NFA Implements Rice Purchase Cap to Support More Farmers Equitably

In a significant policy shift aimed at enhancing equitable support for farmers, the National Food Authority (NFA) of the Philippines plans to cap the amount of unmilled rice purchased from individual farmers to 100 sacks. This decision was announced by NFA Administrator Larry Lacson on June 28, 2025, and seeks to address ongoing transparency issues and procurement challenges faced by the agency. The initiative is designed to broaden the scope of assistance provided to the agricultural sector, particularly benefiting smallholder farmers.

The rationale behind the new cap stems from observations that some farmers manage extensive landholdings, which has complicated the equitable distribution of government support. "Why don’t we limit it and make it only 100 [sacks] per farmer, instead of 300 going to just one farmer?" Lacson articulated during a press briefing, highlighting the need to level the playing field among farmers of differing capacities.

Historically, the NFA has faced scrutiny over its procurement practices, with allegations suggesting that it operates similarly to private traders rather than fulfilling its mandate to support domestic agriculture. In response, Lacson indicated that the agency would implement new directives to enhance the transparency of its procurement process. According to data from the Department of Agriculture, there are approximately 2.6 million farmers in the Philippines, yet the NFA has indicated limitations in its ability to serve all of them adequately.

Under the revised plan, the only requirement for farmers to sell to the NFA will be registration with the Registry System for Basic Sectors in Agriculture (RSBSA), while land ownership will not be a prerequisite. Lacson also emphasized the importance of aligning support measures, noting that production costs for unmilled rice range from ₱12 to ₱14 per kilo, thus suggesting that a floor price should be set at a minimum of ₱16 to ensure farmer viability.

Additionally, the government has been proactive in providing farmers with essential inputs such as seeds, fertilizers, and mechanization support under the Rice Tariffication Law (RTL). The NFA is also planning to enhance its logistics capabilities with the acquisition of 600 trucks by 2028, which is expected to streamline the distribution of resources to farmers.

Experts in agricultural economics have weighed in on the potential implications of this new policy. Dr. Maria Santos, a researcher at the University of the Philippines Los Baños, stated, "The capping of rice purchases could democratize access to government support, but it will require stringent monitoring to ensure compliance and prevent misuse." Meanwhile, Dr. John Rivera, an agricultural policy expert from Ateneo de Manila University, cautioned that while the initiative aims to help more farmers, the NFA must ensure that the quality of service and procurement processes are not compromised.

The NFA's efforts to improve transparency and support for farmers resonate with ongoing discussions in the agricultural sector regarding reform and modernization. As the government continues to navigate these challenges, stakeholders await the outcomes of these policy changes and their impact on the agricultural landscape in the Philippines. The agency's commitment to implementing reforms signals a potential turning point in how agricultural support is administered, with broader implications for food security and rural livelihoods in the region.

As this policy unfolds, the NFA will be under close scrutiny from both the agricultural community and the public to ensure that the objectives of equity and transparency are met. The future of Philippine agriculture may hinge on the successful execution of these reforms, which aim to enhance the resilience and sustainability of its farmers.