The Agricultural Credit Policy Council (ACPC) Governing Council approved the implementing guidelines of two financing programs under the Agro-Industry Modernization Credit and Financing Program (AMCFP).
The ACPC Governing Council members signed ACPC Resolution No. 1, Series of 2015, approving the AMCFP – Agricultural-Fisheries Financing Program (Funded Under GAA 2015) Implementing Guidelines. As prescribed under Section 3 of the Fiscal Year 2015 General Appropriations Act (GAA), the implementing guidelines for a streamlined and equitable access of small farmers and fisherfolk to the P2 billion AMCFP-AFFP were formulated in coordination with partner financial institutions i.e., government financial institutions (GFIs) and cooperative banks. The said guidelines were reviewed and discussed by the Governing Council of the ACPC during the 61st ACPC Governing Council Meeting on March 25, 2015.
The approved Implementing Guidelines on the AMCFP-AFFP covered the terms and provisions on the implementation of various agri-credit facilities under AMCFP such as the AFFP Sikat Saka II, ACPC-PCFC AFFP Agri-Microfinance Program (AMP), Cooperative Banks Agri-Lending Program (CBAP), Value Chain Financing Program (VCFP), Climate Change Adaptation Financing Program (CCAFP), as well as the DA’s Agrarian Production Credit Program (APCP). The resolution also contained the approving authority of applications and fund disbursement, which is governed by the DA’s General Memorandum Order No. 01 Series of 2015.
The ACPC Governing Council also approved Resolution No. 2, Series of 2015, approving the Department of Agriculture (DA)-ACPC Value Chain Financing Program (DA-ACPC VCFP) for small corn farmers in the priority provinces of the DA Corn Development Program.
The DA-ACPC VCFP was conceived following the discussion of the ACPC Governing Council for a credit scheme that has the potential in promoting inclusive growth in rural areas by enabling small farmers to improve their livelihoods and incomes through improved links in a value chain.
The ACPC Governing Council, during its 59th meeting on October 27, 2014, approved ACPC’s proposed VCFP to cover priority provinces of the DA as well as other provinces that may be selected based on a set criteria. The VCFP will initially be implemented in the provinces of Zamboanga del Norte and Bukidnon.
The resolution outlined the features of the program, which include: 1) funding support to be provided in the form of loan which shall be matched by partner financial institutions with their own counterpart fund equivalent to at least the amount of loan availed under the program. The partner financial institutions shall utilize the proceeds of the loan including its own counterpart fund in extending value chain loans to eligible farmer-borrowers at their full credit risk; 2) open to financial institutions (banks) that will pass the eligibility criteria. The financial institutions shall be encouraged and assisted in availing credit guarantee (Agricultural Guarantee Fund Pool) and/or crop insurance (PCIC); and 3) an initial Program Fund in the amount of One Hundred Million Pesos (Php100,000,000.00) to be drawn against the AMCFP.
The ACPC Governing Council is chaired by the DA Secretary Proceso J. Alcala along with Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. as co-chair and Secretary Cesar V. Purisima of the Department of Finance (DoF), Secretary Florencio B. Abad of the Department of Budget and Management (DBM) and Director General Arsenio M. Balisacan of the National Economic Development Authority (NEDA) as members.
They are represented by DA Undersecretary Antonio A. Fleta, BSP Deputy Director General Nestor A. Espenilla, Jr., DoF Undersecretary Jeremias N. Paul, Jr., DBM Undersecretary Mario M. Relampagos, and NEDA Deputy Director General Emmanuel F. Esguerra.