DA Secretary Arthur Yap created the Task Force on Agribusiness Lands for Biofuels to enable the country to cash in on the booming global market for biofuels.
The decision to set up the task force for biofuels was reached during a meeting of the DA Executive Committee the other day.
"We should immediately take advantage of the signing into law of the Biofuels Act so that our farmers can start reaping its benefits in the form of higher incomes, more livelihood opportunities, and more areas developed for agribusiness projects," Yap said.
He said the task force will pinpoint existing and new lands suitable for ethanol and coco biodiesel production for the benefit of prospective investors in "this eco-friendly enterprise that will energize farms and reduce the country’s dependence on imported fossil fuel."
Yap pointed out that investing in the "global trend towards the use of crop-based alternative fuels" will help the DA propel the growth of the nation’s agriculture sector to a projected four to five percent this year, and increase the growth rate to as much as eight percent next year.
Aside from identifying the areas currently planted to sugarcane, coconuts, cassava, sorghum, and other crops used as feedstock for biofuel projects, the task force will also locate new areas that could be planted to these crops.
The task force will also look for possible partners among the local government units and in the private sector to team up with potential investors in developing agribusiness lands for the production of ethanol or coco methyl esther (CME), otherwise known as coco diesel.
The task force will map out possible incentives under the law to attract foreign partners to invest in biofuel projects and assist prospective business groups interested in leasing lands devoted to these crops or opening up new areas for biofuel production.
Yap said the task force will be headed by Director Carlos Mendoza, who is in charge of the DA program to develop two million hectares of farm lands for agribusiness ventures.
He also said the task force, which will set up satellite offices across the country, will include representatives from the Philippine Coconut Authority (PCA), Sugar Regulatory Administration (SRA), Bureau of Soils and Water Management, Information Technology Center for Agriculture and Fisheries, National Agriculture and Fisheries Council, and the Agricultural Marketing and Assistance Service.
"It will closely coordinate with such agencies as the Department of Trade and Industry, Bureau of Investments, Department of Environment and Natural Resources, and the Department of Agrarian Reform, in identifying all lands suitable for biofuel investments and helping investors meet all requirements set by (Republic Act) 9367 (or the Biofuels Act) for such agribusiness projects," Yap said.
At this point, Yap noted that Chinese investors have already expressed serious intent in developing an initial 40,000 hectares of agribusiness lands in the Philippines for cassava and sugar that would be used to produce ethanol in China.
Earlier, he said the DA will speed up ongoing efforts with the SRA to pinpoint some 200,000 hectares of farmlands devoted to other crops that can otherwise be planted to sugarcane, and which investors can consider as investment sites for ethanol projects, following the enactment of the eco-friendly measure.
Yap said the DA, through the PCA, would find ways to develop an additional 122,000 hectares of coconut lands to meet the demand for coco diesel under the new law.
He believes the Biofuels Act will give an extra boost to the sugar industry that "is now on the mend," and help reinvigorate the coconut industry with sales of coco diesel to oil companies projected at P3.5 billion a year.
Government data revealed that the country has 3.5 million coconut farmers and 56,000 sugarcane farmers.
Last week, Mrs. Arroyo signed into law the Biofuels Act, which aims to ease the country’s dependence on imported, dollar-draining and pollution-generating petroleum products.
The DA is among the key agencies tasked to draw up the implementing rules and regulations (IRR) of the Biofuels Law, which mandates the pre-blending over a specific period of one percent CME or coco diesel in diesel-fed vehicles, and five percent of ethanol in gasoline-fed vehicles.