President Ferdinand Marcos Jr. has launched a program in Guimba, Nueva Ecija, providing rice farmers with low-cost credit, financial assistance, and a ready market for their crops.

For the dry cropping season (2024-2025), the Agri-Puhunan at Pantawid (APP) program, under the Department of Agriculture (DA), will offer credit facilities to rice farmers and cooperatives overseeing 50,000 hectares of land.

The initial beneficiaries would be those established under the National Irrigation Administration (NIA) in the Upper Pampanga River Integrated Irrigation Systems, Magat River Integrated Irrigation System, and NIA systems serving the Cordillera Administrative Region.

In addition, Marcos announced that the DA and the Development Bank of the Philippines (DBP) have secured an initial P3 billion in funding for low-interest loans and subsistence allowances for farmers.

“We will provide our farmers with the financial resources needed to pursue their vocation,” Agriculture Secretary Francisco Tiu Laurel said.

“This initiative will extend credit to farmers for seeds and other inputs, crop insurance, subsistence allowance until harvest, and ensure a ready market with the National Food Authority and the Department of Social Welfare and Development for a predetermined volume and income,” he added.

In a statement, the DA said it had signed agreements with Planters Products Inc. and the DBP for the program’s implementation. The agriculture chief expressed hope that it would become a self-sustaining initiative, maximizing the farming sector’s potential.

“We are hopeful that this initiative will be a game-changer for the sector and those who depend on farming,” Laurel added.

Under the APP program, enhanced credit facilities will be offered to farmers who already hold intervention monitoring cards. These cards are used to purchase seeds, fertilizers, pesticides, and ameliorants and pay for services through PPI-accredited merchants.

“For example, a beneficiary of the APP program who plants rice on one hectare of land will receive a net amount of P58,000, covering production costs—inputs, land preparation, and hauling. This includes a subsistence allowance of P32,000, which will be given in monthly installments of P8,000 for four months. The beneficiary farmer will also be covered by crop insurance,” the DA said.

“The APP proceeds will complement the government subsidies for inputs, services, and insurance, amounting to approximately P14,500 per hectare. Additionally, the credit conduit may execute a forward contract agreement,” it added.

According to the DA’s initial estimation, a farmer may earn a net income of P65,000 per cropping period, based on five metric tons per hectare, inclusive of the P32,000 subsistence allowance.