Farmers experience increased production under Sugacane Block Farms

Sometime in the year 2013, the Department ofAgrarian Reform (DAR) and the Department of Agriculture (DA) through the SugarRegulatory Authority (SRA) started the Sugarcane Block Farms project, with nineteen (19) pilot sites most of which are in Negros Occidental. As a consequence thereof, it was shown that the pilot sites posted an average increase of 29 percent in farm productivity for the crop year 2013-2014 after a year of operation. It was also established that the block farms had an average increase from 50.78 tons cane per hectare (TC/Ha) to 65.29 TC/Ha during the period. All the pilot block farms showed increases in productivity ranging from 7.47 percent to 100 percent after receiving capacity-building, technical assistance, farm planning, and farm management support from SRA.

The Sugarcane Block Farm in Cadiz City, Negros Occidental, specially, the Hacienda Bernardita Agrarian Reform Beneficiaries Multi-Purpose Cooperative experienced a 7.47 percent increase in production, from its traditional production of 77 TC/Ha to 82.75 TC/Ha. A similar experience was also posted by the North Cluster Producers Cooperative in Paniqui, Tarlac which involved a 100 percent increase in productivity from 50 TC/Ha to 100 TC/Ha. Consequently, the average 29 percent increase in productivity resulted to an average increase of the agrarian reform beneficiaries’ (ARBs) income by P39,815 per hectare, at 1.96 Lkg per TC.

The SBF project includes trainings on Sugarcane high-yeild varieties production and management. 

In Cagayan province, Sugarcane Block Farms started in 2016-2017 through the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) project covering the Bugnay Farmers Marketing Cooperative in Tuao, Cagayan and the Mabuhay Agri-Crops MPC in Piat, Cagayan. The 2017-2018 FBS project included the Bantay Farmers Producers Cooperative in Solana, Cagayan and Pinoy Bagong Pagasa Marketing Cooperative in Tuao, Cagayan. For the 2018-2019 SBF projects, the ARBOs to be enrolled are Roma Sur MPC in Enrile, Cagayan and Villarey ARB Cooperative in Piat, Cagayan.

Cagayan SBF ARBOs enrolled under the SBF project are provided farm machines to ensure the sustainability of the project. 

The DAR-DA/SRA Sugarcane Block Farms (SBF) project involves the consolidation of the management of small farms of less than five hectares, into a bigger but contiguous unit of at least 30 hectares for purposes of improving farm productivity while individual ownership by the ARB is maintained.

Information gathered from SRA shows that about 85 percent of sugarcane farms in the country have areas below five hectares due the widespread coverage of agri lands under the Comprehensive Agrarian Reform Program (CARP), subdivision of lands by inheritance, sale, etc.

Sugarcane is a plantation crop and its cost-efficiency ratio is achieved with large farm sizes such as 30 hectares and above, small sugarcane farmers cannot avail of the benefits of economies of scale, such as reduced prices of inputs for bulk purchases, etc. The present ARB-land owners also do not have the capability to provide the needed farm inputs resulting to lower production, it is also aggravated by the lower price offered by millers except for large volume transactions. 

The Sugarcane Block Farms project aims to consolidated small sugarcane farms into larger agribusiness ventures, improved farm management and mechanized farming by the ARB’s through provision of essential technical, financial, production and marketing support services under the project. At the end of their enrollment under the SBF project, these ARBOs shall be able to operate the sugarcane block farms as a business and become a major industry player through economies of scale.

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. 

Agrarian Reform: Poverty incidence decreased through the Agrarian Reform Community (ARC) Strategy

A Study was conducted and it showed among others that the the Agrarian Reform Community (ARC) approach to rural development is an effective strategy to fight poverty in the countryside. The study is part of the second round of CARP impact assessment studies commissioned by the Department of Agrarian Reform (DAR). It aimed to assess the impact and gains of the program and to recommend policies, mechanisms or changes to enhance program implementation, particularly for the remaining balances in land acquisition and distribution and in expanding the reach and impact of the Agrarian Reform Community (ARC) strategy. 

The study mainly used official government databases of census and surveys of the National Statistics Office (NSO), the ARC database of the Bureau of Agrarian Reform Beneficiaries Development (BARBD) of DAR, and other administrative data from the Bureau of Agricultural Statistics (BAS) and National Statistics Coordination Board (NSCB). These databases were merged with the data on the 2006 Masterlist of the Agrarian Reform Communities, matched and analyzed. 

A rapid appraisal of five provinces was also done to examine the impact of government interventions on land markets and economic activities related to land (i.e., credit, capital accumulation, and land productivity). Results of the study show that it is the combination of possessing the land, being located in an ARC, and being in an ARC that increases a farmer household’s income and expenditure per capita and make them less likely to be poor. 

Within an ARC, there is no significant difference between ARBs and non-ARBs, thus demonstrating that returns to land ownership is significantly improved with the provision of support services. 

Furthermore, ARBs do better than non-ARBs in ARCs but both ARBs and non-ARBs in non-ARCs would have the same probability of being non-poor and they do worse than the respondents in ARCs. The benefit-cost analysis of the ARC strategy yielded a positive net present value showing that the benefits reaped from the ARC support services outweigh the cost of financing such services.  

Through the ARC strategy, poverty incidence decreased from 39.8% to 24.2% over the period 1990 and 2000. This reduction is slightly higher than that experienced by those in the non-ARC barangays, i.e., from 39.0% to 24.8% for the same period.

SOURCE: Balisacan, Arsenio, M. et al.  Study on the Impact of Comprehensive Agrarian Reform Program (CARP) on Poverty Reduction and Prospects for Long-Term Growth.  Asia-Pacific Policy Center, Diliman, Quezon City. October 2007.  PUBLISHED BY: Economic and Socio-Cultural Research Division

 Policy and Strategic Research Service, DEPARTMENT OF AGRARIAN REFORM 

Agrarian Reform Communities (ARCs) draw Convergence Services

The Department of Agrarian Reform launched the Agrarian Reform Communities (ARC) in 1993 for its key program for national development. In the past, DAR has concentrated mainly on the distribution of land to the landless farmers, while this is the core of any agrarian reform program, experience has shown that this is not sufficient to raise the quality of life of the agrarian reform beneficiaries (ARBs). And that a strategic development was created which we call the ARCs wherein DAR has focused and realigned its priorities towards the development of viable agrarian reform communities. It is the ARCs where DAR has been intensifying its interventions to increase farm production, improve household income and promote sustainable development. With ARCs, the Department, in partnership with other CARP implementing agencies, local government units (LGUs), non-government organizations (NGOs) and people’s organizations (POs) have a structure for concentrating its resources and development efforts. Development interventions focus on Land Tenure Improvement (LTI) and Program Beneficiaries Development (PBD) to ensure economic, political, environmental and socio-cultural viability of the ARCs.

In 1995, the President of the Philippines issued Administrative Order No. 194 for the adoption of the Social Reform Agenda (SRA) convergence policy and its operationalization, which is considered a milestone in the field of rural development. The Administrative Order identifies Agrarian Reform Communities, among others, as convergence areas where the various agencies and entities shall focus their resources, services and interventions. The key components of ARC development are: (1) land Tenure Improvement (LTI); Social Infrastructure and Local Capability Building (SILCAB); (3) Sustainable Area-based Rural Enterprise Development (SARED); and (4) Basic Social Services Development (BSSD) including Gender and Development.

The ARC concept: An ARC is a barangay at the minimum or a cluster of contiguous barangays where there is a critical mass of farmers and farm workers awaiting the full implementation of agrarian reform. The farmers and the farm workers will anchor the integrated development of the area.

VISION: A nation where there is equitable land ownership with empowered agrarian reform beneficiaries who are effectively managing their economic and social development for a better quality of life.

MISSION: To implement CARP through the distribution of lands and provision of support services in order to attain social equity and promote sustainable development.

The National Scene: Access to land is essential to ensure that rural growth will substantially benefit the rural poor. A highly inequitable distribution of productive assets, such as land, does not only limit the participation of the poor in production growth but also stifles the potential of the country to achieve long-term growth. For more than six decades, land reform has been (and is still) the constant battle cry in the Philippines. Agriculture contributed almost P485 billion worth of the nation’s domestic goods and services in 1997. Three-fifths (3/5) or about 49 million of the population live in the countryside and nearly half (19 million) of the labor force work in the agricultural sector.

At present, there are 6 out of very 10 Filipinos who continue to live below the poverty line due to inequality in income distribution, among others. More than half of the nation’s wealth is controlled by the richest 20% while the bottom half of the population gets only one-fifth. In 1997, 44% of the rural families are living below the poverty line especially the rice, sugarcane, coconut and corn farmers.

The Tasks: To empower the farmer-beneficiaries through the following processes: (1) landownership and control of productive resources through distribution of remaining 1.1 million hectares (nationwide) of land to farming families within five years and maintain the efficiency standard for resolving agrarian cases; (2) promoting and strengthening the social institutions at the community level and at different levels of governance by enhancing the capability of the program partners, intensifying agrarian reform beneficiaries development, consolidating existing ARCs and expanding the rural development interventions in non-ARC areas; and (3) increasing access to productive resources by working closely with the Department of Agriculture (DA), Department of Environment and Natural Resources (DENR), other line agencies and local government units (LGUs) towards a convergence of services to meet the needs of ARCs, better management and increase foreign assisted projects, establishment of a joint-venture business arrangement between farmers and agribusiness firms, meaningful partnership with autonomous societal actors in land reform and rural development undertakings.

Strategies: In the implementation of the above-mentioned tasks, the following strategies shall be utilized: (a) completion of land distribution; (b) convergence mwith DA, DENR, strategic line agencies and LGUs focusing on specific crops, commodities and integrated farming systems; (c) continuation of the ARC development by expanding to embrace all ARBs, especially those not included in the existing ARCs and convergence zones; (d) social marketing campaign; (e) organization development of the DAR bureaucracy.

The agrarian reform agenda is grounded on three equally important principles with respect to the rural sector: economic development, social justice, and political democratization. Consistent with these three distinct but related principles and congruent with DAR’s vision and mission, the implementation of the ARC Development Plan has to be enhanced and expanded to contribute to the achievement of food security, poverty reduction, and countryside development. /cds

Three Cagayan Valley towns into Sugarcane Block Farming

Planning workshop of DAR and ARB
coops for block sugar faming

The Sugarcane Block Farming project is currently being implemented by the Department of Agrarian Reform provincial office of Cagayan wherein small farms owned by agrarian reform beneficiaries (ARBs) in sugar-producing areas are being consolidated to increase the ARBs’ profitability through ‘block’ farming. Provincial Agrarian Reform Program Officer II (PARPO II) Virgilio M. Acasili said the implementation of the project is pursuant to the Memorandum of Agreement (MOA) signed between and among the Sugar Regulatory Administration (SRA), Department of Agriculture (DA) and the Department of Agrarian Reform (DAR). Under the MOA, the DAR will shoulder the cost of farm tractors and business development services. The DA will cover the development of irrigation facilities and the improvement of farm-to-mill roads while the SRA will shoulder the cost of agri-technology and overall management of the block farms.

At least two (2) municipalities in Cagayan province are preparing to engage in sugarcane block farming to increase profitability and  also a way of preparing our ARB-sugar farmers against the effects of competition resulting from the implementation of the free trade agreement within the ASEAN region by 2015,  when the tariffs on agricultural goods can be as low as five percent to even zero.

The demand for sugar is continuously rising due to the increasing requirements for production of bioethanol (from sugar) and in power cogeneration which uses sugarcane waste called bagasse. Presently, energy companies are allowed to import bioethanol to supply their needs as local production cannot meet the current demand. Bioethanol made from sugarcane consumes the least amount of energy and emits the least amount of greenhouse gas, which means it is one of the most earth-friendly power sources.

The local sugar industry’s biggest competition is the entry of cheaper sugar from Thailand and is considered as a real threat that can affect local production and pull down domestic prices to the prejudice of local farmers. Sugar from the Philippines is still being exported with the United States as its major market. According to the SRA, sugar exports will soon include India, Korea, Indonesia and the Middle East.

Sugarcane block farming will happen in the municipalities of Solana and Tuao, all in the south-western part of Cagayan province where large tracks of lands are planted to sugarcane that provide the raw materials for the Cagayan RobinaSugar Milling Company (CARSUMCO) in Sto. Domingo, Piat, Cagayan. Also included in the project is Cabagan town in Isabela province. 

Under the block farming system, small farms of agrarian reform beneficiaries with areas of less than 10 hectares will be consolidated and integrated into 30-50 hectares through various schemes such as contracting, joint venture, partnership and sharing.

The block farms will be managed as one farm so that activities in the small individual farms are synchronized to the plans of the whole block, Hence, resources including farm workers, equipment and financing, could be utilized more efficiently. Although the farms are operated as a block, the ARB remains as the absolute owner of their farm, they will not lose ownership of their land titles. The block farms will be managed by their farmers’ organizations or cooperatives who will be assisted by a farm manager hired and supervised by the SRA.

Block farming is the consolidation of small farms to help increase productivity and to widen the scale of sugar production. ARBs are encouraged to organize themselves into cooperatives to make their farm operations more cost-efficient which will result to lesser cost of production resulting to more profitable per unit area. It is a support services program intended for the Comprehensive Agrarian Reform Program (CARP) beneficiaries.

The government is targeting to have at least 100 sugarcane block farm sites by 2015. The average sugar cane yield per hectare is currently at 60 tons but this can be increased to 70-80 tons per hectare through farm mechanization and improved production process.

Under the block farming system, DAR provides all that the farmers will need such as farm inputs, new farm techniques and common service facilities that consists of a mechanized tractors and a hauling trucks, etc.  These inputs and farm equipment will  be provided as grants to the farmers’ cooperatives being the conduit between DAR, etc and the farmer-beneficiaries who are parties to the project.

           According to studies conducted by SRA, the program can help increase their sugar cane production from 99 to 147 bags of sugar per hectare, which could be translated to a possible increase in income of about P39, 000 for the farmer-beneficiaries. /cds 

DARPO-Cagayan and CSU sign MOA on ARCCESS

A Memorandum of Agreement (MOA) between the Department of Agrarian Reform Provincial Office (DARPO) of Cagayan, represented by PARO Virgilio M. Acasili and the Cagayan State University (CSU), represented by Dr. Romeo R. Quilang, University President was signed on Thursday, May 23, 2013 at the CSU-Andrews Campus, Caritan, Tuguegarao City in the presence of Dr. Dominador O. Tamayao, Vice President for Research and Extension, Atty. Marjorie P. Ayson, DAR Regional Director, Mr. Elpidio Urbanozo, Chief, Beneficiaries Development and Coordination Division, and Mr. Aldwin Addun, Human Development Specialist.

Under such MOA, the DAR and CSU undertake to pursue and implement the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) wherein CSU shall conduct the Organizational Enterprise-Needs Assessment and Design Assessment (OE-NADA), which is a major component of ARCCESS project implementation.

The ARCCESS project is a government-led initiative to tap intersectoral (Public-social-private) partnerships to increase farm productivity and improve household incomes of Agrarian Reform Beneficiaries (ARBs) by providing livelihood through the organization of agricultural enterprises managed by ARBs.

         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 organizational management, i.e., strengthen farmers’ organizations where a lot of  Agrarian Reform Beneficiaries (ARBs) are members.

          Target beneficiaries under this activity are five (5) Agrarian Reform Communities (ARCs) in Cagayan province, namely: MADUVICA ARC in Sta. Ana, SUNRISE ARC in Gattaran, SABUNG ARC in Tuao, MADUVILLA ARC in Piat; and MALAUEG ARC in Rizal. 

Under the MOA, the CSU shall undertake the Needs Assessment as a systematic approach to identify the nature and scope of the problem being addressed and the reasons that are causing the problems, to identify the target population to be served, and to determine the services needed to meet the problem/s.

The CSU shall also conduct a Design Assessment to model the theory behind the ARCCESS Project and present a plan for improving the social condition of the target organization/community. The activity intends to improve the capacity of the ARBs in organizing and managing agri-enterprises.

A Final Report shall be submitted by CSU to DAR, wherein such report shall be considered in determining the types of intervention available and suitable for the ARB organization/community under the ARCCESS project, such as provision of common services facilities (CSF), e.g., water pumps, tractors, threshers, harvesters, dryers, etc.,  and/or business development services, etc. /cds

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 (1^st priority); (b) post-production/post-harvest (2^nd priority); (c) processing (3^rd 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

More Photos: https://www.facebook.com/amarophil.cagayan/media_set?set=a.431715376903677.1073741827.100001956556263&type=3

Rehabilitated Farm-to-market road boosts income of ARBs

Buguey, Cagayan – Officials from the Department of Agrarian Reform (DAR) led by Atty. Marjorie P. Ayson, Regional Director (DAR Region 02) has turned over in favor of the Local Government Unit (LGU) of Buguey, led by OIC-Mayor Roderick Antiporda, among others, and the barangay officials of Tabbac, Buguey, Cagayan,  the responsibility for the utilization and maintenance of the rehabilitated and improved farm-to-market road during a turn-over ceremony held on March 19, 2013 at barangay Tabbac in Buguey, Cagayan province. Officials from the Department of Public Works and Highways (DPWH) Region 02 also attended the turn-over ceremony. 

The project involved the rehabilitation and improvement of the Tabbac Proper – Junction National Road (JNR) – Sitio San Francisco Road at Sta. Isabel Agrarian Reform Community (Sta. Isabel ARC), Buguey, Cagayan. The farm-to-market road has a length of 4.078 kilometers at a project cost of P7,297,746.21 and funded by the Department of Agrarian Reform Infrastructure Support Project III (DAR-ARISP3).

According to the barangays officials, the farm-to-market road project has significantly improved the quality of life of farmers in the area as they can now transport or load on their kuliglig (hand tractor with trailer) around 20 cavans of palay instead of the usual 7 cavans only before the FMR project was implemented. They can now also have more frequent trips to the market to sell their produce, such as vegetables and watermelon, among others. But the most significant improvement in the lives of ARBs is the fact that the number of traders have increased because of the new access to the farms/products in the community resulting to higher selling prices of farm produce by the farmers as they are now able to choose which trader offers the higher buying price. Additionally, the cost of hauling has been reduced by at least 30%, increasing the savings in favor of the ARBs. The completed FMR now also serves as an alternative route from the town proper to the Lallo International Airport in nearby town of Lallo, Cagayan.

The rehabilitation and improvement of the Tabbac Proper – Junction National Road (JNR) – Sitio San Francisco Road at Sta. Isabel Agrarian Reform Community (Sta. Isabel ARC), Buguey, Cagayan seeks to boost the productivity and income of agrarian reform beneficiaries and the members of their household who have been burdened with excessive fare and hauling costs of farm produce due to poor road condition. /cds

DAR and DA-PCIC provide P17.1B crop insurance for ARBs

DAR allots  P1B premium subsidy

The Department of Agrarian Reform (DAR) Regional Office 02 has recently conducted an orientation/briefing on the Agrarian Reform Beneficiaries-AgriculturalInsurance Program (ARB-AIP) attended by Municipal Agrarian Reform Officers (MAROs) and Development Facilitators (DFs)  from Cagayan and Nueva Vizcaya provinces at the Ivory Hotel in Tuguegarao City, Cagayan. A similar briefing was also conducted for MAROs and DFs from Isabela and Quirino provinces in Cauayan, Isabela.

The ARB-AIP is a P17.1 billion crop insurance plan between the Department of Agrarian Reform (DAR) and Philippine Crop Insurance Corporation (PCIC), an attached agency of the Department of Agriculture (DA), wherein the DAR shall provide a premium subsidy worth P1 billion.

The ARB-AIP will provide protection for over 224,000 agrarian reform beneficiaries (ARBs) and members of their households who are farming around 330,000 hectares of land and raising approximately 30,700 farm animals nationwide. DAR shall identify who are the qualified ARBs under the program.

It is a safety net for ARBs against losses caused by crop pests, diseases; losses from damage of farm machineries; and also from the devastating unpredictable weather patterns due to climate change. In addition, an ARB shall receive protection against loss of life or limbs under an Accident and Dismemberment Security Scheme.

Only ARB participants to key DAR programs shall be eligible under the ARB-AIP scheme, such as the Agrarian Reform Connectivity and Economic Support Service, Agrarian Production Credit Program, Credit Assistance for Program Beneficiaries Development, and the Microfinance Capacity Development in Agrarian Reform Areas. /cds

DAR approves Php26 million projects for Lallo ARB Coop

Lallo, Cagayan – The Department of Agrarian Reform (DAR) has approved the funding for projects worth P26 million in favor of the Naguillan Christian Multi-Purpose Cooperative (Naguillan Christian MPC) under the Agrarian Reform Community Connectivity and Economic Support Services program (ARCCESS). 

The ARCCESS program aims to improve farm productivity, increase the CARP beneficiaries’ net income and also sustain the farmers’ livelihood by improving the organizational management capabilities of organizations being managed by agrarian reform beneficiaries (ARBs) through agri-enterprise development.

     The ARCCESS program is a government initiated activity in pursuance to the mandate of R.A. 6657 (CARP), now known as CARPER (R.A. 9700) after the former was amended and extended. It involves the participation of state colleges and universities, civil society organizations, private institutions and other stake holders aimed at providing a wide range of services to improve the performance of agrarian reform beneficiaries’ organizations (ARBOs) in terms of agri-enterprise, access to markets, product development, ability to compete with other businesses, and participate in economies of scale.

     As such, the Naguillan Christian Multi-Purpose Cooperative in Lallo, Cagayan shall be receiving assistance in the form of provision and construction of common service facilities (CSF), such as: post harvest facilities, truck, warehouse, mechanical dryer, etc. It also includes the provision of financial management trainings to ensure the sustainability of the project which will be managed by the cooperative. The cooperative was recently visited by no less than DAR Secretary Virgilio de Los Reyes sometime in November 2012 during the conduct of the capability assessment of the cooperative. /cds

DAR Secretary Virgilio de Los Reyes at Naguillan Christian MPC in Lallo, Cagayan. (Photo by: DAR Regional Office 02)

Iguig ARB Coop receives Php1M loan from Land Bank

The Eastern Iguig Multi-Purpose Cooperative (Eastern Iguig MPC) received a one million peso (Php1,000,000.00) loan from the Land Bank of the Philippines through the Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) of the Department of Agrarian Reform (DAR) for relending purposes to members of the cooperative. A symbolic one-million peso check was awarded by DAR ASEC Jose G. Grajeda on October 4, 2012 during the turn-over ceremony at barangay Sta. Barbara, Iguig, Cagayan.

Farmer-beneficiary members of Eastern Iguig MPC receiving the Php1million loan. 

The Credit Assistance Program for Program Beneficiaries Development (CAP-PBD) was conceptualized to provide credit support to Agrarian Reform Beneficiaries' organizations who cannot yet qualify under the accreditation criteria of government and private financing institutions. The said credit support aims to serve as a venue to develop the ARB organizations' entrepreneurial competence and credit worthiness, leading to their qualification to avail of the different credit windows of financial institutions.

Land Bank and DAR staff.

Each of the thirty-one (31) farmer-beneficiary member of the cooperative can avail P25,000 per hectare for rice production with an interest of two percent (2%) per month payable within one hundred eighty (180) days. /cds

Eastern Iguig ARC Water Supply System Completed

The Department of Agrarian Reform (DAR) has completed the construction and is ready to turn-over a Potable  Water Supply System (Level II) project at barangay Sta. Barbara, a component barangay of Eastern Iguig Agrarian Reform Community (Eastern Iguig ARC) in Iguig, Cagayan.

The Eastern Iguig ARC  Potable Water Supply project was funded by the Agrarian Reform Infrastructure Project III (ARISP-III)-Department of Agrarian Reform (DAR) and the Local Government Unit (LGU) of Iguig, Cagayan with a total project cost of P3,707,530.73 and is expected to benefit some 647 agrarian reform beneficiary households.

The potable water system in the ARC will significantly decrease the incidence of water-borne diseases among school children. It will also provide water for vegetable gardening activities and opportunities for rural enterprises among farming households in the area resulting to increase in income. cds/mtb