The Department of Agriculture (DA) said it will partner with private firms to build grain silos to ensure the stability of the prices of rice and corn in the domestic market.

Agriculture Secretary Emmanuel F. Piñol said he is also keen on implementing a scheme that is similar to time-deposit accounts being offered by Philippine banks to increase famers’ income.

“I will now make it my advocacy to invite rich friends to invest in grain silos to be established in key production areas not only of corn, but also of rice,” Piñol said on his Facebook page.

The privately owned silos would serve as a depository where farmers can store their produce while waiting for prices to peak, Piñol said. Farmers would still get a partial payment based on the current market price of rice or corn.

Farmers can go back to silo management and sell their produce when prices peak. They will then earn the difference between the partial payment and the final purchase price.

“Say the price of corn at peak harvest would drop from P17 per kilogram to only P11,” Piñol said. “Under this scheme, the farmer could deposit his produce in the silos and get P11 per kilo, but he could come back later when the price would go up to say P17, and get the difference between P11 and P17 per kilo.”

Piñol said a farmer who produces 4 metric tons of corn can earn an additional P20,000 even if he pays P1-per-kg storage fee for a period of not more than six months.

“This system would also ensure a steady supply of corn for the end-users, especially feed millers, who also have to suffer from the fluctuating price of corn every year,” Piñol said, adding that he came up with the scheme after corn farmers in North Cotabato complained about the drop in prices in the region.

According to Piñol, the price of corn in North Cotobato slid to P11 per kg of corn on Tuesday, from P17 per kg. He said traders have stopped buying corn as their warehouses can no longer accommodate the additional volume.

“A poor farmer literally had to beg for the trader’s kindness to buy his product even at a low price and simply because he could not keep his corn in his farmhouse for over one month,” Piñol said.

He also said he has sought the help of his friends from the private sector to prevent farmers from incurring more losses.

“A huge corporation is willing to absorb at thousands of metric tons a month starting immediately at a price which is definitely better than the cruel P11 per kg being offered by the local traders,” he said.

“Starting next week, the buying operations for corn with 14- percent moisture content will start in several buying stations all over the province. This effort is expected to stabilize the price of corn not only in North Cotabato, but also in Central Mindanao,” Piñol added.