Skip to main content

Filipino Farmers Don’t Give Credit To Credit – What’s The ACPC For?

This is both a Glad and Sad Story. Glad: The Agricultural Credit Policy Council (ACPC) has maintained its ISO 9001:2015 QMS Certification[1] as of October 2020. Sad: Many a poor Filipino farmer remains the loser in the credit card game played in the villages.

Well, farmers don’t realize it as credit – they just know it’s Fast Cash, no questions asked, no collateral, no waiting in line. We call it “Five-Six” – it’s really a “Borrow Now Pay Later Plan” – borrow 5 pay 6, 20% interest within 100 days, even within 24 hours. Fast cash for the borrower, fat cash for the lender. Aren’t both happy?!

Isn’t that a failure of credit consciousness in the Philippines? Isn’t that a failure of an agency to promote credit worthiness in both borrowers and lenders?

No, not so fast! Because, right now, there is no single public agency tasked to promote the use and demote the abuse of farm credit in the Philippines. The nearest body I can think of is the ACPC, but my googling tells me I’m wrong.

A little bit but necessary history: The ACPC was created in 1986 by Executive Order (EO) 113 signed by President Corazon C Aquino on 24 December 1986. Via EO 113, according to its website[2], the ACPC was mandated:

To assist the Department of Agriculture (DA) in synchronizing all credit policies and programs in support of the latter’s priority programs. It was also tasked to review and evaluate the economic soundness of all on-going and proposed agricultural credit programs, whether for domestic or foreign funding, prior to approval. Also, ACPC was tasked to undertake measures to increase its funds base and adopt other liquidity interest stabilization and risk cover mechanisms for its various financing programs.

The ACPC is mandated to: “Synchronize all credit policies and programs.” “Review and evaluate the economic soundness of credit programs.” “Increase its funds base and adopt risk cover mechanisms for its financing programs.”

Nothing said about the ACPC officially acting on non-formal credit that farmers almost always turn to, to their dis/advantage.

The ACPC became an attached agency of the DA via EO 116 in 1987: “To support priority DA programs; to review & evaluate credit programs for funding; to increase funding for various programs.” No, nothing said about helping farmers with their dis/credit relationships with moneylenders. I wonder why.

I believe the lack of a specific law is to be blamed for the continued and widespread presence of usury in the farming villages. Convenience remains the enemy of poor farmers.

In the meantime, we can only urge the ACPC to do institutionally more to promote its role in carrying out its functions expanded by Republic Act (RA) 7607, the Magna Carta of Small Farmers, to: “(1) conduct institutional capacity building programs and (3) to develop special projects to promote innovative financing schemes for small farmers.” RA 7607 did not address credit ignorance and abuse.

I believe we need a PH law passed addressing the widespread Five-Six loan arrangements, with the ACPC taking charge.@517


[1]https://acpc.gov.ph/acpc-maintains-its-iso-90012015-qms-certification/

[2]https://acpc.gov.ph/about/#:~:text=Agricultural%20Credit%20Policy%20Council%20(ACPC,of%20the%20latter's%20priority%20programs.

Comments

Post a Comment

Popular posts from this blog

Historical PH 1st Holy Mass: Mazaua Or Limasawa? Fr Amalla Vs Maria Serena Diokno Vs Ambeth Ocampo – And The Priest Is Right!

We Filipinos celebrate 500 years of Christianity today Wednesday, 31 March 2021, Christianity brought to pagans by Portuguese explorer Ferdinand Magellan sailing the seas for Spain. The historical question is: Where was the first Holy Mass celebrated: “Limasawa” (in Leyte) or “Mazaua” (in Butuan)? Catholic priest Fr Joesilo C Amalla has just published the book (above), An Island They Called Mazaua, that argues the island of “Mazaua” in Butuan is the “true site of first Holy Mass in the Philippines [1] ”  and not “Limasawa” in Leyte (ANN, 07 January 2021, Manila Times ). The declaration and discussion are made by Butuan-based Fr Amalla in his 644-page book. Among other things, he writes: The truth is that the prevailing state- and church-affirmation and multiple reaffirmations of the island of Limasawa as the site of that first Holy Mass have no factual, historical and geographic (bases) whatsoever nor any shred of evidentiary support from cartographic studies, navigational info...
Post a Comment
Read more

05, The More The Merrier – PH 17 Provinces Lead Agriculture & Fisheries Extension System

Yes, under PH Secretary of Agriculture William Dar, the Department of Agriculture (DA) will have 17 provinces leading the DA program “ Province-Led Agriculture & Fisheries Extension System” (PAFES) nationwide, when in full initial blast, 1 lead province in each of the 17 regions of the Philippines, and here they are, from North to South: Cordillera Administrative Region (CAR) Ilocos Region (Region 1) Cagayan Valley (Region 2) Central Luzon (Region 3) National Capital Region (NCR) Calabarzon (Region 4-A) Mimaropa (Region 4-B) Bicol Region (Region 5) Western Visayas (Region 6) Central Visayas (Region 7) Eastern Visayas (Region 8) Zamboanga Peninsula (Region 9) Northern Mindanao (Region 10) Davao Region (Region 11) Soccsksargen (Region 12) Caraga (Region 13) Bangsamoro (BARMM) But isn’t that too many leads – you know, “Too many cooks spoil the broth”? No. The variations in the cooking will be minimal. Science works if you follow the rules – and it will be the same science from Regi...
Post a Comment
Read more

Davao De Oro Rubber Has Elasticity And Should Be Able To Bounce Back!

  The caption above says, “DA-PRDP turned over the Village Level Rubber Processing and Marketing Enterprise to SARPHIL CARP Beneficiaries Multipurpose Cooperative (SACARBECOM) in Monkayo, Davao De Oro last 11 March 2021.” Rubber being produced in the Philippines, a non-traditional commercial product. We are competing with Indonesia and Malaysia? From the story by Joy M Montecalvo , the caption needs explanation. Not the enterprise itself, the Philippine Rural Development Project (PRDP) of the Department of Agriculture (DA) turned over a village-type rubber sheet facility that can process 192,000 liters of latex yearly. Miss Joy says, “The 124 members of SACARBEMCO will now be able to produce 55 to 60 MT of rubber sheet per annum and increase their income to at least 5 percent per year or a total of 30 percent in six years.” Hopefully, I say. (The SACARBEMCO is the SARPHIL CARP Beneficiaries Multi-purpose Cooperative based in Monkayo, Davao De Oro.) Miss Joy says in the headlin...
Post a Comment
Read more