MANILA – President Benigno Aquino III has ordered the Department of Budget and Management to release P1 billion to the Department of Agriculture for the nationwide implementation of the Agrarian Production Credit Program.

Included in the fund is a P300-million allocation exclusively for Negros Occidental. The release — chargeable against the 2012 General Appropriations Act — is in accordance with a five-year Memorandum of Agreement signed by the DA, the Department of Agrarian Reform, and Land Bank of the Philippines.  

Under the MOA, the DA will place the P1-billion fund with LBP.

The total fund will be used to support the credit requirements of Agrarian Reform Beneficiaries or ARB household members for their individual or communal crop production projects. Other projects, such as agri-enterprise and livelihood activities, may also be considered by the ACPC Program Management Committee.

“The ACPC will help ensure the sustainable and effective production of crops nationwide, in addition to boosting the income of farmer-beneficiaries. Prior to this, agrarian reform beneficiaries have received meager credit assistance, resulting in limited crop production and slower economic growth among beneficiary households,” DBM Secretary Florencio Abad said.

Through the program, the DA will provide basic support and services, such as marketing assistance and technology packages to qualified ARB organizations. Meanwhile, DAR will be at the helm of identifying eligible ARBs or ARB household members to LBP.

The agency will also provide parallel institutional development assistance to participating ARBOs to help them graduate them to regular lending programs. The agrarian reform agency will also provide capability building assistance to beneficiaries, as well as professional management services and facilities support, including those for farm equipment, post-harvest facilities, and storage, among others.*PNA

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