The Department of Agriculture (DA) Agricultural Credit Policy Council (ACPC) reported a total disbursement of P24.09-billion worth of loans to 408,834 small farmer- and fisherfolk-borrowers in partnership with financial institutions as conduits for 2019–2022.
In the coming months, more agri-fishery stakeholders are expected to benefit from the Republic Act (RA) 11901 or The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022, which lapsed into law in July and repealed RA 10000 or The Agri-Agra Reform Credit Act of 2009.
The DA welcomes the new law as it will boost the productivity and competitiveness of the agriculture and fisheries sector by enhancing the accessibility of affordable financial services and programs, expanding its coverage, and giving more flexibility to financing institutions.
The law states, “Agriculture, fisheries and rural development financing, as used herein, shall consist of loans and investments to finance activities that shall enhance productivity and increase income of an agricultural and fisheries household, thereby promoting agricultural sector productivity and competitiveness, as well as sustainable development of rural communities.”
It requires banking institutions to design and offer financial products and services that suit their agricultural clients’ specific requirements.
The Bangko Sentral ng Pilipinas (BSP) also committed to efficiently implementing RA 11901 considering the needs of the rural community beneficiaries and how the law will aid in the recovery of the sector.
Recognizing the importance of providing affordable and accessible financial services to small farmers, fisherfolk, and micro- and small-scale enterprises (MSEs) in increasing the agriculture and fishery sector’s competitiveness, productivity, and sustainability, the DA-ACPC currently offers credit programs with flexible loan terms.
The agency serves 439 unbanked municipalities or 90 percent of all unbanked municipalities in the country.
For the 2019–2022, the ACPC accomplished the loan disbursements through its 16 credit programs and facilities.
The ACPC’s Expanded SURE Aid and Recovery Project (SURE Covid-19) released loans worth P3 billion to 103,533 small farmers and fisherfolk and 195 agri-based MSEs.
The Regular Agri-Negosyo (ANYO) Program also release P1-billion worth of financial assistance to 13,258 small farmers and fisherfolk and 144 agri-fishery based MSEs. For the ANYO Swine Repopulation, Rehabilitation, and Recovery (Swine R3), 2,528 hog raisers benefited from loans totaling P252.4 million, while for the ANYO Agri-Pinay, 28 women received loans worth P19.83 million.
In addition, 775 farmers and one organization availed of P121.5-million worth of loans through the ACPC’s Agricultural Value Chain Financing Support and Capacity Building thru Entrepreneurship and Organizational Development or Project ASCEnD.
Under the Kapital Access for Young Agripreneurs (KAYA) Program, 470 young agri-entrepreneurs availed of loans amounting to P91.4 milion.
For the Regular Survival and Recovery (SURE) Program, 21,596 calamity-affected small farmers and fisherfolk benefitted from loans worth P417.97 million. On the other hand, the SURE Aid Program for the Taal Calamity released P50.18 million to 2,008 small farmers and fisherfolk, while the Expanded SURE Aid Palay Program provided about P2.5-billion worth of loans o 165,963 small rice farmers.
Moreover, P300 million total loans have been provided to a cooperative to serve as working capital in the procurement of palay from farmers under the BuyANIhan Program, while for the Sikat Saka Program, the ACPC released P4.64 billion to 48,732 farmers.
Through the Production Loan Easy Access Program (PLEA), 30,794 small farmers and fisherfolk were served with P1.14-billion worth of loans.
Eleven cooperatives and associations and three borrow-groups also respectively received P48 million loan assistance from the Working Capital Loan Easy Access (CLEA) Program and P14.05-million loans from the Agri-Fishery Machineries and Equipment Loan Easy Access (AFME) Program. ### (Gumamela Celes Bejarin, DA-AFID)
