Farmers reap profits of pricing program

Isabela Province's Price Stabilization Program for Rice and Corn (PALLGU/CMAPIPULGU), a partnership between the provincial government and the National Food Authority, will be recognized among the top ten outstanding local governance programs at the Galing Pook Awards 2007. The awards honor exemplary service and development programs that bring positive results, and can be replicated in other areas.

The PALLGU/CMAPIPULGU 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 P2.00 per kilo was added to the support price of the NFA for corn and a separate PhP1.00 for rice. Subsequently, the additional support price for rice was increased to P2.00 per kilo.

The NFA and the LGUs involved executed a memorandum of agreement on this matter. To increase public awareness and support, the local government launched print and broadcast information drives at the barangay and municipal level, advocacy campaigns and specialized meetings. In time, the farmers embraced the project since it gave them a better price and a choice of buyers.

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 Governor 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 has generated a net profit of about P400,000 from the program's three phases of operations. It has also introduced the “Libreng Hakot” which offers free utilization of its dump trucks to haul the products of the farmers from designated centers to the nearest NFA warehouse for mechanical drying. It will soon expand and improve the project to serve even more farmers, and make more facilities available. It also plans to improve farm-to-market roads and drying facilities, and promote the use of organic fertilizers and integrated pest management. For now, Isabela is in discussions with the NFA on the relaxation of its strict standards on moisture content and purity. If all goes well, more Isabela rice and corn will be making its way on Filipino tables.

NFA officials have said that Isabela's success have brought other provinces asking for similar programs.

“Isabela's case shows that if the local government is attuned to the needs of its constituents, it can devise creative solutions. The local government has shown that political will and people's participation are crucial ingredients in designing innovative programs that work,” says Galing Pook Foundation Chairperson Rafael Coscoluella.

Isabela is one of 10 local governance programs cited by Galing Pook as their 2007 awardees.

Ranging from programs for social services, justice, and economic development, to infrastructure and environmental protection, the awardees are a showcase of diverse and feasible programs that can be replicated, and even improved on by other LGUs. The national selection committee was composed of various leaders in the public and private sector led by Galing Pook Foundation Chair and former Governor Rafael Coscolluela, and Galing Pook Awards Selection Committee Chairperson and former Economic Development Authority Chief Cielito Habito.