The Department of Agriculture – Agricultural Credit Policy Council (DA-ACPC), in collaboration with the DA Regional Field Offices (DA-RFOs), the Development Bank of the Philippines (DBP), National Irrigation Administration (NIA), Philippine Crop Insurance Corporation (PCIC), National Food Authority (NFA), and Planters Products, Inc. (PPI), recently conducted a series of orientations for cooperatives and government personnel across the country as part of the Agri-Puhunan at Pantawid (APP) Program.
From April 25 to May 22, 2025, a total of five (5) orientations were conducted for various cooperatives from Pangasinan, Isabela, Nueva Ecija, Tarlac, Pampanga, Bulacan, Iloilo, Cotabato Province, Sarangani, and Sultan Kudarat who were identified as potential borrowers under the APP Program. Once approved, they will serve their rice farmer-members who wish to avail of the program for their rice production needs.
Field personnel from the DA-RFOs and NIA Regional Office 12 were also oriented to ensure the program’s effective on-the-ground implementation.
The APP Program aims to help Filipino rice farmers overcome long-standing challenges such as lack of capital, limited access to quality inputs, and rising production costs.During the Region 12 APP Program launch in Sarangani on April 11, 2025, President Ferdinand R. Marcos Jr. spoke about how many farmers are forced to borrow from informal lenders with very high interest rates.
“May ilan nga po sa inyo [magsasaka] na napipilitang umutang nang napakataas na interes—isang sitwasyong lalong nagpapabigat pa sa inyong pinagdaraanan,” President Marcos said.
The APP Program has two (2) components: Puhunan (capital) and Pantawid (sustenance). Under the Puhunan component, each farmer can borrow up to ₱28,000 per hectare for up to seven (7) hectares. This covers the cost of land preparation, pesticides, fertilizers, and post-harvest hauling. Under Pantawid, each farmer can also borrow an additional P32,000, which will be credited on a staggered basis after planting, to help cover living and other production costs while waiting for harvest.
The program offers a low interest rate of 2% within a six (6)-month term, or until the end of the cropping season, whichever comes first. PCIC shall likewise provide an insurance coverage of up to 100% of the loan amount for losses caused by insurable events such as typhoons.
To make loan access easier and more transparent, the program uses the Interventions Monitoring Card (IMC). Like a common debit card, the IMC allows farmers to buy inputs from PPI-accredited merchants and withdraw money from any BancNet ATMs. Transactions made using the IMCs are also recorded in real time to ensure efficient use of loan funds and to help improve the program.
A key feature of the APP Program is a guaranteed market for the farmers’ harvest. With the help of NFA, farmers can sell their fresh palay at no less than ₱21 per kilogram for the initial implementation of the program, and subsequently with an additional premium based on the prevailing market price.
With this design, the program complements other DA interventions by providing full funding for capital, inputs, and other needs.
DA Secretary Francisco Tiu Laurel Jr., during the APP Program launch on September 13, 2024, shared, “The APP program essentially represents contract farming, which will guarantee higher income for our farmers…”
By reducing financial pressure on rice farmers, the program allows them to focus on improving yields. Secretary Tiu Laurel Jr. added that it can even “provide the government with a stable supply of our staple food, and help reduce the volume of rice we import.”
During the previous dry season, five (5) cooperatives from the Cordillera Administrative Region (CAR) and Nueva Ecija availed of the program for their 1,403 rice farmers, with a total area coverage of 2,169 hectares.
As the 2025 wet season approaches, the APP Program implementing agencies aim to expand their efforts to support more farmers and help the country’s rice production.
