1. Agrarian Production Credit
Program
Joint DA-DAR-LBP
MC No. 01, S. 2012

2. What is the APCP?
• Credit assistance for crop production
• to newly-organized and existing ARBOs
• FOs (other than ARBOs)
• Other conduits
• Only 57% of farmers have access to credit from
financing institutions.
• One in three ARBs in ARCs is in need of credit.
• New ARB organizations may still not qualify under
CAP-PBD and LBP regular lending program.
• Some ARB organizations still require organizational
strengthening to make them credit worthy.
• DA, DAR and LBP will pool resources and expertise to
help ARBs access affordable credit, development
assistance and marketing support.

3. APCP Objectives
 Provide credit assistance to ARBs/ ARB
household through organizations/other
conduits to support individual or communal
crop production.
• Ensure sustainable production of crops and
increase the income of ARBs/ household
members by providing them other support
services.
• Strengthen ARBOs and improve the
capabilities of ARBs through the provision of
institutional capability building.

4. Components of the APCP
1. PROVISION OF AGRICULTURAL PRODUCTION CREDIT
• Loans for ARBs who have acquired landholdings through
CARP/CARPER
• Loans will be coursed through ARBOs, FOs and other conduits
• Loans will finance the crop production.
2. PROVISION OF AGRICULTURAL PRODUCTION MANAGEMENT AND
FINANCIAL MANAGEMENT SUPPORT
• TA to eligible ARBOs/conduits from DA and other institutions, and
technical experts to extend assistance in setting-up the loan
disbursement and repayment system.
3. INSTITUTIONAL CAPACITY BUILDING OF ELIGIBLE CONDUITS
• Organizational vision, operational PSPs and good governance will
be put in place.
• Enterprise development, to ensure viability and profitability of
agricultural production, business services and projects of conduits.

5. General policies of the APCP
• APCP will prepare the ARBOs to become credit
conduits.
• APCP will cover new and existing ARBOs in need of
credit
• High LAD provinces are priority areas.
• Based on the production cycle of agricultural crops.

6. ELIGIBLE BORROWERS
• ARB Organizations (ARBOs)
• Farmers Organizations other than ARBOs with ARB or ARB
household members
• Other conduits (Cooperatives, NGOs and rural banks only)
with ARB or ARB household members or APCP ineligible
ARBOs as clients.
MINIMUM ELIGIBILITY CRITERIA
ARBOs:
legal personality
At least six (6) months in operation.
Majority of members are ARBs or ARB
household members;
PSPs on lending;
Presence of management team.

7. ELIGIBLE SUB-BORROWERS
• Under ARBOs and FOs other than ARBOs - ARBs or ARB
household members.
• Under other conduits - ARBs, ARB household members or
APCP ineligible ARBOs as clients.
LOAN PURPOSE
• Finance crop production
• The loan purpose may be expanded to cover agri-enterprise
and livelihood projects
MAXIMUM LOAN AMOUNT
• Total credit requirement of the ARBs or ARB household
members as determined by LBP.
• The required debt-equity ratio for eligible
borrowers/conduits shall be waived.
TERM OF THE LOAN
• Based on the production cycle of agricultural crops to be
produced but not to exceed two (2) years.

8. INTEREST RATE
8.5% P.A.
PASS-ON RATE TO END-BORROWERS
15% P.A.
PENALTY ON LATE PAYMENT
3% P.A.
INCENTIVE
Rebate of 2% P.A. based on the
principal amount paid

9. What are the APCP’s general procedures?
CAPACITY BUILDING AND OTHER SUPPORT SERVICES
• DAR conducts capability development based on the
requirements of the ARBO or FO.
▫ Direct intervention, through BARBD, DARPO and DARRO, in
partnership with service providers, or outsourced.
• The DARPO and DA-Regional Office facilitate the provision
of common service facilities, improvement of access
infrastructure, and value-chain enhancement.