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
