The Hidden Cost of Middlemen

Why Filipino Farmers Struggle to Sell Directly

Agriculture has long been the backbone of the Philippine economy, with farming providing livelihoods for millions of Filipinos in rural areas. However, despite their crucial role in food production, farmers often struggle to earn fair compensation for their labor. One major obstacle contributing to their plight is their reliance on middlemen to sell their produce which often makes them vulnerable to exploitation.

Photo by Michael Varcas

With no effective government programs addressing this issue, farmers have little choice but to depend on traders and intermediaries. But why is it so difficult for farmers to sell directly to consumers?

The Barriers To Direct Selling

One key issue is land ownership. According to Nanay Zen, the national chairperson of Amihan Women, many farmers do not own the land they cultivate; they work as tenants on government- or privately-owned properties. This means they lack access to financial support and resources that could empower them to sell their harvests independently.

Photo of a carrot farmer on the roadside by Dave Leprozo

When farmers around Atok, Benguet were asked about their take on this topic, they said this struggle will directly affect those who don’t own their farming lands and, therefore, will present logistical and financial challenges. Starting off with transporting goods to urban markets is costly, and perishable crops risk spoiling before reaching consumers.

Renting stalls at public markets involves considerable investment, such as business registration fees and operational expenses. Setting up small stalls alongside roads to reduce these costs is not a legal alternative, as roads are designated for public use unless the farmers own the land. Without ownership, this would be considered illegal. Faced with these barriers, farmers are often forced to accept deals with middlemen who buy their produce at low prices and resell it for significant profits.

Produce can be bought up to 5 times before they reach public markets or consumers. By then, the price has been significantly inflated from its initial price in the trading post.

The Harsh Reality of Overproduction

According to Benguet-based journalist Dave Leprozo, farmers often plant crops based on what has previously sold well rather than following a crop rotation schedule. When other farmers follow the same pattern, it eventually leads to a surplus of a singular crop and a low supply of different produce. When supply exceeds market demand, middlemen exploit the situation by dictating the prices of their crops, sometimes offering as little as four pesos per kilo. In extreme cases, middlemen refuse to buy excess harvests, resulting in massive spoilage and financial loss for farmers.

Loans, Government Inaction, and Systemic Debt

While the Comprehensive Agrarian Reform Program (CARP) under Republic Act No. 9700 was designed to protect both landowners and tenant farmers, many, like Nanay Zen of Amihan Women, argue that it fails in practice with little to no government intervention in place until it is too late.

Photo of a farmer tending to his lands from DAR

Additionally, government loan programs often require land ownership as a prerequisite, excluding many farmers from financial aid. As a result, they turn to middlemen and private lenders who impose exorbitant interest rates—sometimes reaching 100%—or demand repayment in sacks of produce. During calamities, debts become unpayable, trapping farmers in cycles of poverty and exploitation by middlemen.

A Call for Change

To break this cycle, farmers need stronger collective action to demand policy reforms. Unfortunately, high-ranking officials from the Department of Agriculture rarely engage with them, leaving their concerns unheard. This raises a national question: Why are farm products expensive for consumers yet purchased so cheaply from farmers? The answer lies in the control wielded by middlemen. Without systemic reforms and direct support for farmers, the imbalance will persist, keeping both producers and consumers at a disadvantage.

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