In partnership with the Department of Agriculture (DA) and the Agricultural and Credit Policy Council, the Landbank of the Philippines implements the Agricultural and Fisheries Financing Program (AFFP) that provides small farmers and fishers with access to formal credit to finance their economic activities.
Qualified borrowers are those who belong to the Non-Agrarian Beneficiary Small Farmers and Small Fishers, or NASFSF.
Small farmers who want to avail of the program should be cultivating not more than five hectares of land. The farmers may or may not be engaged as small poultry or livestock raisers. More specifically, these farmers should be raising not more than the following:
- 1,000 poultry layers or 5,000 broilers;
- 10 sow level swine or 20 fatteners;
- 10 cattle fatteners or five breeders;
- 10 milking cows; and
- 50 heads of goats.
Small fishers, on the other hand, are defined as those who are;
- Operating fishing vessels of not more than three tons in capacity;
- Operating fishponds of less than five hectares or fish cages of less than 400 square meters;
- Fish workers in fishing boats, fish ponds, or fish processing establishments; or
- Any other individuals who are engaged in processing and distribution.
Proceeds of the financial assistance should be used for the production, processing, and trading of priority commodities of the DA, such as but not limited to palay, coconut, fishery, and high-value crops.\
From the minimum amount of P20,000 to a maximum of P300,000, the amount of loan proceeds per borrower is based on the credit requirements of the project but not to exceed 80 percent of the project cost.
With an interest rate of 15 percent per annum, the loan may be paid based on the estimated remaining useful life of fixed assets or equipment acquired, but not to exceed five years.
Currently, the program is only available in 14 provinces such as Abra, Apayao, Ifugao, Kalinga, Masbate, Romblon, Batanes, Ilocos Norte, Isabela, Nueva Vizcaya, Cagayan, Aurora, and Zambales.
To apply for a loan under the program, applicants may proceed to the nearest LBP Lending Unit. They need to accomplish a loan application form and submit the following documentary requirements;
- Photocopy of Registration Certificate, Articles of Cooperation/Incorporation and Constitution/By-Laws (for and to be submitted by the Service Conduit);
- Endorsement letter from the DA designated endorser agency/unit (DA-RFU/BFAR/PCA) of eligible Service Conduit;
- Endorsement letter from Service Conduit of its members with certification that: a) its members are non-ARBs or known to the Service Conduit (if not yet a member); and b) they have no outstanding loan with any financing institutions for the same project being applied for;
- Copy of Purchase Order/Marketing Agreement with buyers;
- Farm Plan and Budget (if applicable); and
- Business Plan (if applicable).
Once the requirements have been submitted completely, the applicant will only have to wait for the Notice of Loan Approval or Denial, depending on the results of the bank’s assessment and evaluation.
If approved, the applicant will have to go back to the Lending Unit to sign loan documents and for the releasing of the loan proceeds.
For more information about the AFFP, please visit the LBP website at www.landbank.com/AFFP.