Agri loan program to ARBs: Done and gone

Just last week, the Philippine Institute for Development Studies (PIDS), the country’s primary socioeconomic policy think tank, recommended that “financial assistance should be opened easily to farmers, especially to the Agrarian Reform beneficiaries (ARBs), if the government is serious in advancing the growth of the country's agriculture sector.”

In effect, suggesting that “financial assistance is needed by the farmers to ensure that recommended inputs are applied.” It further pointed out that “it should look into the possibility of providing subsidized inputs to farmers or cooperatives.”

Undoubtedly, most of those in dire strait are in the agriculture sector. Remember, one third of the country’s labor force are in this sector, yet, it only contributed a little over 10 percent in our Gross Domestic Product (GDP). Obviously, despite the presence of well-managed huge plantations, this is still the most unproductive sector. Why? Some of those well-managed plantations that were distributed to agrarian reform beneficiaries (ARBs) were no longer as productive or, worse, are uncultivated.

Supposedly, with the implementation and perpetual extension of the Comprehensive Agrarian Reform Program (CARP), poverty should have been a thing of the past for these ARBs. Except for a few though, some supposed emancipated families/beneficiaries have continued to be in bondage.

However, if until now the ARBs remained unproductive or are still in bondage because the government is lacking in financial support as the suggestion of PIDS sounds, then, this state-owned think tank is absolutely wrong.  Straightforwardly, records would show that LandBank was always there all these years. Specifically, on top of the dole-outs and previous financing supports, LandBank had earmarked ?198 million for loans in 2009-2012 to ARBs. The project (dubbed as Agri-enterprise Credit and Agri-finance Services or agriCASH) was reportedly “aimed to provide financial services to agri-based enterprises in Agrarian Reform Communities (ARCs) through selected countryside financial institutions, ARC cooperatives, LandBank-assisted cooperatives, and other lending conduits.”

Through this project, LandBank was also expected to “mobilize savings and generate share capital totaling ?33 million for the three-year period. Notably, then LandBank’s president and chief executive officer Gilda E. Pico said that the project could “further help sustain the improvements on increased incomes, agribusiness employment opportunities, and empowerment of agrarian reform beneficiaries and farmer organizations in ARCs.” Yet, the program continued to fail big time. Simply put the PIDS suggestion is done and gone.

It is not yet late though for the government and these ARBs to realize their lapses. Set aside the Department of Agrarian Reform’s (DAR) failure in alleviating the plight of the ARBs.  This DAR is run by ideologues who have been, as track record will attest, proven failures. Therefore, they can’t help our beneficiaries that much. What is imperative now is to vigorously pursue the already in place alliances of the Department of Trade and Industry (DTI) and the Department of Agriculture (DA). To recall, about four years ago, the DTI and the DA forged an alliance to help farmers and fishermen develop their businesses. During the opening of the Agribusiness Center (which coincided with the 113th anniversary of the DA), the two agencies committed (through this Agribusiness Center) to help farmers and fishermen in business licensing, trade facilitation and export market exposure.

Among others, this ?12-million project “houses an information center, export showroom, an activity center and a café, where the public can sample native delicacies and recipes from chefs demonstrating their cooking skills and culinary expertise.”  Moreover, this center was supposed to serve as a “one-stop shop” to deliver business services closer to the farmers and fishermen like business name registration, certifications, permitting and licensing.

With the establishment of the Agribusiness Center, what is imperative now is for this government to support this program continuously. Through this Agribusiness Center, other line agencies should get involve and help equip these beneficiaries with sound entrepreneurial skills by taking a more holistic and comprehensive approach.

Furthermore, we should provide them experience-based production and sound business-management training. Such training must include among others, concerns in production, business, ecology and environment. Training on production should include planting, harvesting, irrigation system, livestock, etc. Business trainings must include marketing, finances, budgeting, etc.

To ensure success, this government must also provide the necessary infrastructure, such as, irrigation, storage facilities, transport equipment, packing and processing facilities. Done well, only then will we be able to let them till their lands profitably.