Over P24.09 billion worth of loans has been disbursed to 408,834 small farmers and fisherfolk from 2019 to 2022 and more are expected to benefit from the passage of the Republic Act (RA) 11901 or The Agriculture, Fisheries, and Rural Development Financing Enhancement Act of 2022, the Department of Agriculture-Agricultural Credit Policy Council (DA-ACPC) reported.
Lapsing into law in July and repealing the RA 10000 or The Agri-Agra Reform Credit Act of 2009, the RA 11901 is expected to 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.
“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," the law states.
With this, banking institutions are required to design and offer financial products and services that suit their agricultural clients’ specific requirements. The Bangko Sentral ng Pilipinas is also tasked with efficiently implementing RA 11901 considering the needs of the rural community beneficiaries and how the law will aid in the recovery of the sector.
DA-ACPC loans for farmers, fishermen
The DA-ACPC currently offers credit programs with flexible loan terms as it recognizes 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 agency serves 439 unbanked municipalities or 90 percent of all unbanked municipalities in the country. From 2019 to 2022, the ACPC accomplished the loan disbursements through 16 credit programs and facilities.
The ACPC’s Expanded SURE Aid and Recovery Project (SURE Covid-19) was also able to release loans worth P3 billion to 103,533 small farmers and fisherfolk and 195 agri-based MSEs.
The Regular Agri-Negosyo Program, in addition, released P1 billion worth of financial assistance to 13,258 small farmers and fisherfolk and 144 agri-fishery-based MSEs. A total of 2,528 hog raisers benefited, as well, from loans totaling P252.4 million through the ANYO Swine Repopulation, Rehabilitation, and Recovery; while 28 women received loans worth P19.83 million through the ANYO Agri-Pinay.
Moreover, 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 through Entrepreneurship and Organizational Development or Project ASCEnD; and 470 young agri-entrepreneurs availed of loans amounting to P91.4 million through the Kapital Access for Young Agripreneurs.
For the Regular Survival and Recovery (SURE), 21,596 calamity-affected small farmers and fisherfolk benefitted from loans worth P417.97 million. On the other hand, the SURE Aid for the Taal Calamity released P50.18 million to 2,008 small farmers and fisherfolk, while the Expanded SURE Aid Palay provided about P2.5-billion worth of loans o 165,963 small rice farmers.
More than P300 million in total loans have also been provided to a cooperative to serve as working capital in the procurement of palay from farmers under the BuyANIhan Program; while P4.64 billion were released to 48,732 farmers for the Sikat Saka Program.
Meanwhile, through the Production Loan Easy Access, 30,794 small farmers and fisherfolk were served with P1.14-billion worth of loans.
Eleven cooperatives and associations, as well as three borrow-groups, also respectively received P48-million loan assistance from the Working Capital Loan Easy Access and P14.05 million worth of loans from the Agri-Fishery Machineries and Equipment Loan Easy Access.