The nature of operations of the National Tobacco Administration, an attached corporation of the Department of Agriculture (DA), lies on its mandate to improve the economic and living conditions and raise the quality of life of the tobacco farmers and those who depend on the industry for their livelihood. It stands as steadfast partner to nearly 42,600 smallholder farmers in their pursuit of enhanced livelihood and opportunities, while undertaking the necessary actions and strategies for the growth and development of the industry.
The agency conducted programs, projects and activities geared toward increasing productivity and income, anchored on the DA’s goal of attaining food sufficiency and modernization of agriculture and agribusiness, under the 8-point economic agenda of President Ferdinand R. Marcos Jr., as well as developed interventions to respond to the tobacco farmers’ varying needs amid the pandemic.
These accomplishments were achieved in close coordination with the different Branch Offices, Departments and Units, and with funding support through the 2022 General Appropriations Act by virtue of SAGF-151 charged against R.A. 4155 (Tobacco Fund) as well as its Corporate Funds.
| 1 | Boast local production and raise the farmers’ and fisherfolks’ income |
1.1 Tobacco Farmers’ Production Assistance/Tobacco Contract Growing System
NTA continuously promotes market-oriented approach in tobacco production through the adoption of a contract growing scheme, to enhance participation of the private sector in production technology transfer, credit assistance, and leaf marketing. Of the production/credit assistance, the agency provides 40% subsidy on fertilizers/pesticides.
As of December 31, partial tobacco leaf acceptances for the CY2021-2022 production in all tobacco types have reached 43.77 million kilos, valued at about PhP4.24 billion. This represents about 88.5% of the total estimated production of 49 million kilos.
Average buying price so far is PhP96.74 per kilo or 14% higher than the five-year average of PhP82.84 per kilo.
For crop year 2022-2023 which started at the last quarter of the year, P200 million budget for production assistance has been released to the Branch Office, for a total of 8,355 tobacco growers covering 5,311 hectares under the TCGS project.
1.2 Rice-Corn Production Project
As a component of the Integrated Farming and Other Income Generating Activities Project (IFOIGAP), this is implemented in line with the rice self-sufficiency program of the government, and to augment the income of tobacco farmers, other than tobacco production. Farmer-cooperators are granted production/credit assistance to an average amount of PhP20,000 per hectare with a 40% subsidy from the agency’s Corporate Funds.
The agency assisted a total of 4,987 farmer-cooperators, with an area of 3,741 hectares in Region 1 and Abra (for rice production) and Region 2 (for corn production). The production assistance released was PhP60 million.
1.3 Curing Barn Assistance Project
Curing Barn Assistance Project (CBAP) addresses the tobacco farmers’ need for new flue curing barns and air-curing sheds, to replace old/damaged ones that have been destroyed by calamities that hit major tobacco areas in the recent years. It is a continuing project with a subsidy of PhP100 million. For the first quarter, 3,825 tobacco farmers availed of the assistance for construction/repair of their curing barns and curing sheds amounting to PhP50,000 for curing barn and PhP40,000 for curing shed.
1.4 Improved Tobacco Seedlings Production Project
The project aims to encourage early planting among tobacco farmers for improved quality, yield and increased income. Beneficiaries were provided with technical assistance, inputs and implements to produce required seedlings to be distributed free to tobacco farmers. The seedlings will be bought back by the agency as an additional income to the seedling growers. The project aims to provide additional income of PhP15,000 with 5-hectare module per seedling grower.
A total of 144 tobacco growers have been recruited for the 170 modules to produce seedlings for crop year 2022-2023. This year’s budget is PhP7.84 million.
1.5 Renewable Fuelwood Project – Synchronized Tree Planting
The project aims to restore the ecological integrity of the tobacco-growing regions and contribute to the government’s climate mitigation effort for global warming. This is achieved by providing seedlings for the synchronized tree planting project of NTA and additional seedlings needed by farmers for backyard planting. For the Synchronized Tree Planting (STP) activities in July, a total of 881,857 tree seedlings were planted in various greening areas in Region I and 2 and Abra. The seedlings were sourced from 78 farmer-cooperators who were given a total of PhP1.9 million production assistance to produce the seedlings. The farmer-cooperators earned a total of PhP913,388 as buyback or an average of PhP11,855 net income per farmer.
| 2 | Ensure accessible, affordable and nutritious food that benefit all Filipinos |
2.1 Beef Cattle Production Assistance Project
The IFOIGAP Beef Cattle Production Assistance Project (BCPAP) provides selected tobacco farmer-cooperators with one ready-to-breed upgraded Brahman heifer, as a source of additional income of the tobacco farmers. As of October 31, all 825 cattle distributed since 2020 had produced a total of 146 offspring.
| 3 | Develop strong value chains (non-food) that deliver the needed quality services |
Production
3.1 Emergency Cash Assistance
The Emergency Cash Assistance, with 2022 budget of PhP51 million, benefitted tobacco farmers affected by calamities such as typhoons, freak rains, earthquake, among others in tobacco-producing provinces in Regions 1 and 2, and Abra. The amount was augmented by the agency’s Corporate Funds. Each of the 34,225 beneficiaries received PhP1,500 each, with the breakdown per province as follows: Abra, 2,198; Ilocos Norte, 3,701; Ilocos Sur, 11,734; La Union, 3,830; Pangasinan, 3,390; Isabela, 8,594; and Cagayan, 778.
3.2 Quick Response Fund
The P50-million Quick Response Fund (QRF) from the Department of Agriculture was likewise extended to farmers affected by the calamities this year in Region 1. A total of 1,231 tobacco growers received 4,924 bags of fertilizers, 3,693 packs of Bio-stimulants, while 750 tobacco growers will each receive one head of cattle.
3.2 Distribution of Bio-Stimulants
NTA distributed bio-stimulants to farmers who were affected by the freak rain in the first quarter to help them in the recovery of their crops. A total of 4,567 in major tobacco growing areas each received a bottle of bio-stimulant.
Trading / Marketing
3.3 Harmonized Leaf Grading System
The NTA Quality Assurance Division (QAD) conducts annual training for NTA staff in trading centers, including farmer leaders, on the harmonized grading system and classification of the internationally accepted standards. In preparation for the crop year 2022-2023, QAD conducted capability enhancement trainings for 57 new extension workers and researchers in Region 1 and 2 and Abra.
| 4 | Put in place the required policy directions to fast-track the modernization of the sector |
4.1 Sustainable Tobacco Enhancement Program
In light of the consistent efforts of the government to increase productivity and income of smallholder farmers and accelerate the modernization and industrialization in agriculture, the agency formulated the Sustainable Tobacco Enhancement Program (STEP). This is a five-year development roadmap (2021-2025) to raise socio-economic standards in the industry. Budget for the component projects has been presented to and got endorsement from the Provincial Development Councils (PDCs) and the Regional Development Councils (RDCs) of Regions 1 and 2.
4.2 Agricultural Research
NTA initiated the NTA Projects Facility Maps for the Stakeholders of the Tobacco Industry (TRAFMAP) in keeping pace with technological advancement to identify, locate and monitor, and come up with a map containing all the socio-demographics, tobacco farmers in specific locations and monitor production activities. The Phase 1 of the project conducted last year surveyed the current tobacco farmers, curing barns and shed, machinery, facilities, animals, and other projects of the NTA in all municipalities of Ilocos Norte.
For Phase 2, the project surveyed the current tobacco farmers, curing barns and shed, machinery, facilities, animals, and other projects in Ilocos Sur, Pangasinan, La Union, Cagayan, Isabela, and Abra. As of December 31, 2022, the total number of geotagged tobacco farmers is 15,040.
The TRAFMAP link for the data and maps was uploaded to the agency website on October.
NTA, through the Management Information System of the Corporate Planning Department, also developed the Farmer Masterlist Management Information System (FMMIS) including mobile and desktop apps to provide extension workers an automated system containing information needed to support the application and processing of tobacco farmers availment of farm inputs.
4.2 Training for Extension Workers
To equip them with the latest know-how and technology in the application of modern agriculture, the agency conducted training seminars for its Branch Office extension workers, as follows: (1) Virtual Training on Mobile App TCGs Monitoring on Arc GIS for TAFMAP; (2) Mobile TCGS Monitoring System and Development for Maps for NTA projects and Tobacco-Related Activities; (3) Virtual Training for Tobacco Production and Regulation Officers on tobacco trading rules and regulations; and (5) Orientation on the Farm Input Voucher Management System.
4.3 Annual Seminar-Workshop on Enhancing Extensionists’ Capabilities
A total of 130 extension workers and the branch managers participated in the first Annual Seminar–Workshop on Enhancing Extensionists’ Capabilities (ASWEEC) in Pansol, Calamba, Laguna in November. The ASWEEC aims to review the current tobacco production practices; and to boost the knowledge of the extension workers to be more effective in disseminating the accurate tobacco production technology. It is also a venue for sharing tobacco farming best practices with consideration on environmental protection and maintenance.
4.3 Leadership management skills for tobacco farmers
At least 120 officers of the National Federation of Tobacco Farmers Association and Cooperatives (NAFTAC), the country’s largest group of tobacco farmers, the block farm leaders, and the Farmers Organizational Development (FOD) branch coordinators attended the training on leadership management skill for cooperatives.
Prepared by:
Corporate Planning Dept. with reports from the Deputy Administrator for Operations; 8 Branch Offices (Regions I, II and Abra; Farm Technology Services Dept.; and the Central Office Department.