Senator Francis “Kiko” Pangilinan is asking the Landbank of the Philippines to integrate the 2019 Sagip Saka Act—which allows the national and local governments to buy produce directly from farmers and fisherfolk without public bidding—into its credit programs for farmers.
In a meeting with Landbank President and CEO Lynette Ortiz and chief of staff Atty. Nikkolas Tolentino on Tuesday, September 9, the senator underscored the government-owned financial institution’s role in expanding market access for farmers.
He lamented that while credit is available—with Landbank mandated to serve the needs of farmers and fisherfolk—these are not easily accessible to small-scale farmers because of their lack of capacity to pay back the loans.
The solution, he explained, is for farmers to have access to the country’s biggest purchaser—the government.
“How much does the government buy for food? At least P70 billion a year—does not include calamity relief. So, if you have a program that the national and local government will buy directly from farmers and fisherfolk their produce and provide them the (income to pay off the loans),” Pangilinan said.
The senator shared that the partnership between the Kalasag Multipurpose Cooperative and the Jollibee Group Foundation’s Farmer Entrepreneurship Program (FEP) inspired him to author the Sagip Saka Act.
“When Jollibee started buying the onions from onion growers, microfinance was encouraged because now, you’re credit-worthy because Jollibee is your market and Jollibee is providing you the support and therefore, Jollibee is an institution that will not collapse then we can lend you,” he explained.
“And because they lent them—in over a period of seven, eight years—the onion growers were able to rent cold storage,” he added, pointing out how access to a stable market like the government can make farmers eligible for loans.
While recognizing the challenges in implementing the law, Pangilinan stressed that “you just have to pound the bureaucracy.”
He noted specifically that farmers and fisherfolk can supply their produce to a wide range of government food programs in state universities and colleges, jails, hospitals, and army camps, among others, through the Sagip Saka law.