THE Agricultural Credit Policy Council’s (ACPC’s) budget for next year climbed by more than a fifth from 2017’s as the Department of Agriculture (DA) looks to boost efforts to providing loan access to farmers and fisherfolks.
“Kaya nga siya tumaas ng tumaas kasi isa nga sa priority ni secretary ay yung access to credit,” ACPC’s Information Division Chief Emmalyn J. Guinto told reporters on the sidelines of the Kilos Sambayanan forum held Friday in Quezon City.
The Production Loan Easy Access (PLEA) program, the flagship credit plan of Agriculture Secretary Emmanuel F. Piñol, got the lion’s share of funding, she added.
PLEA is designed to fast-track the distribution of financial needs of small farmers and fisherfolk more conveniently.
Non-collateralized loans for agri-fishery production will be provided under the PLEA with rural/cooperative banks, cooperatives and non-government organizations (NGOs) as lending conduits.
While several loaning programs intended for the agriculture and fisheries sectors are available, the DA’s ACPC does not have the authority to directly channel the loans to beneficiaries.
Instead, loans are coursed through the Land Bank of the Philippines and rural banks, which are mandated to observe the loaning guidelines set by the Bangko Sentral ng Pilipinas.
Mr. Piñol has slammed the “tedious” process and “stringent” requirements imposed by these banks before loans are disbursed.
He also lamented high interest rates and the “unrealistic” short loan maturity period has led to ballooning debt of farmers, discouraging the to access capital loans which are essential to boosting food productivity.
“Before kasi yung funds ng DA sa LandBank. As per AFMA (Agriculture and Fisheries Modernization Act of 1997), yung funds from the DA dadaan dapat sa government financial institutions. Pero ngayon through the GAA (General Appropriations Act), in-allow na dumaan sa mga cooperatives, cooperative banks. In-allow na rin sila maging lending conduit,” Ms. Guinto explained, noting that the new method is also allowed under the AFMA law. – Janina C. Lim
