DA suspends farmers’ loan payments

MANILA, Philippines — The Department of Agriculture is suspending the payment of farmers’ loans for one year as the enhanced community quarantine due to the coronavirus disease 2019 or COVID-19 is expected to affect their income.

DA-attached agency Agricultural Credit Policy Council said 77,375 farmers and fisherfolk would benefit from the one-year moratorium on the payment for the existing loan programs of the department.

The temporary suspension of payment aims to help farmers who fail to sell their produce in the market due to the imposed lockdown.

There is roughly P2.3 billion in loans under the ACPC programs which will be included in the moratorium which started last March 16 and will end the same day next year.

“With this crisis, we understand that the health and safety of everyone is the priority. Our farmers and fisherfolks are also frontliners as they ensure that we have sufficient food on our tables,” Agriculture Secretary William Dar said.

The ACPC is also giving its partner lending conduits a one-year moratorium to return the loans.

Further, Dar appealed to local government units to source out produce from local farmers amid the growing demand for food pack distribution.

“On top of distributing canned goods and processed products, we urge our LGUs to prioritize buying fresh produce from our farmers. It’s a win-win situation for both consumers and producers,” Dar said.

Aside from providing a sure market to farmers, he said that products are nutritionally beneficial in strengthening the immune system against COVID-19.

LGUs nationwide have started distributing food packs to aid families with critical need for food supplies, especially those who are under quarantine and cannot go out of their houses.

Meanwhile, research and advocacy group Action for Economic Reforms lauded the DA and Department of Trade and Industry on easing the movement of cargo and agricultural products amid the lockdown.

The Philippine Rural Reconstruction Movement noted that it is important that rules are cascaded and understood by everyone, most especially LGUs and authorities who implement the quarantine procedures lest they be used to extort money from food haulers and traders.

AER emphasized that strong information dissemination is required particularly on the ground level so as not to affect the smaller producers.

“We hope the DA and DILG will also closely coordinate with the municipal agricultural officers or mayors to effectively spread the guidelines to farmers and fisherfolk,” AER said.

“This is necessary given that our smaller producers may not be aware of the updates posted on social media as internet access may be limited in those areas,” it added.