STATE auditors have expressed concern about the continuity of the P6.55 billion “AgriNegosyo” loan program of the Department of Agriculture (DA) for small farmers and fisherfolks (SFFs) after data in the last four years showed dismal collections out of the P4.947 billion that has been loaned out.
This was revealed in the 2023 audit of the Agricultural Credit Policy Council (ACPC), an attached DA agency.
The AgriNegosyo lending program, launched by the Duterte administration in 2020, was supposed to fast-track growth in the agriculture sector and help in the country’s economic recovery from the effects of the COVID-19 pandemic.
“Specifically, the program aims to provide accessible and affordable credit to eligible borrowers for the financing of their capital requirements that will enable them to boost the efficiency, productivity and profitability of their farm as well as non-farm income-generating activities,” the audit team said.
AgriNegosyo offers SFFs and micro and small enterprises (MSEs) zero interest loans payable up to five years.
Individual farmers or fisherfolks may avail of a maximum loanable amount of P300,000; micro enterprises up to P3 million; small enterprises up to P15 million and farmer and fisherfolk cooperatives up to P15 million.
Program records obtained by the Commission on Audit showed up to P6.55 billion have been released by the ACPC to “partner lending conduits (PLCs)” from 2020 to 2023, of which P4.95 million was reported to have been borrowed by SFFs and MSEs.
Auditors said P38.24 million was borrowed in 2020, P1.624 billion in 2021, P1.59 billion in 2022, and P1.689 billion in 2023 for a total of P4.947 billion representing 75.49 percent of the amount released to partner lending conduits.
However, as of December 31, 2023, the COA noted that only P965.63 million has been collected or only 19.52 percent of the loan exposure.
