DA expands agri-loan funds
Credit to Author: Eireene Jairee Gomez| Date: Mon, 09 Dec 2019 16:13:33 +0000
THE Department of Agriculture (DA) is set to offer more funds to farmers and fisherfolk nationwide that can help boost their productivity and increase their income.
This initiative came after the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) agreed to DA’s request to reduce the fees they charge the agency on processing and disbursing loans to farmer-clients under three financing programs, resulting in additional loan funds amounting to at least P34 million to assist rice farmers and fishermen in the country.
DA’s request dated October 23 was submitted to Finance Secretary Carlos Dominguez 3rd, in which the respective boards of DBP and LandBank agreed on the said request on November 5, reducing the rate for three DA financing programs from the previous 4.5
percent to 3.5 percent.
These programs include the P1-billion credit component of the Rice Competitiveness Enhancement Fund (RCEF); P1-billion credit program under the Sugarcane Industry Development Act (SIDA); and the P1.4-billion Agricultural Competitiveness Enhancement Fund (ACEF).
In a statement, Dar said these new policy complies with President Rodrigo Duterte’s directive to make credit affordable to small farmers and fishers in the countryside.
“On behalf of millions of farmers, fishers and agri-entrepreneurs, we cannot thank enough Secretary Dominguez for favorably endorsing our request to LBP and DBP — a concrete manifestation of his continued support to our efforts in modernizing and industrializing the country’s agriculture and fishery sector,” the Agriculture chief said.
“Likewise, we thank LBP (LandBank) and DBP President and Chief Executive Officer Cecilia Borromeo and Emmanuel Herbosa, respectively, for their strong and renewed partnership, as we are closer to each other than ever, in providing affordable and accessible credit particularly to small farmers, fishers, other rural folk, countryside entrepreneurs and local government units,” Dar added.
The three financing programs aim to make rice, sugarcane and other farmers, and fishers more productive, profitable, prosperous, and globally competitive.
Under the RCEF, the P1-billion credit fund is equally shared by the LandBank and DBP at P500 million each.
The SIDA and ACEF financing programs, meanwhile, are both managed by the LandBank on DA’s behalf.
“Now on our fifth month of service, we will continue to count on the support of all sectors to realize our new thinking for agriculture that envisions a food-secure Philippines with prosperous farmers and fisherfolk,” Dar said.
“The recent policy of LandBank and DBP would further provide accessible and affordable credit and pave the way to our farmers and fishers attain masaganang ani at mataas na kita (productivity and profitability),” he added.