The Development Bank of the Philippines (DBP) has granted P500-million funding to various farmer cooperatives in Albay to digitalize their practices.
The coops' “Digital Rice Clustered Farming (DCRF) Project" combines advanced automation, precision farming techniques, and data analytics to optimize resource use and increase small farmers’ annual yield by up to 30 percent, according to DBP President and Chief Executive Officer Michael O. de Jesus.
“We recognize the immense potential of this innovative farming initiative," he added.
“Through this project, DBP brings forward a revolutionary farming technology to the market and empower farmers in an ever-changing agricultural landscape,” he also said.
The DCRF Project is funded under the DBP’s Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) which aims to promote inclusive growth and build a stronger rice sector.
The cluster farm project will be piloted in the Province of Albay, with five farmer cooperatives as initial participants.
The initiative consolidates individual rice farm holdings into larger farms to lower production costs.
The move is also expected to boost farmers’ income by leveraging on economies of scale.
The technology-enhanced farming solution uses a Digital Transformation Platform which employs satellite imagery, machine learning and artificial intelligence.
Digitalizing processes can significantly boost rice production by 28,000 metric tons (MT) annually with 2,000 hectares of land.
Upside production can be enhanced up to 70,000 MT, covering a cluster farm size of 5,000 hectares.
For this reason, the Department of Agriculture (DA) recognizes farm clustering and consolidation techniques as key strategies to scale up the Philippine agricultural sector.
Indeed, “the cluster farm system can become the epicenter of rice production in Albay,” de Jesus acknowledged.
The program will be implemented through joint efforts with the Provincial Government of Albay, the Department of Agriculture, the Philippine Center for Postharvest Development and Mechanization, the National Food Authority, and the Philippine Crop Insurance Corporation.
The agencies will collaborate in the areas of planning and coordination, technical assistance and capacity building, infrastructure development, development financing, and value chain development.
“By combining our resources and expertise, we create a framework that would address the needs of our farmers," said de Jesus.
"This convergence also serves as a testament to our collective commitment to serving the best interest of our nation and fostering sustainable development in the agricultural sector,” he concluded.