THE Department of Agrarian Reform (DAR) announced having partnered with the Development Bank of the Philippines (DBP) to strengthen the financial management, leadership, and technical capabilities of agrarian reform beneficiaries (ARBs).
The partnership aims to help ARB organizations (ARBOs) become more productive and sustainable, increase their members’ incomes, and contribute to stronger economic activity in rural communities.
Under a memorandum of understanding signed on August 25, the agency mandated to implement agrarian reform and empower small farmers will tap the DBP’s Agri-Agra fund to finance capacity-development programs for ARBOs nationwide.
Agrarian Reform Secretary Conrado Estrella III said strengthening the capabilities of farmers and their organizations is essential to increasing their incomes and creating more economic opportunities in rural areas.
‘We understand that up to now we still believe that majority of the consumers are coming from the rural sector of our country,’ Estrella said, emphasizing the important role of farmers and agrarian reform beneficiaries in the economy.
Estrella said farmers should be given opportunities to earn not only from farming but also from other income-generating activities.
‘When many farmers earn, you can see that the business is robust,’ he said, citing increased activity in sari-sari stores, malls, and other service sectors during harvest periods.
Estrella described the DAR-DBP partnership as a major step toward strengthening the agricultural sector and its contribution to economic growth.
‘This is one giant step now we have signed the MOA with the DBP,’ the DAR chief said referring to the capacity-development initiative for farmer-cooperators.
Estrella also described the partnership as ‘agrarian human infrastructure,’ stressing that investing in the skills and capabilities of farmers is as important as providing physical and financial resources.
He noted that some cooperatives face difficulties in sustaining their operations because of limited managerial skills, financial knowledge, and technical expertise.
Estrella said many cooperatives do not succeed because most of them lack managerial expertise.
‘They lack knowledge in finance and in management. And then they lack technical know-how,’ he added.
Through the partnership, ARBOs will receive training and technical assistance to help them manage their resources, plan their activities, and operate their organizations more effectively.
DBP President and CEO Michael O. de Jesus said agrarian reform beneficiaries need support beyond access to land.
‘Access to land, you need access to financing, access to training, they all go hand in hand,’ de Jesus said.
He described the agreement as an ‘excellent partnership’ and said DBP looks forward to working closely with DAR to support the development of agrarian reform beneficiaries.
Under the agreement, DAR will identify qualified ARBOs, facilitate commitment deposits, and prioritize capacity-development interventions based on their needs.
The DBP, meanwhile, will provide financing support subject to its existing bank policies and help connect ARBOs with state universities and colleges that can provide specialized technical assistance. The partnership will focus on key areas such as financial management, strategic planning, leadership, and operational administration.
Through the partnership, DAR and DBP aim to equip ARBOs with the skills, resources, and organizational support they need to become stronger, more productive, and financially capable.