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.

lll. AFFP – Value Chain Financing Program (VCFP)


The AFFP – Value Chain Financing Program (VCFP) aims to improve credit access from institutional sources of small farmers participating in agribusiness value chains.

Funding support is extended in the form of loans to partner financial institutions that shall match the fund with its own counterpart fund equivalent to at least the amount of loan availed under the program in extending value chain financing to intended borrowers. Under this financing scheme, the partner financial institution shall utilize the proceeds of loan, including its counterpart fund in extending financial services to farmer-producers anchored on existing buyer-seller business relationships. By capitalizing on the existing business linkage relationship, the partner financial institution is able to reduce credit risk associated with lending to producers.

Program Coverage

Initial provinces:

  • Bukidnon
  • Zamboanga del Norte

Other provinces will be covered based on the following:

  1. Included in the DA priority provinces,
  2. With sizable number of farmer producers, and
  3. With identified buyers/processors.

Eligible Partner Financial Institutions

Eligible partner financial institutions are: (a) Cooperative banks that pass the eligibility criteria under the ACPC-CBAP and (b) Government-owned banks that meet the basic criteria:

  • Must have and maintain a CAMELS composite rating of at least 3 and Management rating of at least 3 as of latest BSP examination
  • Must have satisfactory credit standing with its creditors including the ACPC and/or DA programs
  • Must have past due ratio of not more than 15%
  • Must have capital adequacy ratio of at least 10%
  • Must have an existing agricultural lending program and branch/bank office(s) operating in the target coverage area(s)

Eligible Borrowers

Small farmers and/or their household members or group of small farmers (cooperative, association) that have marketing tie-ups with identified buyers/processors

Small farmers refer to:

  • Cultivating not more than five (5) hectares of land and/or engaged as small poultry/livestock raisers defined as those raising not more than the following:
    • Poultry – 1,000 poultry layers or 5,000 broilers
    • Swine – 10 sow level or 20 fatteners
    • Cattle – 10 fatteners or 5 breeders
    • Dairy – 10 milking cows
    • Goat – 50 heads

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

Finance Charge

  • The total finance charge of partner financial institution to borrowers shall not exceed 15% per annum

Loan Security

  • The partner financial institution may require the borrowers to put up any or a combination of the following as security to the loan: (a) crop insurance; and (b) AGFP guarantee.

Contact Information

  • Mr. Joel Matira
    Project Development Division
    Tel. No.: (02)636-3392