The Department of Agriculture (DA) continues to enhance its loan programs to help farmers and fishers boost production, aid those affected by calamities, and encourage the youth to engage in farming.

In an interview over Radyo Pilipinas on Thursday, Executive Director of the DA Agricultural Credit Policy Council, Ma. Cristina Lopez, said various loan programs are available for farmers and fishers at low – or even zero – interest rates, especially in the aftermath of disasters.

These include the Agri-Negosyo Loan and the Survival and Calamity Loan Program for farmers affected by disasters, while refinancing options, including moratoriums, are available for those with existing loans.

“Meron tayong mga programa ng pagpapautang na ito dinadaan natin sa partner lending conduit. Ito ang mga banko at kooperatiba, kasama rin ang DBP (Development Bank of the Philippines) at Landbank (We have loan programs, which we course through our partner lending conduits. These are the banks and cooperatives, including DBP and Landbank),” she said.

Lopez said the Agri-Negosyo Loan offers loans of up to PHP300,000 with a subsidized interest rate of just 2 percent per annum.

She said this loan is available to farmers actively engaged in farming, even if they do not own the land they cultivate.

Farmers who do not own the land must only provide proof, such as a lease agreement or certification from their association or barangay that they are the ones tilling the land, to be eligible for the loan.

Lopez also noted that each household is entitled to only one loan but exemptions are in place for family members who cultivate separate farms, even though they live under one roof.

The Survival and Calamity Loan Program, meanwhile, is available to farmers or fishers affected by disasters, such as the recent string of tropical cyclones that hit several provinces in the country.

“Para sa mga may state of calamity, may declaration tayo sa lokalidad nila, meron tayong tinatawag na Survival and Calamity Loan Program. Walang interest ito, ang pwedeng mautang nila ay hanggang PHP25,000. Ito para maka-recover sila ulit at makapagtanim agad (For those in areas under a state of calamity, we have the Survival and Calamity Loan Program. It has no interest and they can borrow up to PHP25,000. This is to help them recover and immediately replant),” Lopez said.

Meanwhile, those who have existing loans but were affected by disasters may avail of a moratorium on loan repayment, which allows borrowers to postpone paying their principal for up to one year if their crops were destroyed.

Moreover, the DA has arranged with lending institutions to offer refinancing options for them.

Lopez said under the Agri-Negosyo and the Survival and Calamity Loan programs, the DA has already released PHP28 billion since 2017.

“Sa La Niña, nakapag-allocate tayo ng PHP500 million. Dito sa Kristine (international name Trami) pa lang meron tayong nasa pipeline, dun sa kakaayos lang ng kanilang submission ng request, nasa PHP147 million (For La Niña, we were able to allocate PHP500 million. For Kristine, we have about PHP147 million in the pipeline for those who have just submitted their requests),” she said.

The fund will be distributed through various channels, including cooperatives and rural banks, to provide financial relief to those in need.

Lopez said about 5,600 farmers from the affected provinces have expressed their intent to avail of the loan program, mostly from the Bicol region.

“Para sa moratorium, mga (For the moratorium, about) PHP167 million benefitting 1,100,” she added.

Young farmers

Meanwhile, the DA is also encouraging the youth to engage in agriculture, offering loans of up to PHP500,000 for young individuals seeking to go into farming, depending on their projects.

“Talagang hinihikayat natin ang mga kabataan na mag-engage sa agriculture. Meron tayong programa para sa kanila (We are encouraging our youth to engage in farming, we have a program for them),” Lopez said.

The program aims to make agricultural financing more accessible, even for newcomers who often encounter rejection when securing loans from traditional banks.

Interested individuals may avail of the various DA loan programs through their respective municipal agriculturists, who will endorse their applications to cooperatives, rural banks, and other partner banks.

Lopez also noted that the DA, through the municipal agriculturists, monitors those who availed of the program, ensuring proper use of the loan, by visiting them. (PNA)