ACPC Joins Launch About the Cover of National Year of Rice 2013 The year 2013 has been proclaimed as the National 3 Year of Rice (NYR) by President Benigno S. Aquino III through 2013 ACPC Planning Procalamation No. 494. The Workshop held for ACPC held its Commitment 2013 and 2014 Ceremony for the NYR at the Operational Plans ACPC Conference Room in One 5 San Miguel Avenue Building, Ortigas Business Center, Pasig Additional P1 B orf City last February 11, 2013. government agri-credit to benefit 97,000 7 more farmers, fisherfolk

T OF AGR N IC E U M L T T R U A R P E E

D ACPC Holds Workshop

CONTENTS to Develop Targets The Newsletter of the Agricultural Credit Policy Council (ACPC) for P1 B AMCFP Funding 8 Editorial Adviser Executive Director Jovita M. Corpuz

ACPC Exec. Dir. Corpuz Editorial Board Deputy Exec. Dir. Ramon C. Yedra Chairs TWG for Agrarian OIC Deputy Exec. Dir. Magdalena S. Casuga Production Credit Director Norman William S. Kraft Director Melito M. Montenegro 9 Emmalyn J. Guinto

2011 2012 Programs under the Loans No. of Loans No. of Editorial Staff AMCFP Granted Borrowers Granted Borrowers (P million) (P million) Cooperative Banks P 195.1 3,090 P 935.6 18,437 Agri-Lending Program AMCFP Loans Increase (CBAP) Editor-in-Chief Agri-Microfinance 206.8 20,227 137.8 10,136 Program (with People’s 150% in 2012 Norman William S. Kraft Credit and Finance Corporation) Sikat Saka Program 49.2 764 Cooperatives Agri- 5.5 159 Lending Program (CALP) Managing Editor 13 Emmalyn J. Guinto

ACPC Governing Council Writers Approves Special Financing Norman William S. Kraft Facility for Farmers Emmalyn J. Guinto and Fishers Affected by Virgilio K. Crisostomo Typhoon Pablo Rumina A. Gil 14 Rudyard R. Roxas Orientations on Typhoon Contributor Pablo Calamity Loan Cenon S. Atienza Program in , Layout Regions 11, 12, 13 and Rumina A. Gil 16 Other Affected Areas For comments, suggestions and contributions, contact the ACPC Public Affairs & Information Services, 28F One SanMiguel Avenue (OSMA) Bldg., One San Miguel The CBAP – Ave. Cor. Shaw Blvd., Pasig City 1605, A Former OFW’s Tel. Nos.: (632) 634-3320 to 21 • 636-3393 Partner in Livelihood e-mail us at: [email protected]

19 www.acpc.gov.ph POLICY ADVOCACY

ACPC officers and staff joined the nationwide launching of the National Year of Rice 2013 during the ACPC Joins Launch of simultaneous National Commitment Ceremonies on February 11, 2013. The launching ceremony was capped by reciting the Panatang Makapalay to show ACPC’s National Year of Rice 2013 commitment to the goal of achieving rice self-sufficiency. By Rudyard R. Roxas

he observation of National Year of One San Miguel Avenue Building making sure that there are no rice of Rice (NYR) 2013 kicked off in the Ortigas Business Center, Pasig leftovers after meals. The oath taking Ton February 11, 2013 with the City. During the ceremony, all ACPC was led by the ACPC focal person for holding of NYR National Commitment officers and staff were briefed on NYR the NYR 2013, Mr. Kennedy Garabiag. Ceremonies simultaneously by 2013 and, thereafter, pledged their all Regional Field Units (RFUs), support to the program by taking The year 2013 was proclaimed Department units, bureaus and the Panatang Makapalay oath. The as the National Year of Rice on October attached agencies of the Department Panatang Makapalay was especially 18, 2012 by President Benigno S. of Agriculture (DA). composed for NYR 2013. It is a pledge Aquino III through Proclamation to cook and eat only the right amount No. 494. NYR 2013 was also earlier The Agricultural Credit Policy of rice; to also try brown rice and launched by President Aquino at the Council (ACPC) NYR Commitment other staples such as saba (cardaba Philippine Rice Research Institute Ceremony was held at the ACPC banana), camote (sweet potato), and (PhilRice) Central Experiment Station, Conference Room at the 30th floor corn; and to avoid rice wastage by Science City of Muñoz, on November 13, 2012. DA Secretary Proceso J. Alcala also marked the event with the unveiling of the official NYR logo.

The logo of the NYR 2013, with In the official NYR 2013 the theme Sapat na Bigas, Kaya website, www.nyr2013.com, it is ng Pinas, features three rice plants stated that the National Year of Rice that form the letters NYR in red, yellow and blue colors signifying is part of the Philippine government’s the color of the Philippine flag. bid to achieve rice-self-sufficiency The rice plants also represent the importance of the individuals beginning 2013. The program is involved in achieving food an advocacy campaign that aims sufficiency: the producers, the public and the policy-makers.

3 Mr. Kennedy Garabiag, Economist IV and designated ACPC Focal Person

POLICY for the NYR 2013, lead ACPC officers ADVOCACY and staff in taking the oath of Panatang Makapalay during the commitment ceremony.

to promote responsible rice observation of NYR, producers, consumption for better health and consumers, and policymakers are less rice wastage and productive all enjoined to help in increasing farming through the promotion rice productivity and reducing rice of efficient rice technologies and wastage. inspiring farmers to do better. The ACPC NYR 2013 The NYR theme is Sapat Commitment Ceremony ended with na Bigas, Kaya ng Pinas. With the the singing of the DA Hymn.

Participants of the three-day ACPC Planning Workshop 2013 held at Ridgewood Residence Hotel in Baguio City on February 6 to 9, 2013. The participants were led by ACPC Exec. Dir. Jovita M. Corpuz (seated, front, in black).

he Agricultural Credit Policy Council (ACPC) held a three- Tday Operational Planning Workshop to firm up the agency’s workplans and targets for 2013 as well as its work and financial plans for 2014.

Organized by the Policy Research and Planning Service (PRPS), the conduct of the Operational Planning Workshop was aimed at finalizing each unit’s workplan as well as the targets of the individual staff for 2013. The different units were also asked to formulate their proposed workplans and budgets for 2014 taking into consideration the Department of Agriculture’s (DA) thrusts and priorities.

In her welcome address to the workshop participants, ACPC Exec. Dir. Jovita M. Corpuz advised the ACPC officers and staff to align The Panatang Makapalay is a pledge to be a “riceponsible” individual by operational plans for 2013 with the reducing food wastage and consuming just the right amount, substituting DA’s goals of attaining food sufficiency alternative food staples and eating brown rice for better health. 4 2013 ACPC Planning Workshop held

for 2013 and 2014 Operational Plans POLICY By Rumina A. Gil ADVOCACY

and increasing farmers’ incomes. She the workshop. She emphasized that PRPS OIC-Director Ma. Teresa emphasized that credit and financing a great responsibility is given to ACPC J. Santos facilitated the workshop. is one of the key strategies identified due to the additional P1 billion budget During the workshop, the workplans by the DA under the Food Staples for credit that was given to the agency of each unit were reviewed and Sufficiency Program (FSSP). for the year. This fund will be used to critiqued by the members of the ACPC provide credit facilities for farmers Management Committee (Mancom) As an overview, OIC-Deputy and fishers who are engaged in the as well as the staff from the other Executive Director Magdalena S. priority commodities of the DA which units. The different ACPC units are: Casuga presented the DA’s thrusts include rice, corn, cassava, and other PRPS, Program Development and and priorities to set the direction for commodities that are part of the FSSP. Management Division (PDMD), Fund

PRPS OIC-Director Ma. Teresa J. Santos explains the ACPC Project Development Officer V of the Monitoring ACPC Economist IV Ronnie B. Tabucacnon presents his mechanics of the ACPC 2013 Operational Planning and Evaluation (M&E) Service Cenon S. Atienza presents individual workplan for 2013. Workshop. the M&E 2013 workplan. 5 overnment initiative

POLICY in providing credit and ADVOCACY Gfinancing support to local food production, especially for food staples sufficiency, is getting an added boost by way of an additional P1 billion funding for the Agro-Industry Modernization Credit and Financing Program (AMCFP) in 2013. The additional budget for the AMCFP, ACPC Exec. Dir. Jovita M. Corpuz which will come from the General reminding ACPC Fund, is expected to benefit an officers and staff that estimated 97,676 new small farmer the operational plan for 2013 and 2014 and fisherfolk borrowers in 2013 who should be aligned currently have no access to banks and with the DA’s thrusts and other sources of formal credit. priorities. The AMCFP is the umbrella financing program for agriculture and fisheries of the Department of Agriculture (DA). It is designed to be a Resource Management (FRM) staff also presented their respective responsive and sustainable credit and Service, Institutional Capacity workplans for the year. The unit and financing program for small farmers Building (ICB), Monitoring and individual workplans were finalized and fisherfolk including those engaged Evaluation (M&E) Service, Public incorporating the comments from in food and non-food production; Affairs and Information Service the Mancom and the other units. processing and trading; cooperatives; (PAIS), and Administration and farmers and fisherfolk organizations; Finance Service. The planning workshop was and agri-related small and medium held at Ridgewood Residence Hotel enterprises. After the presentation of in Baguio City from February 6 to 9, the plans of each unit, the individual 2013. Under Republic Act 8345, otherwise known as the Agriculture and Fisheries Modernization Act (AFMA), the AMCFP should be given P2 billion on the first year and P1.7 OIC-Deputy Executive Director Magdalena billion for the next six years. However, S. Casuga gives not until 2013 has a budget actually comments and been appropriated for the Program. suggestions during the presentation of In previous years, the AMCFP was unit and individual funded solely through the collection workplans. and consolidation of funds from terminated agricultural directed credit programs.

The Agricultural Credit Policy Council (ACPC), which is the Administration government agency mandated to and Finance oversee the implementation of the Service Dir. Veronica P. AMCFP, plans to utilize the P1 billion Santos (middle) additional funding of the Program reviews their for the benefit particularly of farmers unit workplan with her staff. and fishers who are engaged in the priority commodities of the DA. The DA priority commodities include the 6 POLICY

Additional P1 B for ADVOCACY government agri-credit to benefit 97,000 more farmers, fisherfolk By Rudyard R. Roxas

food staples like rice, white corn and DA’s and ACPC’s commitments as Among the strategies that cassava, which are part of the Food well in the Philippine Development were identified were: 1) strengthening Staples Sufficiency Program (FSSP). Plan (PDP) for 2011-2016. The target lending programs (i.e. AFMA- Other DA priority commodities are is to increase the incidence of formal mandated AMCFP) to small farmers yellow corn, , high value borrowing among small farmers and and fisherfolk; 2) reducing costs of crops, livestock, poultry and fishery fisherfolk from 52% in 2007 to 61% lending and providing incentives products. by the year 2016. ACPC estimates for private financial institutions that P109 B will be needed to address providing agri-credit; 3) strengthening Credit and financing is the credit demand of the agri-fishery risk-mitigating mechanisms such considered by the DA as one of the sector for the year 2013. as agri-credit guarantee and FSSP’s key strategies to attain food insurance programs; 4) establishing sufficiency as well as increase farmers’ A National Agriculture and a credit database and intensifying incomes. Aside from the provision Fisheries Credit Summit was jointly information dissemination and of timely, adequate and affordable organized and conducted by the ACPC program monitoring and evaluation; credit, the other key strategies of and the Congressional Oversight and 5) intensifying capacity-building the FSSP are the purchase of yield- Committee on Agricultural and programs to enhance financial enhancing inputs such as seeds and Fisheries Modernization (COCAFM) management capability and credit fertilizers and acquisition of farm on August 18, 2011 where a strategic worthiness/bankability of small machinery, equipment and facilities. plan was developed on how to achieve farmers and fisherfolk, cooperatives, the PDP target of increasing formal farmers’ organizations, etc. Increased access to credit borrowing incidence among farmers from formal sources is one of the and fisherfolk. From January to December 2012, a combined total of P1,029.38 million in agri-fishery loans were generated by these programs – P137.87 million under AMP; P5.52 million under CALP; P836.99 million under CBAP; and P49 million under Sikat Saka. The amount benefitted 25,242 small farmer and fisherfolk borrowers. Cumulatively, the AMCFP has already generated over P5.42 billion loans benefiting 176,558 farmers and fisherfolk. The programs currently being implemented under the AMCFP are the Cooperative Banks Agri-Lending Program (CBAP), Agri- A typical Filipino farmer or fisherman gets loans for their farming or fishing Microfinance Program (AMP), and the activities from informal lenders. The P1 billion additional funding of the AMCFP is in support of the Philippine Development Plan goal to raise the incidence of DA Sikat Saka Program. formal borrowing among small farmers and fisherfolk to 61% by 2016. 7 CPC officers and technical ACPC Holds staff, led by ACPC Executive Director Jovita M. Corpuz, POLICY A Workshop to conducted a workshop on February ADVOCACY 12-13, 2013 to come up with targets for the additional P1 billion funding Develop Targets approved for 2013 for the umbrella financing program of the Department for P1 B AMCFP of Agriculture (DA) for the agriculture and fisheries sector – the Agro- Funding Industry Modernization Credit and By Norman William S. Kraft Financing Program (AMCFP). The initial projection for the additional AMCFP budget is that it can benefit up ACPC Executive Director Jovita M. Corpuz reviews and critiques the targets and assumptions to 97,000 small farmer and fisherfolk that were presented by each of the workshop groups for the priority sectors and programs that were identified for the utilization of the P1B additional funding for the AMCFP. borrowers during the year. inter-agency effort among the DBM, a review of the DBM guidelines on The target-setting for the DA, Department of Agrarian Reform the release of the P1 billion AMCFP utilization of the P1 billion AMCFP (DAR), Department of Interior and fund; identification of the priority fund was in compliance with the Local Government (DILG), and the programs and funding allocation; and requirements set by the Department National Anti-Poverty Commission identification, as well, of the credit of Budget and Management (DBM) for (NAPC). delivery mechanism/credit program, the release of the funds. Aside from budget requirements, and physical the detailed physical and financial The main objective of the targets for each priority sector. plans for the utilization of the funds, RSBSA is to create a nationwide the other DBM requirements are database of information on farmers, Commodities that were the special budget requests (SBRs), farm laborers, and fisherfolk alongside prioritized for targeting during monthly cash program (MCP), and their basic profile which may be the workshop include the Food the Memoranda of Agreement with used as a tool in efficiently carrying Staples Sufficiency Program (FSSP) the selected partner government out the delivery of basic services, commodities, i.e., rice, white corn, financing institutions (GFIs) and/or provisioning for adequate facilities, and cassava; as well as other priority cooperative banks. and forms of subsidy and aid relative commodities of the DA, i.e., yellow to the agriculture and fisheries sector. corn, coconut, high value crops, With respect to the use of the As such, the database also serves livestock and poultry, and fishery. fund, the DBM’s guidelines instruct as an aid to economic development that it shall be used exclusively for planning and policymaking. As of Indicative resource requirements the establishment of a credit facility December 2012, registration in the for support interventions, particularly for the benefit of small farmers RSBSA of farmers and fisherfolk in institutional capacity building registered in the Registry System for twenty (20) provinces has initially (ICB); monitoring and evaluation Basic Sectors in Agriculture (RSBSA). been completed. (M&E), including benchmarking; the The RSBSA is envisioned as a complete conduct of other policy studies; and listing of farmers, farm laborers, and The programme for the information dissemination were also fisherfolk being developed through an two-day ACPC workshop included identified during the workshop.

Mr. Allen Ducusin of the Program Development and The participants were divided into workshop groups, OIC-Director for Policy Research and Planning, Ma. Management Office (PDMO) discusses the priority with each group assigned to work on the targets and Teresa Santos, explains the objectives and expected sectors for the additional AMCFP fund. The identified assumptions for specific priority sectors. Shown in outputs of the activity to the workshop participants. commodities are based on the priorities of the the photo are the participants huddled together with Also in the photo are (from left): Admin. and Finance Department of Agriculture. Beside him is Mr. Ding their respective workshop groupmates to work on the Director Veronica Santos, and Messrs. Ferdinand Pereyra, also of the PDMO. assumptions and projections per priority sector (Photo Paguia and Kennedy Garabiag of the Policy Research courtesy of Cherry Nalian). and Planning Staff (PRPS). 8 CPC Executive Director Jovita M. Corpuz has been designated to head the inter- A POLICY agency Technical Working Group ADVOCACY (TWG) for the Agrarian Production ACPC Exec. Dir. Jovita M. Corpuz Credit Program (APCP) through chairs the Technical Special Order 209, series of 2013 Working Group signed by Department of Agriculture (TWG) of the APCP. The TWG provides (DA) Secretary Proceso J. Alcala. technical and secretariat support to the PMC; ensures The APCP, a joint program that policies, of the DA, Department of Agrarian operational Reform (DAR) and Land Bank of the systems, procedures and guidelines Philippines (Landbank), is a new approved by credit program for agrarian reform the PMC are beneficiaries (ARBs) approved by implemented; and facilitates President Benigno C. Aquino, III with a the necessary P1 billion funding. support to field implementers. The APCP aims to provide credit support for crop production to newly organized as well as existing agrarian reform beneficiaries’ organizations (ARBOs) and farmers’ organizations (FOs) not qualified to avail themselves of loans under the regular credit windows of banks.

The program’s specific ACPC Exec. Dir. Corpuz objectives are: 1) To provide credit assistance to ARBs or ARB household Chairs TWG for Agrarian members through their respective organizations or other conduits to Production Credit By Emmalyn J. Guinto support their individual or communal crop production projects; 2) To ensure members, particularly those who have provide technical assistance for sustainable production of crops and recently acquired their landholdings agricultural production management. increase the income of ARBs or their through the Comprehensive Agrarian These experts shall assess the household members through other Reform Program Extension with farm requirements, recommend support services such as marketing, Reforms (CARPER) will be provided appropriate technologies and monitor crop insurance, and farming facilities; with loans for crop production. These farm production of the ARBs. Financial and 3) To strengthen the ARBOs and loans will be coursed through ARB management assistance, on the other improve the capabilities of ARBs organizations and FOs (other than hand, will be done by deploying through institutional capability ARBOs) that shall act as credit conduits technical experts who shall assist the building activities. for their respective members. conduits in providing timely credit to end-beneficiaries. The APCP has three (3) Under the Agricultural components, namely: 1) Agricultural Production and Financial Management Under the Institutional Production Credit; 2) Agricultural Support component, technical Capacity Building component, Production and Financial Management assistance relevant to the project/s institutional strengthening will be Support; and 3) Institutional Capacity financed shall be given to loan given to eligible conduits to ensure Building. conduits. This is to ensure the proper their viability and sustainability. use of the loan by both the conduits A package of interventions aimed Under the Agricultural and the ARB end-beneficiaries. at increasing their organizational Production Credit component, new The DA or other appropriate maturity will be given to eligible and existing ARBs or ARB household institutions/technical experts shall conduits. This includes setting up

9

organizational vision, operational policies, systems and procedures, and good governance. It will also facilitate DA Undersecretary Joel POLICY S. Rudinas chairs the

ADVOCACY enterprise development to guarantee Program Management the feasibility and profitability of Committee (PMC) of the Agrarian Production agricultural production projects and Credit Program (APCP). other business services of the eligible The PMC provides conduits. direction for the APCP, formulates policies, acts on issues relative to the The APCP will be implementation of the program and monitors operationalized through its Program the overall performance Management Committee (PMC), of the program. chaired by DA Undersecretary Joel S. Rudinas. The PMC is composed of the DAR, Landbank, Department of Finance (DOF), Task Force Mapalad and farmers’ sector representative. It is the policy making body which provides the direction of the program, formulate policies, act on issues relative to the implementation of the program and monitor the overall To assist both the PMC and Development Officer (DA); Ma. Teresa performance of the program. the TWG in the performance of their J. Santos, OIC-Director II (ACPC); On the other hand, the APCP’s duties and responsibilities is the Emmalyn J. Guinto, Information inter-agency TWG is composed of Program Secretariat. The Secretariat Officer V (ACPC); Kennedy A. Garabiag representatives from the DA, DAR, is headed by ACPC OIC-Deputy OIC-Planning Officer V (ACPC); Joel Landbank and ACPC. The TWG is Executive Director Magdalena S. Q. Matira, Project Dev’t. Officer tasked to provide technical and Casuga. The other members are: IV (ACPC); Rachel A. Bustamante, secretariat support to the PMC, ensure Catalina T. Austria, OIC-Chief Agrarian Economist III (ACPC); and Regino C. that policies, operational systems, Reform Program Officer (DAR); Delia Ecalnir, Computer Maintenance III procedures and guidelines approved Baldovino Gabales, OIC-Supervising (ACPC). by the PMC are implemented and ARPO (DAR); Preciosa Osit, Senior facilitate the necessary support to ARPO (DAR); Arthur P. Genavia, Project The first meeting of the field implementers. The TWG is also Development Officer (Landbank); Secretariat was held February 11, responsible for the installation and Ramon Jericho Gonzales, Junior 2013 to develop the workplan for the maintenance of a monitoring system Management Associate (Landbank); program. for the program. John Gilbert Gopez, Project

The first organizational meeting of the APCP Secretariat was held on February 11, 2013 to discuss the program’s workplan. The Secretariat, composed of representatives from DA, DAR, Landbank and ACPC, assists the APCP’s PMC and TWG in the implementation of the program.

12 The Sikat Saka was set up AMCFP Loans Increase in January 2012 for lending to small palay farmers in support of the DA’s 150% in 2012 By Rumina A. Gil Food Staples Sufficiency Program PROGRAM

(FSSP). The program provides credit IMPLEMENTATION oans released under the Another program of the for palay production to eligible Agro-Industry Modernization AMCFP – the Agri-Microfinance members of Irrigators’ Associations to LCredit and Financing Program Program (AMP) –on the other help meet the FSSP’s goal of attaining (AMCFP) increased by 151% in 2012 hand, released P137.8 million to self sufficiency in rice by 2013. compared to the previous year. Total 10,136 farmers and fisherfolk in AMCFP loans reached P1.12 billion 2012. Implemented since 2009, Finally, there was also the over the period January-December the AMP is a joint program of the Cooperatives Agri Lending Program 2012. For the same period in 2011, ACPC and the People’s Credit and (CALP) which released loans program loans totaled P446 million. Finance Corporation (PCFC). The amounting to P5.5 million to 159 The number of program clients, on program provides credit to qualified borrowers in 2012. The CALP was the other hand, increased 15%, from microfinance institutions for relending implemented starting March 2011. 25,571 in 2011 to 29,496 in 2012. to individual borrowers from small It was a joint program of the ACPC The total loan amount released by farmer and fisherfolk households. and the Development Bank of the the AMCFP in 2012 is also around Philippines (DBP) which provided a 4% higher than the P1.08 billion that The implementation in 2012 revolving credit line for cooperatives. was targeted for the year under the of fhe Sikat Saka Program jointly program. implemented by the ACPC and the From the time it was first Land Bank of the Philippines (LBP) also implemented in 2003, the AMCFP has The AMCFP is the umbrella contributed to the total loans granted already cumulatively granted P5.44 financing program of the DA under the AMCFP in 2012. The Sikat billion in loans for 198,085 farmer and mandated by RA 8435, otherwise Saka Program released P49.2 million fisherfolk borrowers nationwide as of known as the Agriculture and Fisheries in loans to 764 rice farmers in 2012. December 2012. Modernization Act (AFMA) of 1997. The Agricultural Credit Policy Council 2011 2012 (ACPC) oversees the program’s Programs implementation. under the Loans No. of Loans No. of AMCFP Granted Borrowers Granted Borrowers The improved performance of (P million) (P million) the AMCFP in 2012 was due mainly to Cooperative Banks Agri- P 195.1 3,090 P 935.6 18,437 the implementation of the depository Lending Program (CBAP) mode scheme of the AMCFP– Agri-Microfinance 206.8 20,227 137.8 10,136 Cooperatives Agri Lending Program Program (with People’s (AMCFP-CBAP) towards the last Credit and Finance quarter of 2011. For the year 2012, Corporation) the AMCFP-CBAP was able to release Sikat Saka Program 49.2 764 up to P935.6 million in loans. Cooperatives Agri- 5.5 159 Lending Program (CALP) Under the AMCFP-CBAP, the ACPC places funds in special Agri-Fishery Microfinance 19.3 917 time deposits (STDs) in participating Program (with Land Bank cooperative banks. The cooperative of the Philippines) * banks then use the funds to expand Fisheries Financing 1.0 15 their agriculture and fishery loan Program (FFP) * portfolio. By putting the funds in STDs Tomato Financing 23.9 1,322 which bear lower interest compared Program * to a loan, ACPC is able to bring down Total P446.1 25,571 P 1,128.1 29,496 the effective interest rates for end- borrowers. The number of borrowers * Note: The Agri-Fishery Microfinance Program (with Land Bank of the Philippines), Fisheries Financing under the AMCFP-CBAP reached Program and Tomato Financing Program were terminated in 2011. 18,437 in 2012. 13 ACPC Governing Council Approves

PROGRAM Special Financing Facility for Farmers IMPLEMENTATION and Fishers Affected by Typhoon Pablo By Norman William S. Kraft

ACPC Executive Director Jovita M. Corpuz (far right) presents the proposal for the Typhoon Pablo Special Agricultural Financing Facility to the ACPC Governing Council. Members of the Council are (from left): National Economic and Development Authority (NEDA) Deputy Director General Emmanuel Esguerra, Department ofBudget and Management (DBM) Undersecretary Mario Relampagos, Bangko Sentral ng Pilipinas (BSP) Deputy Nestor Espenilla, Jr., Department of Agriculture (DA) Undersecretary Bernadette Puyat, and Department of Finance (DoF) Undersecretary Jeremias Paul, Jr.

he members of the Agricultural hectares covering , and losses amounting to 1,586 MT valued Credit Policy Council (ACPC) is estimated to have been at P71 million. TGoverning Council signed affected by the typhoon resulting in Resolution No. 2, Series of 2012 on total agricultural production, facilities The typhoon inflicted the December 20, 2012 approving the and infrastructure losses of around greatest damage on banana farms, establishment of a Typhoon Pablo P29 billion. Of this amount, 99% are banana being one of the major crops Special Agricultural Financing Facility. due to losses from Regions X, XI, XII planted in this part of the country. and XIII. An estimated 50,096 hectares, or The Typhoon Pablo Special 30% of the total area affected by the Agricultural Financing Facility is the The region that was hardest typhoon, were banana plantations ACPC’s response to Department of hit was Region XI, where 115,575 and farms. This resulted in 1.9 million Agriculture (DA) Secretary Proceso J. hectares were affected, resulting in 1.9 MT of losses in banana farms valued Alcala’s directive to concerned DA line million metric tons (MT) of agricultural at an astounding P22.2 billion, or 80% agencies to come up with immediate production losses valued at P25.8 of the total value of production losses intervention and support programs billion. This was followed by Region brought about by Typhoon Pablo. for farmers who were affected by X, with 39,842 hectares affected and Typhoon Pablo (international name: 234,609 MT in production losses The other biggest production “Bopha”) in Regions X, XI, XII and XIII. valued at P2.6 billion. losses due to the typhoon were in high value crops (P1.9 billion), corn The four mentioned regions On the other hand, 6,004 (P1.6 billion), coconut (P1.1 billion), in Mindanao were the most severely hectares were affected in and rice (P476 million). affected by Typhoon Pablo which hit the (Region XIII), resulting in 8,677 MT Philippines in mid-December of 2012. in production losses valued at P471 The proposal for the Typhoon Based on data gathered by the DA, a million. Region XII had 538 hectares Pablo Special Agricultural Financing total area of approximately 163,000 that were affected, with production Facility was presented to the ACPC

14 The ACPC Typhoon Pablo

Special Agricultural Financing PROGRAM Facility is intended as a special calamity credit fund specifically IMPLEMENTATION for the purpose of relending to farmers and fishers affected by Typhoon Pablo. The cost of fund under the facility is being reduced to bring down the interest rate for farmer and fisherfolk borrowers in the calamity-affected areas (Photo courtesy of Google images).

Governing Council by ACPC Executive for farmer and fisherfolk borrowers in Council held on December 20, 2012. Director Jovita M. Corpuz. In the the calamity-affected areas. The members of the ACPC Governing proposal, it was emphasized that Council are Department of Agriculture the special calamity credit fund The facility will be (DA) Undersecretary Bernadette is specifically for the purpose of implemented by cooperative banks Puyat, Bangko Sentral ng Pilipinas relending to farmers and fishers that are already participating in the (BSP) Deputy Governor Nestor affected by Typhoon Pablo. The CBAP or are eligible under the CBAP Espenilla, Jr., Department of Finance facility will initially be funded with guidelines and whose operations (DoF) Undersecretary Jeremias P60 million through the on-going cover the areas affected by the Paul, Jr., Department of Budget and ACPC Cooperative Banks Agri-Lending devastation of Typhoon Pablo. Management (DBM) Undersecretary Program (CBAP). The cost of fund Mario Relampagos, and National under the facility is being reduced ACPC Resolution No. 2 of Economic and Development Authority relative to other existing programs to 2012 was signed during the 53rd (NEDA) Deputy Director General bring down the effective interest rate Meeting of the ACPC Governing Emmanuel Esguerra.

Typhoon Pablo inflicted the greatest damage on banana farms in Mindanao. An estimated 50,096 hectares of banana plantations and farms were affected by the typhoon, resulting in 1.9 million MT of banana production losses valued at an astounding P22.2 billion (Photo courtesy of Google images). 15 The Bukidnon Cooperative Bank is one of the cooperative banks participating in the implementation of the Typhoon Pablo Special Calamity Loan Program.

PROGRAM The provinces that it can service under the special IMPLEMENTATION facility are Bukidnon and .

Orientations on Typhoon Pablo Calamity Loan Program in Bukidnon, Regions 11, 12, 13 and Other Affected Areas By Norman William S. Kraft he Agricultural Credit Policy Messrs. Allen Ducusin, Ding Pereyra, loan program would only be up to a Council (ACPC) organized and Rudyard Roxas and Ms Mariepaz maximum of 8% per annum (p.a.). Tconducted an orientation Faustorilla. The activity was attended Service charges, on the other hand, meeting on the Typhoon Pablo Special by five (5) cooperative banks (i.e., will only be up to 4% p.a. Calamity Loan Program on January the cooperative banks of Bukidnon, 8, 2013 at the Cooperative Bank of , North , The cooperative banks that Bukidnon in , Bukidnon. Agusan del Norte and Agusan del have already agreed to participate in The orientation meeting was held to Sur); four (4) Regional Agri-Credit the calamity loan program service the fast-track the implementation of the Desk Officers from the Department following priority provinces: Typhoon Pablo Special Calamity Loan of Agriculture Regional Program, which was approved by the Field Units (DA-RFUs) Priority Province Servicing Cooperative Bank ACPC Governing Council on December X, XI, XII and XIII; and Misamis Oriental CoopBank of Misamis Oriental 20, 2012. six (6) Provincial Agri- CoopBank of Misamis Oriental Credit Desk Officers The specific objectives of from the provinces CoopBank of Misamis Oriental the orientation were: a) to present of Bukidnon, Bukidnon Bukidnon CoopBank the features and guidelines of the del Norte, Davao del Agusan Del Norte Bukidnon CoopBank (thru calamity loan program to eligible Sur, Agusan del Norte, CoopBank of Agusan Norte) cooperative banks operating in the and Agusan Del Sur CoopBank of Agusan Del Sur typhoon-affected Regions X, XI, XII and . Compostela Valley CoopBank of Misamis Oriental XIII; b) discuss and resolve possible issues and concerns regarding Upon consultation CoopBank of Agusan Del Sur program implementation; and c) set with the participating CoopBank of Misamis Oriental concrete and doable program targets. cooperative banks, CoopBank of Agusan Del Sur it was agreed that North Cotabato CoopBank of Cotabato The orientation was led by the interest rate to Consolidated Cooperative Bank ACPC Deputy Executive Director eligible farmer and Ramon C. Yedra. Also in the ACPC team fisherfolk borrowers Consolidated Cooperative Bank were Director Norman William S. Kraft, under the calamity Consolidated Cooperative Bank 16 PROGRAM IMPLEMENTATION

ACPC Deputy Executive Director Ramon C. Yedra (in white polo shirt) explains the As part of her commitments under the agreed initial actions per region, DA- concept and features of the Typhoon Pablo Special Calamity Loan Program to RFU 11 Alternate Regional Agri-Credit Desk Officer, Juvy Pregon, immediately officers of cooperative banks operating in the typhoon-affected Regions X, XI, XII organized briefings, information dissemination and credit matching activities and XIII during the orientation meeting conducted in Malaybalay, Bukidnon on on the ACPC Typhoon Pablo Special Calamity Loan Program in the provinces January 8, 2013. of Compostela Valley, Davao Oriental and Davao del Norte. Photo shows Ms Pregon explaining the program to farmer-participants in Compostela Valley (Photo courtesy of Ms Juvy Pregon).

It was also agreed during The participants worked of Boston, , and the orientation that the Agri- together during the orientation to Caraga,Davao Oriental. Credit Desk Officers (RACDOs and come up with initial and doable actions PACDOs) will help the cooperative and targets per region under the Likewise, DA-RFU 12 Alternate banks in identifying specific areas program. The Agri-Credit Desk Officers RACDO Josalyn Jomuad initiated the (i.e., municipalities and barangays) (ACDOs) committed to organize conduct of program orientations that were affected in the calamity and coordinate program briefings, in the same month in the towns of by providing the banks with copies information dissemination and credit Pigcawayan, Pikit and Kabacan in of the official reports containing matching in the affected areas in their North Cotabato; and President the lists of affected areas in their respective regions and provinces. in ; and Norala respective jurisdictions. The reports, and Banga in . Those which should be duly signed by the Consequently, DA-RFU 11 who attended the orientations were Municipal Disaster Risk Reduction Alternate Regional ACDO Juvy Pregon members of farmers’ associations, and Management Council (MDRRMC) was able to mobilize and conduct irrigators’ associations, cooperatives or the Municipal Agricultural Officer briefings for farmers and fisherfolk and people’s organizations. (MAO), will be the bases of the on the special calamity loan program cooperative banks in setting their within the month of January in In February, DA-RFU 13 targets under the calamity loan City, Davao del Norte; , RACDO Malou Gruyal spearheaded program. Compostela Valley; and the towns the conduct of an orientation on the

DA-RFU 11 Regional Technical Director Bernadette San Juan (standing, right) Davao del Norte Governor Rodulfo del Rosario also informed farmers of helps orient participants in the municipality of Cateel, Davao Oriental on the assistance being made available by the provincial government during the Typhoon Pablo Special Calamity Loan Program and other assistance being orientation on the Typhoon Pablo Special Calamity Loan Program that was held provided by the DA for the victims of the calamity. Davao Oriental is one of the at the Bulwagang Panlalawigan in Tagum City, Davao del Norte on January 30, provinces hardest hit by Typhoon Pablo (Photo courtesy of Ms Juvy Pregon). 2013 (Photo courtesy of Ms Juvy Pregon).

17 PROGRAM IMPLEMENTATION

Cooperative banks participating in the ACPC Typhoon Pablo Special Calamity Loan Program joined the orientations organized by the DA-RFUs covering the areas affected by Typhoon Pablo to help explain to participants the features of the calamity loan Farmers and fisherfolk in each of the provinces affected by Typhoon Pablo were very keen to learn about the ACPC program. Photo shows Coopbank of Agusan del Sur Typhoon Pablo Special Calamity Loan Program in the orientations that were organized by the DA-RFUs through representative, Mr. Macabasa, explaining the bank’s the initiative of their Regional Agri-Credit Desk Officers. Photo shows the participants in the orientation held at guidelines under the program to participants in the Bulwagang Panlalawigan in Tagum, Davao del Norte on January 30, 2013 (Photo courtesy of Ms Juvy Pregon). Compostela Valley (Photo courtesy of Ms Juvy Pregon).

special calamity loan program for the the DA’s and ACPC’s special calamity For Davao Oriental, ACPC municipalities of , Hinatuan, and loan assistance. As of the first week is still in exploratory talks with the Tagbina and the City of in the of March, ACPC has already approved King Cooperative which has already Province of Surigao del Sur. the P5 million funding request of signified willingness to partner the Cooperative Bank of Agusan Del with the ACPC in extending credit The swift combined actions Sur, which caters to affected areas in assistance to farmers and fisherfolk of the participating cooperative banks the provinces of Agusan Del Sur and affected by the typhoon. Aside from as well as the DA-RFUs have helped Compostela Valley. Funding request is Davao Oriental, the cooperative will disseminate information about the also being awaited by ACPC from the also service other areas where they program and encouraged qualified Coopbank of Misamis Oriental which have branch operations as well, e.g. farmers and fisherfolk in the typhoon- services various affected provinces, Compostela Valley. affected areas to avail themselves of also including Compostela Valley.

In the town of Isulan, Sultan Kudarat, DA-RFU 12 Alternate RACDO Josalyn Jomuad An orientation on the special calamity loan program was also held in Norala, South (standing) led the orientation on the ACPC Typhoon Pablo Special Calamity Loan Cotabato for farmers and fisherfolk in the Province of South Cotabato affected by Program for farmers and fisherfolk. She was joined in the orientation by representatives Typhoon Pablo. (Photo courtesy of Ms Josalyn Jomuad) from the Cooperative Bank of Cotabato. (Photo courtesy of Ms Josalyn Jomuad)

Farmer and fisherfolk participants in the orientation on the Typhoon Pablo Special Calamity 18 Loan Program held in Kabacan, North Cotabato. (Photo courtesy of Ms Josalyn Jomuad) t was a fine Wednesday morning in 2012 when I met Ms Miriam The CBAP – Aquino. Ms Aquino is a former STORY IOverseas Filipino Worker (OFW) who A Former OFW’s FEATURE used to work in Hongkong. In 2006, after working abroad for eight years, she said she finally decided to return Partner in home to Wacal, Solano, and stay for good to Livelihood look after the kids and her husband, By Cenon S. Atienza Guillermo.

The decision to come home was not an easy one to make, though, according to her story. Especially since she knew that there was neither ready Ms Aquino standing beside the shed for the water pump which work nor income waiting for her in her she was also able to construct through the loan from CBAP. own native land. What she knew then that their family had was around more to operate the fishponds at all if not is 2,000 kg or 2 metric tons (MT) in all than two hectares of land that they for the Cooperative Bank of Nueva of the five ponds, at 4-5 pieces toa owned and which had some potential Vizcaya (CBNV). “The Cooperative kilo.” With a farm gate price of P92/ for both agricultural and fishpond Banks Agri-Lending Program (CBAP) kilo, each quarter nets an income of uses. So, she just decided to set her being implemented by the CBNV has around P70,000-90,000. Their harvest sights on these as the family’s possible helped a lot in terms of providing is either sold to retailers in the Solano sources of income on her return. capital to small farmers like me,” Ms market or at their rented market stall in Aquino told me. From an initial loan Ibung, in Villaverde town. Ms Aquino told me that, at of P50,000 from the bank in 2007, first, the funds she was able to save she said she was able to complete “In the four times that I availed up from her years of working abroad improvements in the ponds and buy of a production loan under the CBAP,” enabled her to utilize one hectare of tilapia fingerlings. said Ms Aquino, “I paid a very minimal the land for planting rice. However, interest of only 15% p.a.” I asked her she later learned that the actual Two years ago, the Aquinos also what other benefits she derived from revenues from the small rice farm experienced a “fish kill” in their ponds the program and she readily replied: were a lot short of what she used to due to adverse weather conditions. “I was able to provide employment to earn as an OFW. This brought her into CBNV again came to their rescue by some of my townmates. Also, I made thinking again about developing some approving an increase in Ms Aquino’s a lot of improvements in my house.” fishponds near their one-hectare rice loan to P93,000. In the last five years, farm. With money still derived from Ms Aquino was also able to construct In parting, she said: “You her savings as an OFW, she oversaw a new pond, the size of which is much know what? My bold move to seek a the construction of four ponds, each bigger than the other four ponds. She loan from the CBNV enabled me and one measuring an area of 2,000 also constructed a shed for the water my husband to make a living through square meters. pump. The stocking rate of the Aquinos our fishing venture, but, to me, what in their ponds is 24,000 fingerlings is more important than that is I don’t However, Ms Aquino said per hectare. “When all things are have to be away from my family that they would not have been able favorable,” she said, “the total harvest anymore…thanks to the CBAP.”

Tilapia production, according to Ms Aquino, nets an income of around P70,000 to P90,000 each quarter. Her fishponds yield around 2,000 kg or 2 metric tons which they are able to sell at a farm gate price of P92/kilo.

One of the five fish ponds which Ms Aquino was able to construct near their one-hectare rice farm. Initially, with money from her savings as an OFW, she oversaw the construction of four ponds measuring 2,000 square meters each. Ms Aquino, however, said that they would not have been able to operate the fishponds if not for the loan from CBAP through CBNV. 19 Equipped only with the knowledge that their family had around more than two hectares of land which had some potential for both agricultural and fishpond uses, Ms Miriam Aquino, an OFW in Hongkong, decided to return home to Barangay Wacal, Solano, Nueva Vizcaya. The Cooperative Banks Agri-Lending Program (CBAP) implemented by the Cooperative Bank of Nueva Vizcaya (CBNV) provided additional capital for her agri-fishery venture. (Ms Aquino is with Mr. Roldan B. Romero, Loan Officer of CBNV.)