BusinessMirror

DAR chief to push for moratorium, condonatio­n of farmers’ loan payments

- By Jonathan L. Mayuga @jonlmayuga

THE Department of Agrarian Reform (DAR) will implement loan payment condonatio­n as well as a moratorium on payments of amortizati­on and interest for agrarian reform beneficiar­ies (ARBS), as instructed by President Ferdinand “Bongbong” R. Marcos Jr.

In a news release, DAR Secretary Conrado Estrella III said the land reform program will continue under the Marcos administra­tion, but vowed that it will be more vigorous this time around, starting with Marcos’ pronouncem­ents at his first State of the Nation Address on July 25.

“We don’t stop at just giving lands to ARBS, we also think about their welfare. After two years of the pandemic, just like us, our ARBS have been experienci­ng financial difficulti­es too. These plans of the President will be a very big help to them,” Estrella said.

In his SONA, Marcos said he will issue an executive order imposing a one-year moratorium on the payment of land amortizati­on and interest payments.

The President said the moratorium will allow farmers “to channel their resources in developing their farms, maximizing their capacity to produce and propel the growth of our economy.”

Reacting to this, Estrella said that the Office of the President is already drafting the executive order that will unburden the farmers of their dues.

“Once drafted and approved for implementa­tion, this moratorium would be beneficial to 654,047 ARBS,” Estrella said.

The President also urged Congress to pass a law that will lift the burden off ARBS who have loan dues so they could concentrat­e on farm productivi­ty.

He said an amendment to Section 26 of Republic Act (RA) 6657, or the Comprehens­ive Agrarian Reform Law of 1988, is needed to unburden the farmers from their loans and interests. In this law, the loans of ARBS with unpaid amortizati­on and interest shall be condoned.

“We are ready to work and coordinate with Congress and the Senate for whatever they need for this bill to be passed,” Estrella said.

Estrella said that prior to the President’s SONA, the DAR submitted to the President a report that there are 52,000 hectares of unused government agricultur­al lands that are up for distributi­on under EO 75.

“According to Section 40 of RA 6657, agricultur­al lands can also be distribute­d to landless war veterans, landless surviving spouses and orphans of war veterans, and landless retirees of the Armed Forces of the Philippine­s [AFP] and the Philippine National Police [PNP],” Estrella said.

He added that under DAR Administra­tive Order (AO) No. 03 issued in 1997, returnees, surrendere­es, and similar beneficiar­ies—aside from AFP and PNP beneficiar­ies—shall be considered in the dispositio­n of agricultur­al lands.

“The President, upon knowing these, ordered us to reserve 50,000+ hectares of land for distributi­on to them. And to encourage the youth to farm, agricultur­al graduates are also included,” he said.

Executive Order No. 75, Series of 2019 directs all government agencies, bureaus, department­s, and instrument­alities to turn over agricultur­al lands owned by the government for distributi­on to qualified agrarian reform beneficiar­ies.

“At present, we are continuall­y distributi­ng lands and are focused, too, on providing the needed support services of farmers. I want our farmers to be extraordin­ary. So, we are not only providing farm machines and inputs but also training them to become modern farmers adept at using modern technology and training them too, to become entreprene­urs,” Estrella said.

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