DA allots P1B to lending program for farmers
Rural banks urged to roll out innovative financing schemes
By Ronnel W. Domingo
9:32 pm | Thursday, June 13th, 2013
The Department of Agriculture has set aside P1 billion for a lending
program to help farmers, fishers and rural entrepreneurs and has also
called on rural banks to provide rural folk greater access to funds.
In a statement, Agriculture Secretary Proceso J. Alcala urged members of
the Rural Banks Association of the Philippines (RBAP) to implement
innovative financing programs and to partner with the DA in the
implementation of the Agro-Industry Modernization Credit and Financing
Program (AMCFP).
"We have to ensure that no one will be left behind and that all
Filipinos, especially those in the countryside, can enjoy the benefits
of economic growth," Alcala said.
AMCFP funding this year is less than the P1.12 billion allocated in
2012, but is more than twice the P446 million made available in 2011.
According to the Agricultural Credit Policy Council (ACPC), the DA aims
to enable 85 percent of some 8 million farmers, fishers and rural
business owners who need credit to have access to funds.
ACPC director Jovita Corpuz, said in an interview that only 52 percent
of these potential borrowers were being served as of 2008.
"Of course, not all of them may turn out to be qualified for loans, but
we also have complementing initiatives such as innovative financing
schemes as well as capacity-building activities," Corpuz said.
ACPC data show that the amount of lending related to agricultural
production ballooned five times from P41 billion in 1990 to P231.8
billion in 2011.
Alcala said collaboration between the DA and rural banks must be
strengthened, particularly since 118 members of the RBAP have been
actively participating in the Agricultural Guarantee Fund Pool.
He explained that the AGFP was created in 2008 to encourage banks to
lend to the agriculture sector.
It provides guarantee coverage to unsecured loans extended by lending
entities—such as rural and cooperative banks—to small farmers engaged in
rice, corn and food production projects.
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