ACPC to Facilitate Crafting of Action Plan for Credit

The Agricultural Credit Policy Council (ACPC) is set to facilitate the crafting of a strategic action plan that would aim to make agricultural credit more accessible to small farmers and fishers.

The strategic action plan, according to ACPC Executive Director Jovita M. Corpuz, is the highlight of the Agriculture and Fisheries Credit Summit that they will conduct tomorrow, August 18, 2011, in partnership with the Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFM).

“The crafting of a strategic action plan that will serve as the country’s roadmap for agricultural finance over the medium-term is what sets this credit summit apart from credit summits or conferences in the past, “ she explained.

Ms Corpuz added that they have identified five core issues that affect credit, which were thoroughly discussed during the separate conferences with representatives of lenders and borrowers that they held early last month. These are: Microfinance for agriculture and other innovative credit delivery mechanism for small farmers and fishers; Interest rates on agriculture and fisheries loans; Absorptive capacity and bankability of small farmers and fishers; Risk management in agriculture and fisheries credit; and, Governance and institutional reforms necessary for improving credit access of farmers and fishers.

“We also came up with possible solutions to the problems that surround these issues. So, during the summit, we will reason together and try to refine our solutions so they would be more equitable for everyone,” she said.

Ms Corpuz added that they have invited Dr. Emil Javier of the National Academy of Science and Technology and former president of the University of the Philippines, 2008 Ramon Magsaysay Awardee Dr. Aris Alip of CARD Bank, former Agriculture Secretary Senen Bacani, National Credit Council Deputy Executive Director Joselito Almario, and Federation of Free Farmers’ Cooperatives, Inc business manager Raul Montemayor, as part of the panel of renowned experts who would go over the plan that would be crafted during the event.

This summit is a crucial follow up to the Agriculture and Fisheries 2025 Summit held by the COCAFM last February, where the lack of access to agricultural credit came out as a common issue among commodity clusters, including rice, fruits & vegetables, commercial crops, livestock & corn, and fisheries & aquaculture.

To bolster the action plan, Ms Corpuz said that Department of Agriculture Secretary Proceso J. Alcala and COCAFM Chair Senator Francis N. Pangilinan are expected to input on the plan.

“We are hopeful that with the support of our high-level officials, this strategic action plan that we would come up with would close the PhP 252-billion credit gap in the agricultural sector and increase borrowing among small farmers and fishers from the present estimate of less than 70% to 85% by 2016,” she ended.

COCAFM members Representatives Imelda Dimaporo, Agapito Guanlao, Jesus Sacdalan will be attending the summit. COOP NATCCO Party list Representative Jose Ping-ay, DENR Secretary Ramon Jesus Paje, Climate Change Commission Vice-Chairperson Mary Anne Lucille Sering, DA Undersecretary Bernadette Romulo Puyat, and DAR Undersecretary Jerry Pacturan are also expected to be there. Norman William S. Kraft, Director II, ACPC