Implementing Rules & Regulations

Farm Mechanism and Resources and Distribution Corporation (FMRDC) was established mid-year of 2011, using state of the art rice milling operation on the first quarter of the year 2012

The current production capacity of 3,000 kilograms of milled rice per hour will be optimized by way of providing the farmers with pre and post harvest financial needs. A fertilizer needed for growing, titling and cash requirements to cover the labor charges during harvest season proves to be the most viable mechanism for farmers to sell their harvest to FMRDC. A “Buy-back” arrangement between FMRDC and the small Farmers will effectively optimized its milling capacity and would translate into positive annual gross revenue for the company and likewise upgrade income of the Marginalized Small Farmers.

The FMRDC Agri-Resources Microfinance Services (FARMS) for Marginalized Small Farmers and Fisher Folks (MSFF), is a joint program of the Farms and the Banks for the provision of credit to qualified borrower, organizations for the provision of credit to qualified borrower, organization for relending to small farmers and fisher folks.

PROGRAM OBJECTIVE:

1. The Program aims to reduce poverty and improved the quality of life of marginalized farmers and fisherfolks by financing agricultural inputs and associated activities that will increase their productivity and incomes.

2. To guaranty a consistent supply of palay thus optimizing the production capacity of FMRDC.

PROGRAM SCHEME:

FARMS administer the provision of credit to eligible borrowing farmers, fisher folks & other organizations – Area Loan Officer (ALO). The company processes, evaluates and approves the loan application, the FARMS Management Committee reviews the loan application for endorsement to the board for final approval and eventual release of funds directly to the board for final approval and eventual release of funds directly to the farmers or to the ALO.

LOAN CONDITION:

Loans shall be used exclusively to support any or a combination of farm or food crop income generating activities.

Credit Limits:

* Individual Farmers: Php. 30,000.00 per hectares but not to exceed Php. 150,000.00 per farmers.

* Area Loan Officer: To be quantified based from the underlying guarantee of collateral

Loan Processing Time:

* Two (2) Banking Days

LOAN REQUIREMENT:

* Individual Bio data

* Barangay Permit

* Police Clearance

* Location Plan of Farm Lot with Technical Description

* Two (2) Passport size ID and one (1) whole body picture (Colored)

* Area Loan Officer (ALO) Profile with track records in agri-business

FINANCING TERMS:

* Credit Limit – contingent upon the MSSF absorptive capacity, work, plan, and target areas to be covered, number of outreach estimated credit needs and target portfolio.

INTEREST RATE:

* 3% Per month subject for review as the need arises.

LOAN MATURITY:

* Maximum of 4 months or per cropping cycle

MODE OF PAYMENT:

* Principal and interest or Farm Produce.

SECURITY:

* Promissory Notes and other underlying collaterals / guarantee cover & Buy-back agreement.