Agri Credit Summit Tackles Rural Financing Issues

A strategic action plan to increase access to credit in the agricultural sector, particularly among small farmers and fishers, was the centerpiece of deliberations during the Agricultural and Fisheries Credit Summit (AFCS) 2011 held last August 18 at the Century Park Sheraton Hotel in Manila.

The gathering of representatives of lenders and borrowers, as well as policy makers in the agricultural sector was spearheaded by the Agricultural Credit Policy Council (ACPC) and the Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFM). Department of Agriculture Secretary Proceso Alcala and COCAFM Chairman Senator Francis N. Pangilinan headed the list of speakers and discussants all renowned for their significant contributions to rural financing and agricultural development.

Deploring the huge credit gap, Secretary Alcala welcomed the Credit Summit as an opportunity for rural finance and development stakeholders from government and the private sector to come up with a more efficient credit system that will help farmers and fisherfolk increase their productivity towards the nation’s food self-sufficiency.

Senator Francis Pangilinan warned of the imminent decline of local agriculture as it fails to inspire the youth to take up farming as a profession. He welcomed the holding of the credit summit as part of the continuing efforts of both the legislative and executive branches of government to ensure the viability and sustainability of agriculture.

Other special guests who delivered their messages were: DA Undersecretary Bernadette Romulo-Puyat who opened the summit with her welcome remarks, Department of Agrarian Reform Undersecretary Jerry E. Pacturan, Secretary Mary Ann Lucille L. Sering of the Climate Change Commission, COCAFM member and Butil Party List Representative Agapito Guanlao, and COCAFM Executive Director Jocelyn R. Badiola who gave the closing remarks.

Presented by ACPC Executive Director Jovita M. Corpuz, the strategic action plan recommended six major strategies: 1) Strengthen the AFMA-mandated AMCFP and Land Bank lending to small farm and fishing (SFF) households; 2) Reduce cost of lending and provide incentives for private banks to increase lending to agriculture and fisheries sector; 3) Strengthen credit guarantee and agricultural insurance programs; 4) Build up small farmers and fishers database; 5) Intensify information dissemination and strengthen monitoring and evaluation; and, 6) Expand programs that build the capacity of small farmers’ and fishers’ cooperatives or other organizations to manage credit funds.

A set of discussants composed of former University of the Philippines President Dr. Emil Javier of the National Academy of Science and Technology, 2008 Ramon Magsaysay Awardee Dr. Aris Alip of CARD Bank, former Agriculture Secretary Senen Bacani, National Credit Council Deputy Executive Director Joselito Almario and Raul Montemayor of the Federation of Free Farmers’ Cooperatives, Inc. presented their critiques on the strategic action plan. Dr. Javier suggested lowering interest rates by bringing down the cost of money. He also urged ACPC to strengthen the cooperatives by assuming the role of the former Bureau of Agricultural Cooperatives. Dr. Alip proposed that AGFP guarantee private bank loans, not government lending funds. He also called for the strengthening of the mutual benefit associations which have developed cheaper and more viable insurance systems. Mr. Bacani suggested tapping an institution like Land Bank to ensure the successful implementation of the plan. But he also advised that Land Bank should refocus on its original mandate, which is to lend primarily to small farmers and fisherfolk.

PIDS Senior Fellow and also former ACPC Executive Director Dr. Gilbert Llanto facilitated the open forum, where the participants further threshed out their issues.

Forum panelists who responded to their queries included DA Sec. Alcala, DA Usec. Puyat, ACPC ED Jovita Corpuz, Dr. Rolando T. Dy of the University of Asia and the Pacific, Dr. Isabelita Pabuayon of the Institute of Cooperatives and Bio-Enterprise Development, University of the Philippines Los Banos , Dr. Marife Ballesteros of the Philippine Institute of Development Studies (PIDS) and Dr. Meliza Agabin of the Microenterprise Access to Banking Services (MABS) who is also former Executive Director of the Technical Board for Agricultural Credit (TBAC), the forerunner of the ACPC.

The AFCS was attended by a good mixture of participants cutting across the spectrum of political persuasions in both the supply and demand, as well as policy making sides of the agricultural credit equation.

Aside from DA Sec. Alcala and Usec Puyat, also present were the other members of the Agricultural Credit Policy Council: Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla, Department of Finance Undersecretary Jeremias N. Paul, Jr. Department of Budget and Management Director Estrellita Bangsal and Dominador Gomez of the National Economic Development Authority. Heads of the line agencies, attached agencies, bureaus and regional offices of the Department of Agriculture as well as the officers and staff of COCAFM came in full force. NFA Administrator Angelito T. Banayo also lent his presence.

Among those who actively participated were the representatives of farmer and fisher organizations such as Ernesto Ordonez of Alyansa Agricultura, Felix Borja of the Cooperative of the Philippines, Danilo Fausto of the Dairy Confederation of the Philippines, Joey Faustino of the Coconut Industry Reform Movement, Rolando Danila of the Banana Industry Council of Southern Mindanao, Jaime Tadeo of the Rice Farmer Council, Arsenio Tanchuling of Tambuyog Development Center, Edgardo Codilla of the Association of Regional Agriculture and Fisheries Councils , Ofticiano Manalo of the Irrigators Association (North Luzon), Roger Navarro of Philippine Maize Federation, Romeo Royandoyan of Centro Saka, Angelito Dasmarinas of the Iloilo Federation of Livestock, Arlene dela Vega of Bolinao Fishpen and Caretakers’ Association and Ardan Copas of the La Trinidad Upland Vegetable Farmers.

Also present were the representatives from the banks and other financing institutions led by BANGKOOP Chairman Rufino Fernandez and President Nancy Marquez, Rural Bankers Association of the Philippines Executive Director Vicente Mendoza, Development Bank of the Philippines Assistant Vice Presidents Leopoldo Resmundo and Romeo Carandang, Land Bank of the Philippines First Vice Presidents Liduvino Geron and Leticia Villa, Planters Development Bank Vice Presidents Neliza Onate and Bernadette Sevilla, United Coconut Planters’ Bank Vice President Ramon Fernandez, Philippine Crop Insurance Corporation (PCIC) President Jovy Bernabe, Quedancor President and CEO Federico Espiritu, Bank of the Philippine Islands Assistant Vice President Perlina Padilla, People’s Credit and Finance Corporation President Edgardo V. Generoso, and National Livelihood Development Corporation Executive Director Gondelina G. Amata.

Sec. Alcala instructed the ACPC to come up with the revised strategic plan within a month based on agreements during the summit. Virgilio Crisostomo, ACPC Information Division