General Implementing Guidelines of the Survival and Recovery (SURE) Assistance Program

February 20, 2017

DA ADMINISTRATIVE ORDER NO. 02-17

 

 

WHEREAS, recent natural disasters have resulted in severe losses to agricultural production and is one of the main causes of the lethargic performance of the agriculture sector in the country;

WHEREAS, natural calamities worsen the economic situation, incidence of poverty, and food security among rural households;

WHEREAS, because of the perennial occurrence of calamities in the country, there is a need to establish a quick response calamity assistance program to complement the initiatives of other government agencies in providing rehabilitation support in the calamity-affected areas that would immediately respond to the financing needs of the small farmers and fisherfolk (SFF) and their households.

WHEREAS, pursuant to the provisions of Executive Order 113, the Agricultural Credit Policy Council (ACPC) was created to assist the Secretary of Agriculture in synchronizing all credit policies and programs in support of the Department of Agriculture's priority programs covering such activities as: a) land development/improvement and farm production; b) farm mechanization; c) production and supply of agricultural inputs; d) transportation and storage; e) processing; f) marketing and other related activities; g) small farm financing; and h) resource mobilization.

WHEREAS, the ACPC was tasked to devise a quick response calamity assistance program to complement the initiatives of other government agencies in providing rehabilitation support in the calamity-affected areas that would immediately respond to the financing needs of the small farmers and fisherfolk (SFF) and their households. CHTAIc

WHEREAS, on January 31, 2017, the Council, mandated by E.O. 113 to evaluate, review and approve all proposed agricultural credit programs before submission to the approving or funding agency, whether domestic or foreign, unanimously approved the Survival and Recovery (SURE) Assistance Program.

NOW, THEREFORE, I, EMMANUEL F. PIÑOL, SECRETARY OF THE DEPARTMENT OF AGRICULTURE, do hereby issue this Administrative Order for the implementation of the Survival and Recovery (SURE) Assistance Program.

SECTION 1. Objective. —

The main objective of the program is to support the government's goal of helping agricultural households in calamity affected areas regain their capacity to earn a living. The program aims to provide immediate relief to SFF through a loan and grant assistance package.

SECTION 2. Areas Covered. —

The areas to be covered by the Program shall be those areas declared under a state of calamity by the concerned local government units (LGUs) and as validated by the Department of Agriculture (DA) and/or by the local office of the National Disaster Risk Reduction and Management Council (NDRRMC) to have sustained considerable damage in agriculture due to natural calamities.

SECTION 3. Loan and Grant Assistance to Affected Small Farm/Fishing Households. —

1. Eligible Small Farmers and Fisherfolk (SFF)

Eligible SFF are those whose livelihood had been affected by the calamity.

a. Small farmers refer to:

1) those cultivating not more than five (5) hectares of land and/or are engaged as small poultry/livestock raisers defined as those raising not more than the following:

• poultry — 1,000 poultry layers or 5,000 broilers

• swine — 10 sows or 20 fatteners

• cattle — 10 fatteners or 5 breeders

• dairy — 10 milking cows

• goat — 50 heads

2) agricultural workers in farms

b. Small fisherfolk refer to:

• those operating fishing vessels with capacity of three tons or less;

• those operating fishponds of less than five hectares or fish cages of less than 400 square meters;

• fish workers in fishing boats, fishponds, or fish processing establishments; and

• any other individuals who are engaged in small scale fish production, processing, and distribution.

2. The financial assistance package consists of the following:

a. Survival Grant Assistance

 Provision of assistance in the form of grant fund to address the immediate and emergency requirements of affected SFF in the amount of up to P10,000 per household. SFF who are already current beneficiaries of the 4Ps program of DSWD as of the time of occurrence of the calamity are not eligible to avail of the Survival Grant Assistance package of the program. EATCcI

 Moreover, calamity-affected SFF can be eligible to avail of the Survival Grant Assistance only if they will avail of the recovery loan that will enable them to resume their livelihood using superior and more productive technology recommended by the DA.

b. Recovery Loan Assistance

 Extension of interest-free loans to finance the requirements of rehabilitating the farming and/or fishing or livelihood activities of the affected small farm/fishing households, to include production inputs, repair of farm/fishery assets, acquisition of livestock/work animals. Loan amount shall be not more than P25,000 per borrower.

c. Moratorium on payment of outstanding loans

 In the case of affected SFF borrowers with outstanding loans from partner-institutions/conduits under any of the DA/ACPC credit and financing programs, the borrower may avail of a one (1) year moratorium on payment of their outstanding loan obligations, effective from the date of approval by the financing institution of the borrower's moratorium application. The amount due during the moratorium shall be added to back-end of loan.

 Correspondingly, the outstanding loans/liabilities of existing partner institutions/conduits with the DA/ACPC shall be granted one (1) year moratorium equivalent to the total amount of sub-loans to individual farmer/fisherfolk borrowers who availed of the loan moratorium.

SECTION 4. Program Administration Scheme. —

The DA-Regional Field Office (DA-RFOs) shall be responsible for the identification and endorsement of eligible SFF. The DA-RFOs should submit the list of eligible SFF beneficiaries to partner-financial institutions within five (5) days after declaration of calamity.

For this purpose, and for the efficient implementation of the Program, the DA-RFO must create the official list of qualified SFFs-beneficiaries within thirty (30) days from approval hereof. It may coordinate with other government agencies, non-government organizations or other peoples' organization for purposes of identification of target beneficiaries. The DA-RFO shall furnish the DA and DA-ACPC of such list including any of its revisions.

Upon approval of the updated Registry System for Basic Sectors in Agriculture (RSBSA), the DA-RFO shall use the RSBSA for the implementation of this program.

A. The Survival Assistance, which shall be extended in the form of grant in favor of the calamity-affected SFF, shall be disbursed by partner-financial institutions and/or eligible lending conduits to be selected by the ACPC. The grant shall be disbursed by accredited partner-financial institutions to eligible SFF within five (5) days.

The DA-RFUs shall closely monitor the performance of the SFF concerned with respect to the adoption of the technology or practice prescribed by the DA as stated in Section 2 paragraphs 1 (a) and (b). The DA-RFU shall also be responsible for the provision of technical and other support services to the SFF beneficiary.

The ACPC will monitor the utilization of the fund by the selected financial institutions and/or eligible conduits.

B. The Recovery Loan Assistance shall also be disbursed to eligible beneficiaries through existing partner-financial institutions and/or eligible lending conduits to be tapped by the DA-ACPC.

1. Eligible Lending Conduits

a. Eligible conduits are current partner-financial institutions accredited and/or participating under any of the existing DA/ACPC credit and financing programs and/or with any of the following institutions/programs: Land Bank of the Philippines (LANDBANK), Agriculture Guarantee Fund Pool (AGFP), Development Bank of the Philippines (DBP), Small Business Guarantee and Finance Corporation (SBGFC).

b. In areas where DA/ACPC has no partner-financial institutions that can be tapped, other institutions may be selected by the program provided that they have juridical personality and exhibited capability to disburse and collect loans.

2. Administrative Arrangement

a. Eligible conduits shall disburse the Survival Grant Assistance as well as the Recovery Loan Package to eligible borrowers, consistent with the conditions stated under Section IV 2.a. The Recovery Loan Assistance shall bear a zero percent interest rate to the SFF-borrower and the conduit may charge a service fee of 3% of the total amount of assistance released to eligible SFF; and,

b. Eligible conduits shall collect from borrowers and remit to ACPC all principal collection on a monthly basis. The conduits shall be liable to payment of penalty interest of twelve percent (12%) per annum for its failure to remit any collection to the ACPC within thirty (30) days from its receipt.

3. Fund Availment by Lending Conduits

a. Eligible conduits may avail of the loan fund based on the list of target borrowers and corresponding approved loan amount;

b. Eligible conduits must apply for funding assistance based on the submission of the DA RFOs of the list of eligible SFF.

c. The amount of funds to be transferred to eligible conduits shall be based on the list of beneficiaries with corresponding loan amounts approved by the said lending conduits. Upon receipt of the list of eligible farmers from the DA-RFO, such funds shall be disbursed by the lending conduits to the concerned SFF within five (5) days for the Survival Grant Assistance and thirty (30) days for recovery loan package. DHITCc

 In the interest of time and within fifteen (15) days from the effectivity of this Order, the DA-ACPC must draft the standard agreement form to be entered into with the partner-institutions and eligible conduits providing, among others, for the procedure and disbursement periods prescribed herein.

4. Fund Utilization

 Fund shall be utilized for the purpose and terms and conditions in accordance with the program lending guidelines stipulated herein. In the event that a conduit was found to have utilized the proceeds of the fund for purposes other than the intended purposes, the ACPC shall demand the outright return of the fund or portion thereof that was utilized for other purposes, including a penalty equivalent to 12% per annum until such fund is fully returned to ACPC. Moreover, the ACPC reserves the right to file the necessary legal actions and/or impose the appropriate sanctions as consequence of the violation committed by the conduit.

5. Term of Loan

 Loans shall have a maturity period as determined by the conduit depending on the gestation of the project financed and capacity of the borrower to repay the loan but not to exceed 3 years.

SECTION 5. Program Funding. —

1. The funding for this program shall be as follows:

Assistance Package	Source
1. Survival Assistance (Grant)	The P1.0 billion commitment of the President shall be utilized for both the survival grant assistance and recovery assistance loan components of the program. Initially, P100 million funding from the AMCFP and/or GAA budget as approved by the DA Secretary shall be utilized only for the recovery assistance portion.
2. Recovery Assistance (Loan)

2. A portion of the unutilized fund with existing partners institutions under existing ACPC programs (e.g., the Cooperative Bank Assistance Program or CBAP) may also be utilized for the recovery assistance loan package.

SECTION 6. Approval of Fund Disbursements. —

1. The approving and signing authorities for entering into Memorandum of Agreement and approval of Fund Transfers/Disbursements respecting the implementation of the program shall be governed by DA's General Memorandum Order No. 03, Series of 2016.

2. Delegation of authority in approving the same shall remain in full force unless expressly revoked/superseded by subsequent Memorandum Order and other related administrative issuances by the DA Secretary.

3. The ACPC Executive Director shall approve and authorize the partner-financial institutions to utilize the undisbursed portion of funds from other ACPC credit programs for the Recovery Assistance Package of the DA-ACPC Survival and Recovery (SURE) Assistance Program. Such approval, thru a formal written notice, shall form part of the standing memorandum of agreement between ACPC and the partner-institutions covering such undisbursed fund.

SECTION 7. Fund Status Report. —

The ACPC shall regularly submit to the DA Secretary and to the Governing Council a quarterly status report on the implementation of the program. The implementation of this order is subject to the existing budgeting, accounting, and auditing rules and regulations.

SECTION 8. Separability Clause. —

If any part or provision of this guidelines is held invalid or unconstitutional, other provisions not affected thereby shall remain in force and effect.

SECTION 9. Effectivity. —

This Administrative Order shall take effect immediately.

Done this 20th day of February 2017 in Quezon City. cEaSHC

(SGD.) EMMANUEL F. PIÑOLSecretary