DA allots P400M for farm equipment loan
Agriculture Secretary Emmanuel Piñol said that the Department of Agriculture (DA), through the Agricultural Credit Policy Council (ACPC), has opened a new loaning window, which offers funds so farmers’ cooperatives and associations could buy the equipment and machineries they need.
The Farm Equipment and Machineries Loaning Program, which was approved by the ACPC Executive Board last week, offers an initial P400-million fund which could be accessed by the farmers with a 6 percent interest every year payable in eight years.
“I proposed the new loaning program to the ACPC board, which I chair with representatives of the Central Bank, the Department of Finance, the Department of Budget Management and farmers groups, as part of the effort to improve the implementation of the farm mechanization program of the country,” Piñol said.
Under the current set up, it is the DA, through its regional offices, which buys farm equipment and machineries which are then distributed to farmers groups.
In the previous administration, farmers groups were required to put up a 10 percent counterpart before they could get tractors, planters and harvesters.
Piñol said this prevented many farmers from acquiring machineries and equipment which they needed to lower the post harvest losses.