GUIMBA, Nueva Ecija—President Ferdinand Marcos Jr. on Thursday launched a program helping agricultural cooperatives across 1.2 million hectares planted to rice across the country. The Department of Agriculture program targets increasing farmer-member productivity and income by providing low-cost credit, financial assistance, and a ready market for their harvests.
Under the dry cropping season (2024-2025), the program makes available credit facilities for rice farmers and cooperatives, starting with established cooperatives under the National Irrigation Administration (NIA) in the Upper Pampanga River Integrated Irrigation Systems (UPRIIS), Magat River Integrated Irrigation System (MARIIS), and NIA systems serving the Cordillera Administrative Region (CAR).
At the launch of the Agri-Puhunan at Pantawid (APP) program, President Marcos told 5,000 farmers in the rapidly developing agricultural town of Guimba, Nueva Ecija that the DA and Development Bank of the Philippines have secured an initial P3 billion to provide a combination of low-interest loans and subsistence allowances for farmers.
Secretary Tiu Laurel said the APP program aligns with the Marcos administration’s goal to make farming more bankable, attract more and bigger investments, nurture a new generation of farmers by uplifting their living conditions , and ensure national food security and sustainability in the Philippines.
“We will provide our farmers with the financial resources needed to pursue their vocation. This initiative will extend credit to farmers for seeds and other inputs, crop insurance, subsistence allowance until harvest, and ensure a ready market with the National Food Authority and the Department of Social Welfare and Development for a predetermined volume and income,” Tiu Laurel said.
The DA has signed agreements with Planters Products Inc. and the DBP for the seamless implementation of the program, anticipating that other government agencies will follow suit to improve the lives of those dependent on agriculture.
“We envision this program as a self-sustaining initiative that will finally unlock the potential of the agriculture sector, which provides two out of every ten jobs in the Philippines but contributes less than ten percent to the gross domestic product. We are hopeful that this initiative will be a game-changer for the sector and those who depend on farming,” said Tiu Laurel.
The DA initiative is designed to address the critical challenges faced by farmers in terms of access to financing, rising costs of inputs, and market instability.
The APP program will offer enhanced credit facilities to those already holding intervention monitoring cards, which can be used to purchase seeds, fertilizers, pesticides, and ameliorants, and to pay for services through PPI-accredited merchants. Through the program, farmer-beneficiaries have access to financial assistance, access to affordable essential inputs, and secure market opportunities, allowing farmers to focus solely on labor.
For instance, an APP beneficiary who plants rice on a hectare of land will receive a net of P58,000 to cover production costs—inputs, land preparation, hauling, including a subsistence allowance of P32,000 or P8,000 a month for four months plus crop insurance. The APP proceeds complement the subsidy for inputs, services and insurance of approximately P14,500 per hectare. Additionally, the credit conduit may execute forward contract agreements.
Initial DA estimates suggest that a farmer under APP could earn net income of P65,000 each cropping period assuming rice harvests of 5 metric tons per hectare, inclusive of P32,000 subsistence allowance, even after repaying the loan, its interest, and taxes. The credit conduit may execute forward contract agreements with National Food Authority (NFA) and/or NIA to ensure support price for participating farmer-members of accredited rice clusters – following their respective set of guidelines. Farmer-beneficiaries under the APP can sell any excess volume for additional income.
“The APP program essentially represents contract farming, which will guarantee a decent higher income for our farmers and provide the government with a stable supply of our staple food. It could also help reduce the volume of rice we import,” Tiu Laurel said.
