Agrarian Production Credit Program (APCP)

The Agrarian Production Credit Program (APCP) is a program jointly implemented by the Department of Agriculture (DA), the Department of Agrarian Reform (DAR), and the LandBank of the Philippines (LANDBANK). The program caters to Agrarian Reform Beneficiaries (ARBs) whose organizations are not yet eligible to avail of loans from LANBANK. Eligible Agrarian Reform Beneficiary Organizations (ARBOs) avail of loans under the program and in turn re-lend to eligible ARBs to fiance their agri-production projects and activities.

The Agrarian Production Credit Program (APCP) aims to achieve sustainable crop production and increase incomes of agrarian reform beneficiaries (ARBs) and their households through the provision of credit and capacity building assistance.

Eligible Borrowers

  • Agrarian Reform Beneficiary Organizations (ARBOs)
  • Farmer Organizations/People’s Organizations other than ARBOs with ARB or ARB household members
  • Other conduits such as Cooperatives, NGOs, and rural banks only, with ARB or ARB household members or APCP ineligible ARBOs as clients

Eligible Sub-borrowers

Under ARBOs, POs and FOs other than ARBOs* (as conduits)

  • ARBs or ARB household members (as certified and endorsed by DAR)
  • *Must be a member of the ARBO or FO other than ARBO
  • The ARBs herein would refer to those who are actual tillers of the land with land title. For those whose lands have been covered by payments of landowners with certificate of cash deposit and have been assigned with electronic primary entry book number are also eligible. The landholding of ARBs should not be more than five (5) hectares. For communal farming, the MARPO shall still certify the eligible ARBs or ARB household members.

Under other conduits

  • ARBs, ARB household members or APCP ineligible ARBOs as clients (as certified and endorsed by DAR)

Loan Purpose

  • To finance the requirements for agriculture and fisheries, agri-enterprise and/or livelihood projects

Term of Loan

For agricultural and fisheries production

  • Based on the cycle/cash flow of the project but not to exceed seven (7) years with grace period up to three (3) years on the principal
  • Semi-Annual/Annual Crops — crops such as but not limited to rice and corn with a production cycle not exceeding 1 year
  • Plantation Crops — crops such as but not limited to coffee, cacao, and coconut which may have longer production cycle than 1 year shall have a maximum term of 7 years

For Working Capital

  • Based on the operating cycle of the project depending on the cash flow

For Fixed Asset Acquisition

  • Based on the project completion, cash flow, and remaining economic useful life of the asset to be acquired, whichever is applicable, but not to exceed 5 years

Eligible Projects

  • Agriculture and fisheries production such as, but not limited to, production of corn, sugarcane, coconut, cacao, coffee, livestock, poultry and fishery projects
  • Agri-enterprise and livelihood projects such as but not limited to, trading and processing of agricultural crops and commodities

Interest Rate

  • For Short-Term Loan: 8.5% per annum
  • For Term Loan: 9.5% per annum

Pass-On Rate to End-Borrowers

  • For Short-Term Loan: 15% per annum
  • For Term Loan – 16% per annum

Penalty on Late Payment

  • 3% per annum

Incentive

  • Interest rebate of 2% per annum based on the principal amount paid provided that the subject loan amortization is paid on time and that the prescribed pass-on rate is adhered to.

Collaterals/Securities

  • Assignment of Promissory Notes plus underlying collaterals
  • Assignment of insurance proceeds/guarantee claims/hold-out on deposit (if any)
  • Chattel mortgage as object of financing (if any)

Maximum No. of Projects

  • Up to three (3) projects per borrower

Contact Information

  • APCP Secretariat
    (02) 636-3391