The government is now eyeing to entice Filipino migrants to invest in the agriculture sector through a program that seeks to offer “minimal” investment risks.
Agriculture Secretary Emmanuel F. Piñol said the Department of Agriculture (DA) is now crafting a memorandum agreement (MOA) with the Department of Labor and Employment (DOLE) that would roll out an adopt-a-farm program wherein overseas Filipino workers (OFW) would finance identified local farmers to boost their output productivity.
“He [Labor Secretary Silvestre H. Bello III] asked the Department of Agriculture and Fisheries to prepare a memorandum of agreement, which we will both sign,” Piñol said in a Facebook post on Tuesday, August 8. “The MOA will set the guidelines on the program and identify the roles and responsibilities of our respective departments.”
Piñol added he pitched the investment program to Bello before the start of the 17th Cabinet meeting on Monday.
“I explained to him that following a successful model of an OFW investments program between Don Bosco Multipurpose Cooperative and Dubai-based Filipino overseas workers, the agriculture department is looking at tapping other OFWs to provide financing to rice and corn farmers,” he said.
Under the prospective investment program, Piñol added, OFWs would be allowed to invest up to P20,000 per hectare at a 6-percent interest rate per harvest. The financing from OFWs would then be used to buy seeds, fertilizers and other farm inputs needed by the farmers, according to Piñol.
“The OFWs’ investments will earn an interest of 6-percent per harvest, with guaranteed two harvests every year or earnings of P2,400,” he said.
“The program is expected to improve food production in the country while, at the same time, offer safe investments for the OFWs earnings.”
The DA chief added there is a “very little” investment risks for the OFWs, as the farmers that will be participating in the program shall be covered by crop insurance of the Philippine Crop Insurance Corp.
“What I have in mind is to identify and accredit farmers associations and cooperatives in every province and ask the OFWs where they would like to invest their money in,” Piñol said.
Piñol said he came up with the program after a successful investment venture between North Cotabato-based Don Bosco Multipurpose Cooperative and some Dubai-based OFWs. Piñol added that the Dubai-based OFWs agreed to finance organic rice farmers under Don Bosco with an investment of P30,000/hectare.