K-POP Forum conducted by CDA-DEO in partnerhip with SHSC, Galimuyod, Ilocos Sur

1. Agri-Fishery Credit Programs
Kapital Access for Young Agripreneurs (KAYA)
Presentation for:
Cooperative Development
Authority
K-Pop Forum
Galimuyod, Ilocos Sur
March 5, 2020
Presentor:
Ms. Dulce Amor Pascua

5. Outline of Presentation
1. The Agricultural Credit Policy Council (ACPC)
• Mission
• Mandates
2. DA Secretary William Dar’s New Thinking on Agriculture
3. ACPC’s Current Credit Programs
• Kapital Access for Young Agripreneurs (KAYA)
• Micro & Small Agribusiness Loan Program (AgriNegosyo)
- Eligible Borrowers
- Eligible Loan Purpose
- Lending Scheme
- Features
- Documentary Requirements
- Capacity Building Support Components

6. Mission
Develop and advocate
agri-fishery credit policies
and programs that
promote farmers’ and
fisherfolk’s access to
sustained financial
services.

7. The ACPC Governing Council
CHAIR
Secretary of the
Department of Agriculture
VICE-CHAIR
Governor of the
Banko Sentral ng Pilipinas
MEMBER
Secretary of the
Department of Finance
MEMBER
Director-General of the
National Economic
Development Authority
MEMBER
Secretary of the Department
of Budget & Management

8. Mandates
EO 113
• Created in 1986 to assist the Department of Agriculture in
synchronizing all agriculture and fisheries credit policies and
programs
• Mandated to review and evaluate the economic soundness
of all agriculture and fisheries credit programs (EO 113)
• Approve all proposed agri-credit programs prior to
submission to the approving or funding agency, whether
domestic or foreign

9. Mandates
EO 113
• Undertake measures of increasing its funds base and of
adopting other liquidity interest stabilization and risk cover
mechanism for its various financing programs
• Conduct policy research aimed at increasing the flow of
credit of the agriculture and fisheries sector.
• Conduct regular monitoring and evaluation activities aimed
at promoting results-based management and accountability.

10. Mandates
RA 7607 - The Magna Carta for Small Farmers (1992)
• Develop special projects to promote innovative financing
schemes for small farmers
• Conduct institutional capacity building programs
• To undertake information dissemination activities to raise
farmers’ awareness and improve their understanding of the
initiatives and interventions being carried out by the agency

11. Mandates
RA 8435 – Agriculture and
Fisheries Modernization Act
(AFMA) of 1997
• Oversee the implementation of
the Agro-Industry Modernization
Credit & Financing Program
(AMCFP)

12. Key Result Areas
• Management of government agri-fishery credit funds or the
Agro-Industry Modernization Credit & Financing Program
(AMCFP)
• Innovative Financing Schemes (IFS)
• Institutional capacity building programs for countryside
financial institutions
• Rural and agricultural finance research, planning, monitoring,
and advocacy
• Position papers on proposed bills, measures, programs and
policies on agri-credit

14. 1. Modernization of agriculture is crucial
“Modernizing Philippine agriculture
would also need attracting the youth into
farming, as the average age of farmers in
the country is from 56 to 60 years old…
So in the Philippines, agripreneurship
should also form part of the paradigm to
modernize Philippine agriculture, as
farming and fisheries should be treated
as business undertakings or industries…”

15. 2. Industrialization of agriculture is key.
“While productivity increase is a major
objective, it is equally important to produce
more income by value adding, processing,
manufacturing, and developing markets for
both raw and processed agricultural products.”
Furthermore, industrialization of Philippine
agriculture should foster the formation of social
enterprises, or those that would involve more of
the marginalized in the agricultural value chain
while assuring they get their fair share from the
fruits of production.”

16. KAYA
Kapital Access for Young Agripreneurs

17. Data on Graduates of Agri-Fishery Courses
• Almost 30% of the Philippine population are youth
• From 2014 to 2019, there were 603,000 graduates
of Agriculture, Forestry, Fishery and Veterinary
Medicine courses (not including graduates of short
courses and agri-fishery training)
• A total of 106,000 students graduated from these
courses in 2019 Source: Higher Education Institutions

18. Eligible Borrowers
1. Agri-fishery entrepreneurs who are 18 to
30 years old
2. Agri-fishery graduates of either formal or
non-formal schooling, including but not
limited to graduates of agriculture and
fishery related degrees from higher
education institutions, DA and ATI-
accredited programs, TESDA programs,
farm schools, and secondary schools
with agriculture and fishery-related
courses

19. Eligible Loan Purpose
• To finance the capital (working capital and/or acquisition of
machinery/equipment/facility) requirements of start-up/existing agri-
based projects.
*Eligible loan borrowers can avail loans under the program up to a
maximum of 3 cycles.

20. Lending Scheme
Government Financial Institutions Non-Government Financial Institutions
• Cooperatives
• NGOs/ASSOCIATIONS
• Rural Banks
• Cooperative Banks

21. Features
Up to P500,000
per borrower
Loanable
Amount Based on
projected cash
flow but not to
exceed five (5)
years
Grace period of
up to 2 years on
principal
repayment may
be granted
Loan
Term Loans to
borrowers shall
be zero percent
(0%) interest
The Lending
Conduit may charge
a management fee
of not more than
3.5% p.a. to cover
its administration
cost
Interest
rate &
other
charges

22. Documentary Requirements
1. One government-issued ID with
picture
2. Loan application form
3. Simple business plan

23. Capacity Building Support
Component
The ACPC shall engage:
• State Universities and Colleges (SUCs),
• government agencies, and
• non-government Business Development Services Providers
to extend business advisory/technical assistance services such as
mentoring, entrepreneurship training, financial literacy, product
packaging, etc.

24. AGRI-NEGOSYO
Micro & Small Agribusiness
Loan Program

25. Eligible Borrowers
Individuals/Sole Proprietors, Partnerships, Corporations, Associations,
Cooperatives engaged in agri-fishery related projects whose owners or
members are marginalized, small farmers and fisherfolk
*Eligible borrowers can avail loans under the
program up to a maximum of 3 cycles

26. Loan Facilities under Agri-Negosyo
Micro Agri-Negosyo Loan
• Up to P300,000 loanable
amount
• Thru GFIs and other partner
lending conduits
• Payment depends on cash
flow of the project but not to
exceed 5 years

27. Loan Facilities under Agri-Negosyo
Small Agri-Negosyo Loan
• Minimum of P300,000, maximum of P15 million loanable
amount
• Thru Government Financial Institutions
• Payment depends on loan purpose:
 Working capital – maximum of 1 year
Acquisition of equipment – up to 7 years
Construction/Establishment of facility – up to 10 years

28. Capacity Building Support
Component
The ACPC shall engage:
• State Universities and Colleges (SUCs),
• government agencies, and
• non-government Business Development Services Providers
to extend business advisory/technical assistance services such as
mentoring, entrepreneurship training, financial literacy, product
packaging, etc.

29. AGRICULTURAL CREDIT POLICY COUNCIL (ACPC)
DEPARTMENT OF AGRICULTURE (DA)
CONTACT US:
info@acpc.gov.ph or
tel. nos. (02) 8634-33-20 to 31 / (02) 8636-3391 to 93
or telefax (02) 8634-3391