Cagayan ARC Clusters identified as World Bank-IPAC project sites

There are two Agrarian Reform Community (ARC) Clusters in Cagayan province which were identified as project sites for the National Economic and Development Authority (NEDA) approved World Bank- Inclusive Partnership for AgriculturalCompetitiveness (IPAC) project. The project is aimed at helping farmers improve their standard of living, reduce poverty incidence, and develop the agri-business industry in the province in general.

The Department of Agrarian Reform-World Bank IPAC is a P10-billion project that will be funded by World Bank with counterparts from the national and local government which will cover 13 qualified regions such as Region 02 in the Cagayan Valley.

Cagayan province in Region 02 has been identified as one of the project sites wherein two Agrarian Reform Community Clusters, namely the Cagayan Grains Central ARC Cluster and the Cagayan South ARC Cluster are now preparing for the implementation of the project.

An ARC cluster is composed of two or more agrarian reform communities (ARCs) who have banded together to share resources, to work together to attain economies of scale and to expand their business operations that will include other municipalities.

The ARC Cluster shall be promoted as the convergence point of all government program implemented by government agencies such that each program and project is complimentary and supportive to each other. The strategy shall adopt a more comprehensive and integrated approach to rural development through collaborative efforts by all stake holders and partners. The bottom line objective is to improve productivity and income of the farmers by focusing agribusiness development of agro-industrial crops and to create economies of scale and active, harmonious and peaceful communities.

Another aim of this strategy is to widen the impact area that the ARC Program has started. It is intended to concretely operationalize partnership and convergence of development interventions in the rural areas not only in ARCs but to include the Non-ARC communities. 

The Cagayan Grains Central ARC Cluster is composed of 8 ARCs in 3 municipalities, includes of the following ARCs: Sunrise ARC (Gattaran), TANASICATCU ARC (Gattaran), LASVINAG ARC (Gattaran), Eastern Alcala ARC (Alcala), Greenfields ARC (Alcala), Evergreen ARC (Baggao), NALASBANGCA ARC (Baggao) and Insan-As-Viba ARC (Baggao). The Cagayan Grains Central ARC Cluster shall develop an integrated grains and livestock production, processing and marketing enterprises.

The Cagayan South ARC Cluster, on the other hand, is composed of nine (9) ARCs located in five (5) municipalities: NASUERTECA ARC (Amulung), Malaueg ARC (Rizal), MADOVILLA ARC (Piat), CACABLAY ARC (Tuao), SALAMIN ARC (Tuao), SABUNG ARC (Tuao), Western Solana ARC (Solana), FURABAN ARC (Solana) and ROBA ARC (Enrile). The Cagayan South ARC Cluster shall develop an integrated livestock and aquaculture production, processing and marketing enterprises.

The main objective of IPAC is to enhance access to markets and competitiveness of agrarian reform beneficiaries (ARBs), smallholder and landless farmers in the targeted agrarian reform community (ARC) clusters.

The project will also capacitate organized farmers who are members of farmers’ organizations such agrarian reform beneficiaries organizations (ARBOs),  to engage market-oriented production and agri-business. Also, to increase access to  appropriate and sustainable production, post-harvest, processing technology and agri-extension services.

The IPAC project will enhance the linkage of farmers and ARBOs/farmers organizations to markets and establish business partnership between them and private sector traders.

Establishing farm-to-market roads is just one of the government's projects which are in line with IPAC's goals.

The project is awarded to organizations already capable of managing their respective cooperatives. It will also enable them to continue their existing farm programs through support services and access to loans.

DAR‘s target implementation of the project is in the middle of 2017, with other line agencies like Department of Agriculture, and Land Bank of the Philippines as the credit program’s depository agency.

DAR Central Office said that P4,358,483 loaned from the WB will make up 42.93 percent of the P10,154,392 total budget for the IPAC Project. The national government will put in P4,543,099 or 44.74 percent of the total amount, local government units will allot P20,449 or 0.20 percent, and farmers' organizations will contribute 1,232,000 or 12.13 percent.

Land distribution is not the sole task of DAR. It also provides support services to agrarian reform beneficiaries empower them to become economically productive and successful agri-entrepreneurs. 

ARBOs in Cagayan province granted P8.6M APCP loan

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