Overview: Targeted relief for rice farmers
In a move officials say could reshape how the government supports the agricultural sector, Speaker Faustino “Bojie” Dy III announced that about one million rice farmers are set to receive a cash aid of P7,000 each under the proposed P6.7 trillion budget for 2026. The pledge was made during a joint hearing of the House Committee on Agriculture and Food and the Ways and Means panel, underscoring a coordinated approach to farmer welfare amid fluctuating farmgate prices.
Why the cash aid matters
Farmers have faced steep challenges from depressed palay prices, with some producers in provinces like Isabela reporting market prices as low as P8 per kilo—well below the production cost of roughly P16 to P18 per kilo. The intended P7,000 cash assistance is designed to provide immediate relief, helping farmers cover inputs, labor, and other essential costs while market dynamics recover.
Speaker Dy emphasized that the cash payment is not a stand-alone gesture. It complements ongoing policy measures aimed at stabilizing the rice sector, including actions to manage supply and demand imbalances and to shield local producers from market shocks that often follow changes in import policy.
Policy alignment and long-term reforms
Dy connected the cash aid to Executive Order No. 93, which temporarily suspends rice importation to protect local producers from oversupply and price declines. By synchronizing these instruments, the government signals its intent to shield farmers in the near term while pursuing structural reforms that could raise productivity and resilience in the years ahead.
Beyond the cash stipend, the Speaker indicated that the administration is prioritizing cash-based subsidies across other farm support programs. He noted a request to President Ferdinand Marcos Jr. that all subsidies from the Department of Agriculture, such as seed subsidies, be released as cash directly to farmers rather than in-kind forms. This shift could simplify access to funds and ensure that farmers determine how best to use them based on their specific needs.
Implications for farmers and the broader economy
The proposed 2026 budget aims to balance immediate relief with sustainable development. For farmers, the P7,000 per-head cash aid offers quick liquidity that can reduce distress during price downturns and give them room to invest in improved seeds, fertilizer, and equipment when favorable conditions return. For the broader economy, targeted relief can help stabilize rural incomes, sustain demand for agricultural inputs, and support continued rice production that secures domestic food security.
Proponents argue that timely, transparent, and well-targeted subsidies are essential to prevent a downward spiral of farmer incomes and to reduce the risk of rural-urban migration driven by agricultural hardship. Critics, meanwhile, will likely seek clarity on eligibility, disbursement timelines, and how the program will be financed within the larger budget framework.
Looking ahead
As lawmakers scrutinize the 2026 budget, farmers and their advocates will be watching how and when the cash aid is deployed. If implemented smoothly, the program could serve as a blueprint for how the government can combine immediate cash assistance with reforms designed to raise agricultural productivity, stabilize palay prices, and fortify the sector against future price shocks.
