DA, LandBank ink P1.5-B loan program to help rice farmers

The Department of Agriculture-Agricultural Credit Policy Council (DA-ACPC) and the Land Bank of the Philippines signed a memorandum of agreement to implement a P1.5-billion recovery assistance program for rice farmers affected by declining palay prices.

The agreement with LandBank covering the Survival and Recovery Assistance Program for Rice Farmers (SURE Aid Program) was signed on August 28, the department said Thursday.

Agriculture Secretary William Dar and ACPC Executive Director Jocelyn Alma Badiola, as well as LandBank president Cecille Borromeo and first vice president for Lending Program Management Group Emellie Tamayo signed the accord.

The SURE Aid Program is designed to help rice farmers whose incomes were affected by the drop in farm gate prices of palay, the DA said.

Data from the Philippines Statistics Authority (PSA) showed the average farm gate price of palay dropped to P17.62 per kilogram—an annual rate of 20.9% from P22.28 per kg last year.

For the third consecutive month in July, the PSA noted that rice inflation was a negative -2.9. Prices of the commodity continue to decline as a result of the Rice Tariffication law.

The government earlier this year implemented the law, which removed quantitative restrictions on rice and imposed a 35% tariff on imports from Southeast Asia.

The SURE Aid Program is a financial assistance that is very affordable for small rice farmers as they just need to set aside P1,875 per year to pay off their loan, Dar noted.

“Credit is such a very important strategy to make it possible to develop and grow Philippine agriculture,” Dar said.

“Credit must be affordable, accessible and the ease of doing business will be our principle in terms of simplifying the process for the common farmer,” he added.

The program provides a one-time loan assistance of P15,000 to rice farmers farming one hectare and below at 0% interest and payable in eight years.

LandBank is administering the P1.5 billion fund from the DA-ACPC for lending.

“Be assured that LandBank is fully on board to work with you in making great things happen for our farmers and fishers … Sama-sama nating isulong ang interes ng magsasaka tungo sa masaganang ani at mataas na kita,” LandBank’s Borromeo said.

The bank is also tapping DA-accredited service conduits to disburse loans to eligible beneficiaries— especially in unbanked and unserved areas.

The Agriculture chief said that there are three big issues that the DA needs to get a good handle on in the next four months including the falling price of palay and copra, and the swine disease that is yet to be confirmed by laboratory tests.

“Kaya natin ito kung tayong lahat ay nagkakaisa. We will bring all the minds and the best ideas into the table and really harness the best measures possible to help the sector,” Dar said. —VDS, GMA News