Cooperatives seen key to boosting farmer financing

COOPERATIVES need to play a major role in improving farmers’ access to financing, according to the former head of the government’s economic planning agency.

At a Senate agriculture hearing, Cielito F. Habito, former director-general of the National Economic and Development Authority (NEDA, currently the Department of Economy, Planning and Development), noted that only a third of the country’s 5.56 million farm households were cooperative members.

In Thailand, the equivalent rate is 95%, with 4,000 cooperatives having 6.81 million members, he noted.

Mr. Habito added that cooperatives can be formed from the National Irrigation Administration’s irrigation associations, while also incorporating data from the Department of Agriculture’s Registry System for Basic Sectors in Agriculture.

Mr. Habito noted that the distribution of key equipment and technology like drying facilities should be coursed through cooperatives to ensure fair access among farmers.

“All energies on extension work must be focused on cooperatives,” he said. “That’s the very first step that our extension workers should try to do.” — Kyle Aristophere T. Atienza