Aganan River Federation  of Irrigators’ Associations, Inc. “CASE PRESENTATION” January 30, 2009 Presenter:  Mrs. Juanita P...
I. Brief Profile of ARFIA <ul><li>The Aganan-River Federation of Irrigators’ Associations (ARFIA), Inc. was registered wit...
Irrigators Associations, Areas and Membership Name of Irrigators’ Association Service Area (has.) IA Area (has) No. of Far...
<ul><li>ARFIA is governed by 18 Board of Directors coming from 6 IAs, where each IA has 3 representatives (President, Vice...
Overview of Postharvest Facilities Canters Solar Dryer Mechanical Dryer Forkclift Glass House Warehouse
II. How ARFIA became a PACAP Partner <ul><li>When the Postharvest facilities was operationalized in 1996, NIA also started...
How ARFIA became a Partner of PACAP <ul><li>In 2000, a project proposal was drafted and submitted. It was evaluated and re...
Summary of Projects funded by PACAP
Mission <ul><li>“ To work together in partnership with NIA in developing a productive irrigation community towards the upl...
III. Role of Microfinance in Organizational Mission <ul><li>The Irrigators’ Associations (IA) were organized and strengthe...
<ul><li>With the IA-NIA partnership and a common mission to uplift the socio-economic condition of the farmers and the irr...
With Micro-finance project, it has been able to: <ul><li>Provide production credit to 345 farmers with low interest rate (...
With Micro-finance project, it has been able to: <ul><li>Provide 0.20 cents to P1 price difference compared to local/preva...
IV. ARFIA & Its Microfinance Project:   Strategies Implemented <ul><li>1. Each TSAG Chairman recommends qualified borrower...
Strategies Implemented… <ul><li>5. The IA Officers assist in the monitoring/collection of loans covered by his area to ens...
EXAMPLE OF LOAN COMPUTATION PER HECTARE: Farm Inputs Qty. Loan Amount /Hectare 1st Time Borrower 2nd Time Borrower 3rd tim...
<ul><li>Due to these strategies, we had achieved an overall repayment rate of 93% with 345 farmer-beneficiaries since the ...
Problems Encountered <ul><li>At first, we had difficulties in screening the potential beneficiaries for the project. </li>...
<ul><li>Abrupt increase in the prices of fertilizers and chemicals. </li></ul><ul><li>Some farmers do not follow the presc...
LESSONS LEARNED <ul><li>Aside from NIA, there must be close coordination with other non-government and government agencies...
LESSONS LEARNED <ul><li>The role of each IA Officers and members of the Federation is very important in project transparen...
MADAMU GUID NGA  SALAMAT!!!
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Case Presentation- Microfinance in Agriculture (ARFIA)

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Juanita Amuan presents how Aganan River Federation of Irrigator’s Association, Inc used microfinance initiatives to improve economic growth opportunities for their beneficiaries (30 Jan, PACAP Community Development Forum: Microfinance Amidst the Global Financial Crisis).

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Case Presentation- Microfinance in Agriculture (ARFIA)

  1. 1. Aganan River Federation of Irrigators’ Associations, Inc. “CASE PRESENTATION” January 30, 2009 Presenter: Mrs. Juanita P. Amuan
  2. 2. I. Brief Profile of ARFIA <ul><li>The Aganan-River Federation of Irrigators’ Associations (ARFIA), Inc. was registered with the Securities and Exchange Commission (SEC) as a non-stock non-profit organization on December 19, 1995 and assisted by the National Irrigation Administration under the Aganan-Sta. Barbara River Irrigation System (NIA-ASBRIS). </li></ul>
  3. 3. Irrigators Associations, Areas and Membership Name of Irrigators’ Association Service Area (has.) IA Area (has) No. of Farmers Served No. of IA Members SAN JOSE-STO.NIÑO 821 715 608 389 SAMICASA 356 250 239 150 SALAMBITU 991 383 351 228 CAPPA 888 450 360 324 MACABITU 351 348 122 110 MACATUAN 545 545 280 185 TOTAL 3952 2691 1960 1386
  4. 4. <ul><li>ARFIA is governed by 18 Board of Directors coming from 6 IAs, where each IA has 3 representatives (President, Vice-Pres & Secretary). </li></ul><ul><li>Presently, ARFIA manages the state-of-the-art Postharvest Facilities worth P117 Million, granted by the Government of Japan thru JICA to the National Irrigation Administration (NIA) in 1996. In effect, it stirred the local economy and generated employment opportunities in the irrigation community. </li></ul><ul><li>Our Programs and Services include: </li></ul><ul><li> - Plowing </li></ul><ul><ul><li>Drying and Warehousing </li></ul></ul><ul><ul><li>Palay/Rice Marketing </li></ul></ul><ul><ul><li>Micro-financing </li></ul></ul><ul><ul><li>Socio-economic and Policy Advocacy </li></ul></ul><ul><ul><li>Maintenance of Machineries & Equipment </li></ul></ul><ul><ul><li>Strengthening of Member IAs </li></ul></ul><ul><ul><li>Training and Educational Tour </li></ul></ul>
  5. 5. Overview of Postharvest Facilities Canters Solar Dryer Mechanical Dryer Forkclift Glass House Warehouse
  6. 6. II. How ARFIA became a PACAP Partner <ul><li>When the Postharvest facilities was operationalized in 1996, NIA also started its linkages with various funding donors, both with government and non-government organizations (ex. Peace & Equity Foundation) to maximize the usage of PHF and help alleviate the socio-economic condition of the irrigation community. </li></ul><ul><li>In 1999, we became aware on how to access financial assistance with the Philippines-Australia Community Assistance Program (AusAID-PACAP) </li></ul>
  7. 7. How ARFIA became a Partner of PACAP <ul><li>In 2000, a project proposal was drafted and submitted. It was evaluated and reviewed and by 2001, our first project was approved by PACAP. Since then, our partnership with PACAP began, and grew stronger through the years. </li></ul><ul><li>This partnership was strengthened due also to our proven good track records and financial reputation in handling the grant funds. </li></ul>
  8. 8. Summary of Projects funded by PACAP
  9. 9. Mission <ul><li>“ To work together in partnership with NIA in developing a productive irrigation community towards the upliftment of the socio-economic condition of active and participative farmer beneficiaries by giving unselfish and untiring services.” </li></ul>
  10. 10. III. Role of Microfinance in Organizational Mission <ul><li>The Irrigators’ Associations (IA) were organized and strengthened by NIA to be its partner in the operation and maintenance of the irrigation facilities for effective and efficient distribution of irrigation water. </li></ul><ul><li>However, most farmers are not paying their Irrigation Service Fee (ISF) dues to NIA, or making it their least priority, because of their low income due to poor production, high cost of farm inputs & inaccessibility to institutional credits. </li></ul>
  11. 11. <ul><li>With the IA-NIA partnership and a common mission to uplift the socio-economic condition of the farmers and the irrigation community, the provision of various agricultural support services was conceptualized. </li></ul><ul><li>One of these is the availability of microfinance assistance to farmer-members of the Federation. </li></ul>
  12. 12. With Micro-finance project, it has been able to: <ul><li>Provide production credit to 345 farmers with low interest rate (only 3%/month) coupled with low priced inputs, thus lessened the production capital by 15% per cropping; </li></ul><ul><li>Increased productivity due to timely and substantial application of inputs; </li></ul><ul><li>Popularize the use of organic fertilizer; </li></ul><ul><li>Increase in production led to increase of farmers’ income </li></ul>
  13. 13. With Micro-finance project, it has been able to: <ul><li>Provide 0.20 cents to P1 price difference compared to local/prevailing market price to those who paid in-kind as part of the marketing program of the Federation; </li></ul><ul><li>Strengthen the Capital Build-up (CBU) program of the Federation, which is now amounting to P428,649.00 ending January 15, 2009; </li></ul><ul><li>Enhance the leadership and management capability of the IA officers; </li></ul><ul><li>Increase IA membership; </li></ul><ul><li>Increase in farm income led to increase in the capability of farmers to pay their ISF dues to NIA. </li></ul>
  14. 14. IV. ARFIA & Its Microfinance Project: Strategies Implemented <ul><li>1. Each TSAG Chairman recommends qualified borrowers in his/her area to the IA President; </li></ul><ul><li>2. The IA President signs in the application form as recommending officer and submit it to the Federation; </li></ul><ul><li>3. Application forms were not processed if the IA President was not able to sign as recommending officer; </li></ul><ul><li>4. The applicant must pay all the dues required and contribute for his/her CBU; </li></ul>
  15. 15. Strategies Implemented… <ul><li>5. The IA Officers assist in the monitoring/collection of loans covered by his area to ensure high repayment rate; </li></ul><ul><li>6. The Project Team conducted field visitation and house-to-house information campaign and collection; </li></ul><ul><li>7. Presentation of Monthly accomplishments during BOD meetings for feedbacking; </li></ul><ul><li>8. Conduct of Credit Orientation </li></ul><ul><li>9. Inclusion of ISF during loan payment; </li></ul><ul><li>10. Close coordination with NIA Institutional workers for technical assistance and supervision </li></ul>
  16. 16. EXAMPLE OF LOAN COMPUTATION PER HECTARE: Farm Inputs Qty. Loan Amount /Hectare 1st Time Borrower 2nd Time Borrower 3rd time Borrower Seeds 3 bags 3,600.00 3,600.00 as needed Inorganic Fertilizer 6 bags 10,000.00 10,000.00 as needed Pesticide 3 Liters 2,500.00 3,500.00 as needed Organic Fertilizer 5 bags 825.00 825.00 as needed 16,925.00 17,925.00
  17. 17. <ul><li>Due to these strategies, we had achieved an overall repayment rate of 93% with 345 farmer-beneficiaries since the Microfinance project started in 2001. </li></ul>
  18. 18. Problems Encountered <ul><li>At first, we had difficulties in screening the potential beneficiaries for the project. </li></ul><ul><li>Crop failure due to natural calamities and infestations. </li></ul><ul><li>Some farmers deliver palay to the Federation which is only good enough to cover for their loan payment. </li></ul>
  19. 19. <ul><li>Abrupt increase in the prices of fertilizers and chemicals. </li></ul><ul><li>Some farmers do not follow the prescribed cropping calendar for proper water distribution that affected the release of loans and repayments. </li></ul><ul><li>Farmers still practice the “wait and see” attitude. </li></ul>Problems Encountered
  20. 20. LESSONS LEARNED <ul><li>Aside from NIA, there must be close coordination with other non-government and government agencies for provision of various technical support; </li></ul><ul><li>Regular conduct of meeting ensures sustainability of project implementation; </li></ul><ul><li>Strengthening the CBU program and counterparting scheme in every project endeavored promotes sense of ownership towards the project; </li></ul>
  21. 21. LESSONS LEARNED <ul><li>The role of each IA Officers and members of the Federation is very important in project transparency and sustainability. </li></ul><ul><li>Training/educating the farmers on the latest sustainable agricultural technologies makes them equip to apply what they have learned and improve their farm practices. </li></ul><ul><li>Microfinance and marketing projects must be tied-up as part of the collection strategy to ensure high repayment rate. </li></ul>
  22. 22. MADAMU GUID NGA SALAMAT!!!
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