by Noel T. Provido

Zamboanga del Sur – Farmers in this province are resolved that despite
difficulties in producing rice, the crop is their best bet to rise from poverty.

Armed with modest credit assistance, two rice farmers' associations in the towns
of Tigbao and Kumalarang have made significant progress in their lives.

Farmers in Barangay Begong in Tigbao now heave a sigh of relief after recovering
from high-interest debts incurred from non-formal lenders.

Begong People's Organization (BPO) president Rommel Alegarbes said lack of
financial capital is a major constraint among rice farmers like him as they need
to purchase necessary inputs such as fertilizers and pesticides.

"Having no access to financial assistance, we are left with no option but resort
to borrowing money from traders-lenders who usually put interest as high as 30
percent," Alegarbes said.

Part of their borrowing agreement was for farmers to directly sell their produce
to these trader-lenders who dictate the buying price which oftentimes at lower
price. This system unfair financial arrangement usually short-changed farmers
and plunge them to even bigger debts.

"Unless we have other financial means only then we can recover from the
incurring huge debts," Alegarbes added.

Breaking-free from huge debts

Their break came when the municipal government endorsed them as one of the
beneficiaries of the Mindanao Rural Development Program (MRDP).

MRDP is a poverty alleviation program of the national government implemented
under the Department of Agriculture (DA). Now on its mid-term of implementation,
the program is currently addressing infrastructure and livelihood needs of small
farmers in the island region.

Thorough the Community Fund for Agricultural Development (CFAD), the program's
livelihood component, the association was able to access fund for their proposed
for rice production project in June 2010.

"The P250, 000 funds they received was used to finance the rice production of 23
members during the previous cropping season. The farmers agreed that money
borrowed by its members will have a 10 percent interest which is a much lower
amount compared to non-formal lenders which charges 30 percent or more," said
agricultural technician Josephine Natinga.

"Prompt repayment is policy strictly observed so that roll-over funds will be
extended to next in-line beneficiaries," she added.

"This opportunity to relieve ourselves from high-interest lending happens only
once so we need to observe the policy to sustain our livelihood," Alegarbes
said.

Meanwhile Alberto Umas one of the members who availed himself of the CFAD funds
said that aside from paying his debts he has also bought ducks and chicken to
augment his income.

"I told my fellow members to look up to me. Life was too difficult then but now
I can look forward to better income. I can choose where to sell my palay at
much better price," he said.

"I am glad that the assistance I received from CFAD enabled me to recover from
huge debts incurred during the previous cropping seasons and allowed me to start
anew," he added.

Acquiring valuable assets

Farmers in Barangay Gawil, Kumalarang for their part have acquired farm
implements to further boost their scarce financial resources.

Similar to Begong, Gawil is another major rice producing area in Zamboanga del
Sur where farmers are heavily dependent in growing rice as their livelihood.

Valentin Pabinguit of the Gawil Irrigator's Association said the funding they
have availed themselves of from CFAD was used to purchase certified seeds,
fertilizers and pesticides and distributed to their members as their inputs for
the cropping period.

"Based on our experience, it would be better to provide farm inputs instead of
cash so that funds will be actually spent in rice production. Farmers will have
no way of spending the allocated funds for other means such as gambling and
drinking" Pabinguit said.

Pabinguit said the farm inputs were given not as dole out but loan which in turn
the farmers will pay in cash with 10 percent interest. Such interest is more
affordable compared to 30 percent interest from non-formal lenders.

Aside from financing, lack of adequate farm equipment is another limiting factor
for these rice farmers to improve their production and income. The bulk of
expenses go to rental of farm equipment during land preparation and harvest
season.

"Private individuals are earning much from rental fees of their farm equipment
which sometimes are not available as they have to prioritize their own farming
activities," Pabinguit said adding:

"We have decided to buy thresher, hand tractor, and a carabao as draft animal
from the last tranche of funds downloaded to our association. This will not
only address availability of farm equipment but also in augmenting our scarce
financial resources," he added.

The farm equipment and draft animal they have acquired are available for rent at
P1, 500 for GFIA members and P1, 600 for non-members alike. Based on the report
of their treasurer Laurencio Gaudencio, the association earned at least P15, 000
from the previous cropping season giving them enough amount for equipment
maintenance with extra amount for their savings.

Pabinguit said members are made to realize that they have to pay back the amount
of the inputs as well as the rental fees after they have harvested their crop.
He said farmers preferred to rent the association's equipment not only because
it is cheaper but they have their share of its income.

"We are quite strict in implementing our policies particularly on repayment so
that each member will not be complacent with their duties and responsibilities.
Timely repayment of loans will also allow our association to expand our services
to next-in-line beneficiaries," he said.

To date the association has almost doubled the funds they have availed
themselves of as their total assets (farm equipment and draft animal) is
amounted to P111,000 plus a collectible of P106,000 from members loan and rental
fees.

Pabinguit is optimistic that rice production in their barangay will continue to
be profitable now that farmers are gradually liberating themselves from huge
debts.

The association is planning to expand its services from farm input-lending to
palay trading to further boost their financial resources and at the same time
offer good buying price to their members.

"The financial assistance provided to us through MRDP and our LGU has given us
the opportunity not only to improve our income but also on how we can sustain
rice production as a profitable farming activity," Pabinguit said.

MRDP program director in her report to DA Secretary Proceso Alcala said the
program is prioritizing the rice farmers in its livelihood assistance to
complement the national government's goal of attaining sufficiency in rice
production.

"Unlike Luzon and Visayas, majority of farm areas in Mindanao are typhoon-free
making it ideal for agricultural production. If enough support is given to
farmers here, the island region can significantly contribute in ensuring enough
rice supply throughout the country," Ramos said.