Mamerto E. Ellorin, NAFC executive director, said the amount will be sourced from Japan’s 2KR program and will complement the DA’s "Tipid Abono" fertilization program.
The 2KR program is an official development assistance from Japan that comes in the form of agricultural commodities that are sold through public bidding.
Proceeds from the sale are used to fund agriculture and fisheries modernization projects. NAFC’s program pushes the adoption of the practical use of organic fertilizers that would result in about 36 to 47 percent reduction in fertilizer costs.
As a result of the recent spate of increases in petroleum-based fertilizer prices, fertilizer cost now constitutes from 15 to 30 per cent of the rice and corn farmers’ cash input.
Still, prices remain unstable. The program primarily calls for the reduced application of inorganic fertilizers in favor of the cheaper organic fertilizers.
The NAFC support program is projecting to serve some 25,000 farmers tilling about 25,000 hectares in 36 Ginintuang Masaganang Ani - Rice (GMA-Rice) provinces. Pilot-tested last month, the project will cover two cropping seasons starting in November this year and ending in Oct. 2005.
The project has two components, namely: loan assistance for organic fertilizer technology adopters and loan assistance to organic fertilizer producers. Under the loan assistance, farmers can avail themselves of concessional loans from a special credit window to be put up jointly by DA-NAFC and Quedancor.
An initial P15 million deposited by NAFC with Quedancor shall be tapped for this purpose. Under the fund assistance to organic fertilizer producers, NAFC will provide P10 million to enable about 10 producers initially to raise their production.
The producers are expected to provide organic fertilizers to farmers on soft credit terms for three years. Consistent with this obligation, the producers will pay back the fund in three years.
The project participants are member-producers of the organic fertilizer umbrella-organizations, namely the: Organic Fertilizer Manufacturers Association Inc. and Organic Producers and Traders Association, FABCON Phil. Inc, Romarc Enterprises, SAGANA 100 Phil. Inc., Sander’s Organic Fertilizer Manufacturer, Manila Fertilizer Inc., Nutri-Growth Multi-Purpose Cooperative Inc. and Galactic Resources Development Corp.