AGRICULTURE AND FISHERIES FINANCING PROGRAM (AFFP)

Program Description

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:

  1. 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;
  2. 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;
  3. 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
  4. 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.

lV. AFFP – Climate Change Adaptation Financing Program (CCAFP)

The Climate Change Adaptation Financing Program (CCAFP) serves as a pre-disaster intervention focused on prevention and preparedness to complement ACPC’s Survival and Recovery (SURE) Assistance Program which serves as a post-disaster, quick response mechanism focusing on rehabilitation and recovery of agricultural households affected by extreme weather events and calamities.

 

Program Coverage

  • RSBSA-provinces covered by the 18 priority major river basins in the country and the RSBSA-provinces affected by Typhoon Yolanda

18 Major River Basins in the Philippines

Abulog River Basin (Region II) Bicol River Basin (Region V) Agus River Basin (ARMM & Region X)
Abra River Basin (Region I) Panay River Basin (Region VI) Agusan River Basin (Region XIII, XI)
Cagayan River Basin (Region II) Jalaur (Region VI) Tagum-Libuganon River Basin (Region XI)
Agno River Basin (Region III, I) Ilog-Hilabangan (Region VI, VII) Davao River Basin (Region XI)
Pampanga River Basin (Region III) Tagoloan River Basin (Region X) Mindanao River Basin (Region X, XII)
Pasig-Laguna River Basin (Region IV-A) Cagayan de Oro River Basin (Region X) Buayan-Malungon (Region XI)

Eligible Borrowers

  • Small farmers and fisherfolk registered under the Registry System for Basic Sectors in Agriculture (RSBSA)

Eligible Conduits

Eligible conduits are participating lending institutions under any of the existing ACPC credit programs

  • Land Bank of the Philippines – for direct lending to small farmers under the Sikat Saka and AFFP programs
  • Cooperative banks – that passed the eligibility criteria and are participating in the ACPC Cooperative Banks Agri-Lending Program

Finance Charge

  • The finance charge of coopbanks to SFF borrowers shall not exceed 15% per annum
  • Farmer/fisherfolk borrowers may be granted interest rebates/discounts for adopting the recommended climate change adaptation practices and technologies
  • Participating lending institutions may also be granted interest rebates/discounts if they extend
  • Rates of rebates/discounts shall be set by the National Executive Committee of AFFP

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

Loan Features

  • The program shall recommend, as may be needed, loan features that will tailor fit to the nuances of the recommended technology/practice for consideration by the participating lending institutions.

The following are the initial list of climate change adaptation practices and technologies for particular vulnerabilities* as identified by the DA Systems Wide Climate Change Office (DA-SWCCO):

 

1. For drought prone areas

    • Drought tolerant varieties
    • Short/early maturing varieties
    • Rain water harvesting systems for individual farms or communal use for livestock or crop irrigation
    • AWD (Alternate wetting and drying) of irrigated rice farms
    • Microbial inoculants that promote extensive rooting, reduce inorganic fertilizer needs and/or protect crops from some diseases
    • Soil and water conservation measures that promote water retention e.g. SALT

2. For flood prone areas

    • Submergence of tolerant varieties
    • New crop/commodity combinations
    • Changed cropping patterns
    • Individual and communal flood control systems for crop farms and livestock houses
    • Saline tolerant varieties for coastal farms
    • Change land use
    • New aquaculture farming designs/gadgets/cages
    • Communal planting of bamboos/vetiver grass along banks of water bodies
    • Relocation of livestock houses to safer grounds

3. For typhoon prone areas

    • Planting of wind breaks
    • New cropping patterns
    • New livestock housing design and specifications

4. For storm surge prone areas

    • Communal planting of mangrove bands along seashore
    • Saline tolerant varieties and crops
    • Relocation of livestock houses to safer grounds

5. For landslide prone areas

    • Agroforestry farming
    • Soil and water conservation measures along slopes

6. For increasing temperatures

    • New livestock housing design and specifications
    • Installation of biogas system to provide energy for cooling livestock houses

*Notes

  • All crop varieties must be NSIC registered listing that particular trait
  • All microbial inoculants and other soil amendments must be FPA registered
  • Soil and water conservation measures as attested/verified by the BSWM
  • Livestock housing design and specifications as approved/accredited/attested by BFAR
  • The above measures may be done singly or in combination but must be packaged with other productivity-enhancing technologies
  • New crops/commodities must have assured markets
  • Crop insurance required

Interest rebates/discounts

  • Farmer/fisherfolk borrowers may be granted interest rebates/discounts for adopting the recommended climate change adaptation practices and technologies
  • Participating lending institutions may also be granted interest rebates/discounts if they extend
  • Rates of rebates/discounts shall be set by the National Executive Committee of AFFP

Contact Information

  • Mr. Allen Ducusin
    Tel. No.: (02)636-3392
    Program Development Division
    E-mail: [email protected]