1. Agricultural Guarantee Fund Pool (AGFP)
Department of Agriculture
Land Bank of the Philippines
Agricultural Guarantee Fund Pool (AGFP)
“Encouraging financial institutions and other credit conduits to lend to small farmers and fisherfolk by providing guarantee cover to unsecured palay and other food production loans extended to farmers.”

2. Background Administrative Order No. 225 and 225-A signed by
Pres. Gloria Macapagal Arroyo
All GOCCs and GFIs to allocate 5% of their 2007 surplus for projects in rice and food production, and as contribution to an AGFP.
It is used to mitigate the risks involved in agriculture lending and to encourage more participation of financial institutions and other credit providers in extending financing to the agriculture sector.
It provides guarantee cover of up to 85% of the loans that will be extended by FIs to farmers engaged in production of palay, corn, and other food crops.

3. Eligible Conduits
Banks (e.g. Rural Banks, Cooperative Banks, Thrift Banks)
Cooperatives
Small and Medium Enterprises (SMEs) and Large Corporations such as input providers
Non-Government Organizations and Farmers’ Organizations, other than cooperatives

4. Extent of Participation in AGFP, As of August 30, 2010
by Financial Institutions/Lenders
As of August 30, 2010
Type of FI/
Lender
Approved Guarantee Lines
Guarantee Lines Used
Farmer Borrowers of Guaranteed Loans
No. of FIs
Amount (PM)
% of Total
Amount of Guarantee Coverage (PM)
% of Approved Guarantee Lines
No.
Banks
113
4,073.8
55.4
157
1,308.6
32.1
41,873
Cooperatives
280
1,817.4
24.7
188
391.3
21.5
7,814
SMEs and large corporations
317
1,286.0
17.5
233
947.2
73.7
14,336
Farmers organizations 34
175.0
2.4 25
61.7
35.3
2,015
Total
744
7,352.1
100.0
603
2,708.8
36.8
66,038

5. Guarantee Claims Payment
As of August 30, 2010
No. of FIs
% Share
Amount
Farmer
Borrowers
Banks 10 31
28,290,847 66
863
Cooperatives 13 41
7,372,915 17
382
SMEs 9 28
7,494,695
266
TOTAL 32
100
43,158,457
1,511

6. Backup slide

7. AGFP FUND CONTRIBUTIONS
Contributor
Date Deposited
Amount (in Pesos)
PAGCOR
6/26/2008
52,400,000.00
PCSO
6/30/2008
3,600,000.00
NAPOCOR
7/7/2008
100,000,000.00
PEZA
7/17/2008
3,730,000.00
LWUA
7/24/2008
5,000,000.00
NEA
7/25/2008
1,029,000.00
DBP
7/28/2008
LANDBANK
8/7/2008
TIDCORP
9/4/2008
1,885,900.00
TRANSCO
9/10/2008
111,000,000.00
MWSS
11/24/2008
FROM NATIONAL GOVERNMENT
12/2/2008
2,000,000,000.00
1/20/2009
1,199,054,000.00
4/13/2009
800,945,625.00
TOTAL CONTRIBUTION
4,483,644,525.00
Immediately after the issuance of AO 225-A in May 2008, the DA and LandBank worked for the transfer of the 5% surplus income of GOCCs and GFIs as the initial capital fund base of the program.
The transfer of 5% surplus income started in June while the Malampaya revenues was transferred only in December 2008 and the Katas ng Vat in January and April of 2009.