The Philippine Center for Postharvest Development and Mechanization (PhilMech), under the Department of Agriculture (DA), met its rice mechanization targets in 2024, delivering thousands of machines and expanding its support programs for farmers, cooperatives, and local government units (LGUs).
Backed by the Rice Competitiveness Enhancement Fund (RCEF)—a key provision under the Rice Tariffication Law of 2019—PhilMech’s mechanization initiative aims to lower rice production costs by up to P3 per kilo and reduce post-harvest losses by as much as 5 percent.
RCEF, which has an annual budget of P10 billion, is funded through tariffs on rice imports. It was recently extended, with annual allocation tripled to P30 billion starting 2026, with the amendment of the RTL.
In its 2024 accomplishment report submitted to Agriculture Secretary Francisco Tiu Laurel Jr., PhilMech announced the deployment of 5,030 units of rice production and post-harvest equipment, including tractors, seeders, harvesters, dryers, and milling systems. Of these, 2,450 were funded by the 2024 budget and 2,580 were carried over from previous years. The agency also procured 4,784 new units, exceeding its annual procurement goal.
A major highlight of PhilMech’s mechanization drive is the installation of Rice Processing Systems (RPS), which significantly boosted milling recovery rates from 55–58 percent to 63–65 percent. This improvement means that for every 100 sacks of palay, 63 sacks of rice are now produced instead of just 55 bags at the minimum—translating to greater output and income for farmer cooperatives.
Since the start of the program, 104 RPS units have been established nationwide—98 of them under the administration of President Ferdinand Marcos Jr. PhilMech expects to complete the delivery and installation of 47 more units covered by Phase 1 of the RCEF program.
The agency credits its success to a stringent beneficiary validation process, involving field and desk evaluations. Over 2,000 cooperatives and LGUs were selected in 2024 based on their capacity to use and maintain the equipment. In parallel, PhilMech coordinated the timely delivery of machines through both ceremonial turnovers and direct on-site deployments.
Training remained a cornerstone of the agency’s efforts. PhilMech exceeded its training targets by conducting 170 sessions with 4,004 participants. Specialized courses, including the Training of Rice Mechanization Specialists and Training of Trainers, were conducted to build a pool of experts who can sustain the mechanization momentum.
“Modern agriculture will also attract younger farmers and investors, ensuring long-term food security and job creation.”
“Mechanizing rice production helps our aging farmers work more efficiently and increases their productivity,” Tiu Laurel said. “Modern agriculture will also attract younger farmers and investors, ensuring long-term food security and job creation.”
The agriculture chief said that by utilizing machines such as tractors and precision seeders along with using the right seeds, fertilizer, soil enhancers, and pesticides can sharply cut the cost of producing each kilo of palay, and ultimately, the price of rice on our plates.
“Modernizing rice farming isn’t just about lowering costs—it’s about making our farmers more competitive, more profitable, and more resilient for the future.”
“Modernizing rice farming isn’t just about lowering costs—it’s about making our farmers more competitive, more profitable, and more resilient for the future,” the agriculture head added.
PhilMech’s outreach extended to the distribution of 1.7 million learning materials, the organization of 27 community dialogues with 3,400 participants, and the creation of 18 information hubs in model cooperatives. Its digital platforms also played a key role in reaching stakeholders.
Enterprise development was another key focus, with 1,512 farmer cooperatives receiving technical assistance—100 percent of the annual target. PhilMech also helped develop 91 FCAs into enterprise models offering machinery services and rice processing, fostering job creation and local investment.
As of end-2024, PhilMech has procured 32,694 machines under RCEF and distributed 30,549 units to 7,493 beneficiaries.
The remaining deliveries and installations are scheduled for completion by June 2025.
