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

Features and uses of the AGRARIAN REFORM BONDS

Features of the Agrarian Reform 10-year Bond (AR Bond): (a) Interest rate is similar to the 91-day Treasury Bills and payable after six months and every six months thereafter; (b) Ten percent of the Bond’s original face value matures every year and paid to the holder of the Bond until the tenth year/maturity date; (c) The Bond is issued by the government through Land Bank. Non-denominated amount to the last centavo and can be as low as P500 (amount less than P500 are paid in cash; (d) Bond transfer can be fully effected (i.e., new bond certificate already in the name of the transferee within five (5) days from date of purchase; and (e) It is Transferable and highly negotiable. 

The AR Bond can be used as payment for goods and services, such as:

(1) Government Assets-Land and other assets of the government, including assets under the Asset Privatization Trust (APT), National Development Company (NDC), and Presidential Commission on Good Government (PCGG). Also, properties foreclosed by Government Financial Institutions (GFIs) either through bidding or negotiated sale; 

(2) Taxes - up to ten percent (10%) of the bond’s original face value  that is maturing during the year may be used to pay: Income Tax (individual or corporate), Final Income Tax due from individual taxpayers, Estate Tax, Donor’s Tax, Value Added Tax, Excise Tax, and other Percentage Taxes; 

(3) Subdivision Lots offered by accredited realty companies like Filinvest Development Company, United Resources Realty and Development Company, Moldex Realty Inc., Active Realty and Development Corporation; 

(4) Machinery and Equipment such as agricultural and industrial machineries of Marsson Industrial Corporation, Dynamic Power Plants Inc.; 

(5) Loan obligations from PAG-IBIG and GSIS; 

(6) Loan obligations with Land Bank ofthe Philippines (LBP) and Development Bank of the Philippines (DBP), applicable only to original bondholders and their heirs; 

(7) Appliances and furniture from accredited suppliers; 

(8) Hardware and construction materials from accredited suppliers; 

(9) Imported trucks and heavy equipment from Pachino Motors; 

(10) Tuition Fees on State Colleges and Universities (SUCs) such as University of the Philippines (nationwide), Pamantasan  ng Lungsod ng Maynila, Polytechnic University of the Philippines, Technological University of the Philippines, Philippine Normal University of the Philippines, Eulogio “Amang” Rodriguez Institute of Science and Technology, Rizal Technological Colleges, other SUCs in the provinces; 

(11) Tuition Fees on private schools such as Colegio de Sta Isabel (Naga City), MEIN College (Zamboanga City), St Joseph College (Tacloban City), Ateneo de Naga (Naga City), Good Samaritan Colleges (Cabanatuan City), Manuel Enverga University Foundation (Lucena City), applicable only to original bondholders and their immediate dependents; 

(12) Medical Expenses in Government Hospitals such as UP-Philippine General Hospital, Philippine Heart Center, National Kidney Institute, Lung Center of the Philippines, Philippine Children’s Medical Center, All medical centers, special hospitals and sanitaria under DOH; 

(13) Medical Expenses in private hospitals such as Calbayog Sanitarium and Hospital (Calbayog City), Sacred Heart Hospital (San Vicente, Urdaneta, Pangasinan), Dagupan Doctors-Villaflor Memorial Hospital (Dagupan City, Pangasinan) applicable to immediate bondholders and their dependents; 

(14) As security for loans with Development Bank of the Philippines (DBP) and/or Land Bank of the Philippines (LBP); 

(15) As Investment Instrument – Regardless of the amount it earns interest aligned with the 91-day T-Bills. The Bond can be purchased from the LBP Bond Trading Board at discounted rates and with up to five-month accrued interest waived by bondholders-sellers; 

(16) As Capital and Reserve Investment – Capital and reserve investment for insurance companies and investment for reserve funds of pre-need companies. 

It can also be used as Security Deposit of foreign corporations with the Securities and ExchangeCommission (SEC). 

In addition, it can also be used as Performance Bond of housing contractors with the Housing and Land Use Regulatory Board(HLURB).  Source: Land Bank of the Philippines/cds

Cagayan International Airport to open

LALLO, CAGAYAN – A new international airport is under construction to support the operations of the Cagayan Freeport under the Cagayan Economic Zone Authority (CEZA) headed by Jose Mari B. Ponce, Administrator and CEO. The new $34.2 million (approx. P1.66 Billion) Cagayan International Airport in barangays San Mariano and Dagupan in the municipality of Lallo is originally targeted for completion this fourth quarter of 2013. It has a concreted 46-meter wide 2,200-meter long runway in accordance with International Civil Aviation Organization (ICAO) standards.

It is capable of accommodating large aircraft such as the Airbus A320, the Boing 737 and other similar sized jets. A paved apron where airplanes will park is under construction, and so are the control tower and the 1,000-square meter terminal building. 

Hangars for jets are also under construction, being one of the objectives of constructing the Cagayan International Airport (aside from accessibility to the various tourism, commercial and industrial centers in the province). It will also bring in more investment opportunities especially ventures related to flying schools, medical and other support system for airport crew and tourism facilities.  and other allied industries.

CEZA officials say that compared to other countries, we have cheaper airspace rates and faster processing of entry and exit permits. We have cheaper rental rates and so these will attract jet owners/operators presently using the crowded airports in Hongkong/China (Guangzhou, Schenzhen, Macao, etc.) to come to Lallo and avail of our aircraft parking and maintenance services. No additional hangar space is expected in Hongkong International Airport until 2023, which is their scheduled expansion.

The prospects for the Cagayan International Airport is very bright as the increasing number of corporate jets, cargo planes and commercial passenger jets in this region has crowded existing airports and more private jets are fighting for the few hangar space in Asian airports.

Also, hotels and other allied ventures are also in the works among the private sector to accommodate the needs of jetsetting billionaires, executives of top corporations in Asia and the presently increasing number of arriving local and foreign tourists who visit resorts in Sta Ana, Cagayan.

The new airport will drastically change travel and trade in the region. 

UPDATES:

Lallo Airport to open in February 2018  (DZRH)

Cagayan to have int’l airport  (Philippine Star)

The Cagayan International Airport is expected to start operation by May next year (2014) and is seen to spur economic and tourism growth in northeast Luzon, especially within the Cagayan Economic Zone Authority (CEZA). http://www.abs-cbnnews.com/nation/regions/12/08/13/cagayan-airport-start-operation-next-year

CAAP evaluates Lallo airport’s compliance to international standards
http://news.pia.gov.ph/index.php?article=461393812107

NEW PHOTOS: http://bmolivepascual.wordpress.com/2014/03/17/first-commercial-flight-soon-at-lal-lo-airport/

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-Cagayan turns-over Common Service Facilities (CSF) to ARB Coops

     A huge warehouse in Alicia, Isabela served as a temporary storage for tractors, threshers, reapers, harvesters, water pumps and other farm machineries and equipments worth P21,117,474.00 awaiting delivery to the various farmers’ organizations in the Cagayan Valley Region.

     These farm machineries and equipments were acquired under the Agrarian Reform Community Connectivity and Economic Support Services (ARCCESS) project of the Department of Agrarian Reform (DAR).  The ARCCESS program is a government initiated activity pursuant 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.

   It 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.   

    In Cagayan province, three ARB cooperatives in three Agrarian Reform Communities were initially identified as beneficiary-cooperatives, namely South Western Solana Farmers Cooperative in Solana, Cagayan; Naguillan Christian Multi-Purpose Cooperative in Lallo, Cagayan; and Nararagan Valley Multi-Purpose Cooperative in Ballesteros, Cagayan.

     On March 14, 2013 the DAR provincial office of Cagayan, headed by PARO Virgilio M. Acasili turned-over various Common Service Facilities (CSF) consisting of hand tractors with implements, threshers, water pumps and other farm implements in favor of the farmers’ cooperatives at Alicia, Isabela after the execution of the necessary contracts during the turn-over  ceremony.

 For Cagayan province, Solana West Farmers Cooperative (SOWESFACO) received two hand tractors with implements, three threshers and four water pumps; Naguillian Christian MPC received three hand tractors with implements, three threshers, one reaper and a mechanical transplanter with seeder conveyor; and Nararagan Valley MPC received three hand tractors with implements, three threshers  and four water pumps. 

    These CSFs will help modernize farming in the Cagayan province and substantially increase the income of ARBs and their households. The farm machineries were distributed as equipment grant to be operated by the ARB organizations as a business asset wherein they can collect minimal fees for the operation and maintenance thereof. The ARCCESS  project would also teach ARBs agri-business technologies  and assist them establish viable and sustainable farm enterprises and provide access to credit and better markets.    /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)

DAR Pips You Should Know: Jojo Juan, OIC-Head, PMEU

The PMEU, or the Planning, Monitoring and Evaluation Unit, is  section in the DAR Provincial Office of Cagayan province that is tasked with Database Management, among other things. It is also tasked with monitoring, administration and maintenance of databases and database groups in the DAR Provincial Office.

A Database is an organized collection of data, usually in digital form today, which is systematically organized to model relevant aspects of reality such as, land acquisition and distribution, support services, legal services, etc.

Hence, the PMEU organizes information related to Land Tenure Improvement (land acquisition and distribution), databases pertaining to program beneficiaries development, the delivery of agrarian justice, and recently, the conduct of the Agrarian Reform Communities Level of Development Assessment (ALDA) and feed backing thereof.

The ALDA is conducted yearly by the Department of Agrarian Reform. This yearly activity is conducted to obtain information about the different aspects of development in the agrarian reform communities. It shows basic indicators at the community level and builds an index for each of the key result areas, providing an overall index for analysis. It measures the ARC’s development, hence, if the interventions among key result areas are implemented, it will show that rural development is feasible.

Additionally, it maintains the Field Operations (FO files) Database, the ARC  Monitoring and Tracking System (ARC-MTS), the EP-CLOA Information System (EPIS/CLOAIS), our Sectoral Reports, etc., a tough job for such a small office unit.

The PMEU is headed by Mr. ELVERITO A. JUAN, Computer Programmer II, who is the OIC-Head of the Unit. He is married to Rosalinda Valdepenas and gifted with two kids. He is joined in the PMEU by Engr. Albert “Jack” Paguirigan, Engineer II; Esther Quizzagan, Assistant Statistician; and Fritz Irigayen, Administrative Aide II.

They not only gather data, but also assist in the conduct of analyses from such data/information that support processes requiring accurate information. JOJO, as we call him is a silent type, hard working individual. Their outputs are actually a big help for DAR personnel in the field offices as it helps in a significant way in tracking the various landholdings for acquisition and distribution which graduates into the generation and registration of EP/CLOA titles in favor agrarian reform beneficiaries. /cds

Agrarian coops to get more support

The Department of Agrarian Reform (DAR) and the Cooperative Development Authority (CDA) have forged an agreement to provide more support for agrarian reform beneficiaries’ (ARB) cooperatives nationwide.

The program aims to provide strengthening and capability building trainings for members and officers of some 1,600 ARB cooperatives, re-registration and assistance for the renewal of the status as cooperatives in good standing of these cooperatives.  

This will provide ARB cooperatives with the trainings required under R.A. 9520 (Cooperative Code of 2008) for officers and members of cooperatives. It will also strengthen farmers’ cooperative as instruments of equity, social justice and economic development as expressed the in Philippine Constitution.

The DAR and CDA will also assist new farmers’ cooperatives in the preparation of the documents needed for registration and will help them improve their operations and preserve and build up their capital.

The agreement between DAR and CDA was earlier disclosed in Cagayan De Oro City during the 2012 National Cooperative Summit wherein DAR has committed to provide funding for trainings for ARB cooperatives to be primarily implemented by the CDA. It is also a part of the agreements reached during such summit, that is, to mainstream the farmer-beneficiary cooperatives into the cooperative movement. /cds

Philippine Cooperative Sector: Some vital stats

CDA Chairman Dr. Emmanuel Santiaguel, PhD delivering the State of the Cooperatives Address (SOCA).

1.    There are 11.7 million Filipinos who are members of cooperatives, or about 10% of the population as of September 30, 2012; 

2.    There are 22,133 registered cooperatives  at present, the rate of increase had dropped compared to previous years because of cooperatives branching out  instead of new cooperatives being registered. The Cooperative Development Authority (CDA) issued 134 Certificates of Authority and Recognition to coop branches and satellite offices nationwide;

      3.    An estimated P160,986,472,748 volume of business was generated by the cooperative sector;

      4.    Almost 76% of cooperatives  are classified as Micro Scale, with assets of not more than three (3) million pesos and 16.16% are classified as Small Scale;

      5.    Only 6.74% of the cooperatives belong to the Medium Scale;

      6.    About 334 (1.62%)registered cooperatives belong to the Large Scale;

      

      7.    The combined Large Scale and Medium Scale cooperatives contributed a total of P122,775,397,027 volume of business and total assets of P108,637,570,716. This means that majority of the cooperatives are those that have assets of not more than three (3) million, prone to financial difficulties and with little or no capacity to expand to meet the needs of the their members-clients;

 8.    More than 65% of registered cooperative are multi-purpose;

 9.    About 11.23% are engaged in credit and lending;

     10.  More than 5% are service and producer cooperatives;

      11.  There are 4.96% consumer cooperatives;

     
      12.  There are 3.59% marketing cooperatives and the rest represent 1% of the total;

13.  In 2011, the cooperative sector generated 141,260 indirect and 201,225 direct employments;

      14.  As of July 2012, the Cooperative Development Authority (CDA) have 100% active Regional CDC, 63% from Provincial Council, City Council with 80.1% and Municipal with only 38.91% Council who are actively participating with our cooperative development programs;

      15.   The CDA has received only a total of 11,944 CAPRs and only 11, 692 coops submitted Audited Financial Statements. (49% of the cooperatives has yet to submit these reports);

     16.   As of September 2012 the CDA has only 5,191 approved ACBL amendments out of 8,023 applications received; 

     17.   The cooperative sector has available services of only 831 total accredited individual CPAs and 87 firms nationwide that will handle the audit of the financial statements of the cooperatives; and

      18.   The amendment of CDA Charter and the mandatory creation of the Cooperative Development Office in the Local Government Units is still being scrutinized and deliberated upon on its 3rd and final reading in congress. 

Source: State of the Cooperative Address (2012 National Cooperative Summit)  /cds