loan-increase

Department of Agriculture (DA) Secretary and ACPC Chair Proceso J. Alcala, together with Agricultural Credit Policy Council (ACPC) Executive Director Jovita M.  Corpuz, turned over a total of P300 M to partner cooperative banks for the implementation of  the Agriculture and Fisheries Financing Program – Cooperative Banks Agri-Lending Program II (CBAP II). The  check turn-over ceremony was held on September 30, 2015 at the ACPC Conference Room in Pasig City.

  Secretary Alcala signed the implementing guidelines of the Agriculture and Fisheries Financing Program (AFFP), of which the CBAP II  is one of the credit facilities with an allocation of P300 million. The AFFP, on the other hand, is one of the programs under the Agro-Industry Modernization Credit and Financing Program (AMCFP), the umbrella credit program of the DA for agriculture and fisheries.                           

The AFFP was approved by the ACPC Governing Council through Resolution No. 1, Series of 2015. The goal of the AMCFP-AFFP is to contribute to the attainment of inclusive growth through financial inclusion of the unbanked and underbanked sectors in agriculture.

The Cooperative Banks Agri-Lending Program (CBAP) – II intends to complement the current’ wholesaler-retailer scheme of the AMCFP. Specifically the Program aims to provide concrete support by way of stable, low-cost funding support to cooperative banks that have demonstrated capacity to continually provide appropriate and incremental agricultural loans to SFF and lower down pass-on rates to SFF borrowers.

The Cooperative Banks Agri-Lending Program (CBAP) – II entails the extension of loans to eligible cooperative banks that shall, in turn, lend to small farmers and fisherfolk registered in the Registry System for Basic Sectors in Agriculture (RSBSA).  The cooperative banks shall lend at full credit risk using their existing workable agricultural loan products. The loan fund shall be matched by eligible cooperative banks with their own counterpart funds equivalent to at least the amount of loan fund availed for lending to individual SFF. The scheme would enable the cooperative banks to expand their agri-fishery loan portfolio while also lowering pass-on rates to small farmers and fisherfolk borrowers. With improved credit access, the program hopes to enhance farmers’ and fisherfolk’s production capacities, productivity and incomes. 

Under the CBAP II Program, funds are being deposited in thirteen (13) cooperative banks  for agri-lending. These include: First Isabela Cooperative Bank (P50M);  Cooperative Bank of Cotabato (P40M); Cooperative Bank of Misamis Oriental (P40M); Bukidnon Cooperative Bank (P30M); Ilocos Sur Cooperative Bank (P20M); Cooperative Bank of Ilocos Norte (P20M); Cooperative Bank of Bohol (P20M);  Cooperative Bank of Nueva Vizcaya (P20M); Cooperative Bank of Quezon Province (P20M); Cooperative Bank of Negros Oriental (P10M) ; Cooperative Bank of La Union (P10M);  Negros Cooperative Bank (P10M) and Occidental Mindoro Cooperative Bank (P10M).

Other programs being implemented by DA-ACPC under the AFFP are: 1) AFFP Sikat Saka II; 2) Agrarian Production Credit Program (APCP); 3) ACPC-PCFC AFFP Agri-Microfinance Program (AMP)- II; 4) Cooperative Banks Agri-Lending Program (CBAP) – II; 5) Climate Change Adaptation Financing Program (CCAFP); and 6) Value Chain Financing Program (VCFP).

Earlier in September, the DA-ACPC turned over P40 M to the Philippine Postal Savings Bank, Inc. (Postbank) for the implementation of  the AFFP-VCFP.  During the check turn-over ceremony, DA-ACPC Executive Director Jovita M. Corpuz, handed over the check to Postbank President and CEO Cesar N.  Sarino. The event was witnessed by ACPC Deputy Executive Director Ramon C. Yedra and other ACPC officers together with Postbank Senior Vice President Higinio C. Fabian and Postbank Manager Glenda Llanera. The AFFP-VCFP was conceptualized based on Sec. Alcala’s advocacy  to improve credit access from institutional sources for small farmers participating in an agribusiness value-chain. The initial funding of P40 million from ACPC will be used to support the implementation of a value-chain financing facility for farmers or groups of farmers registered in the RSBSA and with market tie-up with established buyers. The Postbank shall also match the loan fund with its own counterpart fund equivalent to at least the amount of loans availed under the Program.   The Program shall be implemented in  the priority areas of the DA, initially in the provinces of Bukidnon and Zamboanga del Norte.