Baungon, Bukidnon – The corn-producing town of Baungon, Bukidnon could become a model of a local government unit using its resources to protect its farmers from exploitation by unscrupulous traders during peak harvest season.
Baungon, a second class town, would like to establish a corn storage system using its own funds to finally end the suffering of its farmers with a corn harvest area of about 7,000 hectares.
The town’s 27-year-old leader, Mayor Giovanni Dahino, enthusiastically embraced the proposal of the Mindanao Development Authority (MinDA) for the establishment of the Corn Grains Silo Storage System (COGSS) to be owned by the town and managed by an Economic Enterprise Office.
Under the Mindanao Corn Industry Development Program crafted by MinDA as one of the projects proposed to be funded by the European Union Grant Fund, 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;
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.
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