Finding Solutions! Establishing Rice ‘Republics’ By Contract Farming Scheme

As the Philippine Rice Industry faces devastation with the move of the National Economic Development Authority (NEDA) to reduce import tariff from 35% to 15%, local government leaders could protect their farmers by establishing what I call as “Rice Republics” or autonomous rice production areas.
This concept is mainly based on the common practice of many large agricultural corporations in Mindanao where they engage farmings in a Contract Farming Scheme which assures farmers of a ready market and a guaranteed price for their produce.
The “Rice Republic” Concept which I designed is a variation of the Contract Farming Scheme because this involves Local Government Units (LGUs) or benevolent local companies operating in a specific locality.
When I was Chairman of the Mindanao Development Authority (MinDA), I helped a town in Lanao del Sur, Taraka, in establishing a “Rice Republic” by convincing the Mayor then, Nashiba Sumagayan, and the Vice Mayor Odin Sumagayan, her husband and now the incumbent Mayor, to develop the rice industry of the town.
Taraka, a rice agricultural town beside Lake Lanao, has wide rice farms but farmers could not boost their production because there was no irrigation system.
With the help of the Development Bank of the Philippines, Taraka applied for a loan to establish six units of Solar Powered Irrigation System to serve about 700 hectares.
Under the program, an Economic Enterprise Office under the LGU would operate the Rice Republic by providing farmers with quality seeds, farm inputs and a Buy-Back Agreement with the LGU.
The Department of Agriculture through the PHILMECH also supported the program by allocating a Rice Processing Complex to process the rice production of local farmers which will then be packaged as “Taraka Rice” and marketed locally.
The project is in the final phase of development but all of the SPIS Units have already been established while the PHILMECH is in the process of implementing the Rice Processing Facility.
This is an innovation in Rice Farming which I believe would free localities from the expensive imported rice while creating a complete value chain for their Rice Industry and protecting their farmers.
Hopefully, this concept will be copied by other patriotic local chief executives who would like to protect their farmers and their sources of livelihood while ensuring the independence of their towns and provinces from the unpredictable supplies and prices of imported rice.
#KungGustoMaramingParaan!
#GovernanceIsCommonSense!
(These photos were taken by the MinDA Media Team in 2022 in Taraka, Lanao del Sur.)