affp naga roadshow

8/12/2019 AFFP Naga Roadshow

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LAND BANK OF THE PHILIPPINESLENDING PROGRAM MANAGEMENT GROUP

Agriculturaland Fisheries

FinancingProgram

(AFFP)


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SFF lack access to formal credit

Pursuant to General Appropriations Act

of 2013 LANDBANK and DA-ACPC forged a

partnership

RATIONALE


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OBJECTIVES

Increase access to financing of SFF

Enhance the capacity, competitiveness and

earning potential of SFFs

Provide credit enhancements and support

services such as, technical assistance,

marketing support and crop insurance


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1. Abra2. Apayao

3. Ifugao

4. Kalinga

5. Masbate

6. Romblon

COVERAGE

And other provinces which may be agreed uponbetween LANDBANK and PCFC


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The DA-ACPC provided an overall fund of P1

billion

Of the Php 1 Billion, Php 550 Million shall be

administered by LANDBANK while Php 450

Million shall be administered by PCFC

PROGRAM FUND


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GENERAL POLICIES

Loan application fee shall be waived

Borrowers shall be exempt from CIBI except for thosewho disclose that they are involved in any court

cases or that they have past due loans Borrowers whose age will be more than 60 years by

the end of the term of the loan shall require ayounger co-maker

Past due loans can only be restructured once

Incentives shall be given to the service conduitwhose members have good repayment records


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TARGET BORROWERS

Non-ARB Small Farmers and Small Fisherfolk

(NASFSF) registered in the RSBSA


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Who are the small farmers?

Those cultivating not more than five (5) hectares of

land and/or are engaged as small poultry/livestock

raisers defined as those raising not more than the

following:

- poultry (1,000 poultry layers or 5,000 broilers)

- swine (10 sow level or 20 fatteners)

- cattle (10 fatteners or 5 breeders)

- dairy (10 milking cows)- goat (50 heads)


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Who are the small fisherfolk?

those operating fishing vessels of not more than three tonscapacity;

those operating fishponds of less than five hectares or fish

cages of less than 400 square meters;

fish workers in fishing boats, fishponds, or fish processingestablishments; or

Any other individuals who are engaged in small scale fish

production, processing, and distribution.


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ELIGIBILITY CRITERIA

Farmers/Fishers Organizations duly registered with CDA or

SEC (If not yet registered, they should register while the loan

applications of its members are being processed)

Operating in priority areas

With NASFSF members

Other criteria as may be set by DA-ACPC

For Service Conduit


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ELIGIBILITY CRITERIA

For Individual Borrowers Non-ARB small farmers and small fisherfolk

Member of a service conduit or known to the

service conduit(if not yet a member)

Registered in the RSBSA

With viable project whose net income is

enough to pay the loan amortizations

No outstanding loan for the same projectbeing applied for


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ELIGIBLE PROJECTS

Production, processing and trading of priority

commodities of the Department of Agriculture

such as, but not limited to, coconut, fishery,

and high value crops, other than palay


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LOANABLE AMOUNT

Based on the credit requirement of the project

but not to exceed 80% of the project cost.

Loan cap is P 300,000 per borrower which can

finance up to three (3) various projects,

simultaneously.


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LOAN TENOR

Based on the crop/operating/project cycle

Based on estimated remaining useful life of

fixed assets/ equipment acquired, but not to

exceed 5 years


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INTEREST RATE

Fifteen percent (15%) per annum


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MODE OF PAYMENT

Based on cash flow of the project which can

be quarterly, semi-annually or annually


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LOAN SECURITY

Deed of Assignment of Promissory Notes

Deed of Assignment of crop insurance

proceeds/proceeds of market contracts

Chattel mortgage on object of financing (if

any)


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Basic Documentary Requirements

1. Photocopy of Registration Certificate, Articles ofCooperation/Incorporation and Constitution/By-Laws (forand to be submitted by the Service Conduit)

2. Endorsement letter from the DA designated endorseragency/unit (DA-RFU/BFAR/PCA) of eligible ServiceConduit

3. Endorsement letter from Service Conduit of its memberswith certification that ; a) its members are non-ARBs orknown to the Service Conduit (if not yet a member) and b)they have no outstanding loan with any financinginstitutions for the same project being applied for

4. Copy of Purchase Order/Marketing Agreement with buyers5. Farm Plan and Budget (if applicable);

6. Business Plan (if applicable).


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Thank you!

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