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| Photo courtesy of PCO |
By Jerome Carlo Paunan
MANILA (PIA) — President Ferdinand R. Marcos Jr. on Tuesday announced that his administration is scaling up a contract farming model originally developed in Ilocos Norte to strengthen agricultural cooperatives across the Philippines.
Speaking at the 2026 National Irrigation Administration-National Confederation of Irrigators Association (NIA-NCIA) General Assembly in Quezon City, Marcos detailed how provincial governments can act as registered traders to secure better prices and financing for farmers.
The President recalled his experience as governor of Ilocos Norte, where the province registered as a trader to “wholesale” all rice harvests from local farmers. Profits from these trades were channeled back into a revolving fund to provide low-interest loans—between 2% and 3%—and discounted inputs such as fertilizers.
“That became the model of contract farming that we are now implementing throughout the Philippines,” Marcos said.
He emphasized that on-time repayment helps cooperatives build a strong credit rating, making it easier to secure financing from institutions like Landbank.
NIA Administrator Eduardo Guillen reported significant progress in this transition, noting that over 400 cooperatives have already been formed, with approximately 150 receiving rice processing systems.
Guillen also highlighted a new “vegetables in irrigation” (gulayan sa irigasyon) program launched in 2022.
The initiative has already generated P1.5 billion in sales to government agencies, including the Department of Social Welfare and Development (DSWD), the Bureau of Jail Management and Penology, and public hospitals.
The President told the assembly of irrigators that he attended the event to verify the effectiveness of these policies directly from the beneficiaries.
“We need to know if what we are doing is correct,” Marcos said. “It is good to hear today that we can see things are running more smoothly.” (JCO/PIA-NCR)
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