Protect Poor Corn Farmers From Unscrupulous Traders

From a high of P25 per kilo three weeks ago, the buying price of Corn has plummeted to P13 this week and once again I hear the cries of farmers which fill the air every time peak harvest season comes.
This seasonal oppression of farmers, not only of Corn farmers but also other commodities as well, will continue unless our Local Government Executives would think beyond just 4Ps, TUPAD, AICS, MAICS, AKAP and other dole-out programs which only provide temporary relief.
Progressive minded LGU chief executives, especially Governor and Mayors, could actually end this problem by taking a look at a program which I designed when I was Chairman of the Mindanao Development Authority (MinDA).
This involves the LGU exercising its Corporate powers enshrined in the Local Government Code which allows it to undertake Economic Enterprise Projects, like establishing a Corn Buying and Storage Program.
The Corn Grains Silo Storage (COGSS) Facility to be operated by the Economic Enterprise Office of the LGU allows corn farmers to deposit their produce in Grains Silos during peak harvest season when the price is low and sell during off-harvest when the prices go up.
It is designed to protect farmers from the exploitative buying price while ensuring steady and sustained supply of feed grains for Mindanao’s livestock and poultry industry.
It involves organizing farmers and setting good farming practices to ensure the production of high quality corn with emphasis on health concerns.
Farmers who belong to the associations could deposit their produce to the Grains Complex which will be equipped with dryers and silos for long-storage during peak harvest season when the price is very low.
The farmer will get an “advance payment” for his corn equivalent to the prevailing market and he will be given a “Quedan” paper showing the volume of corn he has deposited.
Say, if the prevailing market price is P12 per kilo and he deposits 20-metric tons, he will be given an “advance payment” of P240,000.
After the harvest season, when the price of corn goes up to P20 per kilo, the farmer could surrender his “Quedan” paper to is association and get the difference between the advanced payment of P12 per kilo and the prevailing market price of P20.
After paying drying and storage fees estimated at P2-per kilo, the farmer goes home with an additional P120,000 which he could have lost without the Grains Drying and Storage Facility.
Here are the expected benefits from this program:
1. Farmers will be protected from price manipulations during peak harvest season thus ensuring a better income;
2. Farmers, assured of a good price and protection, would be encouraged to plant more which would mean greater productivity;
3. With greater corn production, the country will be less dependent on importation thus saving on dollar reserves and creating more local economic activities;
4. Feed millers and livestock and poultry growers who need corn for their feed production will be spared from the problem of fluctuating prices;
5. Assured with a steady supply of corn even during off-harvest season at predictable prices, feed millers could stabilize the selling prices of their produce and in the process protect local livestock and poultry growers from the violent ups and downs of the price of feeds;
6. Stable pricing of feeds will allow livestock and poultry to bring down their production costs. It will make them competitive and encourage greater productivity;
7. LGUs which will establish and operate the Corn Grains Silo Storage System through the Economic Enterprise Office could generate revenues which could be used for other agriculture projects. (i.e. for a grains complex with a storage capacity of 20-million kilos charging a fee of P2 per kilo, the estimated gross income is P40-M in one season.)
A vibrant corn, feed milling and livestock and poultry industry means more jobs and more economic activities to reduce poverty, increase productivity, promote peace and trigger Mindanao’s economic recovery.
This is actually a very doable program but Local Government Executives need to be imaginative and think beyond just the giving out of dole-outs and packs of rice to be able to alleviate the conditions of their farmers.
#KungGustoMaramingParaan!
#GovernanceIsCommonSense!