THE Development Bank of the Philippines (DBP) said it launched new agricultural credit programs targeting rice farmers in key growing areas in northern and Central Luzon.
“Our instructions are (to tap farmers) from Nueva Ecija, Cordillera Autonomous Region (CAR), Pangasinan, and Isabela,” DBP Director Roberto V. Antonio told reporters at a briefing.
The Agri-Puhunan at Pantawid (APP) program focuses on rice farmers holding less than a hectare, who are deemed eligible to receive on credit P60,000 worth of inputs and allowances from the DA’s partner banks during the 2024 to 2025 crop year. The interest rate is 2%.
“We want to stick to one farmer, one hectare — or at a maximum of two hectares. We want to make the beneficiaries easily monitored by both the DA and the DBP,” Mr. Antonio said.
The program was initially launched in Guimba, Nueva Ecija with around 5,000 rice farmers as initial enrollees. Funding of about P3 billion was allocated for the APP program.
Another eligibility requirement is that the farmer must be signed up with the DA’s Registry System for the Basic Sectors in Agriculture. The DBP is looking to enroll an initial 50,000 farmers for the program.
Farmers taking the DBP funding are also required to sell a portion of their harvest to the National Food Authority at a farmgate price of P21 per kilogram.
“We have to get everything in order before the planting season (that will produce) the main harvest,” he added.
Mr. Antonio said that P32,000 will also be given to beneficiary farmers as a subsistence allowance, amounting to P8,000 for four months.
The remaining P28,000 will cover the purchase of farm inputs like seed and fertilizer in DA accredited stores. The program will add to the inputs they already receive from the DA.
Mr. Antonio added that the bank is considering whether farmers growing other crops can join APP.
“Our mandate is to focus on rice, but at the same time, we’re asked to study the possibility of implementing the program with other crops…when we’re ready to present, we will present it to the Secretary (of Agriculture),” he added. — Adrian H. Halili