FEF Applauds House Bill to Boost Rice, Corn Investments

The Foundation for Economic Freedom (FEF) welcomed the filing of House Bill No. 10012 on July 6, 2026, which seeks to further liberalize the rice and corn industry by removing restrictions on foreign participation and encouraging greater investment across the agricultural value chain.

Introduced by Representatives Paolo Henry M. Marcoleta and Gloria Macapagal Arroyo, complementing HB 2156 earlier filed by Representatives Rufus B. Rodriguez and Maximo B. Rodriguez Jr., the proposed Increasing Investments in the Rice and Corn Industry of 2025 seeks to repeal Republic Act No. 3018, or the Rice and Corn Nationalization Law, and amend Presidential Decree No. 194 to restore its original liberalization vision. The measure removes outdated divestment requirements, broadens the definition of the rice and corn industry to cover activities throughout the value chain, and allows foreign individuals and foreign-owned entities to participate in the industry, except in retailing, to encourage greater productive investment in Philippine agriculture.

The bill’s removal of artificial restrictions on productive investment can help address the longstanding capital and infrastructure gaps in Philippine agriculture and strengthen the country’s rice and corn value chains. According to the bill, attracting and facilitating productive investments in the rice and corn industry can help “develop the rice and corn value chain, reduce consumer prices, generate employment, stabilize the supply of staple food commodities, and support technology transfer.”

The measure also aligns with FEF’s advocacy of opening these activities to greater investment. Increased foreign participation can supplement domestic investment by bringing in valuable capital, technology, and expertise to modernize the rice and corn industries. Investments in improved seeds, modern production methods, post-harvest facilities, storage, milling, processing, and transport infrastructure can help address long-standing constraints on agricultural productivity. In turn, strengthening these areas can reduce post-harvest losses, improve supply chain efficiency, and ensure a more reliable movement of agricultural products from farmers to consumers. 

These improvements can lead to greater agricultural productivity, bring higher income for Filipino farmers, and expand the production of raw materials for value-added products, including livestock feeds, cereals, as well as higher value products such as rice bran oil and corn syrup. Additionally, expanding markets for agricultural products and strengthening demand across the value chain will create opportunities for farmers while supporting investment and employment in rural areas. The proposed reform can also help stabilize the supply of staple food commodities by supporting investments in production, storage, processing, and logistics. 

FEF believes that addressing the interrelated problems of high food prices and low agricultural productivity—by expanding investment and competition in agriculture—can help improve agricultural productivity, strengthen food supply chains, and make nutritious food more affordable for Filipino families. 

FEF urges Congress to give the measure due consideration as part of broader efforts to build a more productive, competitive, and resilient Philippine agricultural sector.

The bill can be accessed here.