The new Agrarian Emancipation Act waives all land related debt owed by farmers who obtained plots under a 1988 land reform program but were unable to pay.
With this move, the president hopes to improve food production in the country. The law will cost the government nearly 57.65 billion Pesos, or 1.04 billion Dollars, a large portion of which is being used to pay off the farmers’ debt, and a smaller part to compensate landowners whose properties were transferred to tenants.
Since taking office last year, Macros has faced shortages of farm commodities such as onions and sugar and had to import large amounts of rice a major food staple. This new law is an attempt to address these issues by revitalizing the agriculture sector. It is hoped that with the signing of this new law, more food will be produced which will help boost the country’s economic output and provide relief to its citizens.