Rice farmers were given more access to funding assistance when the Department of Agriculture (DA) over the weekend commenced formal implementation of a P200 million credit facility dubbed BuyANIhan.

To be administered by the Agricultural Credit and Policy Council (ACPC) and the Development Bank of the Philippines (DBP), BuyANIhan is the newest addition to the funding assistance extended to rice farmers who might need extra funds to improve productivity.

According to Agriculture Secretary William Dar, BuyANIhan granted its first loan to a cooperative, the Nueva Segovia Consortium of Cooperatives. He said the loan has an interest rate of only 2.5 percent per annum, payable in three years.

The credit will be used as working capital of cooperatives to intensify palay buying directly from farmers at a competitive price. Only eligible cooperatives endorsed by DA through the regional field offices may avail of the credit line based on the maximum inventory level of their warehouse capacity.

Dar stressed that the loan must be used to purchase palay directly from farmers and members of the cooperative in Ilocos Sur and nearby provinces.

With this in place, Dar encouraged farmers to band together and form associations for collective action.

“This is the way forward. Once you are strong, you can partner with businesses to have economies of scale,” he explained.

It was just last month when the DA launched the SURE Aid loan program under ACPC, which extends a one-time P15,000 financial aid to rice farmers working on one-hectare or less farm areas. The zero-interest credit is payable in eight years.

DA is also extending financial support to provincial governments that have adhered to the call of the secretary to support local rice farmers. The fund may be used for buying palay and setting up a value-chain system in the provinces to assist farmers in production, postharvest, processing, and marketing their produce.