MANILA, Philippines — The Department of Agriculture (DA) targets to cover 1.2 million hectares of rice farms under its new credit program that seeks to more than triple farmers’ income, boost domestic productivity and reduce the country’s reliance on imports.
President Marcos launched yesterday the DA’s Agri-Puhunan at Pantawid program that aims to increase rice farmers’ productivity and income by providing them with a low-cost credit program, including subsistence allowance and a guaranteed market for their harvests.
A joint partnership between the DA and the Development Bank of the Philippines (DBP), the program would have an initial funding of P3 billion.
Agriculture Secretary Francisco Tiu Laurel Jr. said the new program would make farming “more” bankable and would allow the sector to attract more and bigger investments.
“We envision this program as a self-sustaining initiative that will finally unlock the potential of the agriculture sector, which provides two out of every 10 jobs in the Philippines but contributes less than ten percent to the gross domestic product,” Tiu Laurel said.
“We are hopeful that this initiative will be a game-changer for the sector and those who depend on farming,” he added.
Under the program, farmer-beneficiaries will get a net amount of P58,000. Of the amount, P32,000 will serve as their subsistence allowance which can be withdrawn over a four-month period at P8,000 per month.
The remaining amount can be used by the farmers to cover their other production needs such as inputs, land preparation and hauling, according to the DA.
The farmers can use the credit to purchase seeds, fertilizers, pesticides and even services through accredited merchants of Planters Products Inc.
The credit program complements the existing government subsidies for farmers for inputs, services and insurance which total to about P14,500 per hectare, the DA added.
The DA said farmers participating in the APP program could earn a net income of P65,000 per cropping period on a five metric ton per hectare yield.