A young mayor’s dream to protect his town’s corn farmers from very low farm gate prices during peak harvest may soon be realized after he embraced a proposal by the Mindanao Development Authority (MinDA) to establish a Corn Grains Silo System to be owned and operated by the local government unit (LGU).
When realized, the Baungon, Bukdinon Corn Grains Silo Storage (COGSS) could be the first LGU-funded Economic Enterprise Projec which would protect corn farmers from unscrupulous traders and middlemen who manipulate prices on harvest time.
It could also generate income for the municipality out of drying and storage fees.
With Silo Storage Facility, corn could be kept for as long as 18 months.
First-term Mayor Giovanni Dahino, 27, eagerly embraced the COGSS concept which I presented to him during a quick visit I made to the northernmost town of Bukidnon last Tuesday.
Mayor Dahino and municipal agriculturist Janel Redondo called MinDA’s visit “a blessing” and the proposed COGSS project “a dream come true.”
“We were just talking about this last week but we had no idea how to undertake the Economic Enterprise concept and we are blessed that you came,” said Mayor Dahino.
The visit, which was quick and hastily planned, was in response to the many messages I received from the town’s farmers to help them with the plummeting price of corn as harvest starts.
The Corn Grains Silo Storage (COGSS) Program will give corn farmers a refuge and depository for their produce when the prices are down.
Say, when the prevailing buying price of corn is P8 per kilo, which is way below production cost, the farmer could deliver his produce to the COGSS facility for safekeeping.
He could, however, draw an amount equivalent to the prevailing market price as “cash advance” and get a “Quedan” paper certifying that he has deposited a specific volume of corn.
At the start of the off-harvest season, when the buying price of corn goes up, the farmer could go back to the COGSS, surrender his Quedan document and get the difference between his advanced amount and the prevailing market price.
Since corn prices during off-harvest months could go up to as much as P16 per kilo, the farmer who deposited his corn and made an advance of P8 per kilo, could get an additional P8 per kilo, less the storage fee to be collected by the COGSS.
A COGSS facility, complete with dryer and grains cooler with a storage capacity of 20,000-metric tons could cost about P60-M, an amount which could be recovered in less than 5 years from the drying and storage fees.
The COGSS System which I conceptualized is expected to result in the following benefits:
1. Protect the farmers from exploitative price manipulation at peak harvest season and motivate him to produce more;
2. Stabilize the supply of corn needed by feed mills and end users thus contributing to the competitiveness of Mindanao’s livestock and poultry sector.
MinDA will provide technical and planning assistance to Baungon, especially in organizing the Economic Enterprise Office which will manage and operate the facility.
A digital database of corn farmers, including a geo-map, will also be established by MinDA as part of its assistance to the town.
On Oct. 15, the MinDA Planning and Technical Team will conduct an orientation forum for Baungon’s officials led by Mayor Dahino and the private sector, including the corn farmers groups.
Joining MinDA are representatives from its banking partner, the Development Bank of the Philippines, and a private technical team which will provide a briefing on the operations and costing of the Corn Grains Storage Silo System.
The Department of Interior and Local Government through its municipal local government officer has been tasked to organize the orientation forum.
Representatives of feed milling companies like PILMICO, San Miguel and CP Foods will also be invited to explore the prospects of a marketing agreement with the Baungon COGSS.
When implemented, the COGSS Economic Enterprise Project could serve as a model and a template for other towns in the country producing corn and paddy rice.
All that it took for the young mayor’s dream to see realization was a trip of about 10 hours back and forth.
#LetsWalkExtraKilometer!
#LetsClimbOurMoreMountain!
#LetsCrossOneMoreRiver!
#KungGustoMaramingParaan!
(The video presentation is a production of the Beauty & Bounty of Mindanao for the Mindanao Development Authority.)
https://fb.watch/aNG2BfsVPY/
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