P8.8-B credit line available for farmers, agri business

Agriculture Secretary Leonardo Montemayor has encouraged farmers and fisherfolk and even agribusiness enterprises short of funds to finance their businesses to avail themselves of the huge P8.8-billion credit facility from the government through funds appropriated for the implementation of the Agriculture and Fisheries Modernization Act.

"Credit from government to small farmers through AFMA amounting to P8.8 billion is readily available to the stakeholders," the DA chief said, adding that the basic thrust for 2002 is to maximize the grant of credit lines to farmers, fishermen and agri-businessmen to continue with the steady growth of Philippine agriculture."

He pointed out that some P8.7 billion of the amount remains locked in government financial institutions such as Land Bank and Quedancor, while only P155 million would be sourced from the Department of Budget and Management.

Montemayor said the untapped money was P6.8 billion more than what AFMA earmarked for credit to small farmers this year. He said the increase reflects President Arroyo’s determined effort to push agricultural modernization with social equity, a vow she made during her State of the Nation Address (SONA) last July.

The agriculture secretary pointed out that of the P20 billion committed by the President to implement AFMA this year, some P28.8 billion was actually made available to various agencies implementing the agriculture and fisheries modernization program.

"All this shows there’s more money that concerned government agencies can use for specific projects to boost food production, raise agricultural productivity, and uplift the lives of the rural poor," Montemayor explained.

The DA chief also said his agency has released P700 million to the public works and highways agency to build and improve 543 kilometers of farm-to-market roads in line with the farm modernization thrust of the administration of President Arroyo.

Montemayor said his agency has also disbursed some P122.3 million for the construction of 143 post-harvest infrastructure facilities in various provinces of the country and distributed 107 post-harvest equipment to peasant groups and farmers’ cooperatives during the first 10 months of 2001.