Congress backs bond float to fund farm mechanization

The leadership of the House of Representatives supports the proposal of Agriculture Secretary Emmanuel Piñol for a bond flotation program to finance the construction of 13,000 kilometers of farm-to-market road and the government’s farm and fisheries mechanization program.

Eastern Samar Rep. Ben Evardone, chair of the House of Representatives’ committee on banks and financial intermediaries, said the proposed bond flotation would speed up modernization of farming and boost direct access by farmers to markets.

He said this would also allow banks to comply with the requirement of the Agri-Agra Law to set aside 25 percent of loanable funds for agricultural financing.

Evardone said the completion of the network of farm-to-market roads would boost the agriculture sector especially the effort of the Duterte administration to provide available and affordable food to all Filipinos.

Piñol said mechanization would cut down post-harvest losses especially in rice and corn, and even in the fish catch.

“The country loses 16 percent of its grains harvest because of the lack of post-harvest facilities while 40 percent of the fishermen’s catch is spoiled because of the absence of ice-making plants and cold storage,” he added.

Piñol said the bond flotation is necessary to complete the network of farm-to-market roads around the country within the term of President Duterte.

He said P140 billion is needed to finance the construction of an estimated 13,000 kilometers of farm-to-market roads all over the Philippines, while another P60 billion is needed to finance the mechanization of farms and fishing communities nationwide.

“The proposal has been welcomed by Finance Secretary Carlos Dominguez and Bangko Sentral ng Pilipinas Governor Nestor Espenilla, who both said the measure would utilize the vast resources of private and commercial banks that are required by law to lend 25 percent of their loan funds to the agriculture and fisheries sector,” Piñol added.