Many corn planters in Northern Luzon are beginning to shift back to tobacco farming, especially after the price of corn in the world market has dropped to record lows.

“Prices of locally grown yellow corn have plunged, and we have no recourse but to plant tobacco again as its prices are more stable,” said Victor Vallevor of Barangay Laping, San Juan, Ilocos Sur. “If prices of maize continue to go down, our families will starve.”
The price of corn quadrupled since 2000 when ethanol became a source of biofuel. Because of this, several tobacco farmers switched to corn farming hoping to cash in on the crop. But a bumper harvest in the United States coupled with the softening prices of crude oil in the world market are pushing its prices down.
A price watch by the bureau of agricultural statistics shows that farm gate prices of corn are only averaging PHP 11.28 (EUR 0.17) per kilo. On the other hand, average prices of tobacco have remained above PHP 40 a kilo despite the economic crunch. Farmers are beginning to restore their curing barns in time for the tobacco harvest next season.
Philip Morris Philippines Manufacturing (PMPMI) managing director Chris Nelson said the farmers’ decision to return to tobacco growing reinforces confidence that the future of the tobacco industry in the country is bright.
Nelson said PMPMI plans to help in the expansion of tobacco farm lands to help tobacco farmers meet the demands of local tobacco by PMPMI and other cigarette manufacturers.
Farmers said they would no longer revert to corn farming because its prices remain unstable in the world market. (sra)