BACKGROUND INFORMATION
The Grains Production and Marketing System for Food Security (GrainSys)
Project is a Government – Civil Society – Business Sector undertaking of
the DAR Agribusiness Entrepreneurship Development Program (DAR-
AREDP intended to wean agrarian reform beneficiaries in Community
Organizing for Land Tenure Improvement (COLT-1) Project areas from
traders that supply them farm inputs at 5-7% interest per month payable
with the farmers harvest.
The implementing organization for the COLT-1 Project, Cagayan Valley
Center for Rural Development Empowerment (CREDO), is the also the
proponent of this AREDP Project through its social enterprise arm – the
CREDO Savings and Agrarian Reform Cooperative – which is now a large
primary cooperative that was recently re-registered under the Philippine
Cooperative Code of 2008 as consisting of districts and governed through
a representative assembly.
4 - Build up
• Improvement of
enterprise operation
and management
4.1 Corn Cagayan, • Market build up
La Filipina Uycongco
Production Isabela and • Capital enhancement
Group of Companies
& Marketing Apayao
• System and
organization
strengthening
• Product showcasing in
fairs, show, etc.
3 - Start up
• Pilot testing of the
product
• Feasibility analysis of
the product/
4.2 Rice Metro Manila
Cagayan, enterprise
Production cooperatives and
Isabela
& Marketing teachers associations • Installation of system
and procedures
• Securing FDA permits
(for food), other
certifications (for
non-food)
As can seen above, the participating farmers in Cagayan still made a profit with
their farm input supply debt almost paid for by the crop insurance indemnity. In
the case of the trader-supplied farmers, they are caught in a debt trap
worrying if the trader will again supply them farm inputs for the next cropping
season on credit.
In the case of the Apayao farmers who were not severely affected by the El
Niño episode, the comparative profit and loss statement on per average yield
for the area and the above-average yield reported is shown below:
Participating Participating
Trader-
Profit (Loss) Statement Farmer Farmer
Supplied
APAYAO Average Highest
Farmer
Yield Yield
Corn Harvest, in kg 5184 5184 8451
Farm Gate Price per kg 8.60 8.60 8.60
Gross Sales 44,582.40 44,582.40 72,678.60
Less: Labor Cost 13,000.00 13,000.00 13,000.00
Less: Farm Inputs 21,000.00 21,000.00 21,000.00
Less: Interest Expense 2,085.00 5,250.00 5,250.00
Less: Insurance Premium 1,800.00 0.00 0.00
Less: Postharvest Expense 1,880.75 1,880.75 1,880.75
Net Income 4,816.65 3,451.65 31,547.85
Plus: PCIC Indemnity 16,000.00 0.00 0.00
Adjusted Farmer Profit/Loss 20,816.65 3,451.65 31,547.85
Add-Back: 50% of Labor Cost 6,500.00 6,500.00 6,500.00
Net Farmer Profit (Loss) 27,316.65 9,951.65 38,047.85
Please note that the PCIC indemnified the participating farmers in Apayao as
the inspection of their adjusters were conducted before the unexpected
summer rainfall that allowed the corn plants that are yet to flower at that time
to recover. The farmers claimed that rainfall dissolved the urea with muriate of
potash top-dress and believe that the large grains harvested were due to the
application of the potash when they compared the yield of those that applied it
and those did not.
Rillera
email=norbertrillera@yahoo.com,
c=PH
Date: 2010.09.09 10:30:42 +08'00'