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Sikat Saka Program
The Department of Agriculture
Cecilia A. Parcon
Ulat sa Bayan May 8, 2013
Bololmala, Tupi, South Cotabato
Program Background
The DA-Sikat Saka Program was
launched by the DA and
LANDBANK in January 2012 in
support of the Government’s Food
Staples Sufficiency Program (FSSP).
Program Background
• The DA & LANDBANK forged partnership to provide direct credit assistance to small palay farmers for their palay production project.
• The DA tapped its agencies and corporate arm and the IAs to provide an integrated support to small palay farmers such as extension and administrative services, assured market and irrigation
Program Background
The program is currently being pilot implemented in four (4) major rice producing provinces namely:
Isabela
Nueva Ecija
Iloilo
North Cotabato
The program is currently under its second cropping season.
Program’s 2012 Performance
3,341,282.60
44,822,732.00
3,846,374.00
69,067,770.00
0.00
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
1-Aug-12 1-Sep-12 1-Oct-12 1-Nov-12 1-Dec-12
Lo
an A
mo
un
t
31-Aug-12 31-Dec-12
Loan Releases 3,341,282.60 44,822,732.00
Loan Amount Approved 3,846,374.00 69,067,770.00
Loans Approved and Released First vs Second Season
Approved Accounts
DA-SIKAT SAKA
Amount Released As of
31 Dec 12 January to March 2013
Total as of 31 March 2013
On Process
- Kidapawan - Midsayap
3.587,582.00 12,667,500.00
6,150,800.00 1,905,500.00
9,738,382.00 14,573,000.00
5,383,500.00 8,200,000.00
Total 16,255,082.00 8,056,300.00 24,311,382.00 13,583,500.00
Number of Farmers
246 161 407 162
- Kidapawan - Midsayap
57 189
81 80
138 269
82 80
Area 439.50 220 659.50 345.50
- Kidapawan - Midsayap
95 344.50
168.50 51.50
263.50 396
145.50 200
439.50 220 659.50 345.50
Accounts with Loan Releases (North Cotabato)
DA-SIKAT SAKA
Date No. of IAs No. of FBs No. of Has. Amount Released
January-February 10 38 99.00 3,607,000.00
March 4 32 28.00 2,509,595.00
April 7 28 43.50 1,477,100.00
Total 21 98 170.50 7,593,695.00
Program Objectives 1. To assist the palay farmers in financing their palay production
requirements in a timely manner and at an affordable cost
2.To improve the viability of palay production by ensuring
availability of irrigation and extension services, and
market.
3. To expand the credit outreach and increase palay production
for food self-sufficiency
Program Partners
Agricultural Credit Policy Council
Agricultural Training Institute
National Agribusiness Corporation
National Food Authority National Irrigation Administration
Philippine Crop Insurance Corporation
Irrigators’ Associations
DA Sikat Saka Program
Provincial Action Teams
(PATs) Composed of personnel from:
DA Regional Office
• ATI
• NIA
• NFA
• PCIC
LANDBANK
SALIENT FEATURES
DA Sikat Saka Program
Lending Schemes
• Direct Lending
• Lending thru Conduits
DIRECT LENDING
SCHEME
DA Sikat Saka
Eligibility Criteria
Irrigators’ Associations (as credit consolidator)
•Endorsed and certified by the National Irrigators
Administration
Eligibility Criteria
Small Palay Farmer
(New borrower) • Is a member of an eligible IA
• Owns/Tills an irrigated land of at least 0.5
hectares;
• Has no existing loan with LANDBANK and its
existing conduits for the past six (6) months.
Eligibility Criteria
Small Palay Farmer • Must have a purchase order (PO) or market
contract with NFA or NABCOR, or other reliable
buyers.
• The farmer must attend a seminar on financial
education.
• Shall be required to submit his land title or any
proof of ownership of other assets to LBP for
safekeeping.
Purchase Order and Loan Payment
NFA, NABCOR and other reliable buyers shall issue purchase orders to, and/or execute Marketing Agreement with the FARMERS
NFA/NABCOR shall pay the farmers by way of check or cash deposit to their ATM accounts.
Credit Facility
Agricultural Production Loan
for Palay
Loan Ceiling
Loan Ceiling
Inbred Hybrid
Palay Farmer P41,000.00 per
Hectare
P50,000.00 per
Hectare
Maximum of 5
hectares per
borrower
Loan Limit
P205,000.00 P250,000.00
Credit Bulletin No. 2013-001 & 2013-002
Interest Rate
15% per annum for the first two cycles
Reduced by 1% for every succeeding cycle on loans fully paid on time up to the 8th cycle
DA-Sikat Saka ATM Card
Is a pre-release loan requirement for the
farmer-borrowers under the program.
DA-Sikat Saka ATM Card
• Crediting of loan proceeds
• Crediting of payment on the farmer’s produce
• Debiting of loan payment
• Farmer’s deposit build up
IA incentive
Cash Incentive* (Per Cropping Season)
Collection Rate (Per Batch)
0.50% at least 90%
1.00% 100%
*of the principal amount of loans paid on time
Past Due Loans The LC shall conduct 100% validation of defaulting
farmers.
The LC shall notify a wilfully defaulting farmer and
endorsing IA of such default which will serve as
basis of IA to take over the management of the farm.
Management Take-Over
Agreement
The endorsing IA shall:
• takeover the operations of the farm of a wilfully
defaulting farmer.
• prepare a plan of payment
• have the option to assign a new farmer to till the
land.
Management Take-Over
Agreement
• All profits from farming operations shall accrue to
the IA subject to the payment of loan of the
defaulting farmer until fully paid.
• The palay production project may be provided with
additional financing by LANDBANK
LENDING THRU CONDUITS
DA Sikat Saka
Eligible Credit Conduits
Rice Productivity Program (RPP) lending policies and
guidelines shall be adopted subject to the following
conditions:
• Irrigators Associations & Cooperatives only
• Not yet accredited by LANDBANK (For Coops
only)
• Have at least one (1) year experience in relending to
its members
The credit conduit shall:
• require the borrowing farmer to submit his land
title or any proof of ownership of other assets for
safekeeping.
• also be entitled to the cash incentive
Eligibility Criteria
Small Palay Farmer (New Borrower)
• Is a member of an eligible IA or Coop
• Owns/Tills an irrigated land of at least 0.5 hectares
• Has no existing loan with LANDBANK and its
existing conduits for the past six (6) months
• Shall be encouraged to open a special DA-Sikat Saka
ATM account with LANDBANK
Interest Rate Shall be based on RPP pricing
8.5% per annum
Pass-on Rate to eligible sub-borrowers
15% All-in
LANDBANK ROLES
1. Provide loan funds
2. Evaluate and process loan applications
3. Approve and release loans to palay farmers
4. Ensure that all loans under the program are covered by loan guarantee
LANDBANK ROLES
5. Provide incentives to IAs based on collection efficiency and promptness of payment
6. Manage and monitor the program and individual accounts and administer the funds.
7. Regularly furnish DA reports as loans approved and released
8. Collect past due loans
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