THE Iloilo Provincial Government proposed a P100-million budget for a loan assistance program to help small farmers cope with the effects of the Rice Tarrification Law.
It is included in the P1.3-billion supplemental Annual Investment Program (AIP) 3, which will be the basis for a supplemental budget. It was forwarded to the Provincial Board for approval.
Once approved, the Province will offer zero-interest loans to accredited farmer cooperatives, which in turn will buy palay from small farmers at premium prices. Small farmers are those tilling below one hectare of land.
"These cooperatives have the drying facilities. The amount of loan will depend on their absorptive capacity," Defensor said.
There are 7,953 small farmers in the province, out of the total 114,000.
The loan program was initially targeted to be sourced from a loan from the Land Bank of the Philippines. But after review of laws, the governor said it is not a viable option.
The Provincial Government also earlier asked the National Food Authority to set up mobile buying stations in municipalities to reduce the transport cost of farmers.
The request was backed by the Provincial Board through the passing of a resolution requesting the NFA to expand their buying stations in towns to cater to accredited cooperatives and local farmers.
Defensor assured the agency of logistical support in reaching the towns. (PR)