₱30B farm mechanization program delivers up to ₱60B return, says PhilMech chief

TABUK CITY, Kalinga — The government's Rice Competitiveness Enhancement Fund (RCEF) Mechanization Program has generated an estimated ₱40 billion to ₱60 billion in economic returns from a ₱30-billion investment over the past six years, according to Philippine Center for Postharvest Development and Mechanization (PhilMech) Director IV Dionisio G. Alvindia.

Alvindia disclosed the figures during a press conference at the Kalinga Provincial Capitol on Tuesday, July 28, after being asked by Guru Press Cordillera whether the mechanization program should be evaluated based on its actual impact on the rice industry rather than simply the number of agricultural machines distributed.

The question sought to determine whether the program's success could be measured through tangible improvements in farmers' livelihoods—including lower production costs, higher incomes, reduced post-harvest losses, and greater farm efficiency—instead of the number of machines turned over to farmers' organizations.

"For the last six years, the value of mechanization was ₱30 billion. In terms of return, all the returns to the government from this program are valued at ₱40 to ₱60 billion. Yan ang return sa gobyerno nung investment na ₱30 billion for mechanization," Alvindia said.

Following the press conference, Alvindia provided Guru Press Cordillera with a report detailing the outcomes of the RCEF Mechanization Program, showing how government investments have translated into measurable agricultural and economic gains.

₱30B investment benefits 1.2 million rice farmers

According to the report, around ₱30 billion from tariffs on imported rice has been allocated to finance the acquisition and distribution of agricultural machinery nationwide.

To date, the program has distributed 32,875 agricultural machines to 7,522 Farmers' Cooperatives and Associations (FCAs), benefiting approximately 1.2 million rice farmers across the country.

The mechanization program now covers 240,135 hectares of rice lands in 58 rice-producing provinces, equivalent to about 14 percent of the country's irrigated rice areas.

Lower production costs, higher efficiency

Beyond the number of machines distributed, the report highlights significant improvements in farm productivity and operating costs.

It estimates that mechanization has reduced rice production costs by ₱7,675 per hectare, resulting in total annual savings of about ₱3.9 billion.

The savings are attributed to reduced dependence on manual labor and more efficient land preparation, planting, harvesting, and post-harvest operations.

Reduced post-harvest losses

The report also found that mechanization helped reduce post-harvest losses by 3.75 percentage points, lowering losses from the 14.51 percent baseline recorded in 2017 and improving rice recovery efficiency by 7 percent.

As a result, an estimated 98.593 million kilograms of additional milled rice are recovered annually—enough to provide food for more than 742,000 Filipinos, or roughly 176,000 families, each year.

Higher farmer income

Mechanization has also increased farmers' earnings, with the report estimating an additional income of ₱4,312 per hectare per cropping season, partly due to improved grain processing and more efficient farm operations.

The country's mechanization level also increased by 20.3 percent, rising from 2.31 horsepower per hectare in 2010 to 2.78 hp/ha.

According to Alvindia, these figures demonstrate that the benefits of mechanization extend far beyond the distribution of tractors, harvesters, dryers, and other equipment.

Instead, he said, the program is improving productivity, lowering production costs, reducing post-harvest losses, increasing farmers' incomes, and helping strengthen the country's food security.

The press conference formed part of the first-ever Mechanization Roadshow in Kalinga, jointly organized by DA-PhilMech, the Korea Agricultural Machinery Industry Cooperative (KAMICO), DA-Regional Field Office–Cordillera, the Provincial Government of Kalinga, the City Government of Tabuk, Kalinga State University (KSU), and Fit Corea Trading Philippines.

The two-day roadshow brings together farmers, Farmers' Cooperatives and Associations, local government units, agricultural stakeholders, and industry partners for machinery demonstrations, technical presentations, technology exhibits, and interactive discussions promoting agricultural mechanization.

Kalinga was chosen to host the event because of its strategic role as one of the country's major rice-producing provinces and home to Tabuk City, the Rice Granary of the Cordillera.