The Department of Agriculture (DA) launched a new credit facility to aid farmers’ productivity and boost level of farming.

As cited in the report of Philstar, DA ‘s Agricultural Credit and Policy Council and the Development Bank of the Philippines will administer the BuyANIHAN, a funding assistance for rice farmers.

The said credit facility will be used to for cooperatives’ working capital to improve the buying of Palay from farmers at a competitive price.

“Only eligible cooperatives endorsed by DA through the regional field offices may avail of the credit line based on the maximum inventory level of their warehouse capacity,” report said.

“Nueva Segovia Consortium of Cooperatives is the first recipient of the loan which has an interest rate of 2.5 percent per annum, payable in three years,” DA Secretary William Dar said.

“Farmers should come together and form organized associations and showcase collective action in grassroot level. We should be part of an association so we can have the leverage, “Dar added.

Dar said that once farmers’ groups are already strong, they can obtain business partners to intensify the economies of scale.

Apart from BuyANIHAN, SURE Aid loan program, another credit facility, which extends a one-time P15,000 financial aid to rice farmers with one-hectare or less farm area.

It has zero interest which is payable for eight years. DA is also providing more credit assistance to provincial government to support local rice farmers.

“The fund may be used for buying palay and setting up a value-chain system in the provinces to assist farmers in production, post-harvest, processing, and marketing of their produce,” report stated.

Source:

New credit facility available for farmers