MANILA, Philippines - The Agricultural Credit Policy Council (ACPC) is allotting P100 million for a joint lending program with the People’s Credit and Finance Corp. specifically designed for farmers and fisherfolk affected by climate change.
The ACPC-PCFC Agro-Microfinance Program (AMP) will provide credit to farmers and fisherfolk affected by El Niño and other calamities associated with climate change.
The ACPC passed two resolutions during its 33rd Council Meeting on May 31, 2010.
One solution sets the “Guidelines for the Implementation of the AMP for small farmers and fisherfolk and their households in El Niño and Other Calamity-Stricken Areas.”
The objective of the new agri-microfinance window under PCFC is to help mitigate the adverse impact of climate change, global warming and El Niño on the agricultural sector, especially on the lives of small farmers and fisherfolk, who suffer the most in times of natural and man-made calamities.
The program will prioritize El Niño and other calamity-stricken areas identified by the Department of Agriculture (DA).
Another resolution approves the conduct of a “Review of ACPC-Administered Financing Programs.” It authorizes an independent review of all the on-going programs of ACPC in order to determine their effectiveness and viability.
The terms of reference for the review are: (i) examine the design and operating guidelines and procedures of each program; (ii) identify enabling/deterrent factors in the successful operation of the programs; (iii) determine the efficiency and effectiveness of the programs in terms of outreach, financial performance including default ratios, among others; and (iv) recommend ways to improve operations and enhance the viability of the programs.
The review is also expected to come up with analyses and recommendations for a general approach to lending under the Agro-Industry Modernization Credit and Financing Program (AMCFP).
Currently, there are eight lending programs being implemented by the ACPC under the umbrella of the AMCFP and the Innovative Financing Schemes of ACPC.
These are: (1) the Agri-Fishery Microfinance Program (AFMP); (2) Fisheries Financing Program (FFP); (3) Agricultural Microfinance Program for Small Farmers and Fisherfolk and their Households; (4) Cooperative Banks Agri-Lending Program (CBAP); and (5) Direct Market Linkage (DML) Development Program, (6) AMCFP Quedancor, (7) AMCFP Tobacco/Rice Growing System with the National Tobacco Administration, and (8) AMCFP Tomato Production and Paste Processing with the Northern Foods Corp.