How will local farmers be compensated?

The RCEF is expected to allocate P10 billion annually to the support of Filipino
rice farmers over a six-year period. This will be done through the following fund
allocations: 50 percent on rice farm machinery and equipment, rice cooperatives,
and local government units; 30 percent on rice seed development, propagation, and
promotion; 10 percent on rice credit assistance; and 10 percent to rice extension
services.

Is it a good move in the long run?

Technically, it will prevent price hikes in the future as competition is a healthy
component for the economy. Senate Committee on Agriculture and Food
Chairperson Cynthia Villar concurs, “With the expiration of the quantitative
restriction on rice importation, this is a very important piece of legislation, which
will help our farmers improve their profitability and competitiveness.”

Also in favor of competition, Panelo insists the liberalization of the rice market
will promote production. “Well, ‘pag ni-liberalize mo naman eh magkakaroon ng
competition in the market. So magpapababaan sila ng presyo, otherwise hindi sila
mabibili, hindi ba? Kaya nga—law of supply and demand iyan eh,” he said.

What do the farmers have to say?

Kilusan ng Magbubukid ng Pilipinas considers the law as a “death warrant” to the
local rice industry as it would open the floodgates to foreign industries that would
overpower or “wipe out” local rice farmers. KMP estimates that 500,000 of a total
of 2.4 million rice farmers will be negatively impacted by the law. The
organization states that only through investing and boosting local production will
the Philippines achieve stable rice prices and supply.

What does NFA have to say?

With restrictions removed, NFA will lose its power and functions in rice
importation. Their role will now be limited to maintaining a buffer stock of rice for
emergency situations. They will not be permitted to manage the licensing of
importers and traders. Some 400 NFA employees are expected to be laid off as the
law will also move NFA under the Department of Agriculture.

What does this mean for the agriculture industry now?

Now that it has been rendered a law, expect the aftermath of its implementation to
come in the following months. Local farmers will be affected by the introduction
of more foreign competitors and how they fare in the face of that competition will
depend on the RCEF that the law has put into place.