Exploring the Lived Experiences of Filipino Smallholder Farmers under Contract Rice Farming within a Neoliberal Context
DOI:
https://doi.org/10.32871/rmrj2513.01.07Keywords:
Filipino smallholder rice farmers, contract farming, neoliberalism, transcendental phenomenology, Lumban LagunaAbstract
Background: Contract farming is expanding in the Philippines, primarily driven by adopting neoliberal policies. While this model benefits farmers, it also raises significant concerns. This study examines the implications of contract farming in the rice farming sector, focusing on smallholder rice farmers' experiences, challenges, and coping strategies.
Methods: Through in-depth interviews and an ethnographic approach including observations of five farmers, the study reveals their dependence on contract farming due to lack of initial capital and the attractive market price of hybrid rice.
Results: Three key structural themes emerged: (1) High Hopes – the motivations and perceived benefits of contract farming; (2) Covert Exploitation – the hidden struggles including high input costs, delayed payments, and lack of support during disasters; and (3) Resistance and Adjustments – the farmers' adaptive strategies to cope with these challenges.
Conclusion: Farmers often enter contract arrangements due to limited capital and the promise of higher returns from hybrid rice that is grown mainly for export. This creates a troubling paradox: the country exports rice while facing food insecurity. The study calls for fair and sustainable policies to empower and support smallholder rice farmers, promoting their autonomy and reducing vulnerability.
References
Abadilla, D. D. (2016, October 14). Philippine hybrid rice producer hopes to capture profitable market in China. Philippine Daily Inquirer. https://business.inquirer.net/216610/philippine-hybrid-rice-producer-hopes-to-capture-profitable-market-in-china
Adams, T., Gerber, J. D., Amacker, M., & Haller, T. (2018). Who gains from contract farming? Dependencies, power relations, and institutional change. The Journal of Peasant Studies, 46(7), 1435 - 1457. https://doi.org/10.1080/03066150.2018.1534100
Alvarez, S. C., Jacoba, F., Antonio, O. C. C., Gabriel, A. G., & Herezo, M. C. (2022). Food sufficiency, tariffication policy, and business strategy: A new business model for the rice milling industry in the Philippines. MEC-J (Management and Economics Journal), 6(2), 109–128. https://doi.org/10.18860/mec-j.v6i2.17020
Arouna, A., Michler, J. D., & Lokossou, J. C. (2021). Contract farming and rural transformation: Evidence from a field experiment in Benin. Journal of Development Economics, 151, 102626. https://doi.org/10.1016/j.jdeveco.2021.102626
Bellemare, M. F., & Bloem, J. R. (2018). Does contract farming improve welfare? A review. World Development, 112, 259-271. https://doi.org/10.1016/j.worlddev.2018.08.018
Bellemare, M. F., & Lim, S. (2018). In all shapes and colors: Varieties of contract farming. Applied Economic Perspectives and Policy, 40(3), 379-401. https://doi.org/10.1093/aepp/ppy019
Borras, S. M., Jr. (2007). ‘Free market’, export-led development strategy and its impact on rural livelihoods, poverty and inequality: The Philippine experience seen from a Southeast Asian perspective, Review of International Political Economy, 14(1), 143-175, https://doi.org/10.1080/09692290601081426
Bravo, M. R. (2017). Urbanization in the Philippines and its influence on agriculture. Science for Sustainable Societies, 97-110. https://doi.org/10.1007/978-4-431-56445-4_9
Briones, R. M. (2017). The fertilizer industry and Philippine agriculture: Policies, problems, and priorities. Philippine Journal of Development, 43(1), 29-49. https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidspjd2016-1b.pdf
Clapp, J., & Moseley, W. G. (2020). This food crisis is different: COVID-19 and the fragility of the neoliberal food security order. The Journal of Peasant Studies, 47(7), 1393-1417. https://doi.org/10.1080/03066150.2020.1823838
Creswell, J. W., & Poth, C. N. (2016). Qualitative inquiry and research design: Choosing among five approaches. Sage publications.
Davis, O. (2020). Neoliberal capitalism's bureaucracies of 'governance'. New Formations, 100(100-101), 60-76. https://doi.org/10.3898/newf:100-101.05.2020
De la Cruz, J., & Jansen, K. (2017). Panama disease and contract farming in the Philippines: Towards a political ecology of risk. Journal of Agrarian Change, 18(2), 249-266. https://doi.org/10.1111/joac.12226
Digal, L. N. (2007). Agricultural contracts in Mindanao: The case of banana and pineapple. PIDS Discussion Paper Series 2007-24. https://www.researchgate.net/publication/24111033_Agricultural_Contracts_in_Mindanao_the_Case_of_Banana_and_Pineapple
Digal, L. N., Placencia, S. G. P. (2019). Factors affecting the adoption of hybrid and high-yielding rice varieties in the Philippines. Agricultural Research, 9(1), 1–8. https://doi.org/10.1007/s40003-019-00403-z
Dupa, H. J. P. (2022). Reasons of engagement and impact of contract farming to smallhold farmers: A literature review. International Journal of Advanced Research in Economics and Finance, 4(1), 56-60. https://doi.org/10.55057/ijaref.2022.4.1.6
Food and Agriculture Organization of the United Nations (n.d.). Smallholders and family farmers (Factsheet). https://openknowledge.fao.org/handle/20.500.14283/ar588e
Gozum, I. (2023, September 14) Philippines overtakes China as top rice importer – USDA report. Rappler. https://www.rappler.com/business/philippines-overtakes-china-top-rice-importer-usda/
Hambloch, C. (2021). Contract farming and everyday acts of resistance: Oil palm contract farmers in the Philippines. Journal of Agrarian Change, 22(1), 58-76. https://onlinelibrary.wiley.com/doi/epdf/10.1111/joac.12462
Harvey, D. (2007). A brief history of neoliberalism. Oxford University Press, USA. https://my.vanderbilt.edu/anth232/files/2014/04/ABriefHistoryNeoliberalism-1.pdf
Heywood, A. (2013). Politics. (4th Revised ed.). Red Globe Press.
Kanburi Bidzakin, J., Fialor, S. C., Awunyo-Vitor, D., & Yahaya, I. (2019). Impact of contract farming on rice farm performance: Endogenous switching regression. Cogent Economics & Finance, 7(1), 1618229. https://doi.org/10.1080/23322039.2019.1618229
Little, P. D., & Watts, M. (Eds.). (1994). Living under contract: Contract farming and agrarian transformation in Sub-Saharan Africa. Univ of Wisconsin Press. https://uwpress.wisc.edu/books/0331.htm
Martiniello, G., & Azambuja, R. (2019). Contracting sugarcane farming in global agricultural value chains in Eastern Africa: Debates, dynamics, and struggles. Agrarian South: Journal of Political Economy, 8(1-2), 208-231. https://doi.org/10.1177/2277976019851955
Martiniello, G. (2020). Bitter sugarification: sugar frontier and contract farming in Uganda. Globalizations, 18(3), 355-371. https://doi.org/10.1080/14747731.2020.1794564
Mazwi, F., Mudimu, G., & Helliker, K. (2022). Capital penetration and the subordination of the peasantry under neoliberalism in Africa. In Capital penetration and the peasantry in Southern and Eastern Africa: Neoliberal restructuring (pp. 3-24). Cham: Springer International Publishing.
Meemken, E. M., & Bellemare, M. F. (2020). Smallholder farmers and contract farming in developing countries. Proceedings of the National Academy of Sciences, 117(1), 259-264. https://doi.org/10.1073/pnas.1909501116
Michler, J. D., & Shively, G. E. (2014). Land tenure, tenure security and farm efficiency: Panel evidence from the Philippines. Journal of Agricultural Economics, 66(1), 155-169. https://doi.org/10.1111/1477-9552.12082
Moustakas, C. (1994). Phenomenological research methods. 1st ed. Thousand Oaks: SAGE Publications, Inc. https://doi.org/10.4135/9781412995658
Nhân, T. Q., & Yutaka, T. (2019). Contract farming and profitability: Evidence from rice crop in the Central Mekong Delta, Vietnam. Agris on-line Papers in Economics and Informatics, 11(1), 83-91. https://doi.org/10.7160/AOL.2019.110109
Niño, H. P., & Oya, C. (2021). Contract farming. In Handbook of critical agrarian studies (pp. 416-426). Edward Elgar Publishing. https://doi.org/10.4337/9781788972468.00057
Oakeshott, J. (2016). Sustainable smallholder farming clusters in the Philippines. Acta Horticulturae, 1128, 339-346. https://doi.org/10.17660/ActaHortic.2016.1128.52
Ortiz, A. M. D., & Torres, J. N. V. (2020). Assessing the impacts of agriculture and its trade on Philippine biodiversity. Land, 9(11), 403. https://doi.org/10.3390/land9110403
Oya, C. (2011). Contract farming in Sub‐Saharan Africa: A survey of approaches, debates and issues. Journal of Agrarian Change, 12(1), 1-33. https://doi.org/10.1111/j.1471-0366.2011.00337.x
Palis, F. (2020). Aging Filipino rice farmers and their aspirations for their children. Philippine Journal of Science, 149(2), 351-361. https://philjournalsci.dost.gov.ph/images/pdf/pjs_pdf/vol149no2/aging_filipino_rice_farmers_.pdf
Pilarska, J. (2021). The constructivist paradigm and phenomenological qualitative research design. Research Paradigm Considerations for Emerging Scholars, 64-83. http://dx.doi.org/10.21832/9781845418281-008
Ramos, E. (2012). Fair trade and the role of small farmers and ARBs on food sovereignty in the Philippines. Kasarinlan Philippine Journal of Third World Studies, 26(1-2), 414-421. https://www.journals.upd.edu.ph/index.php/kasarinlan/article/view/3510/3248
San Juan, D. M. (2020). Reviewing rice tariffication in the time of COVID-19: Rationale and road to rice self-sufficiency in the Philippines. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.3582210
Tomas, R. (2020). The limits of neoliberal globalization. Montenegrin Journal of Economics, 16(4), 157-170. https://repec.mnje.com/mje/2020/v16-n04/mje_2020_v16-n04-a23.pdf
Ton, G., Vellema, W., Desiere, S., Weituschat, S., & D’haese, M. (2018). Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?. World Development, 104, 46-64. https://doi.org/10.1016/J.WORLDDEV.2017.11.015
Van der Borght, K., & Gómez, J. F. M. (2024). Public and common interest in sustainable contract farming. World Development Perspectives, 33, 100564. https://doi.org/10.1016/j.wdp.2024.100564
Vicol, M., Fold, N., Hambloch, C., Narayanan, S., & Pérez Niño, H. (2021). Twenty‐five years of Living Under Contract: Contract farming and agrarian change in the developing world. Journal of Agrarian Change, 22(1), 3-18. https://doi.org/10.1111/joac.12471
Yadav, R. K. (2024). Emergence of contract farming in India: An overview. International Journal for Multidisciplinary Research. 6(3). https://www.ijfmr.com/papers/2024/3/20014.pdf
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 University of San Jose-Recoletos

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright of the Journal belongs to the University of San Jose-Recoletos