The reestablishment of the Philippine Commonwealth government was in 1946. The natives of the town elected Felipe Tiotio as the mayor of the town.

The BFI and German experts have found that the most productive way of planting potato is the single row planting method. With this method yield can go up to as much as 50 tons per hectares. This is the newest technique in planting and propagating potatoes.

The experts recommend that farmers should plant un-cut potato tubers for this will minimize transmission of a viral disease and facilitate the production of uniform sized tubers come harvest time which comes four months later. This method of planting will also make easier for farmers to cultivate and weed the fields because the seeds are planted 30 centimeters apart.

The major cropping which are now grown in the area are potatoes, cabbages, carrots and sweet peas, In Paoay alone there are about 70 farmers, some of which are harvesting 3 times while others even four times a year.

The channel of distribution of crop production is mostly in Baguio by the retailers, who owned stores, at a reasonable price but some retailers who buy double their gain. Many of the buyers come from Manila and other provinces like Pangasinan, Pampanga and others. They buy vegetables specially those coming from the Mountain trails.

The major cost of growing vegetables depends upon the extent of the site of operation. One hectare of potatoes ha an average input cost of P18, 000.00 to P24, 000.00. this amount is divided into the purchase of the following items:

1 truck of chicken manure costing P2,100.00; 15 bags of fertilizers costing P82.00 each; and 1 cartoon of chemicals, the “mazate”, P52.00. One box of chemicals last only for a month. The laborers are paid P150.00 monthly.

The production output of one hectare of potatoes is 15 tons. The salable would be 12 tons. For cabbages, one hectare produces 10,000 kilos, and a hectare planted of carrots yields 120 bags.

Large scale vegetable farmers are those who own 4-6 hectares of land. The following are large scale farmers:

1. Edward Celo

2. Mayor John Haight

3. Edward Puy-as

4. Bo. Capt. Colantes Basbas

5. Prudencio Bay-an

6. Noel Sagpatan

7. Andrew Salawad

8. Fausto Depayso

9. Tero Balao

Middle scales are farms which are 2 or 3 hectares in diameter.

The credit facilitates where farmers can loan are the Rural Bank, Development Bank and Phil. National Bank. These bans give out loans when the farmers have completed the ff. requirements:

a. Copy of certification title

b. Copy of tax declaration

c. Copy of deed of sale, deed of transfer, deed of donations and supporting documents.

d. Sketch of the lot.

e. Sketch of non-delinquency or receipt covering tax payments for the current year.

f. Affidavit of adjoining owners of the land stating among other things, that the owners had continuously been in possession of the land for 5 years or more. (This is true to tax declarations only).

g. Affidavit of non-tenancy (non-residential).

h. Certificate of Ministry of Agrarian Reform (for properties classified as non-residential).

i. Individual income tax returns.

These are the standardized requirements to any farmer wanting to obtain loan from the bank. If the farmer applied for a loan of about P50, 000.00, the bank will designate an appraiser to go and see the kind and the assessed value of the property. This is done in order to assure the bank that the loan the farmer is borrowing is legitimate or not. If the land only values at P20, 000.00, then the bank will also give the corresponding amount. Loans are payable in one year with a 12% interest/P100.00.

In Atok there was some organization which was established to help the farmers to get their finance like the Credit Union which was founded by Father Bernard Ged-eng and Pastor Dulnuan in January 1970. The farmers loan an average of P2, 000.00 to P3, 000.00 payable within six months. The only needed requirements were collaterals. But after three years operation, it went bankrupt due to some farmers who availed of the facilities but who did not pay their loans. Operation was turned over to the Sayangan Cooperation store which is managed by the same person but under different condition. It also extended credit facilities to the farmers but only to those who trace a share in the cooperative store.

Recently in October 1979, the Rural Bank of Atok was established managed by Mr. Carlos Buasen. This rural bank was organized by Mr. Orlando Smith, Johnny Uy and Mr. Jovito Antonio who have significant capital shares in the Bank. This bank also gives loans to farmers.

Major Problems of Farmers in Paoay Today and the Proposed Solutions

1. Marketing

a. There must be the establishment of marketing facilities and the installation of storage facilities;

b. The farmers must have to determine the area and volume of vegetable production. Hence, the demand and supply of vegetables production. Hence, the demand and supply of vegetables must have to be met.

c. The provisions of market information to farmers and traders. In Atok they have the MAC in which they have a two way radio to disseminate the prevailing prices of vegetables.

d. Implementation of specific marketing strategies. Like in the establishment of marketing contracts between producers and traders; Identification of institutional outlets; Diversification of market outlets; Improvements of marketing service and facilities.

2. Financing

a. Loans granted have not paid and farmers borrowers penalized by banks due to non-payment because of calamities like typhoon, frosts, hailstorm, monsoon rains and drought and extremely low prices due to inefficient marketing system and un-programmed planting.

With regard to past due to loan, President Marcos has given the restructuring program to loan farmers to pay their debt in the bank without any punishment or interest of the money borrowed.

b. Non-bankability of most farm areas.

c. Banks require too many paper requirements.

d. Rural and commercial bank loans given are not enough to buy required inputs.

e. Vegetable farming, being a high risk venture, the term of loans given by bank is considered short.

f. Misuse of loans funds and untimely release of loan proceeds.

g. Age old dependence of farmers on traders as source of financing.

h. Many farmers are heavily indebted to banks, traders as their source of credit. This is one of the biggest problems of some farmers are indebted to traders. Because of this they could not look for other buyers unless they have totally paid their debts.

The farmers get indebted because some traders advance the money that they need to buy the fertilizer, chemicals and other inputs. In return, these farmers must use their products to pay the traders and hence, instead of getting more profit they don’t.

Many farmers get into this situation because they still have unpaid loans from banks such as PNB, DPI and RB. They could no longer borrow money from these banks and had to borrow from traders and users.

Some traders only pay half of the amount due to farmers. When they buy the product, the other Hals is retained by them to ensure them that the farmers will supply them regularly with vegetables.

3. Lack of seeds to plant specially potatoes.

In Atok there is an ongoing program in which a farmer can borrow from the Bureau of Plant Industry 500 kilos of potato – seeds for planting on a hectare of land. After harvest, the farmers give back the 500 kilos that they borrowed and the rest will be sold to the BPI for P3.00 Per kilo.