LANDBANK PHILIPPINES LOANS TO FARMERS

DA SIKAT SAKA PROGRAM

The DA Sikat Saka Program offers a direct credit window from LANDBANK and integrated support from the Department of Agriculture to small palay palay farmers to improve their creditworthiness and the viability of crop production.

Program Partners and their Basic Roles

1. Agricultural Credit Policy Council (ACPC) – provides support funds and conducts evaluation
2. National Food Authority (NFA) – provides market for palay
3. National Irrigation Administration (NIA) – identifies, mobilizes and guides Irrigators Associations (IAs) to become credit consolidators
4. Agricultural Training Institute (ATI) – provides extension and training services on organizational strengthening, including financial management and credit discipline to small farmers
5. Philippine Crop Insurance Corporation – provides insurance coverage for loans under the program

Eligible Borrowers

• Small palay farmers in irrigated lands

Eligible Criteria

1. For Service Conduits

Irrigators Association

• Must be in good standing as certified by NIA or Municipal Agriculturist if the IA is supervised by the LGU

Small Water Impounding Stem Associations (SWISA)

• Must be in good standing as certified by the Bureau of Soil and Water Management (BSWM)

2. For Small Palay Farmers

• Owns or tills at least ½ hectare of irrigated land but not to exceed 5 hectares
• A member in good standing of an Irrigators Association (IA) or Small Water Impounding System Association (SWISA)
• Has no outstanding loan for palay production purposes with LANDBANK and other financing institutions at the time of loan application
• Attended a seminar on financial education or any similar training to be conducted by ATI

Coverage

• Forty five (45) major rice producing provinces, nationwide

Eligible Projects

• Palay Production

Loanable Amount

• The amount of loans shall be based on the credit needs of the farmer per farm plan and budget but not to exceed the following prescribed loan ceiling for palay production:

P41,000 per hectare for Inbred variety

P50,000 per hectare for Hybrid variety

Loan Tenor

• 2-year credit line for palay production via 180-day Promissory Note

Interest Rate

• 15% for the first 2 crop cycles
• Reduced by 1% for the every succeeding cycle on loans fully paid on time up to the 8th cycle

Other Features

• Incentives are given to Irrigators Associations that provide administrative support to small palay farmers-borrowers provided that their loans are paid on time and at least 90% collection fee is achieved
• Farmers-beneficiaries are required to open a special LANDBANK ATM account with specially designed DA Sikat Saka ATM Cards