AKO Bicol Party-list Rep. Zaldy Co is suggesting “contract growing” between the government and farmers to stabilize the prices of rice in the market.

Co, chairman of the House committee on appropriations, said contract growing will benefit both the consumers and farmers because while it would result in steady rice prices, such an approach would also ensure a profitable market for farmers.

He said contract growing should involve large agricultural corporations managing vast tracts of farmlands.

He also proposed that a portion of the farmers’ yield, possibly 50 percent, would be contracted at a pre-agreed price under the scheme while the remaining yield would be sold at market rates to allow farmers to still capitalize on market price surges.

However, the congressman noted, the contracted portion of the total yield may provide profit for farmers while the remaining yield outside the contract may also result in losses.

“Mas maganda ‘yung contract grow-farming na corporation, ‘yung malalaki, ‘yung 4,000 hectares, 5,000 hectares kasi mas madaling i-control ‘yan,” Co explained over the “Agenda ng Bayan” radio program.

“So another win-win situation na sige 50% contracted and 50% may upside ka, so pwede ka rin malugi dun sa 50% [upside] mo,” the lawmaker added.

Co emphasized that farmers would not be shortchanged under the contract growing arrangement.

“Hindi naman mababarat kasi makukwenta naman natin kung magkano ang puhunan na per kilo ng palay. Alam naman natin ang palay is P9 maximum or P7 to P9 per kilo lang.” he pointed out.

Co noted that farmers nowadays have sometimes adjusted their prices to match the rates of imported rice.

“Oo nagiging negosyante na rin and in fact, marami tayong nakausap na nag-contract growing sa mga farmers, ayaw daw i-honor [ang contract], ‘yun bang ano kasi nga nagte-trade na rin sila ng mas mahal,” he said.

Apart from the contract growing approach, the chairperson of the House Committee on Appropriations also proposed controlling the cost of important farming inputs like fertilizers.

Farm inputs have also been subject to price manipulation which may contribute to unstable prices of rice, Co said.

Co further suggested the need for targeted use of palay varieties and better irrigation, as well as increased production through solar-fertigation, to help address rice supply problems in the country.

“(Through) solar-fertigation, mag-i-increase tayo ng mga 70% production,” he said.

Even before the recent surge in prices of rice that prompted Marcos to implement price caps with his issuance of Executive Order (EO) No. 39, Co had been advocating for the contract growing model as a proactive solution to stabilize the market and support local farmers.

While EO No. 39 may provide immediate relief for consumers, concerns have been raised against the directive such as the potential devaluation of local farmers’ produce.

Co said contract growing would provide a balanced and long-term solution to the nation’s rice economy.

EO No. 39 puts a price cap on regular milled rice at P41 and well-milled rice at P45. It took effect last September 5.