Cattubo embraces responsibility for PUNLA project implementation
The Program for Unified Lending to Agriculture (PUNLA) project of the Agricultural Credit Policy Council (ACPC) turned over 1.5 million pesos to the Cattubo Multipurpose Cooperative (CMC). The loan will support the production of highland vegetables including potatoes, broccoli, cabbage, sayote, and carrots.
The CMC from Atok, Benguet is the first farmer association to receive the assistance from PUNLA.
According to Mateo Miguel, chairman of the CMC, they are trying their best to ensure the success of their operations so that they can return the borrowed fund on time.
The ACPC and Philippine Veterans Bank also signed the Memorandum of Agreement (MOA) last March 17 at the Benguet Agri-Pinoy Trading Center (BAPTC) as partners in releasing the funds of the farmers qualified for the PUNLA project.
According to Octavia Sabado, BAPTC Institutional and Extension Service Director, the Philippine Veteran’s Bank (PVB) serves as a cashiering institution of the ACPC for the implementation of the PUNLA project.
“Interested farmers who wish to borrow money through the PUNLA will open their account with the PVB for easy access. It is also where the farmer borrower deposits their payment with the six percent interest of their loan,” Sabado furthered.
From the ACPC, the funds will be available at Philippine Veteran’s Bank through a pass book or an ATM card which will be given to the farmer borrowers.
Furthermore, once that farmers avail of PUNLA loan, they will be automatically members of the Philippine Crop Insurance Company (PCIC). This company is to assure the security of the crops and to guarantee that the borrower pays the loan from ACPC.
So far, out of the 250 members of the CMC, 15 already availed their loans according to Arthur Angway, one of the members of the said association.
PUNLA as a special credit facility for marginal farmers and fisherfolks
According to Sabado, PUNLA project is the center of facilities for crops. She added that the implementation of this project with the BAPTC will boost the facility’s efforts in promoting its goals and objectives.
“This project lends money to farmer borrowers in order for them to produce crops. In return, the farmers will transport their crops to the BAPTC,” Sabado elaborated.
Meanwhile, the BAPTC’s role is to find institutional markets that would fit the price of the crops to avoid price fluctuation.
One of the main tracks of PUNLA is the special credit facility which is designed to address the financial needs of marginal farmers and fisherfolk for fast, convenient, and affordable credit.
This track of PUNLA, as of now, is to be implemented in 11 provinces namely Apayao, Benguet, Eastern Samar, Western Samar, Northern Samar, Negros Oriental, Zamboanga Norte, Lanao del Sur, Cotabato, Sarangani, and Maguindanao.
Two kinds of financing facilities are available under PUNLA. First is the Agri-Production Loan which aims to finance production of crops, poultry and livestock, or fishing activities.
The second type is Agri-Microfinance Loan which seeks to finance income generating activities such as farming/fishing activity or farm/fishing activity combined with a non-farm/off-farm income generating activity.
The loan limit of a farmer borrower is still based on the project and cashflow profile of the borrower. The six percent interest of the loan is per annum and is not deducted in advance.
Challenges encountered by CMC
Miguel explained that before they were qualified to be the recipient of the PUNLA project, they underwent a lot of requirements. The CMC went through a background check and so far, they passed because they also had a similar loan with Landbank before which they managed to pay on time.
Jay Anne Simeon, a member of the CMC, added that the requirements served as one of the challenges in availing the loan. She explained her experience that the requirements were so many and that the papers needed were thick. She had to return the papers every now and then for corrections. The borrowers took months to finish their requirements which started from December 2016.
Simeon also stressed that there is this pressure for them to pay the loan on time so that there will also be available funds for future borrowers to use.
Furthermore, all of the members of the CMC were asked to attend a seminar conducted by the ACPC. The members were required to have their farm plan and budgetary requirement to identify the exact amount they need for crop production and a tax declaration to prove that they are farmers.
On the bright side of PUNLA
Despite the challenges faced by the Cattubo farmers, they also appreciated the essence of PUNLA and did not let these challenges serve as a hindrance for them to be successful in life. The members of the CBC were blessed that they were given an opportunity to loan from PUNLA.
Sabado explained that there were times that some of the vegetables of Cattubo were being returned from BAPTC to the La Trinidad Trading Post because there were no buyers. However, they were not dismayed for that reason. Also, they were active members of the BAPTC so they were endorsed to PUNLA.
Miguel exclaimed that PUNLA aids them financially and it only has a certain percentage of interest unlike when they borrow to a financer or to a supplier, they get the commission they want. At the same time, BAPTC helps them in marketing their products.
Simeon also mentioned the same that PUNLA only gets six percent interest which is good and advantageous especially to the part of the farmers. According to her, the funds from PUNLA will serve as an emergency in case that they will be short in their budget for crop production.//
