Sikat Saka: Department Of Agriculture and Landbank Assistance To Small Rice Farmers

OFWs can earn more than what they are getting abroad by venturing to farming. 

A lot of former OFWs has proven it. They started in tilling a small portion of farm with very small capital and after kickstarting, they are now earning more than when they were working overseas.

In order to do this, you can use your savings from the money you earned from working abroad or you may avail the loan assistance from the bank, particularly the Landbank of the Philippines which offers assistance to small local farmers through their programs in coordination with the Department of Agriculture.

The DA Sikat Saka Program offers a direct credit window from LANDBANK and integrated support from the Department of Agriculture to small palay farmers to improve their creditworthiness and the viability of crop production.

Program Partners and their Basic Roles 

Agricultural Credit Policy Council (ACPC) – provides support funds and conducts evaluation 

National Food Authority (NFA) – provides market for palay 

National Irrigation Administration (NIA) – identifies, mobilizes and guides Irrigators Associations (IAs) to become credit consolidators 

Agricultural Training Institute (ATI) – provides extension and training services on organizational strengthening, including financial management and credit discipline to small farmers 

Philippine Crop Insurance Corporation – provides insurance coverage for loans under the program 

Eligible Borrowers

Small palay farmers in irrigated lands 

Eligible Criteria 

For Service Conduits 

Irrigators Association 

• Must be in good standing as certified by NIA or Municipal Agriculturist if the IA is supervised by the LGU 
• Small Water Impounding Stem Associations (SWISA) 
• Must be in good standing as certified by the Bureau of Soil and Water Management (BSWM) 
• For Small Palay Farmers 
• Owns or tills at least ½ hectare of irrigated land but not to exceed 5 hectares 
• A member in good standing of an Irrigators Association (IA) or Small Water Impounding System Association (SWISA) 
• Without outstanding loan for palay production purposes with LANDBANK and other financing institutions at the time of loan application 
• Attended a seminar on financial education or any similar training to be conducted by ATI

Coverage 

Forty five (45) major rice producing provinces, nationwide

Eligible Projects
Palay Production

Loanable Amount

The amount of loans shall be based on the credit needs of the farmer per farm plan and budget but not to exceed the following prescribed loan ceiling for palay production:
P41,000 per hectare for Inbred variety
P50,000 per hectare for Hybrid variety

Loan Tenure 
2-year credit line for palay production via 180-day Promissory Note

Interest Rate
15% for the first 2 crop cycles
Reduced by 1% for the every succeeding cycle on loans fully paid on time up to the 8th cycle

Other Features
Incentives are given to Irrigators Associations that provide administrative support to small palay farmers-borrowers provided that their loans are paid on time and at least 90% collection fee is achieved
Farmers-beneficiaries are required to open a special LANDBANK ATM account with specially designed DA Sikat Saka ATM Cards

For inquiries you can visit any Landbank branches in your area.

Source: Landbank

Read More:

Dominador Say, undersecretary of the Department of Labor and Employment (DOLE), said that talks are underway with Chinese embassy officials on this possibility. China’s five major cities, including Beijing, Shanghai and Xiamen will soon be the destination for Filipino domestic workers who are seeking higher income.
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