DAVAO CITY -- The Department of Agriculture (DA) encouraged the rice farmers to avail of the government’s one-time loan assistance as they have only until December this year to submit their applications.
Agriculture Secretary William Dar said the government will start receiving applications for one-time, zero-interest loans on Sept. 1, 2019.
“Their application should not go beyond this year, they have to access it within a year,” Dar stressed.
He said each farmer affected by the Rice Tariffication Law (RTL) due to the influx of cheaper rice imports can avail of the PHP1.5 billion one-time loan assistance program.
Dar said rice farmers who are tilling one-hectare land and below may avail of the PHP15,000 loan payable up to eight years through the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid).
The DA chief clarified that other agricultural loan windows being offered by the department through the Land Bank of the Philippines (LBP) would still be accessible for those who cannot avail of the one-time loan program.
He said individual farmer borrowers can get as high as PHP1 million loan while the cooperatives can borrow up to PHP5 million at a 2 percent interest rate.
Dar, also board of director of LBP, assured strategies are being prepared to simplify the loan and approval processes of the applications.
“Red tape and voluminous requirements will shy away the farmers in going to the banks. One request we made to the leadership of LBP is to bring to the board next week the ease of doing business by simplifying the loan process and approval process as soon as possible,” he stressed.
Apart from the one-time loan program, DA also allotted PHP7 billion to the National Food Authority (NFA) for the procurement of ‘palay’ from the local producers.
“One way for them to buy more is what we called accelerated roll-over scheme. They can buy lots of it over a period of time,” Dar explained.
Dar said DA is now working with local officials to encourage them to provide a ‘bagsakan’ (whole sale market) for the farmers to send their farm produce.
“We are putting up this measure para maibsan ang kahirapan nila (to ease their burden),” Dar said.
Dar, meanwhile, promised to accelerate the rolling out of the RTL’s Rice Competitiveness Enhancement Fund (RCEF).
“Tariffication is already there, the RCEF is the program to make it possible for the rice farmers to be more productive competitive and prosperous,” he said.
The PHP10-billion RCEF aims to also help the farmers and to finance agricultural modernization programs which seen to address the negative impact of RTL. (PNA)
