Signing of the Memorandum of Commitment (MOC) between the Department of Agriculture (DA), Bangkoop, and Butil Party for the Coopbank Agri-Lending Program (CBAP) during the National Food Summit on April 4, 2008. In front row, from left: ACPC Exec. Dir. Jovita M. Corpuz, Butil Rep. Leonila V. Chavez, DA Secretary Arthur C. Yap, Bangkoop President Herminio G. Ocampo, Coopbank of Bulacan Gen. Manager Nestor S. Custodio, and Butil Party Secretary General Agapito H. Guanlao.
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DA, coopbanks commit P4 billion agri-fishery loans
The Department of Agriculture (DA) and the cooperative banking sector together committed to make available as much as P4 billion for agriculture and fisheries credit. A Memorandum of Commitment was signed by Agriculture Secretary Arthur C. Yap, Bangkoop President Herminio G. Ocampo and Butil Party Congresswoman Leonila V. Chavez, representing the farmers’ sector, for this joint undertaking during the National Food Summit held at Fontana Clark, Pampanga in April 4, 2008.
The joint initiative, called the Cooperative Bank Agricultural Lending Program or CBAP, aims to help cooperative banks not only in increasing their lending outreach to small holders in the agriculture and fisheries sector, but also in enhancing the leadership of the private sector in rural finance.
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ACPC Programs
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 AMCFP
Financing assistance to farmers,
fisherfolk, urban and rural poor who have projects in palay,
corn, soybeans, high-value crops, poulty, livestock, or
fisheries.
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 ICB
Assists Farmers’ and Fisherfolk’s
Organizations in improving their capacities for delivering
financial services.
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The Bangkoop is federation of cooperative banks nationwide owned by approximately 270,000 farmers and fishers. With more than 50 coop banks in the country today, The CBAP can potentially link up with the other 25 coop banks and facilitate credit access to an additional 250,000 farmers and fisherfolk.
President Gloria Macapagal-Arroyo announced during the Summit the importance of loans in food production through a package of support for agriculture, which she dubbed as FIELDS – Fertilizers; Irrigation and infrastructure; Extension, training and education; Loans; Dryers and other postharvest facilities; and Seeds.
Through the CBAP, a seed fund of some of P300 million from the DA, through the ACPC, will be leveraged by at least five times by 27 coop banks. These coop banks thus pledge to deliver loans amounting to P4 billion starting this year until the first quarter of 2009.
The program has two (2) components, namely: (1) the Credit Component, and (2) the Institutional Capacity Building (ICB) Component. Through the credit component, the program provides credit assistance to participating cooperative banks/institutions through working capital loans and/or rediscounting facilities. The ICB component, on the other hand, provides opportunities for cooperative banks in institutional strengthening activities that would improve their organizational capacities.
Also present to witness the signing were Cooperative Rural Bank of Bulacan General Manager Nestor G. Custodio, Butil Party Secretary General Agapito H. Guanlao, as well as representatives of the other initial participating coopbanks.
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Summit sums measures to ease farmers and fishers’ access to credit
Farmer representative Romeo Royandoyan of Centro Saka discussed his opinions and suggestions to ease farmers' access to credit during the Summit.
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A review of the collateral value of farm lands; a moratorium or restructuring of past due loans of farmers; and a search for ways to lower interest rates for agricultural projects – these are the major recommendations arrived at by farmer sector representatives, irrigators associations, cooperative banks, and government financing institutions that participated in the Agricultural Credit Summit organized by the Agricultural Credit Policy Council (ACPC) on April 9, 2008 at the Bureau of Soils and Water Management Convention Hall.
The Agricultural Credit Summit was held in order to come up with measures and interventions to address constraints to credit access for farmers and fisherfolk. Loans or credit is one of the important elements identified by President Gloria Macapagal-Arroyo during the National Food Summit needed to boost domestic food production.
During the credit summit, ACPC Executive Director Jovita M. Corpuz emphasized the need for further consultations and validation of the interventions that were identified to improve credit access of small farmers and fisherfolk. These interventions also include strengthening of the guarantee and insurance programs, expansion of productive lands for agriculture, and the budget appropriation for the umbrella Agro-Industry Modernization Credit and Financing Program (AMCFP). The resulting policy recommendations will be submitted Agriculture Secretary Arthur C. Yap and President Arroyo.
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Meanwhile, Department of Agriculture (DA) Undersecretary Bernadette Romulo-Puyat advised the financial sector to inform the DA and the farmers themselves on what will make the farm and fishery sector bankable. Members of the financing community present during the event were the Land Bank of the Philippines, Development Bank of the Philippines, cooperative banks, Quedancor, the Philippine Crop Insurance Corporation, and the Microfinance Council. On the other hand, Usec. Puyat also bid for the cooperation of farmers to religiously pay their loans in order to sustain the availability of credit funds for the next generation of farmers.
Agricultural and fisheries organizations present in the summit were Centro Saka, Philippine Confederation of Grains, Kapit Bisig, Kabukid, Federation of Irrigators Associations (IA), Pulong Sentro Irrigators Association IA, Deepwell Sumulong Farmers IA, Hyrice Corporation, Limcoma Milling Coporation, Pinoy Fishmart, Office of the Tribal Governor, East West Seed Company, and the Dairy Confederation of the Philippines. Other DA agencies, the Congressional Committee on Agriculture and Fisheries Modernization (COCAFM), and the academe were also represented in the activity.
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