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1. Agro-Industry
Modernization Credit and Financing Program (AMCFP)
- As the government's umbrella
financing program for the agriculture and fisheries sector, the
AMCFP aims to establish an efficient, responsive and sustainable
credit or financial system for small farmers and fisherfolk,
including agrarian reform beneficiaries (ARBs); those engaged
in food and non-food production, processing and trading; cooperatives;
farmer and fisherfolk organizations; the agri-related micro,
small and medium enterprises (MSMEs). The AMCFP is demand-driven,
market-oriented (in order to consider recovery of lending costs),
and is being implamaneted through government financial institutions
(GFIs), private banks and other viable organizations.
- The ACPC was assigned
to oversee the implementation of the AMCFP while GFIs such as
the Land Bank of the Philippines and the Quedan and Rural Credit
Guarantee Corporation (Quendacor) provides wholesale funds to
viable rural financial institutions (RFIs) such as rural banks,
farmer cooperatives and organizations, and non-government organizations
(NGOs) which, in turn, lend directly to small farmers and fisherfolk
and agri-entrepreneurs.
With agri-microfinance as one of the top five priorities of the
DA, the ACPC developed and packaged two new programs under the
AMCFP, namely: a) Agri-Fishery Microfinance Program (AFMP); and
b) Fisheries Financing Program (FFP).
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- Agri-Fishery
and Microfinance Program (AFMP) seeks
to create jobs and thereby increase the income of small agricultural
households by proving financing not only for farming and fishing
activities but for other alternative livelihood projects as well.
The strategy is to encourage existing accredited retailers of
LandBank (cooperatives and rural banks) to expand their agri-fishery
microfinance operations and to tap new, potential lending conduits
such as fishery microfinance operations. Currently, the AFMP
for Hybrid Rice makes use of IAs as conduits for the release
of loans to farmer members for the purchase of hybrid seeds.
- Another component of
the AFMP is the Fisheries Microfinancing Program being
implemented in coordination with the Bureau of Fisheries and
Aquatic Resources (BFAR). Like AFMP, new potentially viable fisheries
cooperatives and other associations will be tapped as loan conduits
under the program.
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GEOGRAPHIC
COVERAGE: |
Nationwide |
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TARGET
CLIENTELE: |
Retailers:
Type 1: Bank Assisted Coops (BACs) and
other accredited conduit of LBP
Type 2: BACs and other accredited conduits of LBP
that failed the RAAC for microfinance
Type 3: Non BACs/PNACs and other organizations
- End-borrowers:
Small farmers and fisherfolk
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REQUIREMENTS: |
Retailers:
- Assignment of Sub-borrower PNs including underlying collaterals
- Other securities as may be required by LBP
End-borrowers:
Depend on the borrower-conduit
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OTHER
INFO/REMARKS: |
Loan Ceiling:
Type 1 & 2 - regular LBP limits apply
Type 3 - up to 85:15 debt in equity ratio but not exceed P10M
End-borrowers:
Microfinancing depends on the household cashflow but not to exceed
P50,000
Value Chain Financing: P100,000 |
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- Cooperative Bank Agri-Lending
Program (CBAP)
aims to expand lending of cooperative banks and increase their
outreach to small holders in the agriculture and fishery sector.
The program will have credit and institutional capacity building
components. The CBAP requires that participating coopbanks leverage
the P300 million funds infused by the ACPC at least five times.
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GEOGRAPHIC
COVERAGE: |
Nationwide |
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TARGET
CLIENTELE: |
Small farmers and fisherfolk |
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OTHER
INFO/REMARKS: |
Loan amount per borrower:
- max P30,000 (w/o collateral)
- max P150,000 (with collateral)
Interest rates:
12-20% per annum, depending on the conduits |
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- AMCFP for Tomato and
Tobacco farmers.
The scheme is designed to finance the production needs of tobacco
farmers in the northern region of the country and tomato growers
in Ilocos region through Quedancor and United Coconut Planters
Bank (UCPB) as wholesalers.
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GEOGRAPHIC
COVERAGE: |
Selected provinces in Region 1 (Abra, Ilocos Norte, La
Union, Ilocos Sur, Pangasinan)
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TARGET
CLIENTELE: |
Registered tomato and tobacco farmer groups
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REQUIREMENTS: |
Accomplishment & submission of farm plan and budget
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OTHER
INFO/REMARKS: |
Production assistance per hectare (tobacco):
Virginia: P30,000 to P45,000
Burley: P30,000
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2. Innovative Financing
Schemes (IFS)
- ACPC designs/develops
and pilot tests agricultural microfinancing schemes primarily
for small farmers and fisherfolk who do not have access to bank
financing or do not have collateral to offer. The IFS currently
being pilot tested is the Rural Household Business Financing
(RHBF) Program.
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- Direct Market Linkage
(DML) Program. DML
is the financing component of the National Agribusiness Corporation's
(NABCOR) "Post Harvest Processing, Warehousing and Trading
Program for Corn." The program aims to provide i) financing
assistance in the form of farm inputs to selected farmer beneficiary
groups, cooperatives as well as consumer groups/associations
for production; and ii) institution capability training to improve
and strengthen organizational management and business development
of the farmer trading groups. Through contract growing schemes,
this facility buys back the produce of farmers at market price
net of the loans they availed.
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GEOGRAPHIC
COVERAGE: |
4 corn processing centers in Banga, So. Cotabato; Kabacan,
Cotabato; Malungon, Sarangani and Sergio, Osmeña
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TARGET
CLIENTELE: |
Corn farmers |
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REQUIREMENTS: |
- must deliver produce to the processing centers;
- loan amount must be used for procurement of hybrid seeds &
fertilizers
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OTHER
INFO/REMARKS: |
Farms must be located not more than 10km radius from the corn
processing centers to avail free pick-up services
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