DBP wants partners for APP program

MANILA, Philippines — The Development Bank of the Philippines (DBP) is keen on partnering with other government agencies, including the Maharlika Investment Corp. (MIC), to beef up the funding of its new credit program that seeks to improve rice farmers’ productivity and welfare.

DBP board director Roberto Antonio is calling on other government agencies with budget surpluses to park their excess funds with the state-run bank to bankroll its Agri-Puhunan at Pantawid (APP) program.

The APP is a joint program between the DBP and the Department of Agriculture (DA) with an initial budget of P3 billion that seeks to provide low-cost credit program to individual rice farmers.

Under the program, rice farmers would get P60,000 to cover their input costs as well as have a monthly subsistence for the months that they are waiting for harvest.

The program charges a minimal interest fee of one percent per cropping season or two percent per annum.

“I am asking other agencies who have excess budget to put their money in this program. That fund would go to the farmers,” Antonio said in a press briefing.

Antonio said he would set an appointment with MIC officials to discuss the possibility of partnership for the APP program.

“I will seek for an appointment with the people from Maharlika and ask if they might want to join. I am willing to meet with anyone willing to help us expand the program,” Antonio said.

“The President wants this because he really means well for the farmers and he is all out for it. Let’s help (the government) and most of all let’s help our farmers,” he added.

The APP program was launched last Sept. 13 during the birthday of President Marcos. The program initially targets to cover 50,000 farmers planting in irrigated areas in the upcoming wet season.

For the entirety of the program, the government targets to cover 1.2 million hectares of rice farms.

Under the program, farmer-beneficiaries will get a net amount of P58,000. Of the amount, P32,000 will serve as their subsistence allowance which can be withdrawn over a four-month period at P8,000 per month.

Farmer-beneficiaries of the program would also have a guaranteed market and support price as they can sell at least five metric tons to the National Food Authority (NFA) for its buffer stocking needs.

Former finance secretary Gary Teves commended the program, noting that it would address farmers’ need for financing as well as ensure a stable market for their harvests through the NFA that would reduce their risk of income loss.

However, Teves cautioned that many rice farmers may still opt to get financing from loan sharks for their urgent needs given their current mindset that government support does not need any repayment.

He also recommended that the government seek private sector collaboration to boost the funding of the program as well as bring in technology and expertise to scale it more effectively.