Filipino Farmers Don’t Give Credit To Credit – What’s The ACPC For?

This is both a Glad and Sad Story. Glad: The Agricultural Credit Policy Council (ACPC) has maintained its ISO 9001:2015 QMS Certification[1] as of October 2020. Sad: Many a poor Filipino farmer remains the loser in the credit card game played in the villages.

Well, farmers don’t realize it as credit – they just know it’s Fast Cash, no questions asked, no collateral, no waiting in line. We call it “Five-Six” – it’s really a “Borrow Now Pay Later Plan” – borrow 5 pay 6, 20% interest within 100 days, even within 24 hours. Fast cash for the borrower, fat cash for the lender. Aren’t both happy?!

Isn’t that a failure of credit consciousness in the Philippines? Isn’t that a failure of an agency to promote credit worthiness in both borrowers and lenders?

No, not so fast! Because, right now, there is no single public agency tasked to promote the use and demote the abuse of farm credit in the Philippines. The nearest body I can think of is the ACPC, but my googling tells me I’m wrong.

A little bit but necessary history: The ACPC was created in 1986 by Executive Order (EO) 113 signed by President Corazon C Aquino on 24 December 1986. Via EO 113, according to its website[2], the ACPC was mandated:

To assist the Department of Agriculture (DA) in synchronizing all credit policies and programs in support of the latter’s priority programs. It was also tasked to review and evaluate the economic soundness of all on-going and proposed agricultural credit programs, whether for domestic or foreign funding, prior to approval. Also, ACPC was tasked to undertake measures to increase its funds base and adopt other liquidity interest stabilization and risk cover mechanisms for its various financing programs.

The ACPC is mandated to: “Synchronize all credit policies and programs.” “Review and evaluate the economic soundness of credit programs.” “Increase its funds base and adopt risk cover mechanisms for its financing programs.”

Nothing said about the ACPC officially acting on non-formal credit that farmers almost always turn to, to their dis/advantage.

The ACPC became an attached agency of the DA via EO 116 in 1987: “To support priority DA programs; to review & evaluate credit programs for funding; to increase funding for various programs.” No, nothing said about helping farmers with their dis/credit relationships with moneylenders. I wonder why.

I believe the lack of a specific law is to be blamed for the continued and widespread presence of usury in the farming villages. Convenience remains the enemy of poor farmers.

In the meantime, we can only urge the ACPC to do institutionally more to promote its role in carrying out its functions expanded by Republic Act (RA) 7607, the Magna Carta of Small Farmers, to: “(1) conduct institutional capacity building programs and (3) to develop special projects to promote innovative financing schemes for small farmers.” RA 7607 did not address credit ignorance and abuse.

I believe we need a PH law passed addressing the widespread Five-Six loan arrangements, with the ACPC taking charge.@517


[1]https://acpc.gov.ph/acpc-maintains-its-iso-90012015-qms-certification/

[2]https://acpc.gov.ph/about/#:~:text=Agricultural%20Credit%20Policy%20Council%20(ACPC,of%20the%20latter's%20priority%20programs.

Comments

Post a Comment

Popular posts from this blog

Lessons Learned From Roman Catholic “Father Acong” About Successfully Building Basic Ecclesial Communities (BECs) With Enduring Love

Image
I have been reading & rereading the book “ Father Ciriaco Alberto Sevilla, Jr – MSK Trailblazer” (242 pages, published 2010 in Lucena City, edited by Milwida S Reyes ). A 12-year-old book – is the content still relevant to come up with a new version? My answer is, “Yes!” Personally, I want the book to highlight the love for the poor parishioners that Father Acong showed, as he had single-mindedly created 400+ Basic Ecclesial Communities (BECs) in the far-flung villages of Quezon Province before he died Oct 2007. If that is not love for the poor, I don’t know what love is! About the BECs, Msgr Lope C Robredillo, VG, says [“An Overview Of The Basic Ecclesial Communities (BECs), From The Other Side Of History , msgrlope.blogspot.com ]: The Second Plenary Council of the Philippines devotes two paragraphs to describe the BECs… “They are small communities of Christians, usually of families who gather together around the Word of God and the Eucharist.” As Roman Catholic, an edit
Read more

“Creative Freedom” – UP, Time To Replace Your Symbol Of Academic Freedom!

Image
It occurred to me today, Sunday, 16 October 2022, that changing the symbol of the University of the Philippines System (UP) is long overdue – because the Oblation (smaller but sunnier image) has ever inspired disapproval , even radicalism, and never creativity ! This is a creative person writing, self-taught in communication and in digital media – yes, I am a UP alumnus, 1965. The bigger image is my photograph (taken 29 July 2016) of the fiberglass sculptural piece of Maria Pureza Escaño , which she titles “The Rose Of Marya: Service Through Excellence” ( Maria Pureza Escaño , weebly.com ). Commissioned by the Sigma Delta Sorority , “Marya” is now a landmark at the UP Los Baños Alumni Plaza. Ms Maria says of it: Recently, Maria Pureza Escaño was handpicked by the University of the Philippines for her concept and rendition of "The Rose of Marya: Service through Excellence," an allegorical seven-foot fiber glass sculpture celebrating100 years of excellence and service to
Read more

SOLVE As A Way Of Speech & Blogging As A Way Of Write

Image
Searca Tuesday, 28 April 2020, 10:00 AM, embarks on a Southeast Asian voyage of discovering and/or uncovering pieces & sets of knowledge on food security given the global coronavirus outbreak.  It is a webinar series to “ highlight concrete actions in agriculture and rural development in Southeast Asia.” The series to be launched is called “Searca Online Learning & Virtual Engagement,” acronym SOLVE, which is Searca’s “effort to break boundaries, both physical and conceptual, to strategically disseminate just-in-time solutions.” It is ambitious, but the times call for it. Searca Director Glenn B Gregorio says of it: The new normal brought about by the Covid-19 pandemic has firmed up Searca’s resolve to embark on new modalities and use technology-mediated platforms of interactions to effectively deliver context-relevant and valuable services to its stakeholders, including farmers and the public. SOLVE is virtual but the learnings are real. Mr Gregorio said: SOLVE particularly hi
Read more