Typical Filipino farmers need financing to sustain its farm operation.

That is why some of them hooked to loan sharks who charge neck-level interest. But not anymore in a barangay in the town of Esperanza, Agusan del Sur.

Members of the Dakutan Farmers Multipurpose Cooperative (DAFAMCO) are now enjoying low-interest rate financing package through the Production Loan Easy Access (PLEA) program of the Department of Agriculture.

PLEA, a nationwide credit program is currently implemented in selected municipalities across the nation through the Agricultural Credit Policy Council (ACPC).

Brigida Naparan, 59, a resident of Purok 10 of Barangay Dakutan one of the recipient- borrower said that through PLEA she accessed loan amount of P22,000.00 intended for a one-half hectare of rice farm.

“The loan amount I’ve got from PLEA was used for labor expenses during land preparation, planting, inputs, and fertilizer,” she said.

Brigida said that prior to the implementation of PLEA, she succumbed to personal lenders who imposed an ultra-high-interest rate of 20% per cropping of rice.

With PLEA, the interest rate is only 6 percent per annum or .5 percent per month.

Meanwhile, Abdul Rakman Batingal, 37, also a PLEA loan borrower said that with his P45,000.00 good for one hectare goes a long way to his farm. He used it to cover labor expenses for seedbed, land preparation for planting, and farm inputs and fertilizers.

“PLEA really helps me a lot. Before, I used to lend money from loan sharks who collected 10% per month or 30% per cropping whereas in PLEA, the interest is only 6 percent per annum, so it is really a big advantage for us farmers,” he smilingly narrated.

Showing his nearly harvested rice farm, Mang Abdul is confident that this coming harvest he could pay back in full his PLEA loan through their cooperative.

“In my entire life, this is the first time that I’ve experienced this kind of loan program with very minimal interest. I’ve never expected this to come here in our place,” Mang Abdul said.

Jose Zaldy Manug, the municipal agriculturist of Esperanza, Agusan del Sur said that they supported PLEA program through extending technical support for farmers to ensure a good harvest.

“PLEA is a laudable program of DA, I am hoping for more farmer cooperatives to be partnered as lending conduits with ACPC to reach out more farmers who are in need of financial support,” he said.

DA-ACPC is partnering with local financial institutions such as farmer cooperatives to extend the financial loan to farmers.

As of press time, DA-ACPC has identified five lending conduits in Caraga Region with an approved credit fund allocation of P40 million and expected to increase as more cooperatives are applying to be a lending partner.

A total of 591 farmers already accessed the loan package and currently enjoying the very minimal interest rate.

Production Loan Easy Access (PLEA) was launched last June 2017 during the visit of Secretary Manny Piñol in Malimono, Surigao del  Norte.

Through PLEA, marginal and small rural farmers and fisherfolks may avail a loan amount of up to P50,000.00 with no collateral.

Borrowers can pay the loaned amount from 2 to 10 years depending on the commodity or activity. (Aurelius P. Arais/DA Caraga)