Policies and Programs

Support to Farmers and Subsidies

Programs under Subsidies take the form of grants and assistance.

Food Security Policies and Programs Description Year/s Implemented Implementing Agencies
Emergency Relief Operations

NFA provides rice supply to relief agencies such as the Department of Social Welfare and Development (DSWD) and the National Disaster Coordinating Council (NDCC). It may also release rice to local government units (LGUs) and other sectors participating in relief operations.

1972 to present National Food Authority (NFA), DSWD, NDCC, LGUs.
Buffer Stocking

NFA maintains at any time a minimum volume of stocks for distribution during emergency and/or relief operations. During normal times, the rice stock (household, commercial, government) must have a 120-day consumption requirement at the beginning of the year (January 1) and 90-day consumption requirement at the middle of the year (1 July). Any shortage in the total stocks held is used as basis for importation.

1972 to present National Food Authority (NFA)
Consumer Protection

Distribution - This Program aims to ensure that prices of staple rice and corn are reasonable and affordable to consuming public. This is undertaken through the various distribution strategies wherein rice is sold at different accredited market outlets such as accredited retailers, government agencies, private institutions/others.

1972 to present National Food Authority (NFA)
Stabilization of farm gate prices

Due to the seasonality of rice production and the concomitant price instability because of this seasonality, the NFA does most of its domestic procurement during the peak harvest months (October to December), when farm gate prices reach their lowest levels. Farmers who opt to sell their output to the NFA are paid a support price which guarantees a 30–35 percent return on investment to the farmers.

1972 to present National Food Authority (NFA)
Direct Market Intervention Program

Procurement- NFA buys from farmers/farmers’ organizations at the government support price to ensure market to accommodate farmer produce and enable farmers a fair return on production investment. This program is undertaken to ensure and establish a manageable buffer stock for the country, in line with the agency’s function of stabilizing consumer price at affordable levels, and assuring an adequate and continuous supply of rice. This involves direct procurement from individual and organized small farmers at the following government support price:     

Palay*    -    Php 17.00/kg
Incentives:

  • CDIF - P0.30
  • Drying Fee - P0.20
  • Delivery Fee - P0.20

Yellow Corn**    -    Php Php10.00/kg (Class B)
Incentives:

  • CDIF - P0.30
  • Drying Fee - P0.20
  • Delivery Fee- P0.20

White Corn ***    -    Php P13.00/kg , clean and dry
Incentives:

  • CDIF - P0.30
  • Drying Fee - P0.20
  • Delivery Fee - P0.20

*Effective February 1, 2009     
** Effective Sept. 28, 2009     
***Effective Mar. 24, 2009

1972 to present National Food Authority (NFA)