DA suspends loan repayment for farmers, fisherfolk amid fuel crisis

The Department of Agriculture, through the Agricultural Credit Policy Council ACPC), is imposing a moratorium on loan repayments for qualified farmers and fisherfolk as part of the government’s efforts to shield rural livelihoods from the ongoing energy crisis and rising production costs.

In a statement on Thursday, the DA said the move is anchored on Administrative Order No. 2, series of 2017, which lays out the implementing guidelines of the Survival and Recovery (SURE) Program —a financial assistance framework designed to help farmers and fishers recover from calamities, emergencies, and economic disruptions.

The loan repayment moratorium is likewise in line with President Ferdinand Marcos Jr.’s declaration of a State of National Energy Emergency.

Under the program, DA-ACPC borrowers with current and outstanding loans may apply for a suspension of debt repayments for up to one year, subject to review and approval by Partner Lending Conduits, including government financial institutions, rural banks, and cooperative banks.

“The loan moratorium is not a standalone measure, but part of a coordinated government effort involving financing institutions, local lending partners, and Department of Agriculture agencies working on rural resilience,” said Agriculture Secretary Francisco Tiu Laurel Jr.

“We are prioritizing immediate relief while strengthening long-term access to credit so our agricultural sector remains productive and stable despite external shocks, particularly rising fuel and fertilizer costs,” said Tiu Laurel.

The DA said it will continue working closely with its Partner Lending Conduits to ensure the smooth and timely rollout of the moratorium across affected areas nationwide.

The agency added that the initiative is expected to help prevent loan defaults, sustain rural economic activity, and support national food security goals. 

As energy-related expenses continue to pressure farm production and distribution, the program is seen as a targeted intervention balancing fiscal prudence with social protection for the agriculture sector, according to the DA. —AOL, GMA News