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| Planning workshop of DAR and ARB coops for block sugar faming |
The
Sugarcane Block Farming project is currently being implemented by the
Department of Agrarian Reform provincial office of Cagayan wherein small farms
owned by agrarian reform beneficiaries (ARBs) in sugar-producing areas are
being consolidated to increase the ARBs’ profitability through ‘block’ farming.
Provincial Agrarian Reform Program Officer II (PARPO II) Virgilio M. Acasili
said the implementation of the project is pursuant to the Memorandum of
Agreement (MOA) signed between and among the Sugar Regulatory Administration
(SRA), Department of Agriculture (DA) and the Department of Agrarian Reform
(DAR). Under the MOA, the DAR will shoulder the cost of farm tractors and
business development services. The DA will cover the development of irrigation
facilities and the improvement of farm-to-mill roads while the SRA will
shoulder the cost of agri-technology and overall management of the block farms.
At
least two (2) municipalities in Cagayan province are preparing to engage in
sugarcane block farming to increase profitability and also a way of preparing our ARB-sugar
farmers against the effects of competition resulting from the implementation of the
free trade agreement within the ASEAN region by 2015, when the tariffs on agricultural goods can be as
low as five percent to even zero.
The
demand for sugar is continuously rising due to the increasing requirements for
production of bioethanol (from sugar) and in power cogeneration which uses
sugarcane waste called bagasse. Presently, energy companies are allowed to
import bioethanol to supply their needs as local production cannot meet the
current demand. Bioethanol made from sugarcane consumes the least amount of
energy and emits the least amount of greenhouse gas, which means it is one of
the most earth-friendly power sources.
The
local sugar industry’s biggest competition is the entry of cheaper sugar from
Thailand and is considered as a real threat that can affect local production
and pull down domestic prices to the prejudice of local farmers. Sugar from the
Philippines is still being exported with the United States as its major market.
According to the SRA, sugar exports will soon include India, Korea, Indonesia
and the Middle East.
Sugarcane
block farming will happen in the municipalities of Solana and Tuao, all
in the south-western part of Cagayan province where large tracks of lands are
planted to sugarcane that provide the raw materials for the Cagayan RobinaSugar Milling Company (CARSUMCO) in Sto. Domingo, Piat, Cagayan. Also included in the project is Cabagan town in Isabela province.
Under
the block farming system, small farms of agrarian reform beneficiaries with
areas of less than 10 hectares will be consolidated and integrated into 30-50
hectares through various schemes such as contracting, joint venture,
partnership and sharing.
The
block farms will be managed as one farm so that activities in the small
individual farms are synchronized to the plans of the whole block, Hence, resources
including farm workers, equipment and financing, could be utilized more
efficiently. Although the farms are operated as a block, the ARB remains as the
absolute owner of their farm, they will not lose ownership of their land
titles. The block farms will be managed by their farmers’ organizations or
cooperatives who will be assisted by a farm manager hired and supervised by the
SRA.
Block
farming is the consolidation of small farms to help increase productivity and to
widen the scale of sugar production. ARBs are encouraged to organize themselves
into cooperatives to make their farm operations more cost-efficient which will
result to lesser cost of production resulting to more profitable per unit area.
It is a support services program intended for the Comprehensive Agrarian Reform
Program (CARP) beneficiaries.
The
government is targeting to have at least 100 sugarcane block farm sites by
2015. The average sugar cane yield per hectare is currently at 60 tons but this
can be increased to 70-80 tons per hectare through farm mechanization and
improved production process.
Under
the block farming system, DAR provides all that the farmers will need such as
farm inputs, new farm techniques and common service facilities that consists of
a mechanized tractors and a hauling trucks, etc. These inputs and farm equipment will be provided as grants to the farmers’
cooperatives being the conduit between DAR, etc and the farmer-beneficiaries
who are parties to the project.
According to studies conducted by SRA, the
program can help increase their sugar cane production from 99 to 147 bags of
sugar per hectare, which could be translated to a possible increase in income
of about P39, 000 for the farmer-beneficiaries. /cds 
