BACK IN 2023, then Undersecretary for Rice Program, Leocadio Sebastian launched a comprehensive strategy to ensure that rice farmers would get what they requested from the DA field offices in their choice of subsidized seeds, fertilizers (organic, chemical and soil ameliorants and nitrogen-fixing fertilizers), farm machineries and other subsidies using a corruption-free voucher system and the IMCs (intervention monitoring cards).
Both IMC and voucher system were contained in the Masagana Rice Industry Development Program, that also called for the practical consolidation of farmers’ holdings into a cooperative, which would forward their wish list to the DA RFUs and their choice materials will be sent to them and paid for in IMCs (containing the date, volume and name of merchants) for validation under MRIDP.
Using this program, no favoritism and over/under deliveries will ensue and payments are paid direct by farmers to the merchants through an ATM-like system.
When proposed to Congress for funding, the MRIDP took a lot of time for the DA to convince the legislators on this worthy system, which eventually got the funding it needed. It was later hailed by the legislators as a more transparent game changer for the sector.
With the entry of DA Secretary Francisco Tiu Laurel in November 2023 and his appointment of his chief engineer, USEC for operations, Engr. Roger Navarro, the entire MRIDP and its crucial elements were all but shelved.
The DA stuck instead to the graft- prone traditional system of determining and allocating the inputs per RFU, supplies coming from their choice of seeds, inputs and machinery suppliers and the allocations of the subsidized materials depended on the regional field unit directors and the municipal/provincial agriculturists, all employed by the LGU.
Using the old devolved system, farmers were neither given their choice of seeds and other inputs best suited for their farms nor were they allowed to pick the inputs’ suppliers they trust. It was a one-size fits all approach to farmers.
Also political patronage played a big role with farmers not close to the incumbents (mayors, barangay officials and agriculturists of LGUs) did not get their share of subsidized inputs that sometimes were given to non-farmers close to the incumbents, which again was resold by the recipient to legitimate farmers are higher rates.
They paid for whatever was allocated to them, even against their choice, and more often than not, the production failed because the inputs were not entirely suited for their lands and their farming practices/systems.
The voucher system was designed to consolidate farmers’ land areas into the desired 20 hectares (at least) so that credit, inputs, machineries and other subsidies could be given to a legitimate group and paid for by collections from its members.
The IMCs which operate like an ATM contains the details of payments made, volume of inputs purchased, merchants and farmers’ name and ID photo and date of purchase.
Using both systems it was easy to track loopholes along the way and field validators can just check on the officers of the cooperative.
Since December 2023 when they reverted to the traditional graft-prone system, farmers have been complaining about irregularities with the non-farmers receiving such subsidized inputs while those legitimate landholders and tillers not close to the powers-that-be in the LGUs and DA RFUs bought their requirements in the open market at higher prices.
Field Review Begins
Of late, Laurel ordered a nationwide survey of farmer-beneficiaries as it escalates its probe into alleged substandard seeds, questionable fertilizer grades, and unreliable farm machinery distributed under government programs, Business Mirror reported.
Laurel said complaints raised by a farmers’ group are being taken seriously, though regular audits have not flagged systemic irregularities. Still, he ordered a sweeping region-by-region survey of recipients of machinery, post-harvest facilities, seeds, and fertilizers distributed by the DA and attached agencies, including the Philippine Center for Postharvest Development and Mechanization,(PhilMech, a DA attached agency).
Also, cooperatives will be asked about equipment performance, spare parts availability, after-sales service, and overall satisfaction. “We want to hear from the actual beneficiaries,” Tiu Laurel said. “If there is a problem with after-sales service or if the equipment has defects, it will show up in the survey.”
He said DA cannot rely on unsubstantiated complaints, even as allegations of corruption and graft surface. “The (farmers’) group is to replace anecdotes with verifiable data,” he added.
Laurel downplayed the claims that procurement favored a single supplier saying that machinery has been sourced from multiple global brands, including Kubota and Yanmar, and rice processing technologies from Buhler Group and Satake.
He also acknowledged reports of isolated breakdowns, including a Chinese-brand combine harvester cited in media interviews, adding that each case would be reviewed. Suppliers with weak service networks or contract violations could face penalties or blacklisting.
The review also covers seeds and fertilizers, Laurel added.
While rejecting proposals for a voucher-based seed system, Laurel said DA has started using Intervention Monitoring Cards (IMCs) under an improved system as a more transparent and accountable mechanism for delivering fertilizer assistance.
He said the agency will conduct a pilot this year in Southern Leyte, with a full nationwide rollout planned in 2027 if the system proves feasible at the national level.
The DA aims to complete the probe this month and submit a formal report to President Marcos Jr. and the Congressional oversight committees in Agriculture after the Holy Week.
“We are not sweeping anything under the rug. If there are shortcomings or wrongdoings, we will address them,” Laurel declared.