INSTEAD of a cash transfer program, the government will roll out a P1.5-billion loan program with zero interest rate for rice farmers who incurred losses due to influx of cheaper imports that pulled down farm-gate prices.
Agriculture Secretary William D. Dar on Friday said the Department of Agriculture (DA) changed the initial conditional cash transfer (CCT) program to a loan facility due to lack of funding.
Dar explained that it would cost the government about P6 billion to provide P5,000 for some 1.1 million rice farmers tilling one hectare of land and below.
“We don’t have that kind of money,” he said in his speech during a forum in Manila on Friday. “Wala na iyong cash transfer. We need P6 billion,” he added. [The cash transfer is gone. We need P6 billion].
In a separate statement, Dar announced that the Agricultural Credit Policy Council (ACPC) Governing Council approved on Thursday the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid).
Under the SURE Aid, rice farmers planting on land one hectare and below may apply for a one-time zero-interest loan amounting to P15,000, payable up to eight years.
LandBank
Interested rice farmers may access the program starting September 1. The program will be implemented by the LandBank of the Philippines (LandBank) with its guidelines to be jointly crafted by the ACPC and LandBank.
“This loan assistance is a manifestation of the strong desire of the government to help Filipino rice farmers,” Dar said.
Nonetheless, Dar assured rice farmers that the DA would continue to look for other measures to help them adjust with low palay prices.
“We will continue to look at measures to improve the living conditions of our rural stakeholders. Rest assured that with RCEF [Rice Competitiveness Enhancement Fund], farmers will increase productivity and earn more,” Dar he added.
The ACPC Governing Council is chaired by the Agriculture Secretary with the Central Bank Governor sitting as vice-chairman.
Its members include the Secretaries of the Department of Finance (DOF), Department of Budget and Management (DBM), and the Director-General of the National Economic and Development Authority (Neda).
Alongside Dar, the meeting was attended by BSP Deputy Governor Chuchi G. Fonacier, National Treasurer Rosalia V. De Leon, DBM Director Cristina B. Clasara, NEDA Assistant Director Diane Gail L. Maharjan, and ACPC Executive Director Jocelyn Alma R. Badiola, according to DA.
Also in attendance were Monetary Board Member Dr. Bruce Tolentino, LBP First Vice President Emellie Tamayo and other key officials from DA and ACPC, it added.
Last week, Dar and Finance Secretary Carlos G. Dominguez III agreed to implement a UCT program for rice farmers who were affected by the drop in the farm-gate price of palay.
The Federation of Free Farmers said rice planters have lost some P40 billion in the first half as cheaper imports that entered the country following the effectivity of RA 11203 — the rice trade liberalilzation law — pulled down farm-gate prices. ###