Tobacco Excise Tax Funds Modernization of Farming Equipment in Ilocos

Ilocos: Farm modernization is making life easier for local farmers here, as they continue to benefit from the municipality's share in tobacco excise tax in the form of new machinery and equipment. Nestor Asuncion, a farmer from Barangay San Guillermo, shared that his harvest from his one-hectare tobacco plantation improved significantly after receiving a diesel-powered water pump, which sustained crop growth even during the dry season.

According to Philippines News Agency, on June 23, a new batch of farm equipment, purchased through the municipality's tobacco excise tax share, benefited 50 registered farmers' organizations and cooperatives. Outgoing Mayor Angel Miguel Hernando stated in a media interview that the distribution of farm machinery and equipment to both tobacco and non-tobacco farmers happens annually, funded by the tobacco excise tax share.

The beneficiaries received various equipment, including hand tractors, multi-crop cultivators, corn shellers, pump and engine sets, brush cutters, power sprayers, electric motors, bio shredders, grain collectors and bagger machines, mobile solar-powered irrigation systems, forage choppers, pelletizers, vacuum sealers, knapsack sprayers, fertilizer applicators, irrigation hoses, incubators, and agricultural utility vehicles such as "kurong-kurong" and tricycles.

Last year, approximately PHP16 million worth of farm machinery and equipment were distributed to 49 farmers' groups, replenishing machinery received about five years ago. This was to mitigate the impact of climate change and help farmers amid high agriculture input costs. The PHP38 million tobacco excise tax share for 2022 also funded various infrastructure projects and market improvements in the town.

Consultations with farmers were conducted to determine the necessary agricultural equipment prior to purchase. The Sta. Monica 4-H Club received a shredding machine and grass cutter to support their organic farm practices, expressing that this support continues to enhance agricultural production and encourages youth to embrace modern and sustainable farming.

Under Republic Act 7171, tobacco-growing municipalities receive a share of tobacco excise tax collections based on the volume of leaves produced by their local tobacco growers.