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DA to replace agri subsidy with easy access loans

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QUEZON CITY, Philippines – The Department of Agriculture (DA) is planning to gradually remove government’s agriculture subsidy to farmers. Instead, DA will replace it with the easy access loan program.

Currently, DA subsidizes farmers with free seedlings and fertilizers. But according to Agriculture Secretary Manny Piñol, such subsidy program only opens opportunities for corruption wherein supporters of politicians are the only ones benefiting from it.

In fact, Piñol noted, the government is spending P40 billion annually for the subsidy program but no revenue return.

“Over the years the subsidy program of government has been plagued with controversies. Fertilizer scam, Napoles scam, lahat ng mga malalaking (all big) issues of corruption nandoon sa (are linked to) subsidy,” Piñol said.

Secretary Piñol assured that the government has allotted a large amount of budget for the farmers’ loan program. This will give farmers the opportunity to choose their own crops to yield and the appropriate fertilizer and even farming equipment to use.

“On the part of the stakeholder now hindi nako magrereklamo : ‘Bakit ninyo ako binigyan ng binhi na hindi tumutubo? Bakit ang tagal dumating ng abono ninyo?’ ” the Secretary said.

(On the part of the stakeholder now, there will no longer be complaints such as: “Why did you give me seedlings that do not grow?” “Why does your fertilizer take too long to arrive?”)

Based on DA’s record, the agency’s easy access loan program has already marked 96% repayment rate in banks and the process needed no complicated requirements.

Secretary Piñol added that he will propose to President Rodrigo Duterte the use of P70 billion from the government’s Pantawid Pamilyang Pilipino Program (4Ps) in a form of a loan to its beneficiaries.

Piñol argued that instead of just giving out cash, the money could be loaned by farmers and be used as capital for small businesses like vegetable farming or hog and poultry raising so that they could help increase the country’s food production.

The program would also encourage villagers to go back to active farming.

“Iyan ang complaint sa probinsya. Wala ng trabahante halos kasi may 4Ps. Hindi na nagtatrabaho iyong mga tao naghihintay na lang ng allowance,” Piñol explained.

(That’s the problem now in the province. There are no more workers because almost everyone is a 4Ps beneficiary. People no longer work; they just wait for their allowance.)

UNTV News is trying to get the side of the Department of Social Welfare and Development (DSWD) on the budget issue. – Rey Pelayo / Marje Pelayo

The post DA to replace agri subsidy with easy access loans appeared first on UNTV News.


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