Speaker Dy calls for zero interest, accessible loans for farmers

Speaker Faustino “Bojie” Dy III on Monday called on state-run banks to make loans accessible to farmers by imposing zero interest and reducing documentary requirements.

Dy made the call following the appeal of Nueva Ecija farmer Danilo Bolos who lamented that farmers have a tough time securing and paying loans from government banks due to documentary requirements and a monthly 3% interest rate.

Bolos also said that the existing government cash aid were making the farmers feel like beggars.

The farmer made the appeal during the public hearing jointly conducted by the Committee on Agriculture and Food and the Committee on Ways and Means on the status of Executive Order 93 which suspended the importation of regular milled and well-milled rice for 60 days, a measure that took effect last September 1.

“We call on our government banks like the Landbank of the Philippines to impose zero interest and simplify the process of securing loans for our farmers so they can easily secure the funding they need,” Dy said in a statement.

“Reforms in financing, insurance, and infrastructure must go hand in hand with immediate assistance to farmers, especially amid fluctuating palay prices,” he added.

Dy also called for a mandatory crop insurance policy for farmers to ensure long-term stability in the agriculture sector.

“We want crop insurance to cover all farmers, and ensure that the Philippine Crop Insurance Corporation is able to process their claims within 10 days via digital system,” he said.

“This way, farmers would recover faster from losses due to calamities and market shocks,” he added.

Bolos also said during the hearing that the farmgate prices of palay only range from P8 to P10 per kilo since recent typhoons have compromised the quality of the palay. 

Agriculture Secretary Francisco Tiu Laurel, Jr. confirmed this during the hearing.

“Our major issue is that we are not equipped to handle the wet palay. Our drying system is only 11% mechanized, the rest are dried on roads, basketball courts, which won’t work when it is raining,” Tiu Laurel said.

“And due to recent heavy rains, I have talked to farmers in Pangasinan, Nueva Ecija, that the palay are of low quality due to weather problems. If we want to fix this issue in the future, we really need to invest in dryers and silos,” he added. —AOL, GMA Integrated News