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President Gloria Macapagal-Arroyo has issued an
executive order concurring with the recommendation of
the Department of Agrarian Reform (DAR) to revert 144
hectares in Sumilao, Bukidnon, from agro-industrial to
agricultural, on petition by a group of Sumilao farmers.
The decision imperils the vision of San Miguel Foods
Inc. (SMFI) which has spent P2.4 billion to develop the
land into a modern, high-tech agro-industrial estate.
The
Federation of Philippine Industries (FPI) has earlier
aired its misgivings about the wisdom of reconverting
into farms the 144-hectare land for which SMFI had spent
millions to transform into a productive agro-industrial
estate. We warned this might send a wrong message to
would-be investors in the rural areas. But the
President has made a decision and FPI respects that
decision.
But by
the same degree, FPI would respect and, beyond that,
even encourage any course of action SMFI may decide to
pursue to protect its rights, to fulfill its vision.
After all, to make a stand, even one that collides with
popular sentiments, is a guaranteed right in a
democracy, so long as its guidepost is not emotion but
the rule of law.
While we
respect the judgment call of the President, we cannot
help but feel some regrets that the vision of SMFI to
bring the blessings of modern technology and massive
investments to the people of Sumilao, and for that
matter, to the whole province of Bukidnon, might no
longer happen. What kind of blessings, for example?
Taxes,
the operation of SMFI would shoot the town’s tax revenue
through the roof, from the present P3.3 million to P98
million;
Jobs,
the SMFI project would generate employment of 2,400
workers, minimum, excluding the 400 personnel needed to
man the project’s facilities;
Financing, the project would enable farmers to access
financing for farm inputs that would translate to
increased farm productivity and higher pricing;
Income,
the project would put more money in farmers’ pockets,
coming from the estimated SMFI’s annual payroll of P50
million, and from higher corn prices which competition
between SMFI and traditional buyers will induce.
But
perhaps, all is not lost. At the end of the day, a
revisit of the presidential decision, plus a round of
non-confrontational talks between SMFI and the farmers
that FPI sincerely urges, may produce a compromise
beneficial to all. Partnership between farmers and SMFI
is a natural and formidable combination, the farmers
producing the corn and SMFI processing their produce.
And if
the farmers who were already given 65 hectares adjacent
to the 144 hectares are really all het up about owning
land and want some more, there are at least 46,000
hectares of idle government land in Sumilao. Why not
open this huge tract to them and to others who want to
farm? The government can use the money it would pay
SMFI if the 144 hectares go to CARP, to build
infrastructures, irrigation system and other farm
facilities in the new farm settlement.
FPI has
always maintained that compromise is not just an option;
it’s a necessity in a modern society struggling to make
all its systems work in harmony to energize the
economy.
Jesus L. Arranza is president of the Federation of
Philippine Industries Inc. |