AGRICULTURE AND FISHERIES FINANCING PROGRAM (AFFP)
The Agriculture and Fisheries Financing Program (AFFP) aims to help contribute to the attainment of inclusive growth through financial inclusion of the unbanked and under-banked sectors in agriculture. The program intends to:
- Increase access to financing of small, marginalized farming and fishing households engaged in the production of priority commodities other than rice and corn in geographic areas unserved/under-served by financial institutions;
- Help enhance the productive capacity, competitiveness, and income-earning potential of the said households through the provision of credit for production, processing, marketing, and other income-generating livelihood activities;
- Establish special financing facilities that will provide loans to small agricultural households: (a) in case of losses caused by extreme weather events and calamities; and (b) to finance climate change-resilient farming practices and technologies; and
- Facilitate the coordinated provision of credit-enhancement and other support services such as capacity building, technical assistance, credit guarantee, crop insurance, marketing, and monitoring and evaluation in order to optimize the benefits and potential impact of credit to target areas and beneficiaries.
ll. AFFP – Cooperative Banks Agri-Lending Program (CBAP) – II
The AFFP – Cooperative Banks Agri-Lending Program (CBAP) – II entails the extension of stable, low-cost funding support to small farmers and fisherfolk at full credit risk using their existing workable agricultural loan products. The funding support, which shall be in the form of loans, shall be matched by eligible coopbanks with their own counterpart funds equivalent to at least the amount of loans availed for lending to individual small farmers and fisherfolk.
Eligible Individual Borrowers
Small Farmers (registered in the RSBSA)
- Tilling not more than five (5) hectares of land and/or engaged as backyard poultry/livestock raisers or agricultural workers in farms
Small Fisherfolk (registered in the RSBSA)
- Operating fishing vessels of not more than three (3) tons capacity;
- Operating fishponds of less than five (5) hectares or fish cages of less than 400 square meters;
- Fish workers in fishing boats, fishponds, or fish processing establishments; or
- Other individuals engaged in small scale fish production, processing, and distribution
Eligible Cooperative Banks
Eligible coopbanks are licensed cooperative banks that pass the following basic criteria:
- Must have and maintain a CAMELS composite rating of at least 3 and a Management rating of at least 3 (as of latest BSP examination)
- Must have satisfactory track record in lending to target beneficiaries
- With good credit standing (i.e., no past due obligations with creditors) including the ACPC and/or DA programs
The coopbank must have an existing viable agricultural lending program that caters to DA priorities as evidenced by prudent lending policies, guidelines and procedures that are consistent with the objectives of the program.
- Financing of projects/activities related to the production, processing, and trading/marketing of crops, livestock, poultry, high value crops and fishery products
Agricultural Microfinance Loans
- Financing of farm, off-farm/non-farm activities of agricultural households using household’s cashflow lending approach
- The finance charge of coopbanks to SFF borrowers shall not exceed 15% per annum.
- The loans to coopbanks shall have a maturity of one (1) year to a maximum of five (5) years.
Term of Loan
- Shall correspond to the term of the submitted target loan disbursement schedules and/or actual disbursements and shall be based on the gestation period of the crops/activities to be financed as follows:
|Crop/Project Gestation Period||Loan Tenor|
|Less than 1 year||1 year|
|More than 1 year up to 2 years||2 years|
|More than 2 years up to 3 years||3 years|
|More than 3 years up to 4 years||4 years|
|More than 4 years up to 5 years||5 years|
- Mr. Ding Pereyra
Tel. No.: (02) 636-3392
Program Development Division
E-mail: [email protected]