DBM allots P3.4 billion to DA's loan program for farmers

The Department of Budget and Management (DBM) is allocating P3.4 billion for the Department of Agriculture's loan program for farmers.

The P3.4-billion allocation will be poured into DA's Subsidy 2 Credit (S2C) program for fiscal year 2019.

"The S2C program will offer flexible non-collateralized production loans, quick response post-disaster loans without interest, and loans for the acquisition of farmer equipment and machinery, among others," Diokno said in a breakfast forum in Pasig City on Wednesday.

The subsidy loan program also establishes credit windows to support the agricultural enterprises of indigenous people households and to finance farmer organizations engaged in the trading, marketing, and processing of agri-fishery products.

"To ensure the efficient and effective delivery of the S2C program, the DA will be creating Credit Management Teams to identify potential conduits and borrowers and Loan Facilitation Teams in every province with the task of assisting interested and qualified small farmers and fisherfolk and other agricultural stakeholders," Diokno said.

The program will also tap private lending institutions as conduits for qualified SFFs in order to increase their participation in agriculture.

"The DA plans full implementation of the S2C program by fiscal year 2020," Diokno said. —KBK, GMA News