Farm output seen posting strong Q2

Agriculture is expected to post stronger growth in the second quarter, driven by a significant rise in rice and corn output, the Department of Agriculture (DA) said on Sunday.

Palay (unmilled rice) output is projected at 4.36 million metric tons (MMT) in the second quarter, which would be up 13% from a year earlier, the DA said in a statement.

This also represents an upgrade to the 4.34 MMT forecast issued in April.

The increase is driven by the growth in riceland to be harvested — up 9.2% at 972,730 hectares — and improved yields, projected at 4.48 MT per hectare, up from 4.32 MT previously.

The DA cited favorable weather, increased government support through the Rice Competitiveness Enhancement Fund (RCEF), contract farming initiatives, and stronger palay procurement by the National Food Authority (NFA).

The NFA currently buys palay at between PHP 18 and PHP 24 per kilo.

The farmgate price of palay has averaged PHP 17.75 per kilogram, down 28.9% year on year in May.

Month on month, the palay farmgate price fell 1.6% in May.

The DA said corn production is expected to grow “even more dramatically,” noting that based on the standing crop as of May 1, the government projects second-quarter output to increase 27% year on year to 1.487 MMT.

The land area to be harvested is set to expand 16% to 402,690 hectares.

Rice and corn production are major contributors to crop production, which accounts for about 57% of agricultural output.

Meanwhile, the DA said in a separate statement it is putting the “final touches” on a draft bill that aims to restore critical functions of the NFA.

The bill seeks to amend the Rice Tariffication Law to grant certain regulatory powers to the NFA to “better manage buffer stocks” and “regulate rice distribution and marketing,” it said.

The bill also seeks to empower the NFA to set a floor price for palay, and support farmers’ cooperatives and recipients of rice processing systems funded under the RCEF.

“It will also refine protocols for DA-led rice imports to ensure the country can respond swiftly to supply shortages and sudden spikes in commodity prices,” the DA added.

“Critically, the measure grants the NFA greater flexibility in managing the appropriate level of buffer stock and ensuring that they are always of optimum quality — an essential tool in supporting not only the P20-per-kilo rice goal but also broader government efforts to ensure price stability and protect both producers and consumers,” the DA said. — Kyle Aristophere T. Atienza, Reporter