budget was raised from P10 to P30 billion supposedly to fund the modernization of the rice industry. 

RA12078 was signed by President Marcos Jr. on December 9.

RCEF programs include: seed distribution (of inbred and hybrid rice seeds); credit; farm extension and technology and farm mechanization (to include the use of drones for applying seeds and fertilizers on farm lands).

Created under the Rice Tariffication Law (RA 11203) with a yearly budget of P10 billion for six years starting in 2019, RCEF has been haphazardly implemented in all its components by the Department of Agriculture. 

The government funds rice industry modernization programs from import tariff collections, with tariffs supporting the Rice Competitiveness Enhancement Fund (RCEF).

But the Federation of Free Farmers said the expanded RCEF has yet to address specific problems or needs of farmers in particular locations.

“Farmers must be given the freedom to choose the variety of seed, brand of machinery, types of fertilizer and other assistance provided. We have to monitor whether these interventions actually increase yield, profitability and competitiveness,” he added.

RCEF is intended to boost rice production and support farmers through the distribution of farm machinery, seed, training, and financial assistance. It is funded by import tariffs, as authorized by the Rice Tariffication Law of 2019 or Republic Act No. 11203.

The President has signed Republic Act 12078, amending the Agricultural Tariffication Act, which tripled the annual allocation of RCEF to P30 billion and extended the fund’s term until 2031.

Agriculture Secretary Francisco Tiu Laurel Jr. insists that the full impact of the increased funding for RCEF will be felt by 2026.

Weather-related occurrences continue to affect production, keeping the Philippines reliant on imports, he said.

The DA estimates, palay or unmilled rice production for 2024 to drop  to 19.3 MMT due to the dry conditions brought by El Niño and the various typhoons in late 2024

“With all the natural disasters and the potential reduction of palay production this year, we need to sustain lower tariffs. There is no alternative. If you remove this lower tariff now then you will see rice prices spiral,” explained former DA Secretary William Dar.

He added that the Philippines needs long-term solutions to improve rice production.

“We need to (utilize) 1.3 million hectares of unirrigated land… in an accelerated manner. (With proper irrigation investment), we can start planting rice earlier to avoid the typhoon months,” he said.

Among the DA’s flagship projects is the construction of solar powered irrigation systems that are projected to add about 180,000 hectares to the stock of irrigated farmland.

“Technological solutions applied in a big way will boost productivity and income of small farmers,” Dar said.