The Department of Agriculture (DA) recently transferred to the Land Bank of the Philippines (LandBank) an additional P1.44 billion to fund loans made by farmers, fisherfolk, and agripreneurs under the Agricultural Competitiveness Enhancement Fund (ACEF) credit program.
“The fresh fund augments the previous P4.495B the DA has cumulatively entrusted to LandBank, being the administrator of the ACEF lending program. Hence, to date it has a total portfolio of close to P6B that farmers, fishers, and agripreneurs can borrow under the ACEF,” said Agriculture Secretary William Dar.
“We will request the DBM to release to the DA another P2.1B ACEF money for credit.”
“Further, we will request the Department of Budget Management (DBM) to release to the DA another P2.1B ACEF money for credit,” Dar added.
LandBank President and CEO Cecilia Borromeo thanked Secretary Dar for facilitating the transfer of the additional P1.4-B ACEF funds.
Borromeo reported that of the P4.495B ACEF money for lending, LandBank has approved P3.675-B worth of projects, while P796-M worth is still being processed.
“LandBank has released P2.5-B worth of ACEF loans to farmers, fishers, FCAs and MSEs for their respective projects.”
To date, it has released P2.5-B worth in ACEF loans to farmers, fishers, FCAs and MSEs for their respective projects, she said.
Most of the ACEF agri-projects are located in Cagayan Valley region, and the provinces of Occidental Mindoro, Nueva Ecija, Isabela, and Capiz.
On a regional basis, farmers in northern and central Luzon have availed of ACEF loans for their respective agrifishery and agribusiness ventures, worth P1.4B; followed by their counterparts in Mindanao, P923M; South Luzon, P704M; and Visayas, P639M.
ACEF was first implemented in 1996, and will end in December 2022. ACEF is comprised of all tariffs and duties collected from the importation of agricultural products, except rice, under the minimum access volume (MAV) mechanism. The fund also includes repayments from ACEF loans, as well as unused balances.
The ACEF lending program aims to increase the productivity and incomes of farmers and fishers by providing them affordable credit to acquire production, postharvest, processing machineries, equipment and facilities, or buy farm inputs.
They can avail of ACEF loans individually or collectively through their cooperatives or associations or FCAs.
Micro and small-scale enterprises (MSEs) engaged in food production, processing, packaging and marketing can also apply for ACEF loans.
Individual farmers and fishers can borrow up to 90 percent (%) of their total project cost, not exceeding ₱1M, while FCAs and MSEs can borrow up to P5M, with a low interest of 2% per annum.
The bulk or 80% of ACEF is set aside for credit; 10% as grants for research and development (R&D), and commercialization of agricultural and fishery products, and upgrading of R&D facilities of state universities and colleges; and 10% for scholarships of students pursuing courses in agriculture, forestry, fisheries, and veterinary medicine.