The Rice Competitiveness Enhancement Fund (RCEF) Mechanization Program is a government initiative established under Republic Act No. 11203 or the Rice Tariffication Law of 2019, aiming to improve the productivity and competitiveness of Filipino rice farmers through modern farm machinery. It is implemented by the Philippine Center for Postharvest Development and Mechanization (PhilMech) in partnership with the Department of Agriculture (DA) and was designed to provide free and subsidized farm equipment—such as tractors, harvesters, and transplanters—to qualified farmers’ cooperatives and associations across the country. This program was created in response to the liberalization of rice imports, with the goal of helping local farmers reduce production costs and increase efficiency. Understanding the RCEF Mechanization Program is crucial for farmers and stakeholders to access these resources and support systems they need to boost the local rice farmers’ productivity and stay competitive in a market affected by global trade.
As a component of the RCEF that focuses on farm mechanization, this program aims to provide assistance in kind to farmers through modern machinery, helping them adapt to the demands of a competitive market. This guide explains everything you need to know about the program—what it is, who qualifies, what machinery is available, and most importantly, how to apply.
Program Overview
The DA RCEF Mechanization Program is designed to improve the productivity and profitability of Filipino rice farmers through wider access to modern agricultural machinery and equipment for production and postharvest operations. It was made possible under the Rice Tariffication Law (RA 11203), which replaced rice import restrictions with tariffs. A portion of the tariff proceeds was allocated to the RCEF and a portion of this fund was designated to support rice farmers through technology and mechanization programs.
Goals of the Program
The RCEF Mechanization Program is designed to:
- Increase rice production efficiency
- Lower farming costs
- Reduce postharvest losses
- Strengthen the local agricultural machinery industry
- Provide access to appropriate farm technologies through farmer cooperatives and associations (FCAs) and local government units (LGUs)
Available Farm Machinery and Equipment
Qualified beneficiaries can receive the following types of modern farm machinery and postharvest equipment:
- Agricultural Tractors
- Farm Tillers
- Rice Seeders
- Rice Transplanters
- Rice Harvesters
- Rice Reapers
- Rice Threshers
- Mechanical Rice Dryers
- Rice Mills
- Irrigation Pumps
- Small Solar Irrigation Systems
These technologies are given as grants in kind, meaning FCAs receive the machines without the need to repay, provided they use them for the benefit of their members and according to the program’s operating model.
Benefits
Participation in the program also provides several other tangible benefits for cooperatives and their members, such as:
- Lower Production Costs: Through mechanized planting, harvesting, and postharvest operations, the program can reduce production costs by ₱2–₱3 per kilogram of rice.
- Reduced Postharvest Losses: Efficient and modern equipment can lower post production losses by 3–5%, helping farmers retain more of their harvest.
- Increased Profit Margins: Less manual labor and faster operations translate to higher productivity and income for farmers.
- Improved Quality and Competitiveness: Modern equipment supports better quality rice, allowing Filipino farmers to compete more effectively in the global market.
- Stronger Agricultural Cooperatives: The program encourages collaborative management and strengthens the role of FCAs and LGUs in agricultural development.
Who Can Apply?
The program is not open to individual farmers but to registered and DA-accredited farmer cooperatives and associations (FCAs) involved in rice farming. Here are the eligibility requirements:
- Must be a DA-accredited rice-based farmers’ cooperative or association with active members.
- Should have at least 50 hectares of rice farms under regular members.
- Must operate within a minimum of 100 hectares of rice areas in the surrounding barangays of the proposed project site.
- Must have the capacity to operate and maintain the equipment.
- Must be willing to undergo training and capability building sessions provided under the program.
- Must agree to:
- Provide a machinery shed as a counterpart
- Follow the suggested service fees
- Use an integrated, system-based approach in machinery operation
- Align operations with the program’s goals and guidelines
How to Apply for the DA RCEF Mechanization Program
Interested FCAs must follow this application process:
Step 1: Submit a Letter of Intent
Prepare a formal letter of intent addressed to PhilMech. This must be accompanied by a board resolution indicating the cooperative’s:
- Need for machinery
- Commitment to provide a machinery shed
- Agreement to the program guidelines
Step 2: Complete and Submit the Required Documents
Your FCA must provide:
- FCA Profile, including:
- List of farmer-members and their corresponding farm sizes
- Existing agricultural machinery (if any)
- Certificate of Accreditation from the Department of Agriculture
Note: These documents help assess whether your cooperative meets the program’s technical qualifications.
Step 3: Participate in Site Validation and Training
If your application is shortlisted, PhilMech and its partner agencies (including the Agricultural Training Institute and TESDA) will:
- Validate your site and capacity
- Facilitate training and capability-building sessions for your cooperative
Step 4: Receive the Equipment
Once approved, PhilMech will deliver the requested machines directly to your cooperative. From there, you will:
- Operate the machines under the program model
- Offer services to your members and nearby rice farmers
- Maintain records and comply with reporting requirements
Where is the Program Being Implemented?
The RCEF Mechanization Program is implemented across key rice-producing provinces and municipalities in the Philippines. Locations are selected based on:
- Rice production volume
- Average yield
- Machinery needs
- Recommendations from DA Regional Field Offices (DA-RFOs), PhilRice, and LGUs
Collaborating Agencies
The DA RCEF Mechanization Program is a multi-agency effort. In addition to PhilMech, it includes:
- Department of Agriculture – Regional Field Offices (DA-RFOs)
- Local Government Units (LGUs)
- Agricultural Training Institute (ATI)
- Technical Education and Skills Development Authority (TESDA)
- Agricultural Credit Policy Council (ACPC): assists in financial support and capacity-building
Video: Agripreneur DA-PhilMech RCEF Mechanization Program
The DA RCEF Mechanization Program is a game-changing initiative for rice farming in the Philippines. By introducing farm mechanization through organized cooperatives, the government provides rice farmers with the tools to compete, survive, and thrive in a liberalized market. If your cooperative meets the criteria, don’t miss the opportunity to apply for this financial assistance in the form of state-of-the-art farm equipment. It’s a practical and sustainable step toward modern, efficient, and profitable agriculture in the Philippines. Watch this video to learn more.
For more information and updates, visit the official websites of DA, PhilMech, or consult your local agricultural office.