President Ferdinand R. Marcos Jr. announced on Tuesday that the government is aggressively expanding its contract farming program under a consolidated agricultural system. This move aims to significantly increase farmers’ earnings, eliminate exploitative middlemen, and modernize the country’s food production through economies of scale.
Speaking at an open forum following the 2026 National Irrigation Administration-National Confederation of Irrigators Association (NIA-NCIA) General Assembly, the President highlighted the proven success of initial implementations as the catalyst for this nationwide expansion. “We are increasing contract farming because our experience shows it leads to a much better quality of life for our farmers,” President Marcos said. “The results we have seen so far are incredibly promising.”
The administration’s strategy centers on a consolidated farming system. By organizing individual farmers into cooperatives and merging small land parcels into large, contiguous farmlands, the government aims to:
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Achieve Economies of Scale: Lowering the cost of seeds, fertilizers, and equipment.
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Enable Mechanization: Allowing for the use of modern machinery that is otherwise impractical for small, fragmented plots.
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Streamline Logistics: Farmers will now oversee the entire value chain—from drying and milling to sacking and delivery—ensuring they retain more value from their harvest.
A key pillar of this initiative is the direct link between production and the market. By removing unnecessary intermediaries, the President emphasized that farmers will enjoy higher profit margins and a guaranteed destination for their produce.
“With a more organized system, our farmers no longer have to worry about where to bring their crops,” the President added.
NIA Administrator Eduardo Guillen reported that the agency has already successfully organized over 400 farmer cooperatives. To support these groups, the government has distributed approximately 150 rice processing systems to date.
Guillen confirmed that the NIA is on track to organize even more cooperatives throughout 2026 to ensure the benefits of contract farming reach every province.
