Law Summary
Consolidation of Agricultural Loan Funds into CALF
- All current and future loan funds for agricultural purposes are combined into the Comprehensive Agricultural Loan Fund (CALF).
- CALF includes: 1) Government-owned funds managed by the Central Bank; 2) Loan funds from government agencies and corporations sourced from the National Treasury; 3) Foreign-assisted project funds, subject to negotiation.
- Funds from foreign sources borrowed by the Central Bank are excluded.
- CALF may also be increased through appropriations, loans, donations, and grants.
Termination of Agreements and Transfer of Funds
- Existing agreements regarding administration of government and National Treasury agricultural funds are automatically terminated upon effectivity.
- Government agencies, including the Central Bank, must transfer funds, assets, and liabilities to CALF within one month.
- The Ministry of Agriculture and Food (MAF) assumes all rights and responsibilities upon transfer.
- Termination does not release third-party obligations connected to the funds.
- Transfer of foreign-assisted project funds requires negotiations with foreign institutions.
Management and Utilization of CALF
- CALF is under the control and supervision of MAF.
- MAF is authorized to manage CALF resources, including appointing a trustee bank to invest surplus funds prudently.
- MAF shall not lend directly to end-users but administer funds via the banking system, except for specified guarantee funds.
- Earnings from CALF may be used by MAF for agricultural projects and activities, including those of the Agricultural Credit Policy Council (ACPC).
Creation and Composition of the Agricultural Credit Policy Council (ACPC)
- ACPC replaces previous agricultural credit oversight bodies.
- Comprised of key government officials: Ministers of Agriculture and Food, Budget and Management, Finance; Governor of the Central Bank; Director-General of NEDA.
- ACPC coordinates and synchronizes agricultural credit policies and programs.
- It supports various agricultural activities: land development, mechanization, input supply, transportation, processing, marketing, small farm financing, and resource mobilization.
- Evaluates and approves all proposed agricultural credit programs prior to submission to funding agencies.
- Receives reports and documents concerning agricultural credit programs.
- Works to expand funding, stabilize interest rates, and manage risk in consultation with the Monetary Board.
Governance Structure of the ACPC
- The Chairman (Minister of Agriculture and Food) administers and manages council policies.
- An Executive Director, appointed by the council, implements programs and plans personnel structure.
- Directors and other personnel may be appointed to support the Executive Director.
- Staffing subject to Civil Service rules except for highly technical or confidential positions.
Legal and Operational Provisions
- Any unconstitutional provisions do not invalidate the remaining Executive Order as long as objectives can still be achieved.
- All inconsistent laws, rules, orders, or regulations are repealed or amended accordingly.
- Executive Order takes effect immediately upon signing.
Annex: Initial List of Funds Consolidated into CALF
- Includes various funds administered by the Central Bank and government agencies covering animal industry loans, agricultural rehabilitation, commodity-specific funds, fisheries, tobacco and cotton loan funds, cooperative development loans, and others.
- Examples include Bureau of Animal Industry loans, Kabataang Sakahan sa Kaunlaran funds, Special Agricultural Rehabilitation Fund, Yellow Corn Funds, Fisheries Loan Guarantee Fund, and others.