Agriculture Secretary William Dar announces the installation of another credit facility under the Department Agriculture (DA) to elevate the level of farming and productivity of Filipino Farmers.
BuyANIhan, to be administered by the Agricultural Credit and Policy Council (ACPC) and the Development Bank of the Philippines, is the newest addition to the funding assistance extended by the government to rice farmers.
The credit will be used as working capital of cooperatives to intensify palay buying directly from farmers at competitive price. Only eligible cooperatives endorsed by DA through the regional field offices may avail of the credit line based on the maximum inventory level of their warehouse capacity.
“I am happy to announce that Nueva Segovia Consortium of Cooperatives is the first ever recipient of the loan which has an interest rate of only 2.5 percent per annum, payable in three years,” Dar said during launching of various DA collaborative projects and farmers’ forum held on September 26, 2019 in Caoayan, Ilocos Sur.
Dar stressed that the loan, which amounts to P200 million, must be used in buying palay from farmers and members of the cooperative in Ilocos Sur and nearby provinces.
As such, the agri chief urged the farmers to come together and form organized associations and showcase collective action in grassroot level.
“Sumama po kayo sa isang asosasyon para mas may leverage kayo,” he stressed.
Highlighting the benefits of cooperativism, Dar encouraged the Ilocandia farmers “not to do things alone.”
“Mas aangat ang agrikultura at aasenso ang mga magsasaka pag magsasama-sama. This is the way forward. Once you are strong, you can partner with businesses to have economies of scale,” he explained.
Aside from BuyANIhan, the DA has launched the SURE Aid loan program under ACPC in August, which extends a one-time P15,000 financial aid to rice farmers with one-hectare or less farm area. The zero interest credit is payable in eight years.
DA is also extending financial support to provincial governments that have adhered to the call of the Secretary to support the local rice farmers. The fund may be used for buying palay and setting up a value-chain system in the provinces to assist farmers in production, postharvest, processing, and marketing of their produce. ### (Adora Rodriguez, AFID)
