RA11901: THE AGRICULTURE, FISHERIES AND RURAL DEVELOPMENT FINANCING ENHANCEMENT ACT OF 2022
Republic Act No. 11901, known as "The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022," repeals the previous Agri-Agra Reform Credit Act and aims to significantly strengthen the financing system for agriculture, fisheries, and rural development in the Philippines. This law directly benefits farmers, fisherfolk, agrarian reform beneficiaries, and other members of rural communities by enhancing their access to financial services, credit, and capacity-building programs, thereby promoting inclusive economic growth and improving their welfare and economic prospects. It mandates that all banking institutions, with some exceptions, set aside a minimum of 25% of their total loanable funds for agricultural and fisheries financing, ensuring a dedicated flow of capital to these vital sectors.
Furthermore, the Act emphasizes the role of institutions like the Landbank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) in providing affordable financial products and innovating digital banking services to reach remote areas. It also allocates a "Special Fund" derived from penalties for non-compliance by banks, with a significant portion going to the Department of Agrarian Reform (DAR) for titling and parcelization of landholdings and another portion managed by LBP and DBP as a credit facility for farmers and fisherfolk. This comprehensive approach to financing and capacity-building aims to boost productivity, competitiveness, and sustainable development within rural communities, ultimately uplifting the lives of those dependent on agriculture and fisheries.