THE advent of farm mechanization has significantly lowered the cost of production, particularly for labor-intensive crops like rice.
The utilization of cost-effective and efficient agricultural machinery and equipment has also enhanced farm productivity, thereby helping the country to attain food security.
Aside from improving the quality of farm produce, mechanization can likewise increase the income of the farmers.
Some enterprising farmers in the country who have already adopted farm mechanization were able to realize its advantages.
Farmers will not only lower losses on production and postharvest, but can also help in achieving sustainability and efficiency with farm mechanization.
Since farm mechanization has started to play a vital role in the country, it was learned that the Department of Agriculture (DA) has opened a new loaning window which offers funds in order for the farmers’ cooperatives and associations could buy the equipment and machinery they need.
It was also learned from DA Secretary Emmanuel Piñol that the program will be handled by the agency’s Agricultural Credit Policy Council (ACPC).
He says the Farm Equipment and Machineries Loaning Program which was approved by the ACPC Executive Board earlier offers an initial P400 million fund which could be accessed by the farmers with a 6-percent interest every year and payable in eight years.
As part of the effort to improve the implementation of the country’s farm mechanization program, Piñol has already proposed a new loaning program to the ACPC board which he chairs together with representatives of the Central Bank of the Philippines, Department of Finance, the Department of Budget Management, and farmers groups.
Under the current set up, it is the DA, through its regional offices, which purchase farm equipment and machinery which are then distributed to the farmers groups.
In the previous administration, farmers groups were required to put up a 10 percent counterpart before they could get tractors, transplanters, and harvesters.
This scheme has prevented many farmers from acquiring machinery and equipment which they needed to lower the post-harvest losses which according to the data amounted to 16 percent of the harvest.
Piñol says the reformed Farm Mechanization Program, which now offers loans instead of grants, is expected to achieve the following:
* End the torturous government bidding process where machinery and equipment are bought not based on the choice of the farmers but on lowest bid, which resulted in the acquisition of poor quality machinery and equipment and suspicion of corruption;
* Allow the farmers to choose their own brand and own as many equipment and machinery as they need to serve their members or their communities;
* Fast-track the implementation of the Farm Mechanization Program to effectively make farming more efficient and prevent post-harvest losses; and,
* Start a sustainable Farm Mechanization Program where recipients will have a sense of ownership thus take care of the equipment and machinery that they need.
The Farm Machineries and Equipment Loaning Program will mark the start of a new approach in extending support to Filipino farmers which will be done through a sustainable loaning plan. (jaypeeyap@ymail.com/PN)
