MANILA, Philippines?Agriculture Secretary Arthur Yap is urging the government to rush the full implementation of an order for state-owned companies to allocate five percent of their net incomes for food production.
Yap said the agriculture sector needed the funds that would be collected from government-owned or -controlled corporations (GOCCs) and government financial institutions (GFIs) as mandated by Administrative Order No. 225.
Yap said several GOCCs had remitted about P500 million.
Under the order, the funds are to be placed in the agricultural guarantee fund (AGFP) and can be taken out as loans by farmers from state-owned Land Bank of the Philippines.
?The AGFP is used to provide guarantee coverage to unsecured loans from financial institutions to small farmers engaged in rice and/or food production projects or activities,? Yap said.
Up to 85 percent of the loan will be guaranteed by the AGFP.
Land Bank data show that as of Aug. 14 only nine companies had complied with the order: National Electrification Administration, which remitted P1.03 million; Philippine Economic Zone Authority, P3.73 million; Philippine Charity Sweepstakes Office, P3.6 million; Philippine Amusement and Gaming Corp., P52.4 million; Land Bank, P100 million; Development Bank of the Philippines, P100 million; National Power Corp., P100 million; Local Water Utilities Administration, P5 million, and National Transmission Corp., P111 million.
Under the order, the AGFP will be maintained for five years, subject to a five-year extension as may be agreed on by the Department of Agriculture and Land Bank. With editing by INQUIRER.net