DA set to replicate Pangasinan’s 0%-interest loan program
POZORRUBIO—An interest-free loan program for corn farmers being implemented in Pangasinan since 2011 has become a model for a program set to be replicated nationwide.
The project, a joint initiative of the Pangasinan provincial government and the partylist Abono, caught the attention of Agriculture Secretary Proceso Alcala, it being a successful first-of-its-kind financing structure.
Abono partylist founding chairman Rosendo So explained that the program simply loans to corn farmers fertilizer and seeds which are paid by the farmers at zero interest after harvest.
With this program, So said, farmers do not need to go to the banks, which usually charge a 20 per cent interest per annum.
Up to 80,000 corn farmers in the last three years have already benefited from the program, which has registered a high of 80 per cent repayment rate with the other 20 per cent still collectible.
So told newsmen the 40,000 hectares of land in Pangasinan that were planted with corn last year will be increased to 50,000 this year because of the program.
The program has since become instrumental in making Pangasinan not only the biggest producer of corn throughout the country but the producer of best quality.
Gov. Amado Espino Jr. recently received an award for Pangasinan from the Department of Agriculture for being the biggest producer of quality corn nationwide.
ALLOCATION
The provincial government set aside P15 million for the program while Abono provided a counterpart of P15 million.
Alcala has promised to release a national government counterpart to the loan program
The allocated amount is channeled through Local Government Units (LGUs), which n turn release the fertilizers and seeds to farmers recommended by their respective Municipal Agriculture Officers (MAOs).
Nestor Batalla of the Office of the Provincial Agriculturist is the program officer of this project.
The two partners are expanding the program’s reach by entering into Memorandum of Agreements with more municipalities.
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