LATEST PUBLICATIONS
DLSU-AKI Working Paper Series 2021-08-066
How Did the Youths Demand for Cigarette Products Respond to the Sin Tax Reform Act of 2012?
WP-2020-10
Trends on Female Economic Inactivity and Determinants of Female Labor Force Participation in the Philippines
WP-2016-04
Gap Analysis of ILO Convention 129, Labour Inspection (Agriculture)
WP-2016-03
Skills and Compensation Survey for Metallic Mining Industry

LATEST AV MATERIALS
PIDS WB 2021-0701
Challenges and Prospects of the Philippine Electric Vehicle Industry
PIDS WB 2021-0604
Senior High School Graduates' Prospects and Challenges in the Labor Market
PIDS WB 2021-0603
Improving the Land Tenure Security of Farmers and the Role of Agrarian Reform Beneficiary Organizations in Enhancing Agricultural Productivity
PIDS WB 2021-0602
Examining Philippine Regulatory Policies on Solid Waste Management
Publication Detail
ACPC MS 2003-04: THE AGRI-AGRA LAW (PD717): A Review of Its Performance

This paper provides the reader an objective insight on how the Agri-Agra Law has delivered and a factual review of the performance of PD 717 over the period 1975 to 2002. Because lending to agriculture, especially agrarian reform beneficiaries, remains unattractive compared to other sectors due to high credit risks involved, banks still have difficulty complying with PD 717 in spite of the alternative forms of compliance. PD 717 therefore, needs to be amended to correct its flaws. A recent initiative aimed at amending PD 717 is House Bill No. 1930 (substituting House Bill Nos. 104, 658 and 2166). A main feature of the mentioned legislative bills is the provision this time of incentives for banks to lend to the agriculture and agrarian sectors. Among the incentives being considered are (a) the reduction of the gross receipts tax (GRT) rates on interests, commissions and discounts from loans, credit lines and similar credit accommodations extended by financial institutions to small farmers; and (b) the imputation of higher compliance rates to the mandatory loan quota if loans, credit lines and similar credit accommodations are made directly to agrarian reform beneficiaries and/or eligible agricultural activities, to LGUs specifically for rural development. Once these incentives are approved, the banking sector might become more willing to form partnerships with informal lenders or adopt other innovative strategies to expand their Agri-Agra credit outreach.

Agricultural Credit Policy Council
Authors Keywords
ACPC; rural finance; agricultural credit; agricultural finance; Agri-Agra Law;
Download PDF Number of Downloads
Published in 2003 and available in the ACPC Library or Downloaded 31,106 times since November 25, 2011
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.