For many small farmers and fisherfolk, access to affordable credit remains a challenge. Recognizing this, the Department of Agriculture – Agricultural Credit Policy Council (ACPC) empowers cooperatives, associations, and foundations to become Partner Lending Conduits (PLCs) through the efforts of its Capacity Building Division (CBD). By strengthening their credit management and operations, these organizations can effectively extend financial assistance to those who need it most.
CBD provides capacity-building support to farmer and fisherfolk organizations, ensuring they meet the basic requirements to become PLCs. These include maintaining a past-due loan ratio of not more than 25%, having at least two years of lending experience, and possessing a satisfactory credit standing with creditors, if any.
Identifying which organizations to assist begins with endorsements from local government units (LGUs), DA Regional Field Offices, attached agencies and bureaus, and partner agencies like the Cooperative Development Authority (CDA), and the Department of Trade and Industry (DTI).
Once identified, the CBD conducts an orientation session with the cooperative’s management, followed by a training needs assessment to pinpoint areas for improvement. The division then provides targeted training to enhance competency, governance, and financial systems. But the process doesn’t stop there – CBD ensures that the knowledge gained from training is put into practice by monitoring the execution of the organization’s action plans.
To ensure long-term sustainability, CBD also trains cooperative members and potential members, equipping them with financial literacy and a shared sense of responsibility in strengthening their cooperative.
Many organizations struggle with limited funds, a key barrier to becoming a sustainable lending conduit. “If a cooperative lacks funds, we need to help members understand the importance of increasing their capital build-up and savings as a way of generating internal funds,” CBD Chief Charles Dulay explained. This mindset shift ensures that organizations can continue to operate even beyond DA-ACPC’s financial support.
To further reinforce financial discipline, CBD conducts training sessions focused on Financial Literacy and Credit Worthiness. These programs teach individual beneficiaries about budgeting, saving, and responsible borrowing, while cooperatives receive workshops on Strategic Planning to help set long-term goals and strategies.
Once an organization demonstrates readiness, CBD prepares a Lending Conduit Evaluation Report and endorses it to the DA-ACPC Program Development Division, which then facilitates its official engagement as a PLC.
JOMFI Executive Director Dante T. Arias praised the program’s interactive approach. “This method is not only more exciting but also more engaging than our traditional financial literacy modules. It encourages active participation from everyone involved,” he said.
ACPC CBD Chief Charles Dulay recognized JOMFI’s strong foundation in lending. “Their lending system is already in place, they assist farmers in their agricultural activities, and they also provide financial literacy training to borrowers. Plus, their system is already digitalized,” he noted. “Based on our evaluation, they are qualified. We just need to ensure they meet one final requirement.”
“They serve a large number of farmers in Benguet and even reach as far as La Union. They already have networks in place and are linked with the DA and other agencies. This means we can help more farmers through their system,” Mr. Dulay emphasized.
In 2025, CBD aims to help at least nine organizations become PLCs, expanding ACPC’s credit network.
