MANILA, Philippines — The Department of Agriculture has launched a new credit facility in a bid to elevate the level of farming and productivity of local farmers.
BuyANIhan, to be administered by DA-attached agency Agricultural Credit and Policy Council and the Development Bank of the Philippines, is the newest addition to the funding assistance extended by the government to rice farmers.
The credit will be used as working capital of cooperatives to intensify palay buying directly from farmers at competitive price.
Only eligible cooperatives endorsed by DA through the regional field offices may avail of the credit line based on the maximum inventory level of their warehouse capacity.
Agriculture Secretary William Dar said Nueva Segovia Consortium of Cooperatives is the first recipient of the loan which has an interest rate of 2.5 percent per annum, payable in three years.
The loan, which amounts to P200 million, must be used in buying palay from farmers and members of the cooperative in Ilocos Sur and nearby provinces.
“Farmers should come together and form organized associations and showcase collective action in grassroot level. We should be part of an association so we can have the leverage,” Dar said.
“This is the way forward. Once you are strong, you can partner with businesses to have economies of scale,” he added.
Aside from BuyANIhan, the DA has launched the SURE Aid loan program under ACPC in August, which extends a one-time P15,000 financial aid to rice farmers with one-hectare or less farm area.
The zero interest credit is payable in eight years.
The DA is also extending financial support to provincial governments that have adhered to the call of the government to support local rice farmers.
The fund may be used for buying palay and setting up a value-chain system in the provinces to assist farmers in production, post-harvest, processing, and marketing of their produce.