| Guidelines
on the DA-LGU Fertilizer Subsidy Program released
The
Department of Agriculture has released the guidelines on the
DA-LGU fertilizer subsidy program, a vital component of the
2008-2010 national rice sufficiency program.
Agriculture
Undersecretary Emmanuel Paras, during the 2nd National Executive
Board Meeting of the LPP, informed the governors that the
department has completed the guidelines relative to the implementation
of the DA-LGU FSP, and which will require a close coordination
with the DA’s regional field units and the provincial
and municipal governments.
The
objective of the DA-LGU FSP is to increase production, in
the target 2.58 million hectares of rice land, thru timely
and proper application of the required amount or quantity
of fertilizers for the 2008 wet cropping season.
In order to maximize the rice yield, both the DA and the LGU
will provide for a total of P1,500 subsidy for the application
of the required six bags of fertilizer, at P250 government
support per bag, for every hectare of rice land being planted.
Under the guidelines of the FSP, the local governments will
give a P1,000 subsidy for four bags of fertilizer, while the
DA will match this with a P500 subsidy for two bags, bringing
the entire government assistance to P1,500 per hectare.
Under the program, the provinces shall be responsible for
providing the DA with the list of participating farmers and
the rice area to be covered under the FSP, and releasing the
coded fertilizer discount coupons to the farmers.
On the other hand, the DA-RFUs will distribute the FDCs to
the farmers, through the provincial or municipal LGUs, and
shall also furnish the list of the participating farmers to
the FPA-accredited dealers and suppliers where the former
will procure the fertilizers at the subsidized rate upon presentation
of the fertilizer discount coupons.
Relative
to the query of Gov. Rodolfo del Rosario on why the LGUs have
to distribute the fertilizer discount coupons, instead of
just giving the P1,000 subsidy directly to the farmers, Usec.
Paras said that DA resorted to the FDC to ensure that the
subsidy will be used to purchase the fertilizers.
As
to the concern of Occidental Mindoro Gov. Josephine Sato in
why the DA will be subsidizing only two bags of fertilizers
while the LGUs will be handling the remaining four, the Agriculture
official said that the DA is already giving other subsidies
to the farmers such as irrigation, post-harvest facilities
and the like.
Mountain
Province Gov. Maximo Dalog, on the other hand, was concerned
on whether other crops like corn, vegetable and other high
value crops are covered by the program, and how can LGUs utilize
the 50% of the monetized IRA for boosting rice production
if it does not have the rice hectarage to support.
Usec Paras clarified that the DA is not obligating, but only
requesting, the LGUs to use a portion of the monetized amount
for the rice program. On the other hand, other crops aside
from rice will be covered by a separate program.
Marinduque
Gov. Jose Antonio Carrion was concerned over the sustainability
of the program, whether there will be subsequent subsidies
to the farmers after this year’s regular wet planting
season, which was likewise echoed by Sarangani
Gov. Migs Dominguez who wanted to know whether the FSP was
a knee-jerk reaction of government.
The DA official admitted that the FSP was government’s
knee-jerk reaction to the rice situation although for the
long term, the DA is currently negotiating with government-owned
banks so the national government can put up a P15 billion
guarantee fund for micro-credit to farmers.
He said that Pres. Gloria Macapagal-Arroyo has already issued
and administrative order for all government-owned and controlled
corporations to set aside 5% of their respective agency’s
savings for a guaranteed fund pool that could be made available
to the farmers.
As
to the query of Davao del Sur Gov. Dodo Cagas of whether micro-credit
will be an assurance that farmers need not go to traders engaging
in 5-6, Usec. Paras said that if government funds are easier
to access, the farmers will definitely not go to these traders.
Although it will not be as easy as the 5-6 lending, it will
be easier than in the past, he explained.
Meanwhile,
LPP national president and Misamis Occidental Gov. Loreto
Leo Ocampos shared the fertilizer subsidy strategy adopted
in the province, wherein the provincial government contracted
a loan from the Land Bank of the Philippines, in behalf of
the farmers, to complement the fertilizer subsidy from the
DA, the province and the participating cities and municipalities.
He explained that after the harvest season, the provincial
government will get back the subsidy extended to the farmers,
and give it back to them during the next planting season in
form of rice seeds. (AJSanchez)
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