President Ferdinand R. Marcos Jr. has issued Executive Order (EO) 100 establishing a floor price for palay (unhusked rice) and activating trigger mechanisms for its implementation to protect farmers from declining farmgate prices.

Under the EO, the Department of Agriculture (DA) is mandated to determine, set, and adjust the palay floor price for government procurement based on the cost of production, prevailing market prices, reasonable margins for farmers, and the welfare of both producers and consumers.

The DA may also consider other factors, including “emergencies or calamities affecting the rice supply chain and palay production; influx of import arrivals that could dampen farmgate price of palay; sharp decline in global prices that may impact the estimated landed cost of rice; and government’s capacity to purchase palay at competitive prices and manage market intervention.”

“In establishing the floor price of palay, the DA shall ensure a fair return of investment to farmers on a regional level by recognizing regional variance in production costs, market conditions, and profit margin, to be reviewed and adjusted before the onset of cropping season or whenever necessary,” the EO read.

EO 100 also paves the way for the creation of a steering committee, to be chaired by the DA and co-chaired by the Department of the Interior and Local Government.

Other members of the steering committee are the Department of Trade and Industry, the Department of Agrarian Reform, the Department of Social Welfare and Development, and the National Food Authority (NFA) to assist in setting and enforcing the floor price.

To support post-harvest operations, government agencies and local government units (LGUs) are authorized to utilize public facilities, such as covered courts, multipurpose halls, gymnasiums, and other state-owned structures as temporary palay storage when warehouses are unavailable.

This must be coordinated with LGUs to ensure continuity of public services.

The steering committee is directed to craft guidelines on proper storage use, maintenance, and security to prevent post-harvest losses and preserve grain quality. It must also regularly monitor farmgate transactions and submit quarterly implementation and impact reports to the President, particularly on farmer incomes and rice supply stability.