There are at least five agrarian
reform beneficiaries’ organizations (ARBOs) in Cagayan province who have applied
for loan services from the DA-DAR-LBP Agrarian Production Credit Program (APCP)
to finance crop production that will expand agri-enterprise and livelihood
projects of their members.
Three of these ARBOs’ applications
have been approved as of June 2014, namely: (1) Bical-Baliuag ARB MPC in CABICA
Agrarian Reform Community (ARC), Penablanca, Cagayan with a total loan release
of P3,300,000.00 for agricultural production loan on corn production benefiting
54 member-ARBs; (2) Caagaman ARC Multi-Purpose Cooperative in Caagaman ARC,
Aparri, Cagayan with a loan release of P1,300,000.00 for agricultural
production loan on rice production benefiting 60 member-ARBs; and (3) Aparri
Valley of Jothbath MPC in Seabreeze ARC, Aparri, Cagayan with a loan release of
P4,000,000.00 for agricultural production loan on rice production benefiting 130
member-ARBs.
The other ARBOs who have similarly
applied for loan under the APCP but are still awaiting the approval thereof are:
Bugnay MPC in the Sabung ARC, Tuao, Cagayan with a loan application of
P3,000,000.00 for agricultural production loan on rice production to benefit 54
member-ARBs and Cabayabasan Farmers Cooperative in Nueva Segovia ARC, Lallo,
Cagayan with a loan application of P1,500,000.00 to benefit 58 member-ARBs.
According to data earlier disclosed
by Mr. Virgilio M. Acasili, Provincial Agrarian Program Reform Officer II
(PARPO II) of Cagayan-Batanes provinces, only 57% of farmers have access to
credit from financing institutions; that one in three ARBs in ARCs is in need
of credit; that new ARB organizations may still not qualify under CAP-PBD and
LBP regular lending program; that some ARB organizations still require
organizational strengthening to make them credit worthy; and that for these
reasons the DA, DAR and LBP have to pool resources and expertise to help ARBs
access affordable credit, development assistance and marketing support.
Sometime in 2012, PresidentBenigno S. Aquino, in line with his commitment to ensure ample support for Agrarian
Reform Beneficiaries (ARB instructed the Department of Budget and Management
(DBM) to release P1.0 billion to the Department of Agriculture (DA) for the
nationwide implementation of the Agrarian Production Credit Program (APCP).
The release was made chargeable
against the 2012 General Appropriations Act and is in accordance with a
five-year Memorandum of Agreement (MOA) signed by the DA, the Department of Agrarian Reform (DAR), and Land Bank of the Philippines. It will provide
much-needed credit assistance to farmer-beneficiaries under the agrarian reform
program.
Under the MOA, the DA will place
the P1-billion fund with Land Bank, P300 million of which will be allocated
exclusively for Negros Occidental. The total fund will be used to support the
credit requirements of ARBs or ARB household members for their individual or communal
crop production projects including agri-enterprise
and livelihood activities.
Through the program, the DA will
provide basic support and services, such as marketing assistance and technology
packages to qualified ARB organizations (ARBOs). Meanwhile, DAR will be at the
helm of identifying eligible ARBs or ARB household members to Landbank. The
agency will also provide parallel institutional development assistance to
participating ARBOs to help them graduate them to regular lending programs.
DAR will also provide
capability-building assistance to beneficiaries, as well as professional
management services and facilities support, including those for farm equipment,
postharvest facilities, and storage, among others.
This capacity-building program is tailored for new and
existing ARBs who are yet to avail loans. Adopting a more lenient set of
policies and procedures in extending credit, APCP is the vehicle through which
financial and technical services shall be delivered to ARBs consisting mainly
of credit provisioning and capacity building to ARB organizations.
Under
this program, ARBs in organizations within the top 21 high LAD provinces shall
be able to develop their knowledge and competencies in engaging and managing
agri-enterprises, as well as upgrade their skills on financial management
thereby enhancing their credit worthiness or bankability. /cds
