President Aquino P2 Billion Agriculture Subsidy

Govt readies P2-B ‘inputs subsidy’

President Aquino said on Sunday the government is finalizing a P2-billion “inputs subsidy” for farmers and fishermen as part of its efforts to provide relief for vulnerable sectors amid high oil prices.

Budget Secretary Florencio Abad said the measures so far announced by Malacañang in relation to high oil prices are “just the beginning” and that “there are more to come.”

Mr. Aquino said the Department of Agriculture (DA) is in the process of drafting the implementing rules for the subsidy, which will be taken from the DA budget.

The President mentioned the subsidy when asked in an ambush interview about the recommendations of his economic managers in terms of easing the impact of rising oil prices on concerned sectors and which of these measures he had approved.

“The Pantawid Pasada is the first one. The next, I’m waiting for the details from the Agriculture department but it will be...an inputs subsidy—the direct procurement of seeds, fertilizer, including pesticides. But we are awaiting the actual details—the implementing rules...P2 billion has been earmarked for that and that is another step,” he said.

Abad said in another interview that the subsidy will cover the “rural poor” or “small-owner cultivators, lease holders, tenants and farm workers, including those in the fisheries sector where together with the coconut industry the incidence of poor is really highest.”

“The President’s point about the mechanics is really the challenge that we’re facing right now because I think not more than 10 percent of the rural poor is organized into cooperatives or community organizations. So the mechanics of this will involve both their organized sectors, but I think for the most part, working through with the local governments,” Abad said.

He said the DA would have to determine “who deserve to be benefited” by the subsidy, but the money is there and the commitment is there.”

Abad said “there are more to come” in terms of relief measures once the President approves them.

“This is the beginning of measures that the administration is working on to respond to the emerging contingencies,” he said.

Abad added that concerned government agencies are working on the mechanics of an increased level of availment under the National Health Insurance Program to be funded out of “certain revenue measures” to be announced in the coming weeks.

“That is almost completed and there’s a committee there of the DOH, DOF, DBM and Neda that’s working out the mechanics of that because it will entail practically doubling the investments in the National Health Insurance program,” he said.

On where the funds for the program would be drawn from, Abad said “that will be related to certain revenue measures which will be announced in the coming weeks” but declined to elaborate.

Asked how much the government can spare for subsidies, assistance and other contingency spending in relation to higher oil prices, Abad said “given the present situation and given the fact that it seems like tensions are easing up, then I think that we are comfortable enough with what we have.”

“What we need to do is to prepare for the rainy months that’s coming up,” he said.


Congratulation President Aquino on Your Excellent Efforts!

We congratulate and are very proud of President Aquino and his efforts to help the Philippine farmers and fishermen with this agriculture subsidy. The Philippine agricultural sector has the potential to be a very significant contributor to the Gross Domestic Product of the Philippines. The effects of a strong and prosperous Philippine agriculture sector benefit all Filipinos in many different ways. We hope and encourage all Philippine politicians, and the private sector to work together to make the Philippine agriculture industry strong and an agricultural exporter again like it use to be decades ago.

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