Learning Objectives Understand the basics of microfinance Appreciate the Food Staple Sufficiency Program Credit Component Recognize existing credit programs for rice production Appreciate the unique features of DALBP ID: 814837
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Slide1
MODULE 15
Access to Financing
Slide2Learning Objectives
Understand the basics of microfinance
Appreciate the Food Staple Sufficiency Program – Credit Component
Recognize existing credit programs for rice production
Appreciate the unique features of DA-LBP
Sikat
Saka Program (SSP)
Slide3Outcomes
By participating in this training you will be able to
:
Slide4Structure
Lesson 1.
Microfinance
Lesson 2. Sources of Capital and Support System for Farmers –
Existing DA Credit/Loan Programs and The DA-LBP
Sikat
Saka Program (SSP)
Slide5Lesson 1: Microfinance
Learning Objectives:
Learn the basics of microfinance
Identify sources of microfinance
Slide6Microfinance
Slide7… viable and sustainable provision of
loans, savings, insurance, remittance, payment, investment, etc. services to poor households using simplified, non-traditional and innovative financial technologies.
What is Microfinance – BSP, etc. (2014)…
Slide8Three types of sources
of microfinance
Formal institutions
– i.e
.,
rural banks and cooperatives
Semiformal institutions – i.e., non-government organizations
Informal
sources – i.e., money lenders, shopkeepers, family, friends, neighbors
Slide9Lesson 2: Sources of Capital and Support System for Farmers –
Existing DA Credit/Loan Programs and The DA-LBP Sikat Saka Program (SSP)
Learning
Objectives
Create awareness on Food Staples Sufficiency Program – Credit Component
Identify existing credit/loan
programs for rice production
Promote appreciation of the Credit Programs of the Government
Slide10Outcome
At the end of this training, participants will be able to
:
Slide11Structure
Food Staples Sufficiency Program – Credit Component (FSSP-CC
)
Agriculture and Fisheries Financing Program
Agrarian Production Credit Program
Agri
-Microfinance Program
Calamity Assistance Program
DA-LBP Sikat
Saka Program
Slide12Short Story
Did he say anything about the
Php
20,000.00 he owes me?
Slide13Food Staples Sufficiency Program – Credit Component (FSSP-CC)
Slide14Two components of FSSP-CC
Current Credit Programs
(Agriculture and Fisheries Financing Program (AFFP), Agrarian Production Credit Program (APCP),
Agri
-Microfinance Program and Calamity Assistance Program from
conduit organizations with added support services (irrigation, training,
marketing, etc.)
Department of Agriculture – LandBank of
the Philippines (DA-LBP) Sikat Saka Program for individual farmers who are members of Irrigators Associations (IAs) and Small Water Impounding System Association (SWISA) in good standing that are ready
to strengthen their credit worthiness.
Slide15PRIVATE SECTOR
GOVERNMENT
LOANS/
ACCESS TO
CREDIT
CREDIT GUARANTEE
(AGFP)
PHILIPPINE CROP
INSURANCE CORP.
(PCIC)
BANKS
COOPS
MFIs
FARMERS &
FISHERFOLK
CREDIT
PROGRAMS
RA 10000
Agricultural Credit, Guarantee
, and
Insurance System
AGRICULTURE & FISHERIES
FINANCING PROGRAM
(AFFP)
AGRARIAN PRODUCTION
CREDIT PROGRAM (APCP)
AGRI-MICROFINANCE PROGRAM
CALAMITY ASSISTANCE PROGRAM
SIKAT SAKA PROGRAM
Slide161. Agriculture and Fisheries Financing Program (AFFP)
DescriptionEligible BorrowersLoan PurposeInterest RateLandbank extends loans directly to eligible small farmers & fisherfolkPCFC extends wholesale loans to accredited Microfinance Institutions (MFIs) – rural banks, coops., NGOs – that in turn relend to eligible small farmers & fisherfolkNon-ARB small farmers and fisherfolk registered in the RSBSA
Non-ARB small farmers and
fisherfolk
registered in the RSBSA or members of their householdProduction of priority agri-fishery commodities
Agri-microfinance and agri-fishery loans
15% per annum (through LandBank)
Prevailing interest rates (through PCFC’s accredited MFIs)
Slide172. Agrarian Production Credit Program (APCP)
DescriptionEligible BorrowersLoan PurposeInterest RateCaters to Agrarian Reform Beneficiaries (ARBs) whose respective organizations are not yet eligible to avail themselves of loans under the existing regular programs of the LandBankAgrarian Reform Beneficiaries (ARBs) or ARB household members (through ARBOs/FOs/POs and other Conduits) Crop Production. Long-term agricultural production, agri-enterprise and/or livelihood projects
8.5 % per annum
for short –term loan
9.5 % per annum for term loan
Slide183
. Agro-Microfinance Program (AMP)DescriptionEligible BorrowersLoan PurposeInterest RateAdopts a “Wholesaler-Retailer” scheme in the provision of credit by the PCFC to its accredited MFIs for relending to individual borrowersSpouses, household heads or adult working members of small farming and fishing householdsAny or a combination of farm, off-farm, and non-farm income
generating activities
Prevailing market rate (24 % 36 % per annum)
Slide194. Calamity Assistance Program (CAP)
DescriptionEligible BorrowersLoan PurposeInterest RateProvides funding support to existing DA/ACPC partners/conduits for extending calamity loan assistance to small farming and fishing families in typhoon-affected areas for the rehabilitation of their livelihood activitiesSmall farmers and fisherfolk and/or their household members who are borrowers under the existing programs of DA/ACPCAgricultural production loans and agricultural microfinance loans
Zero percent
(0 %) per annum
Slide205. DA – LBP
Sikat Saka ProgramDescriptionEligible BorrowersLoan PurposeInterest Rate
Adopts both “Direct Lending” and “Wholesaler-Retailer” schemes in the provision of credit to small
palay farmers using the Land Bank’s deposit (ATM) account and auto-debit services in facilitating loan releases and payments
Palay farmers endorsed by Irrigator’s Associations (IAs) in the program’s priority areas
Palay production
15% per annum for the first two cycles and for succeeding cycles, the rate goes down by 1% per cycle
Slide21DA-LBP
Sikat Saka Program
Slide22Program
Objectives
To provide credit assistance to
palay
farmers in a timely manner and at an affordable
cost
To improve the viability and sustainability of
palay production
To expand the credit outreach and increase rice production for food sufficiency.
Slide23Program features
Accessibility
Affordability
Timeliness
Face and Credit
Worthiness
Management Takeover Agreement
Slide24Integrated support services of the
Sikat Saka
Marketing Component (National Food Authority and National Agribusiness Corporation
)
NFA will cover the procurement process.
NABCOR’s marketing component will be limited in regions where their facility is accessible like Region 6.
Rice Crop Insurance
by Philippine Crop Insurance Corporation (PCIC)
Slide25Slide26Farm Plan and Budget
Activity 1. Farm Plan and Budget
Slide27Objective
To guide farmers in preparing their own farm plan and budget.Duration25 minutesNumber of Participants30 people
Materials
Manila Paper
5
Pentel
Pens5 Calculators
Timer
Process
Ask participants to count off from 1 to 5
Ask all the 1s to group together, all the 2s to group together, etc.
Give each group manila paper, a pentel pen and a calculator.
Ask each group to assign 1 secretary and 1 reporter.Ask each group to prepare their own farm plan and budget for 1 hectare riceland. (This should reflect prevailing farm activities and corresponding budget allocations in their communities. The template should be used for reference.)After 20 minutes, ask each group to report the results of their discussion.Debrief and ConclusionDebrief and summarize. Be sure to clarify and correct misunderstandings that may arise.
Slide28SIKAT SAKA
Rice-farmers in 45 provinces; IA-members Corn farmers in 9 provinces; members of FOsAPCP
ARBOs and FOs with ARB members
AFFP
Non-ARB, RSBSA-registered small farmers and fishers
Facilitate the provision of credit to ARBs and their household, and other small farmers and fishers to support crop, livestock and fishery production, and other livelihood projects.
Slide29Rice Farmers
(IA/SWISA member,ARB or non-ARB) In the 45 top-riceproducing provinces ARBs, with projectsother than rice and corn production in Sikat Saka provinces
Non-ARB SFF,
RSBSA-registered,
with projects other
than rice and corn In SSP provinces
Coop-member SFF
Regular Lending Window
Sikat Saka
APCP
AFFP
Slide30Tic-Tac-Toe Game
Activity
2
Tic-Tac-Toe
Slide31Objective
To evaluate what the farmers have learned after the training.Duration20 minutesNumber of Participants
30 people
Materials
Large Manila Paper
Process
Divide the participants into 4 groups.
Group 1 and 2 will compete with one another. The same will be done for Group 3 and 4.
Instruct the competing teams to stand in front of the large manila paper drawn with a Tic-Tac-Toe grid.
Questions about the lessons will be asked. The first team to answer correctly will have one member to stand on one square. If the same team answers the next question correctly, another member will stand on an adjoining square and so on.
The team which forms a straight line with three of its members on the grid by answering the questions correctly wins the game.
(Note: The other group may block its opponent’s moves by answering correctly and having one member to stand on a square.)
Debrief and ConclusionDebrief and summarize. Be sure to clarify and correct misunderstandings that may arise.
Slide32Thank you!!!