Republic of the Philippines
DEPARTMENT OF AGRICULTURE
Philippine Center for Postharvest
Development and Mechanization
CLSU Compound, Science City of Muñoz, Nueva Ecija

NEWS STORIES

RCEF extension seen to boost farm mechanization
by PHilMech Strategic Communications Group (June 6, 2024)
The Philippine Center for Postharvest Development and Mechanization (PHilMech) backs the call of Agriculture Secretary Francisco Tiu Laurel to extend the effectivity of the Rice Competitiveness Enhancement Fund (RCEF), so more farmers can become beneficiaries of farm machineries.

PHilMech Director Dionisio G. Alvindia said that the agency as a whole sees the need to extend RCEF by another six years as the distribution of farm machines to qualified farmer cooperatives and associations (FCAs), and local government units (LGUs) under the fund's Mechanization Program from 2019 to 2024 can cover up to 20% rice farms nationwide.

"The RCEF-Mechanization Program from 2019 to 2024 cannot cover even half of rice farms nationwide, hence we at PHilMech back the pronouncement of Agriculture Secretary Francisco Tiu Laurel to extend RCEF. As for the time period, we believe that extending RCEF for another six years will be adequate," he added.

Secretary Laurel also mentioned that tariff collections from imported rice reached P29 billion in 2023, indicating a P19 billion excess over the P10 billion allocated for RCEF annually. In 2022, tariff collections from imported rice reached P22 billion.

Senator Cynthia Villar, the chairperson of the Senate Committee on Food and Agriculture, said earlier she backs the extension of RCEF by another six years and with P20 billion funding annually. Under Republic Act (RA) 11203 or the Rice Tariffication Law, P10 billion of the tariffs collected from imported rice are allocated for RCEF of which P5 billion is for the distribution of farm machines, P3 billion for the distribution of high-yielding rice seeds, P1 billion for credit support, and P1 billion for training and capacitating of rice farmers.

Senator Villar is the author of RA 11203.

Director Alvindia said Senator Villar's intention to extend RCEF with bigger funding will have a significant impact on the country's rice sector, especially for small holder farmers of the staple.

"Both Senator Villar and Secretary Laurel have good intentions in seeking to extend RCEF, as this will result in improved competitiveness of country's rice sector, and enhancement of the productivity of small holder rice farmers," Director Alvindia said.

Also, PHilMech is ready to continue its mandate under RA 11203, as it was able to distribute 26,412 units of various farm equipment under RCEF from the start of distribution activities from mid-2020 to March 3, 2024.

Director Alvindia added that PHilMech also conducted training and capacitating activities for the recipients of the RCEF-Mechanization Program.

"Learning to properly operate and maintain the farm machines is equally crucial, as PHilMech wants the farm machines distributed to FCAs and LGUs to serve them for many years and benefit the next generation of farmers who are younger" he said.

"And the extension of RCEF, including the mechanization component, can attract more young people into farming., which will help ensure the country's food security over the long term," Director Alvindia said.