DBP extends P500-M loan facility to farmers’ groups in Albay
MANILA -Efforts of small-scale farmers’ groups in Albay to use cutting-edge technology that tech-savvy, large enterprises use are given a boost as Development Bank of the Philippines granted them a P500-million facility for their “Digital Rice Clustered Farming (DCRF) Project.”
The state-run bank extended the funding support to farmers cooperatives through DBP’s Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (Erca-RCEF).
Erca-RCEF is aimed at promoting inclusive growth and building a stronger rice sector in the country.
Through the DCRF, the farmers groups are pursuing sustainable and efficient farming practices in the province, and intend to adopt advanced automation, precision farming techniques, and data analytics to optimize the use of their resources and increase their yearly output by up to 30 percent.
With the help of satellite imagery, machine learning and artificial intelligence, rice production across an aggregate area of 2,000 hectares is expected to increase by 28,000 metric tons, and as much as 70,000 MT across an area of 5,000 hectares.
The DCRF initiative would consolidate individual rice farm holdings into larger farms which would result in lower production costs and improved farmers’ income by leveraging economies of scale.
Article continues after this advertisement“DBP recognizes the immense potential of this innovative farming initiative to elevate Philippine agriculture to greater heights,” DBP president and chief executive Michael de Jesus said in a statement.
Article continues after this advertisement“Through this project, DBP is able to bring forward a revolutionary farming technology to the market and empower farmers to thrive in an ever-changing agricultural landscape,” he added.
De Jesus said the DCRF Project will be piloted in Albay, for which an initial batch of five farmer cooperatives were picked to participate in the cluster farm project, which he said could potentially make the participating areas “the epicenter of rice production” in the province.
Also, he said that the farm clustering and consolidation technique is recognized by the Department of Agriculture as one key strategies to scale up the Philippine agricultural sector
To implement DCRF, the farmers are working with the Provincial Government of Albay, DA, Philippine Center for Postharvest Development and Mechanization, National Food Authority, and the Philippine Crop Insurance Corp.
These agencies will cooperate in the areas of planning and coordination, technical assistance and capacity building, infrastructure development, development financing, and value chain development.
“By combining our resources and expertise, we are able to create a robust framework that would address the needs of farmers,” de Jesus said.
