Filipino rice farmers earn P10,836 for 4 months’ work

Filipino rice farmers in 2022 earned an average P10,836 for every hectare—an income that requires frontloaded investment and a waiting period of up to four months highly at risk to weather changes.

Data from the Philippine Statistics Authority show the gross return from each hectare planted to rice in 2022 stood at P65,209 while the average palay production cost was P54,373 per hectare.

Separately, the PSA said the average farm gate price of palay in August rose to P22.16 per kilo from P19.38 in July and from P17.61 in August last year.

Data show that in 2022, the national cost of producing a kilo of palay average P14.98.

The production cost the lowest in central Luzon at P12.85 per kilo but registered the highest in Central Visayas where P22.43 is needed to produce a kilo of the grain.

Two kilos of palay are needed to produce 1 kilo of rice.  Additional costs such as milling, storage and transportation add to the cost before the rice reaches consumers.

The PSA said net profit-cost ratio averaged P0.20. Simply, farmers earn an average of 20 centavos for every peso invested in palay farming.  
In some areas, the returns are far better. In Northern Mindanao, farmers earn 44 centavos for every peso spent in palay production, while in Central Luzon it is 41 centavos and 31 centavos in the SOCCSKSARGEN, a region in Mindanao comprised of South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and General Santos.