Farmers in Region 02 are set to benefit from a groundbreaking initiative under the Department of Agriculture Regional Field Office No. 02 (DA RFO 02) — the Rice Farm Cluster Establishment Program, a pilot project that places farmers at the heart of rice value-chain operations.
This innovative program responds directly to one of the biggest challenges faced by local rice growers: the persistently low buying price of palay. Instead of relying on traders, Farmer Cooperatives and Associations (FCAs) will now directly purchase palay from their members at a competitive rate of ₱16–₱18 per kilogram, with an added ₱2 production incentive — giving farmers up to ₱20 per kilo, a significant improvement from the traditional farmgate prices offered by traders.
What makes this pilot truly transformative is that the participating FCAs will not only buy palay but also mill and process the rice themselves using modern Rice Processing Facilities provided by DA-RFO 02 and PhilMech. Through this value-adding process, the cooperatives can produce well-milled rice sold at ₱35 per kilo or less, directly marketed through the KADIWA program — ensuring both fair income for farmers and affordable rice for Filipino consumers.
This farm-to-market chain strengthens the MASAGANA Rice Industry Development Program (MRIDP), specifically its strategies on Sama-Sama (unity and convergence in farm clustering and consolidation), Ganado (motivated and enthusiastic farmer-entrepreneurs), and Matatag (resilience and stability in climate change adaptation and mitigation). The initiative highlights the region’s push toward Regenerative Agriculture, sustainability, and local agri-enterprise development.
To further sustain and empower farmer cooperatives, the Department of Agriculture Regional Field Office No. 02 (DA RFO 02) extends several key forms of assistance under this pilot program. Depending upon the capacity of their drying and milling capacities, each cooperative receives trading capital amounting to ₱18 per kilogram to support the procurement of palay directly from their member-farmers. The fund provided for trading capital shall be rolled over by the Farmers’ Cooperative Association (FCA) to ensure sustainability and continuous operation of palay trading activities among their members. The fund provided for trading capital shall be rolled over by the Farmers’ Cooperative Association (FCA) to ensure sustainability and continuous operation of palay trading activities among their members. To encourage timely and high-quality deliveries, the DA also provides a production incentive of ₱2.00 per kilogram, ensuring that farmers are rewarded for their commitment to excellence. In addition, a milling incentive of ₱2.00 per kilogram is granted to assist with processing operations, helping cooperatives manage production costs and maintain efficiency. Packaging support is offered to improve the presentation and competitiveness of locally milled rice in the market with ₱1.00 per kilogram. Finally, drying incentive of ₱1.00 per kilogram is also provided to the FCAs. Together, these interventions strengthen the cooperatives’ operations and help build a more resilient and profitable rice value chain in Region 02.
These interventions will run for three years, ensuring continuous growth and financial resilience of farmer cooperatives across Cagayan, Isabela, Nueva Vizcaya, and Quirino.
Seventeen cooperatives from across Cagayan, Isabela, Nueva Vizcaya, and Quirino have come together under the pilot initiative, collectively procuring over 3 million kilograms (3,096,448 kg) of palay from their member-farmers as of September 30, 2025. Leading the way in this impressive effort is the Solana West Farmers’ Cooperative from Cagayan, which contributed 601,274 kilograms of palay. They are followed closely by the Good Samaritan Multi-Purpose Cooperative in Isabela with 499,731 kilograms, the Nueva Vizcaya Alay Kapwa Multi-Purpose Cooperative with 482,622 kilograms, the Kabisig Savings Agri-Development Cooperative in Isabela with 320,663 kilograms, and the Baro a Langa ti Mannalon Agriculture Cooperative with 214,531 kilograms. Together, these dedicated cooperatives have already milled a total of 71,875 kilograms of rice, now ready for community distribution. Among them, the Solana North Agriculture Cooperative stands out as the top contributor in milling, producing 30,000 kilograms of well-milled rice. Procurement is still ongoing in other cooperatives. These figures go beyond numbers they reflect the power of collaboration and the shared determination of farmers who, when united, can truly thrive.
By empowering FCAs to manage the entire rice production and marketing cycle, the Rice Farm Cluster Program bridges the gap between producers and consumers, reduces production costs, and helps stabilize rice prices in the market.
With each sack of rice processed and sold under this pilot program, Region 02 takes one step closer to a future where farming is sustainable, fair, and dignified where hope grows alongside every grain of rice.
Story by Prim John Macababbad