DA to provide counterpart funding to local government units

The Department of Agriculture (DA) will continue to provide counterpart funding to local government units (LGUs) to bankroll farm and fishery programs despite seeing the department’s budget this year sharply cut to P16.5 billion from P19.9 billion in 2002.

Agriculture Secretary Luis Lorenzo said however, that eventually, LGUs should absorb the greater burden of financing agricultural projects since the National Government already increased their Internal Revenue Allotment (IRA) to P141 billion this year from the previous year’s P134.4 billion.

"Despite our budget cut, we remained committed to forge counterpart funding schemes with LGUs provided they allocate a portion of their developmental budget in improving the delivery of support services for our farmers and fisher folk," Lorenzo said.

The DA chief has offered the proposal to municipal, city and provincial officials, stressing that local executives should play a greater role in providing effective extension service at the farm level.

The offer was relayed by DA undersecretary for special operations Celestino Martinez Jr. in a recent dialogue with local officials and some 80 farmers in Barangay Lamac, Pinamungajan, Cebu.

"Whatever amount you give for farm and fishery projects in your area, rest assured DA will extend a similar amount to bring the project to completion," Martinez said.

The counterpart funding scheme according to Martinez, proved to be successful in pilot areas in La Union, Visayas and Mindanao.

The scheme is being pushed because many farmers have remained poor and deprived of farm extension services up to this day.

This is because farm technicians absorbed by LGUs due to devolution in 1993 had since lost their capability to render effective extension work when their new employers did not live up to DA’s expectations and even cut back agricultural spending.

Aside from the counterpart financing, Lorenzo said farmers and fisherfolks can tap other funding sources, including the DA‚s credit arm, the Quedan And Rural Credit Guarantee Corporation (Quedancor).