MANILA – The new law expanding financing for farmers and fisherfolk will give a boost to the agriculture and fisheries sector, Malacañang said.

In a Facebook post, Press Secretary Trixie Cruz-Angeles said Republic Act (RA) 11901 would make the agricultural and fishing industries more competitive.

“The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022, also known as Republic Act 11901, will give the Department of Agriculture more opportunities to increase the productivity and competitiveness of the agriculture and fishery sectors,” she posted on Thursday.

RA 11901, which lapsed into law in July, improves the farmers’ and fisherfolk’s access to affordable financial services and programs.

The new law provides loans to beneficiaries in rural communities to finance their agricultural and fishery-related activities.

According to RA 11901, financing institutions must offer loans and investments “to finance activities that shall enhance productivity and increase income of an agricultural and fisheries household, thereby promoting agricultural sector productivity and competitiveness, as well as sustainable development of rural communities.”

Cruz-Angeles noted that the Department of Agriculture – Agricultural Credit Policy Council (DA-ACPC), has already disbursed loans worth PHP24.09 billion to about 408,834 farmers and fishermen.

The DA-ACPC, she said, has partnered with financial institutions as conduits for 2019 to 2022.

“DA-ACPC will continue to offer credit programs with flexible loan terms,” Cruz-Angeles said.

On August 11, the DA said more agri-fishery stakeholders are expected to benefit from RA 11901 in the coming months.

The law mandates banking institutions to design and offer financial products and services that suit their agricultural clients’ specific requirements.

The Bangko Sentral ng Pilipinas has also vowed to ensure the implementation of RA 11901 to meet the needs of rural community beneficiaries. (PNA)