A smallholder farmer from Sta. Maria, Laguna has written us complaining about a company that has contracted him to grow a special rice variety. He feels very frustrated because the fellow who has contracted him is very slow in paying for his harvest. Aside from being late in paying, the poor fellow is sometimes paid with postdated check that he has to encash in the capital town. Going to the capital town means additional expense for him. Now, the farmer does not want to be a contract grower anymore.
Of course we understand the side of the company making the contract. There are times when companies are confronted with financial constraints and they could not make immediate payment for their obligation.Sometimes though, the company may intentionally delay payments although they have the cash.
We also appreciate the predicament of the farmer. He needs the cash to survive. If he has to borrow money for the needs of his family, that will mean plunging him deeper into costly indebtedness. That will be perpetuating his poverty.