Question & AnswerQ&A (Republic Act No. 821)
The primary policy is to assist small farmers in securing liberal credit and to promote the effective grouping of farmers into cooperative associations to enable them to market their agricultural commodities efficiently and to place agriculture on a basis of economic equality with other industries.
The Agricultural Credit and Cooperative Financing Administration (referred to as the Administration) is created as a body corporate to execute the powers and functions vested in it by this Act.
The Board of Governors consists of the Chairman and six members appointed by the President of the Philippines with the consent of the Commission on Appointments for a term of three years.
A small farmer is an individual who exclusively uses labor available from within his family and is actually engaged in agriculture.
Loans to small farmers shall not exceed two thousand pesos.
Loan terms should be adjusted to the borrower's needs, duration consistent with repayment from production, and repayment amortized in installments within the borrower's income; extensions may be granted for damages beyond the borrower's control.
Interest on all kinds of loans shall not be more than eight percent per annum.
No. Any officer or employee who becomes a guarantor, indorser, or surety for loans from the Administration shall be immediately removed and punished by imprisonment and fine.
Yes. They shall be punished by a fine of not more than one thousand pesos or imprisonment for not more than one year, or both.
No. It is unlawful for any member, officer, or employee of the Administration to speculate in any agricultural commodity or related contracts and stocks, subject to fines and imprisonment.
Obligations issued shall be secured by the assets of the Administration, guaranteed by the government, and are exempt from all taxes except inheritance and gift taxes.
A farmers cooperative association is a voluntary business organization among farmers established to market farm products or buy supplies collectively, governed by cooperative principles like one-man-one-vote and limited interest on capital.
Loans must further the policy of assisting small farmers, the cooperative must be registered with the SEC, have proper organization and management, and loans for facilities construction or purchase have specific requirements on amortization and materials.
Cooperative associations may grant personal short term loans to members in good standing from funds received from the Administration, secured by warehouse receipts up to 80% or expected crop value up to 60% but limited to 50% above the previous year's stored crop value.