PARTY list group Butil, an advocate for
agriculture, yesterday urged President Arroyo to weigh in for
the amendment of Presidential Decree 717 (the Agri-Agra law) to
enable it to provide better support services to farmers for
higher productivity and self-sufficiency in food.
The Agri-Agra law, which is up for review,
was created in 1975 to ease the flow of credit to agriculture by
requiring commercial banks to set aside 25 percent of their
loanable funds to the agriculture sector - 15 percent for
agricultural production and 10 percent for agrarian reform.
A provision of PD 717 also allows banks to
divert 10 percent of the Agri-Agra loanable funds to buy
government securities.
The proposed amendment seeks to bar banks
from diverting any of the loanable funds and using these solely
for agriculture.
In a news forum at Sulo Hotel in Quezon City,
Butil Rep. Leonila Chavez said they welcome the recent
government subsidies and dole-outs to the agriculture sector but
would be happier if government would guarantee funds for
agriculture so that subsidies will no longer be required.
The Department of Agriculture is batting for
Congressional extension of the Agri-Agra law and the
Agricultural Competitiveness Enhancement Fund (ACEF), both of
which are among 28 priority bills that Malacañang is pushing
Congress to approve.
Agriculture Secretary Arthur Yap and
producers in the farm sector have been pushing for the extension
of the ACEF which would expire on Dec. 31, 2008. The DA wants
ACEF extended until 2015 so they can access its funds that have
remained unused. The money at ACEF is estimated to be more than
P5 billion.
"Bagamat nalampasan na natin ang pagsubok,
ang mas malaking pagsubok para mapataas ang turnout pagdating ng
wet season ang siya naman nating kakaharapin. We have to amend (Agri-Agra
law) so all private banks could set aside funds needed in
agriculture," the DA chief said.
Yap said they are also working with the World
Bank in finalizing the mechanisms of weather-based crop
insurance.
"We have to study and strengthen the weather-based insurance
system which would take into account the rainfall, frequency of
typhoons, etc. Hopefully, next year we would be piloting this
system in Region 2 (Cagayan Valley)," Yap said. - Randy
Nobleza
