The Department of Agriculture – Agricultural Credit Policy Council (DA-ACPC) has officially institutionalized its modernized Credit Fund Line (CFL) system, a key initiative aimed at accelerating the delivery of affordable government credit to Filipino farmers and fisherfolk while strengthening transparency, efficiency, and accountability in fund management.
To support the rollout of the new framework, DA-ACPC gathered its Partner Lending Conduits (PLCs) on March 11, 2026, for a comprehensive orientation and walkthrough of the updated processes. The session was designed to streamline fund delivery and ensure that all PLCs are aligned with the agency’s high standards for responsible and transparent fund management.
PUTTING FARMERS AND FISHERS FIRST THROUGH MODERNIZED PARTNERSHIPS
Through the Credit Fund Line policy, DA-ACPC establishes a performance-based system that reinforces transparency and high-impact lending. The framework empowers PLCs—including rural banks, cooperative banks, and non-government organizations—to serve as stronger financial bridges between government resources and the small farmers and fisherfolk who need them most.
As part of its modernization efforts, DA-ACPC is also advancing the digitalization of its credit processes through the Agri-Credit Electronic Portal (ACE Portal). The platform standardizes and simplifies loan tracking, credit fund downloading, and monitoring of fund utilization, enabling a more data-driven and streamlined credit delivery system.
“These new guidelines strengthen our mandate to enhance the flow of credit to the agri-fisheries sector,” said DA-ACPC Executive Director Rallen Verdadero. “By institutionalizing a system that prioritizes performance and accountability, we ensure that every peso of government funding works harder for our farmers and fisherfolk.”
PARTNER PERSPECTIVES
The transition to the CFL framework has drawn positive feedback from PLCs, who welcomed the modernization of rural financial services.
“We appreciate the new Credit Fund Line guidelines, as the approach is data-driven and scientific. This is very important, especially with limited government funds,” shared Herbert Molina, Assistant Vice President of the Rural Bank of Sorsogon. “We look forward to strengthening our partnership with ACPC and investing more in the agricultural sector.”
“With the CFL, the credit fund downloading, utilization, and monitoring are now streamlined,” explained Calvin Akut Jr., Senior Vice President of the Mindanao Consolidated Cooperative Bank.
“The PLCs are also given the flexibility to allocate the credit fund to any ACPC credit program based on the needs of our borrowers,” noted Ruben Habon, President of the Ilocos Consolidated Cooperative Bank.
KEY BENEFITS FOR STAKEHOLDERS
The new framework ensures a continuous flow of funding through a replenishment protocol that automatically initiates once utilization reaches 75 percent of the approved credit line. This mechanism helps maintain a steady supply of capital for borrowers while minimizing delays in fund replenishment.
A Regional Equity provision also allows DA-ACPC to support emerging lenders in underserved and remote provinces, even those with limited track records. This provision helps ensure that no farming community is left behind as the government strengthens and modernizes agricultural financing systems.