CALL FOR ACTI N
Who gets the bigger shareof the income?
The IFHAP survey shows an improved economic status of rice-based farmers as the percentage of farm householdswith income above the poverty threshold leapt from 46% in1996/97 to 57% in 2006/07. Nevertheless, poverty alleviationis not all about income enhancement but also considers a moreequitable distribution of income. The IFHAP data indicate highunequal distribution of income among households. Dividingthe samples into ten income groups showed that the richestincome group earned about 40% of the total income; thelowest income group earned only about 2%. This meansthat the income growth is concentrated mostly on the richestfarming households. It is an almost sorry record.
Our call for action: RethinkingR&D and pricing policies
The economic status of RBFH can be further improved byintensifying the promotion of technologies to improve theiryield, reduce costs, and consequently increase their income.However, technology developers should rethink their R&Dstrategies, not only address the need to increase productionvolume but also the cost of poverty and inequitable distributionof income. They need to understand what parts of theirservices matter most to farmers. Technologies that are moreaffordable to resource–poor farmers should also be developed.R&D management has to be guided by assessment of needs of resource-poor farmers to ensure that technologies developedare relevant and benecial to them.Given the high unequal distribution of income amonghouseholds, more research studies should be pursued withthe intent of investigating proles of users of technologies. Itwould be interesting to nd out which types of users do ourtechnologies favor (i.e. those with capital, education, etc.).Farmers need to be made more aware of the increasing valueof their palay produce as the by-products of rice milling likerice bran and hull are now being marketed in bulk. Networksof non-government organizations (NGOs), local governmentunits (LGUs), and farmers’ associations can be tapped to assistfarmers in this area. Finally, policies should be put in place sothat farmers can enjoy higher price for their produce withoutnecessarily leading to increase in the price of milled rice.
1 This article is heavily informed by the policy papers,“Changing Image of the Filipino Rice Farmer” (RB Malasa,MC Velayo, and SR Francisco) and “Income Inequality amongRice-farming Households in the Philippines” (RD Acda), of the SocioEconomics Division of PhilRice.2 Real income refers to income after adjusting for ination;while nominal income is income stated without any adjustmentsfor ination, deation, and other economic factors.
Rethink our approach to R&D, takinginto account the malady that resource-poor farmers could hardly afford thedeveloped technologies.Promote more cost-reducing techno-logies to minimize farmers’ input costs.Put in place policies that allow farmersto enjoy higher price for their producewithout necessarily leadingto higher price of milled rice.
Rice Science for Decision-Makers (Issue
1)Editorial Team: Ronilo A. BeronioFlordeliza H. BordeyAnne Marie Jennifer E. EligioKaren Eloisa T. BarrogaRonell B. MalasaMarc Jim M. MarianoAileen C. CastañedaManaging Editor: AMJ E. EligioDesign and Layout: Carlo G. Dacumos