The Small Farmers and Fisherfolk Indebtedness Survey is a continuing biennial activity conducted by ACPC to verify the pattern of borrowing incidence, demand for credit, and possible constraints to loan access and repayment among small farmers and fisherfolk. Among others, the survey results indicate that the proportion of farmer-/fisherfolk-borrowers vis-à-vis non-borrowers has increased from 47 percent in 1997 to 60 percent in 2000. Moreover, the share of borrowers from formal sources increased significantly from 32 percent in 1997 to 40 percent in 2000. The overall increase in borrowing validates reports that indicate increased agricultural lending in the same year. The Bangko Sentral ng Pilipinas (BSP) attributes the increase to stricter regulations on banks' compliance with the Agri-Agra Law (PD 717). However, increasing use of loans for non-production purposes suggests a growing disinclination to prioritize production when credit flows increase.
