Laoag City promotes tobacco farming with incentives for farmers

By Michelle Ducut

The Laoag City government is encouraging local farmers to increase the cultivation of Virginia tobacco by providing agricultural inputs and financial incentives. This initiative aims to expand the area planted with tobacco to 20 hectares this year.

Farmers received essential farm machinery and supplies, including water pumps, irrigation hoses, shredder machines, and hand tractors. Additionally, fuel subsidies were distributed to help farmers manage the impact of rising oil prices. The support comes from the city’s PHP23 million share of the tobacco excise tax, which is expected to grow with increased tobacco production.

Mayor Michael Keon emphasized the importance of agriculture to Laoag’s economy, noting that 50 of the city’s 80 villages are rural and reliant on farming. “Agriculture remains the bedrock of our economy,” he said during a media interview.

City Agriculturist Sheila Marie Opelac acknowledged the challenges of convincing farmers to grow tobacco, particularly due to labor-intensive post-harvest processes such as drying and selling. To address these concerns, the city government is providing comprehensive production support, including seeds, fertilizers, and barn facilities, to reduce farmers’ costs and incentivize participation.

Farmers in Laoag are expected to earn between PHP70,000 and PHP80,000 per hectare from tobacco cultivation, given that most inputs are provided at no cost. “We are thankful for the tractors and fertilizers. These are a great help for us farmers,” said Luciano Dela Cruz, a farmer from Barangay Casili.

Other local governments in Ilocos Norte are also bolstering tobacco production, supported by the Universal Leaf Philippines Inc. (ULPI), the country’s largest tobacco grower and processor, and the National Tobacco Administration (NTA). Pinili town, which leads in tobacco excise tax revenue in the province, received PHP800 million this year under Republic Act 7171. This law allocates 15 percent of national tobacco excise tax collections to local governments producing Virginia tobacco.

The Laoag City government continues to advocate for tobacco farming as a viable alternative crop, ensuring that farmers receive the resources needed to succeed while contributing to local economic growth.

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