THE Agricultural Credit Policy Council (ACPC) said it has disbursed P1.64 billion in loans to small-scale farmers from June 2017 to December 2018, as part of government efforts to expand their access to affordable credit.
The ACPC, an attached agency of the Department of Agriculture (DA), said its Production Loan Easy Access (PLEA) program released funds to 159 lending conduits nationwide, serving 33,150 marginal farmers and fishermen (MSFF).
“The PLEA has reached about 10 percent, or 45, of the 455 unbanked municipalities identified by the Bangko Sentral ng Pilipinas (BSP),” the agency said in a statement on Wednesday.
“Through the PLEA, farmers and fishers in previously unbanked and unserved areas in CAR [Cordillera Administrative Region], Region 1, Region 4A and 4B, Region 6, Region 7, Region 9, Region 10, Region 12 and Region 13 now have access to affordable loans for their agri-fishery production,” it added.
Unbanked municipalities refer to those with no presence of banks or similar financial institutions, according to the ACPC.
However, the ACPC disclosed that the PLEA program’s repayment rate dropped to 91 percent in end December, from 97 percent recorded last September 30.
The agency attributed this to the adverse impact of typhoons, such as Ompong and Usman, on the production and harvest of farmers and fishermen in the last quarter of 2018.
“Validation results from the field show that more than one-half, or 54 percent, of PLEA beneficiaries are first-time borrowers to formal credit, and that 73 percent are new borrowers from ACPC-accredited lending conduits,” the ACPC said.
“This shows that through the ACPC’s partnerships with grassroots-based organizations, the PLEA continues to significantly contribute to financial inclusion, as it enables the unserved and underserved MSFF to have easier access to financing,” it added.
The PLEA program seeks to complement the loan portfolios offered by the Land Bank of the Philippines to MSFF, according to ACPC.
The government said it rolled out the program to boost farmers’ productivity.
The ACPC also said Agriculture Secretary Emmanuel F. Piñol ordered the creation of Loan Facilitation Teams (LoFTs) at the regional and provincial level to expand the reach of the agency’s easy-access credit program.
“The LoFTs, composed of representatives from various DA-attached agencies and LGUs, will answer queries and provide information on credit policies and programs,” the agency said.
“Further, the LoFTs will also guide MSFF in complying with loan documentary requirements including the crafting of project proposals, business plans, farm plan and budget,” it added.
The PLEA program was launched in Surigao del Norte on June 23, 2017. The ACPC said it is a special credit facility credit facility designed to address the financial needs of marginal and small farmers and fishermen for “fast, convenient and affordable credit.”
Non-collateralized loans for agri-fishery production are provided under the PLEA through cooperative banks, cooperatives and nongovernment organizations as credit delivery channels.
The loan is payable from 2 to 10 years with an interest rate of 6 percent per annum.