By Othel V. Campos

The government’s rice mechanization program is generating an estimated P2.66 billion in additional annual income for farmers by cutting labor costs and improving productivity, a study by the Philippine Center for Postharvest Development and Mechanization (PHilMech) showed.

The study covered 895 farmers’ cooperatives and 5,428 farmers across 57 provinces. It found that mechanization under the Rice Competitiveness Enhancement Fund (RCEF) cut labor costs by about P2 per kilogram of palay, raising farmers’ income by roughly P9,000 per hectare.

The program also prevented an estimated 31,841 metric tons of postharvest losses annually, equivalent to about P541.3 million worth of rice.

PHilMech accelerated the government’s farm modernization drive in the first half of 2026, distributing 1,731 machines nationwide to 1,238 farmers’ cooperatives, associations and local government units. The distribution represents nearly 76 percent of the 2,289 units procured under the 2025 RCEF allocation.

The rollout included 900 four-wheel tractors, 700 combine harvesters, 95 recirculating dryers and 36 precision seeders. PHilMech has completed procurement of all machines under the 2025 allocation, with the remaining units scheduled for delivery.

The expanded deployment raised the country’s rice farm mechanization level to 2.81 horsepower per hectare at the end of 2025 from 2.68 hp/ha in 2022. PHilMech expects the figure to reach 3.40 hp/ha as RCEF implementation continues.

“Every machine we deploy helps farmers produce more with less. Mechanization lowers labor costs, speeds up critical farm operations and minimizes losses from planting to postharvest. These improvements translate directly into higher productivity, better grain quality and increased incomes for our rice farmers,” PHilMech executive-director Dionisio Alvindia said.

Alvindia said investments in combined harvesters, mechanical dryers and integrated Rice Processing Systems are equally critical in preserving grain quality and reducing postharvest losses.

Since the RCEF mechanization program began in 2019, PHilMech has distributed 34,721 production and postharvest machines to date.

Agriculture Secretary Francisco Tiu Laurel Jr. said mechanization is key to building a more productive and resilient rice industry while addressing labor shortages caused by an aging farm population.

“We are building an integrated system that enables farmers to harvest more efficiently, dry and mill their palay properly, reduce waste and earn more from every crop,” Tiu Laurel said.

Published Date: July 27, 2026