Farmers and fisherfolk burdened by rising fuel and electricity costs will be given temporary relief as the Agricultural Credit Policy Council (ACPC) rolls out a loan payment moratorium, allowing qualified borrowers to suspend repayments for up to one year.
The measure is part of the government’s response to the ongoing energy crisis, which has pushed up production expenses across the agriculture sector.
This will be implemented under the Survival and Recovery program and follows the declaration of a state of national energy emergency by President Ferdinand Marcos Jr.
Under the policy, eligible borrowers with existing loans may apply for deferred payments, subject to approval by the partner lending institutions such as government banks, rural banks, and cooperatives. The program aims to ease the immediate financial pressure while allowing agricultural producers to continue their operations.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the initiative is part of a broader effort to stabilize the farm sector amid volatile input costs.
“The loan moratorium is not a stand-alone measure but part of a coordinated government effort involving financing institutions, local lending partners, and Department of Agriculture (da) agencies working on rural resilience,” Laurel said.
“We are prioritizing immediate relief while strengthening long-term access to credit so our agricultural sector remains productive and stable despite external shocks, particularly rising fuel and fertilizer costs,” he said.
The DA said applications will be evaluated based on eligibility and loan status, with priority given to borrowers in good standing who are facing temporary financial strain.
For its part, ACPC executive director Rallen O. Verdadero said the payment pause is designed to help sustain livelihoods during a difficult period.
“DA-ACPC programs are responsive and designed with our clients in mind,” he said. “A one-year grace period on loan payments would allow farmers and fishers to prioritize their families’ needs while regaining momentum in their agricultural activities and sustaining their livelihoods,” Verdadero added.
Officials said the program is expected to prevent loan defaults, support rural economic activity, and maintain food production, as higher energy costs continue to ripple across the supply chain.