Overview
The Philippines is moving to cushion farmers’ finances with a targeted cash aid program as part of the proposed P6.7 trillion national budget for 2026. Speaker Faustino “Bojie” Dy III announced that about 1 million rice farmers will receive P7,000 each to help offset losses caused by persistently low palay (unhusked rice) prices. The plan aligns with broader measures to stabilize farm incomes amid market fluctuations and supply management strategies.
Details of the Cash Aid Initiative
Under the proposed budget, each of the one million rice farmers would obtain a cash grant of P7,000. The initiative is designed to provide immediate relief and support farmers as they navigate price volatility at the farmgate level. The fund is intended to complement other government efforts to stabilize the rice sector and protect farmer livelihoods as part of a broader reform agenda.
Context and Policy Linkages
Speaker Dy noted that the cash aid will supplement Executive Order No. 93, which temporarily suspends certain rice imports to shield local producers from oversupply and depressed prices. By prioritizing local production and market stability, the government aims to create a more resilient rice sector while maintaining consumer price safeguards.
Rationale for Cash Subsidies
Dy emphasized that cash assistance reflects the government’s commitment to direct, tangible support for farmers. With farmgate prices for palay reported as low as P8 per kilo in some areas—far below the cost-recovery range of P16 to P18 per kilo—farmers face significant income shortfalls. The cash aid is intended to help bridge the gap until longer-term reforms and market adjustments take effect.
Complementary Measures
Beyond the P7,000 grants, the Speaker urged that subsidies from the Department of Agriculture (DA)—such as seed subsidies—also be distributed in cash to farmers where possible. The aim is to streamline aid delivery, reduce leakage, and ensure that resources reach the farmgate quickly where they are most needed.
Implications for Farmers and the Sector
Proponents say the cash aid could provide much-needed relief to farmers amid price pressures and a challenging growing season. The program may also help sustain cultivation efforts and prevent a further decline in rice production if farmers are better able to cover inputs and basic costs. However, questions about budgeting, eligibility, distribution logistics, and long-term funding remain as lawmakers scrutinize the details ahead of final approval.
Next Steps
The proposal was presented during a joint hearing of the House Committee on Agriculture and Food and the Committee on Ways and Means. Lawmakers will review the budget allocations, assess operational mechanisms, and consider stakeholder feedback before submitting the final version of the 2026 budget to the President and Congress for enactment.
Conclusion
The planned P7,000 cash aid for 1 million rice farmers represents a bold, targeted measure within the 2026 budget framework. If implemented, it would provide immediate support to those most affected by low farmgate prices and underscore the government’s intent to balance short-term relief with a longer-term reform strategy for Philippine agriculture.
