Legislative Agenda #4! ‘We Need A Real Farmers Bank To Provide Easy-Access Credit’

Ang isa sa mga dahilan kung bakit baon sa utang o di kaya nakatali sa mga loan sharks ang ating mga agricultural producers ay ang kakulangan ng Easy Access Credit.

The Land Bank of the Philippines, originally established to serve the needs of farmers, fishermen and the agri-aqua sector has become a commercial unibank with requirements so stringent preventing small agriculture stakeholders to avail of easy credit.

When I was Secretary of Agriculture, I designed the Production Loan Easy Access to provide small credit to farmers and fishermen through the Agricultural Credit Policy Council.

Since DA ACPC does not have the mandate for direct lending to agriculture and fisheries stakeholders, the loans, averaging P50,000, were granted through local conduit banks, credit cooperatives or established cooperatives.

The PLEA initially benefited farmers and fishermen in Malimono, Surigao del Norte, the Onion Farmers of Nueva Ecija and the vegetable farmers of Cordillera.

The most dramatic response was made by the Cordillera Vegetable farmers who posted a 100% repayment

While it was highly successful with a very high repayment rate, the PLEA was scrapped when I resigned as DA Secretary.

There is a need for a real agricultural production bank which would provide readily accessible credit to farmers, fishermen and agri-aqua stakeholders who are registered in a database with the proper geotagging of their areas.

This is the key to boost agricultural production while freeing our farmers and fishermen from the shackles of debts and loans from traders and lenders who control the prices of their produce leaving them in perpetual dependence on seasonal loans.

A legislation which would create and establish a Farmers and Fishermen’s Bank is one of our priority agenda if given the chance to serve as Senator.

#GovernanceIsCommonSense!

#TargetFoodSecurity!