It can’t be denied that the agriculture sector is the nation’s lifeblood. Farmers who until the land and develop the meals we placed on our tables considerably contribute to our financial progress.
In line with the Division of Finances and Administration’s (DBM) newest information, the sector accounted for 9.1 % of the Philippines’ gross home product (GDP) in 2023. Regardless of their significance, nevertheless, Filipino farmers face challenges in securing financing to assist them thrive.
The Bangko Sentral ng Pilipinas’ (BSP) 2021 Monetary Inclusion Survey states that farmers or staff within the agriculture sector had the very best monetary exclusion degree, with 73 % having no accounts.
The survey discovered that the highest causes for not proudly owning a checking account have been the dearth of sufficient cash and documentary necessities for opening an account.
Partnerships for monetary inclusion
How will we promote monetary inclusion amongst our farmers? One technique to obtain that is to make financing choices for the agriculture sector accessible. This entails creating monetary services which can be reasonably priced and don’t require the submission of many difficult paperwork.
That is why BanKo, the microfinance arm of the Financial institution of Philippine Islands (BPI), developed and lately launched the Agri-NegosyoKo Mortgage Program.
This facility has been developed with our farmers in thoughts. Via it, farmers can entry loans starting from P50,000 to P300,000. The rate of interest per 30 days is simply 2.3 %.
For the appliance necessities, just one legitimate ID is required (e.g., a barangay certificates), along with an ID image, and a certificates of membership in a cooperative.
BanKo may also go to the cooperatives to information farmers on the appliance course of. We guarantee that we construct belief and confidence amongst our farmers by face-to-face conferences with neighborhood leaders to handle their native wants.
Via these direct and private engagements, BanKo will be capable of present the required help and steering in
the mortgage availment course of.
To handle the boundaries to proudly owning a checking account, the Agri-NegosyoKo Mortgage program ensures that candidates will obtain their mortgage by the PondoKo Financial savings account. This can be a checking account that shall be opened along with the mortgage utility.
The account consists of an ATM card that can permit our farmers to simply entry their cash anytime that they want it.
On prime of constructing this mortgage product accessible, we partnered with Agrilever to advertise this mortgage facility. Agrilever is an agri-tech firm that makes use of expertise and digital transformation to positively affect farmers by versatile financing, market entry, digital agronomy providers, and crop insurance coverage.
Via this partnership, farmers who’re members of Agrilever’s clustered farming initiative apply for the Agri-NegosyoKo Mortgage. This facility will considerably assist them in shopping for important provides (seeds, fertilizers, and others) and upgrading their equipment.
Alignment with key insurance policies
Recognizing the significance of the agriculture sector, the federal government has got down to implement insurance policies that goal to assist our farmers. An instance of that is the New Agri-Agra Regulation (Republic Act 11901). This coverage mandates banks to allocate at the least 25 % of banks’ loanable funds to the agriculture and fisheries sector to extend their entry to credit score.
Merchandise such because the Agri-NegosyoKo Mortgage can considerably assist not simply in complying with the legislation, however in making certain that the services that we provide are aligned with the federal government’s objective of financially empowering the agriculture sector.
This objective was echoed by BSP Deputy Governor Bernadette Romulo-Puyat, who graced the media launch of the Agri-NegosyoKo Mortgage on June 5, 2024.
Puyat mentioned that enhancing the agriculture financing ecosystem is among the strategic goals of the Nationwide Technique for Monetary Inclusion (NSFI) 2022-2028. Via the Agri-NegosyoKoLoan, BanKo and Agrilever will be capable of assist obtain this goal.
Past financing
Our efforts don’t cease with making financing mechanisms accessible to the agriculture sector. A major factor of this system is monetary training.
We consider that, for our farmers to be really financially empowered, it’s essential to equip them with the abilities and data to assist them handle their cash correctly. Thus, we now have partnered with BPI Basis to coach farmers and their relations about monetary administration, budgeting, and the significance of constructing a superb credit score standing.
Monetary literacy is a crucial part of financial empowerment. By educating alternative ways to save lots of, price range, and plan
their bills, we assist farmers perceive how you can maximize their capital and maintain their revenue.
Farmers who avail themselves of the Agri-NegosyoKo Mortgage are coated by the Safe Help Lite insurance coverage. This can be a microinsurance product that gives monetary advantages for unintended loss of life and everlasting incapacity, hospital money help, burial money help, and property money help.
Investing within the agri sector
The Philippines’ financial growth is deeply intertwined with the success of the agriculture sector. By empowering farmers with entry to monetary sources, we spend money on their success and in the way forward for the nation’s meals safety and financial prosperity.
Accessible and reasonably priced financing services are essential instruments that can assist strengthen farming communities, enhance their livelihood, and make sure that the entire nation continues to profit from the meals and sources that the agricultural sector supplies. — Contributed
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The creator is the pinnacle of mass retail merchandise of BPI, chair of BPI Direct BanKo, Inc., and a director of Legazpi Financial savings Financial institution, Inc.
