DA deploys additional P1B for farmers

Affordable credit will help simplify the process for our small farmers

The farm sector is budgeted a so-called survival and recovery fund worth P2.5 billion under which qualified farmers are extended a one-time loan of P15,000 at zero interest for eight years.

The Department of Agriculture-Agricultural Credit Policy Council (DA-ACPC) and the Land Bank of the Philippines (LandBank) on Friday announced the release of an additional P1 billion as recovery assistance for rice farmers affected by falling palay price.

Agriculture Secretary William Dar said this was on top of an existing P1.5 billion financial allocation under the Survival and Recovery Assistance Program (SURE Aid) for rice planters.

“Our initial budget was P1.5 billion but we are able to source an additional P1 billion,” Dar told reporters.

Dar said that with P2.5 billion for the SURE Aid Program, rice production should improve down the line and help 70,000 more farmers cope with the impact of the Rice Tariffication Law (RTL) from an initial 100,000 farmers.

“So that’s only 170,000 farmers of the overall 600,000 small farmers nationwide. We still have many farmers to help. But the DA will look for other sources of funds to cover all the small farmers,” Dar said.

Dar said the additional funding was sourced from ACPC’s funds and not from the Rice Competitiveness Enhancement Fund (RCEF).

Vice President for Lending Program Management Group Emellie Tamayo said the initial rollout of the SURE Aid assisted 1,048 farmers during its launch in Nueva Ecija on 1 September this year.

“We already provided assistance to thousands of farmers in the launch in Nueva Ecija. Soon, we will also roll out in Tarlac and Isabela. We could release those (loan assistance) by year-end,” Tamayo said.

SURE Aid is a financial assistance program providing P15,000 one-time loan to rice planters farming one-hectare lots at zero-interest rate payable in eight years.

Farmers only need to set aside P1,875 annually to pay off the loan.

The DA-ACPC provides LandBank with a validated list of farmers eligible for the loan assistance.

The LandBank, on the other hand, administers the P2.5 billion fund for lending.

“Affordable credit will help simplify the process for our small farmers,” Dar said.

Lawyer Jesus Hinlo, private sector representative at the LandBank board of directors, encouraged farmers to tap the LandBank lending window for support.

“Don’t be afraid to go to the lending centers of LandBank. And please make sure that your credit line remains credible so that you don’t have to go back to 5-6 lending,” Hinlo said.

The LandBank also announced the roll out of another program that set aside P10 billion loan for local government units to purchase palay from local farmers.