Magsaysay proposes ACEF extension

Senator Ramon Magsaysay Jr. recently filed a measure that seeks to extend the lifespan of the Agriculture Competitiveness Enhancement Fund (ACEF), a funding program which aims to help fishermen and fisherfolk compete in the era of globalization.

In filing Senate Bill 2702, the legislator noted there is a need to extend the utilization period of the fund to another 15 years to enable the government to provide the farming, fisheries and agricultural sector the opportunity to strengthen their development activities and enhance their competitiveness.

"The availability of the ACEF will relieve the farmers, fisherfolk and the entire agricultural workers of the need of having to secure other sources of funds for their competitive enhancement activities," Magsaysay said.

The fund, created under Republic Act 8178 or the law "Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, with Tariffs," in 1996, aims to cushion the impact of the lifting of quantitative restrictions on affected sub-sectors of agriculture.

Proceeds of the fund come from the importation of certain agricultural products which are allowed to enter the country under the minimum access volume (MAV) category which the Philippines committed to the World Trade Organization under the General Agreement on Tariffs and Trade Uruguay Round.

ACEF was then given nine years to exist (1996-2005), but due to budgetary constraints in the operations of the national government, it began receiving its share of allocation only in late 1999. From 1996 to the end of 1999, ACEF received nothing for its target objectives.

"Currently, ACEF only has P5.2 billion. Of this amount, P2.08 billion has been disbursed for 41 regular (agricultural) projects and 93 for sugar projects. We have a balance of P3.1 billion. Already, there are 14 project proposals up for approval and there will be more projects for evaluation needing funds. We cannot go on financing projects if our current resources continue to dwindle by the day," Magsaysay said.

The senator said ongoing projects range from irrigation, establishment of post-harvest facilities, farm to market roads and other marketing infrastructure and information.

Under the proposed measure, those who can avail of the fund, through interest and collateral-free loans are: small Filipino farmers and fisherfolk, cooperatives, young farmers, agricultural and fisheries workers and young entrepreneurs and small-and medium scale enterprises engaged in agricultural production, farming and similar activities.