Friday, May 3, 2013

ARCCESS: Bringing modern agri/biz to Agrarian Reform Communities


     The Department of Agrarian Reform (DAR) through the Agrarian Reform Community Connectivity and Economic Support  Services Project (ARCCESS Project), provides support services in favor of the farmer beneficiaries purposely to support the general objective of reducing poverty in the Agrarian Reform Areas (ARAs).
     The ARCCESS project is lined up with the Philippine Development Plan (PDP 2011-2016) which considers the Comprehensive Agrarian Reform Program Extensionwith Reform (CARPER/Republic Act No. 9700) as not only a social justice program but also a plan or strategy to achieve a developed agriculture and fisheries sector.
     ARCCESS also aims to teach farmers agri-business technologies to help them establish farm enterprises and gain access to credit, better markets and participate in economies of scale.  Another important goal of the ARCCESS program is to enhance organization management, i.e., strengthen farmers’ organizations where a lot of  Agrarian Reform Beneficiaries (ARBs) are members.
     There are two (2) strategies of implementation of ARCCESS which will be the focus of investments or funding: (1) the provision of business development services (BDS) to assist the business units composed of Agrarian Reform Beneficiaries Organizations (ARBOs) in managing the Common Service Facilities (CSFs) effectively and profitably; and (2) provision of equipment/machineries as CSFs (tractors, threshers, harvesters, water pumps, etc) of business units.
     The implementation of these two components will be based on a favorably appraised business plan and in conjunction with other required components to realize the business of the ARB organizations. Projects to be proposed and funded under this program should also be based on earlier proposals prepared by the different field offices where and when deemed appropriate.
     ARCCESS will be provided to support the production, post-production, post-harvest and post-processing of the following crops: (1) first priority crops - rice, corn, sugar cane and coconut; (2) second priority crops – vegetable, cassava, coffee, cacao and abacca; and (3) third priority crops – palm oil and rubber.
     As to the site/location of ARCCESS projects, priority shall be given to agrarian reform areas (ARAs) which shall be screened according to the following criteria: (1) Must criteria- (1.a) with available development plans and project proposals compatible  or congruent to ARCCESS; (1.b) ARBOs or small holder farmers are willing to form into Business Units and participate in the program; (1.c) which have available contiguous land area which can be developed for agribusiness clusters for economies of scale; (1.d) with existing facilities such as operational irrigation system, post-harvest facilities, and easy access to farm areas; and (1.e) presence of complimentary assistance and/or ready access to agri extension, credit, etc.; (2) Want criteria- (2.a) at least 75% of the proposed project area has been covered by CARP (distributed or leasehold);  (2.b) with existing business partnership with private sector and/or market and with potentials for expansion; (2.c) at a future time, can be scaled up within the value chain; and (2.d) with high market demand.
     As to what organizations may participate, the following ARBOs must have the following qualifications: (1) eligible ARBOs are organizations where majority of active members are ARBs (50% plus 1 of total members currently are ARBs/small holder farmers; (2) currently registered  with either SEC, CDA under RA 9520 or BRW-DOLE and must not be (a) de-listed/candidate for delisting by DAR; (b) dissolved by CDA, SEC, BRW-DOLE; or  (c) written-off by any lending institution; (3) willing to be assisted and formed into Business Units with other ARBOs; (4) without past due account with DAR.
     ARBs and small holder farmers who are not yet organized but who want to participate in the program may join existing registered ARBOs or organize themselves and register as an organization with appropriate government agencies. Participating organizations may be cooperatives, producers organizations, irrigators associations, federation or network of people’s organizations or farmers associations.
     Under the ARCCESS Project, the following types of business activities are eligible for equipment/machinery grant: (a) production (1st priority); (b) post-production/post-harvest (2nd priority); (c) processing (3rd priority).
     Proposals for equipment grant may be selected from, but not limited to, the following menu/sample of eligible equipment/machinery: (a) Palay: hand tractor, mechanical planter, mechanized reaper, mechanical dryer, thresher, sprayer; (b) Corn: mechanical dryer, planter, sheller, tractor, truck; (c) Sugarcane: tractor and accessories, hauling truck; (d) Coconut and value added products: fiber extractor, coco coir baling machine, coir tumble dryer, mechanical dryer, coco sugar pulveriser, hauling truck, virgin coconut oil extractor; (e) Vegetables: regular or vacuum packing equipment, truck, tramline; (f) Coffee: dryer, roaster, crusher.
     Business Development Service (BDS) Providers. The following types of organizations may participate as BDS provider, to wit: (1) qualified non-government organizations (NGOs)/civil society organizations/network; (2) private companies/trading companies; (3) business organizations; (4) state universities and colleges; (5) micro finance institutions/rural banks/ coop banks; (6) cooperatives or federation of cooperatives.
     The eligibility for BDS providers are: (1) must have legal personality to enter into a contract with DAR, registered with SEC/CDA/DOLE (for private entities and NGOs/CSOs); (2) preferably, must come from the same locality and the ARBO; (3) must have been offering business development services (e.g. entrepreneurship training and business coaching, microfinance, input supplier, buying/trading operations, etc.) within the crop/commodity supply chain for at least three years; (4) should be able to deploy competent business manager to be assigned as CBEO; (5) should have a pool of experts/specialists with expertise and experiences in managing business enterprise, agricultural technology, marketing assistance and related fields;  (6) familiar with management of agricultural production, processing and marketing technologies and community-driven development approaches to agricultural/rural development; (7) with sufficient experience in implementing poverty reduction projects focusing on ARBs/small farmers; and (8) without unliquidated funds or past due accounts with DAR and other GFIs.
     Functions of the Business Development Service (BDS) Provider. Under the ARCCESS project, the BDS shall: (1) provide capacity development services and assign and deploy a business coach with experience in managing agri-based enterprises and who will be assigned as community-based enterprise organizer (CBEO). The CBEO shall perform the following tasks - (a) prepare business plans for the common service facilities; (b) ensure that all licenses, legal requirements and other business related requirements are obtained and in place for the enterprise start-up; (c) organize among the ARBOs membership, capable members to compose the workforce complement for the smooth running of the enterprise; (d) identify and implement strategies to achieve revenue goals of the enterprise; (e) identify other users of the equipment in the locality to expand the market for the CSF enterprise; and (f) put in place appropriate control systems for the enterprises, including prudent budgeting, timely recording/accounting, fair incentives, etc.; (g) mentor the ARBOs who were given the CSF enterprise for them to be able to take over the management of the enterprise; (h) in cases of common service  processing facilities, facilitate the adoption of technology requirements and preparation of documentary requirements of certifying organizations applicable to the ARBOs enterprises; and (i) advice ARB households and farm cashflow and coach ARBOs on marketing.
     Other functions of BDS provider: (2) monitor the progress of the services  of the consultant/specialists it has assigned as CBEO to specific group of ARBOs; (3) provide back-up consultants/specialists who can assist the CBEO where necessary without additional cost to DAR in the field of agri-extension, rural finance and/or marketing and could integrate the specific ancillary service to enhance the competitiveness of the ARBO’s farm enterprises; (4) prepare and submit monthly reports on the results of work of its CBEO and other consultant-specialist, including  completed activities, achievements, outcomes, if any, and constraints encountered, as well as agreements reached in meetings and consultations with DARROs and DARPOs and other assisting government and private sector organizations.
     Procurement for Business Development Service will be in accordance with Republic Act No. 9184 or the Government Procurement Act and its Implementing Rules and Regulations pertaining to services and Commission on Audit Circular No. 2007-001 dated October 25, 2007 pertaining to the Revised Guidelines in granting, utilization, accounting and auditing of the funds released to NGOs/POs. /cds

Republic Act No. 9700: Once a CLOA, always a CLOA title.

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