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Tuesday, April 08, 2008

 

SPECIAL REPORT : FOOD SECURITY

Traders force farmers to plant other crops

By Conrad M. Cariño Senior Desk Editor

Ka Ben used to plant rice in his three-hectare farm in Tarlac. He gave up rice farming three years ago.

“It’s back-breaking work, and the earnings are not good because the rice traders are predatory,” Ka Ben said.

He shifted to corn, which gave him bigger earnings. A multinational company processing animal feeds bought his corn at a higher price.

Today, Ka Ben looks forward to a bonanza—but not from farming. “Real estate developers want to buy my land. I can earn P1 million right away. My sons and daughters need money for college,” he said. Ka Ben’s fields are in the vast area where urban development will take place after the Subic-Tarlac Expressway opens.

Another farmer, Ka Cesar, sees no future in rice farming. From planting rice and corn alternately in Isabela, Ka Cesar is now in Southern Luzon planting biofuel crops, because “it’s more profitable.”

Ka Ben and Cesar are not unique. There are many thousands of them, which is very bad news for a country seeking 100-percent rice self-sufficiency.

In an interview with The Manila Times, Muslim farmer Nasser Halipa said that because rice yields in the Philippines per hectare is low, many farmers prefer to plant other crops.

He said rice farming can earn a farmer from P10,000 to P30,000 per cropping season, which is hardly enough to sustain a decent living for a large family even in rural areas.

But vegetable farming which is less “back-breaking” can bring as much as double the earnings from rice farming. While media reports hype land conversion as a major cause of the country’s insufficiency in rice production, “crop shifting” may actually be a bigger cause of the rice crisis.

In Davao City in 2007, Agriculture Secretary Arthur Yap revealed that 11,000 hectares of rice lands have been converted to banana plantations these past few years. Mindanao farmers were attracted to the better earnings from bananas for export.

More tragic is that the children of Ka Ben, Ka Cesar, Halipa and thousands of other rice farmers will never go into rice farming. They will join the urban labor force or work abroad. Ka Cesar’s only daughter is about to finish her nursing studies at a university in Metro Manila. She wants to work in the United States.

Vanishing breed

Sonny Domingo, a farmer leader and a former consultant of the Congressional Commission on Agricultural Modernization, said that for the country to be self-sufficient in rice in the future, the sons of rice farmers should be ready to take over from their fathers.

This is a tough call. Farming other crops like vegetables, corn or biofuel plants can be more profitable.

A survey on the average age of Filipino rice farmers will likely find that most are elderly or seniors. This means most rice farmers will be retiring in the next five to 10 years.

Domingo explained in a paper that while the rice industry is worth about P80 billion per year, non-farmers like traders, are getting the bigger part of the pie—up to P50 billion. This means the nation’s toiling rice farmers and their families, many of them living below poverty level, share the smaller slice. Rice farmers are the majority of agricultural labor, which makes up one-third of the total labor force.

Traders control rice

Traders have the financial might that allows them to lend to cash-strapped rice farmers during the pre-planting season. This locks them into a vicious cycle, because it is also the traders who buy—at a price they dictate—the farmers’ produce.

Ka Cesar said farmers borrowing from traders are prevalent, for banks rarely bother with farmers applying for loans.

If the rice farmer is hit by crop failure brought about by pestilence, bad weather or sometimes both, he gets buried deeper in debt to the trader.

In the past, government tried to extend loans to all farmers, through direct lending or through farming or rural-based cooperatives. But Filipino farmers have a record of being poor debt payers, with banks and cooperatives reporting a collection rate of only around 5 percent.

This does not mean, however, that rice farming cannot be profitable, and that farmers cannot be good bank clients. During the Marcos regime’s Masagana 99 years, the banks’ average collection rate from rice farmers was an astounding 85 percent.

New type of farmers

Fortunately, a new type of rice farmers is emerging. Some of them have incomes better than urban employees.

One such is Rosalie Ellasus. A college degree holder who had worked for a local corporation and then became an overseas Filipino worker (OFW), she decided to try her hand in rice farming.

Sources from SL Agritech said Ellasus operates a five-hectare rice farm in Pangasinan and earns about P87,000 per hectare per cropping season from her rice farm, or P435,000 from her five-hectare land per cropping season.

Her palay (unhusked rice) yield per hectare per cropping is more than 12 metric tons, which is way above the national average of three to four metric tons per hectare, per cropping.

What sets Ellasus apart from many traditional rice farmers is her respect for knowledge. In 2000, she attended lectures from the Farmers’ Field Schools of the Department of Agriculture, where she learned how to plant rice more efficiently.

She is one of the many farmers who have adopted hybrid seeds and organic farming practices. Banks do not see modern farmers, like Ellasus, as “high-risk” borrowers.

There are no statistics on how many former OFWs or scientifically minded office workers have taken up rice farming. But if many will replicate Ellasus’ experience, there will soon be a new generation of more fortunate rice farmers than the vanishing breed of traditional farmers.

   

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