WB okays $60-M loan for agriculture sector

The World Bank (WB) has approved a $60-million farm sector investment and maintenance loan for the country’s agricultural sector. It has a maturity period of 20 years with the Department of Agriculture (DA) as the implementing agency.

The loan is under the WB’s Diversified Farm Income and Market Development Project and is intended to strengthen the agriculture department’s capacity for the provision of market-oriented services designed to increase agricultural competitiveness and rural incomes.

"The project aims to stimulate rural growth, employment, and increase farmers, incomes through greater crop diversification and enhancing sector competitiveness.

"The country’s competitive advantage in its key commodities (rice, corn, coconut and sugar) has continued to slip and few new products have emerged where the country can compete in any significant way on world markets," the WB said in a statement.

Technical assistance will also be provided to help implement the intellectual property rights provisions, to promote better dissemination of technology, and greater private sector involvement, as certification of improved seed and vegetative products evolve, the WB added.

It would likewise implement in the "focus" areas supported by the project, and complemented with community-based information dissemination systems available to various types of farmers/growers and the general community.

One specific area is in the improvement in agricultural statistics, information technology for agriculture and fisheries, and agricultural training.

Another area of focus is to reduce the dependence of local government units (LGUs) from the different national government agencies in both financial and technical matters.

The project would like to result in the improvement of public expenditure management focused on public resource allocation, utilization, and better linkages between planning and budgeting.

Components will support market development services, and collaboration in market promotion, trade fairs, and others with the private sector.