Tags: Agribusiness, Livelihood Programs
By Anna Valmero
QUEZON CITY, METRO MANILA – The Department of Agriculture (DA) and Land Bank of the Philippines (LBP) have agreed to launch a P400-million loan program for rice farmers during the dry season as part of national food security.
For the loan project under the Food Staples Sufficiency Program (FSSP), DA and LBP shared P200 million each to come up with the initial million loan program for farmers in the provinces of Isabela, Nueva Ecija, Iloilo, and North Cotabato.
The initial P400 million will serve 2,000 farmers per province, for a total of 8,000 farmers in the four pilot areas, said LBP president and chief executive Gilda Pico.
The credit program will initially serve farmers who are members of Irrigators’ Associations of good standing.
They could borrow a maximum of P42,000 per hectare per cropping, if they will plant hybrid rice, and P37,000 per hectare for those who will produce inbred rice, said DA Secretary Proceso Alcala.
To qualify for the loan, the farmers should at least own one hectare or up to five hectares of irrigated land to be used as a “table collateral” for their loan.
Other loan requirements include a farm plan and budget, purchase order from National Food Authority or National Agribusiness Corporation, and a promissory note for the amount borrowed. Applicants should have no existing palay production loan.
For the first two cropping cycles, borrowers will be charged 15 percent interest a year, inclusive of crop insurance, payable within six months.
Declining interest will be applied to borrowers who establish good credit standing, of which the 15 percent loan will be reduced by one percent every succeeding cycle.
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