The Department of Agriculture (DA) will partner with private, government, and thrift banks to assure funding for various agricultural projects which seeks to promote sustainable agri sector and ensure sufficient food supply.
Agriculture Secretary Manny F. Piñol, during a meeting with the Cooperative of Bankers Association (CBA) on February 12, 2019, said that “the department will need funds for the construction of solar-powered irrigation systems, farm-to-market road, and different processing and post-harvest facilities in the country.”
“If we can implement all of these, including the national mechanization program and the development of rural roads, we may expect a boost in the Philippine agriculture,” Piñol said
The CBA, led by Alfredo Yao of Zest-O Group of Companies, said they are open to fund various agricultural projects to comply with the Agri-Agra Law.
“We have about P200-Billion which we use to fund agriculture and agrarian projects,” Yao added.
Under the Agri-Agra Law or Republic Act 10000, banks are required to set aside 25 percent of their loanable funds for financing of Agricultural, Fisheries, and Agrarian projects.
Since its enactment in 2009, the utilization of the said funds has been very low and banks were forced to pay penalties.
During the meeting, the Secretary instructed Agricultural Credit Policy Council (ACPC) Executive Director Jocelyn Alma R. Badiola to submit a list of Agri-Agra Law compliant projects for possible funding.
Badiola will head a technical working group that will review the implementing rules and regulations of the Agri-Agra law.# Source - (Kristel Merle, DA-AFID)/www.da.gov.ph
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