In a direct response to the plight of struggling rice farmers, a new initiative called the “Palulos for Small Farmers Program” was launched Friday, Sept. 5, offering interest-free loans to help them navigate the volatile rice market.
The program, spearheaded by the private sector, aims to provide financial support during harvest season when prices often plummet.
Ramon Uy Sr., president of the RU Eco-Agri Foundation, announced the program’s P50 million initial fund at a launch event attended by government officials and farmer representatives at May’s Garden in Barangay Pahanocoy, Bacolod City.
The fund is a combination of a loan from the Landbank of the Philippines and contributions from Uy’s family and friends.
The program was born out of a news report about a local farmer’s plea for help as palay prices dropped to as low as P11-12 per kilo, far below the Department of Agriculture’s (DA) P18 break-even price.
Under the program, each rice farmer can receive a P20,000 loan to help them replant and harvest while holding on to their crop until prices rebound. The core of the program is its zero-interest policy. Farmers only repay the loan after they’ve sold their rice at a more profitable price.
This direct assistance is intended to prevent farmers from being forced to sell their harvest at a loss to traders.
The RU Eco-Agri Foundation is collaborating with the Department of Agriculture and the local government of Bago City to implement the program.
DA-NIR Regional Director Jose Albert Barrogo expressed his support, acknowledging the government’s limited capacity to provide direct loans.
He praised Uy’s initiative, stating “The government is not just able to move and lend money to farmers so he is happy that there are private individuals like Uy who are ready to help farmers.”
Bago City Mayor Marina Javellana Yao also said farmers should form a federation to legally bid for government contracts, allowing the local government unit to buy rice directly from them, cutting out the middleman.
The need for such a program was highlighted by the story of Rollie Fuentes, a farmer from Barangay Tabunan, Bago City.
Fuentes shared his frustrating experience of being promised one price before harvest, only to see it drop continuously as he bagged his rice. This struggle is a common one, occurring not only in Bago City but throughout Negros Occidental and other provinces.
The new program hopes to break this cycle of poverty for farmers during harvest season, which Senator Kiko Pangilinan, Chairman of the Committee on Agriculture, noted should be addressed through the Sagip Saka Law, which aims to streamline government transactions with farmers.
Finalization of the program’s requirements is underway, with the goal of a swift rollout to provide immediate relief to farmers.
Uy clarified that the program is not meant to compete with traders but to empower farmers to improve their livelihoods.*