Farmers benefit from LGU-NFA partnership

The price stabilization program for rice and corn of Isabela, a partnership between the provincial government and the National Food Authority, will be recognized among the top 10 outstanding local governance programs at the Galing Pook Awards 2007. 

The program has helped grains farmers fetch higher prices for their products and has so far benefited 87,500 rice farmers and 85,086 corn producers. 

The program started in 2005, when a portion of the province’s economic development fund was used to subsidize rice and corn production. A sum of P2 per kilo was added to the support price of the NFA for corn and a separate P1 for rice. Subsequently, the additional support price for rice was increased to P2 per kilo.

Even with the provincial budget and NFA funds combined, however, it was still not enough buy all of the products of Isabela’s farmers. The provincial government allowed farmers to deal directly with traders from Bulacan, Batangas and Pangasinan to get the best prices for their rice and corn. When the program influenced the traders’ prices to go up, the farmers resumed selling to them.

“Contrary to earlier expectations that the program would not sit well with Isabela’s businessmen and traders, most have actually welcomed the project,” observed Isabela Gov. Grace Padaca. 

When market prices are competitive, the provincial government bids out the stocks of rice and corn to interested traders or businessmen. The income derived from the sale goes back to the provincial fund and is subsequently channeled to help even more farmers for the next harvest season.

“Isabela’s case shows that if the local government is attuned to the needs of its constituents, it can devise creative solutions,” says Galing Pook Foundation chairperson Rafael Coscoluella.