Farmers in Ilocos Norte are grappling with severe financial challenges as plummeting tobacco prices push them deeper into debt. Local cultivators, including seasoned growers like Cleto Masian and Arsenio Valencia, have halted their harvests due to unsustainable pricing.
Masian, a 46-year-old farmer from Batac City, stopped harvesting after four rounds of picking, despite having more leaves ready. He sold his top-quality Virginia tobacco leaves for only P70 per kilo, a price he deems insufficient given the rising costs of labor and resources.
Similarly, 65-year-old Valencia expanded his tobacco cultivation this year, influenced by previous higher prices and promises of government support. However, he too faced losses, with his leaves bought at drastically lower rates than anticipated.
Financial Strain and Rising Debt
Valencia reported spending P70,000 to cultivate his farm, drawing from savings meant for other crops. He has struggled to pay his workers, stating that even his family's funds have been exhausted due to the poor tobacco sales.
‘I just told them to take it so we’ll have something to pay the workers.’
Arsenio Valencia
Masian is also feeling the pinch, having borrowed P20,000 at high interest. His future planting plans are uncertain as he contemplates further borrowing to cover existing debts.
Industry Challenges and Calls for Action
Edgar Estavillo, leader of the local farmers' alliance, noted that many growers are dissatisfied with current trading conditions, citing low prices and poor grading of their tobacco. He expressed concern over a potential halt in trading, which could worsen the financial plight of farmers.
The National Tobacco Administration has warned about possible overproduction and declining demand, highlighting the precarious situation for around 3,000 tobacco farmers in the region.
Estavillo has called on local authorities to intervene by purchasing tobacco directly at fair prices, enforcing price floors, and providing financial assistance to farmers.
Urgent Need for Support
The farmers' alliance is advocating for immediate government support, including P30,000 cash assistance funded by local tobacco excise taxes. With the local government receiving significant funds from tobacco taxes, the pressure is on officials to act quickly.
As the harvest season progresses, farmers like Masian and Valencia remain hopeful yet anxious about the future, facing a landscape marked by debt and uncertainty.