Understanding RCEF and Implication To Rice Farmers

RICE COMPETITIVENESS
ENHANCEMENT FUND
RICE COMPETITIVENESS ENHANCEMENT FUND
Legal bases
Republic Act 11203 has created the Rice Competitiveness Enhancement
Fund (RCEF) or Rice Fund to improve rice farmers’ competitiveness and
income amidst liberalization of the Philippine rice trade policy that lifted
quantitative restrictions on rice imports and replaced it with tariffs, among
others.
1) Rice farm machinery and

4 Key equipment;
2) Rice seed development,
Components propagation, and promotion;
3) Expanded rice credit assistance;
of RCEF:
4) Rice extension services, which
shall be implemented in an
integrated manner.

SEED PROGRAM

Seed Program
Four projects to increase the
adoption of certified inbred
seeds and integrated crop
management
• Promoting and distributing

certified seeds of inbred rice
varieties
• Mobilizing and strengthening
local seed production
• Supporting variety development
• Strengthening farmer
organizations
Lead Agency: PhilRice

Coverage
• Covers 57 provinces with high
potential to improve
competitiveness (area, yield, cost
of production, share of irrigated
area)
• Roughly translates to 1,010

municipalities with about 1.89
million rice farmers
For Dry Season 2020, cities & municipalities with more than 500 hectares rice area planted
shall be considered due to budget constraints. Those with more than 100 ha rice area
planted will be included in the succeeding seasons.
Beneficiaries
Rice farmers listed in the Registry System for Basic Sectors in
Agriculture (RSBSA), and rice cooperatives and associations accredited by
the Department of Agriculture, meeting the following eligibility criteria:
Farmer organizations For farmer-recipients
• Must be accredited by DA or any • Must be included in the DA-updated

accrediting government agency RSBSA;
recognized by DA • Must be a member of DA-accredited
• With members whose rice farms can FO; and
cover a cluster of at least 20 ha in one • Must be farming in rice fields located
to two adjacent villages in one selected in the selected municipalities
city or municipality

Free seeds for two consecutive seasons starting Dry Season 2020
For Dry Season 2020, only a

maximum of 4 bags will be
given to a farmer with an
area of more than 1.5ha
due to budget constraints.
Farmers may receive again in the next program

cycle if they met the target yield in their area.
Farmer organizations
will be encouraged to
establish rollover
scheme for
sustainability

How can farmers avail of free seeds?
Farmers must meet the eligibility criteria. They may claim the seeds in the
distribution point and schedule set by the LGU.
To-do during the distribution:
1. Go to the 2. Fall in line 3. Attend the 2. Present name tag,

registration following your technical claim the seeds, and
booth, present preferred briefing as have photo taken
a valid ID with scheduled.
variety. Fill out beside the sack holding
picture, and
check the name
the the name tag. Fill out
in the acknowledgm survey form at the
masterlist. If ent form and back and surrender the
listed, proceed name tag. name tag.
to step 2. RICE COMPETITIVENESS ENHANCEMENT FUND
How can farmers enlist in the RSBSA? What should the farmer
organization do to be accredited?
For farmer-recipients Farmer organizations
A farmer must contact the CAO/MAO A farmer organization seeking accreditation

for enlistment in the RSBSA, must submit the following documents to the
following the process: to DA-RFO:
1. Letter of intent
1. Present proof of valid 2. Valid certificate/registration from any
identification and any proof of rice recognized government agency
farming. 3. Farmer Association Profile (lists of officers
2. Fill out and sign the RSBSA and members with corresponding
Enrolment Form. signature, home and farm location
3. Get the stub to claim ID card address)
upon notice. 4. Omnibus Sworn Statement
5. LGU or C/MAFC endorsement
MECHANIZATION
PROGRAM

Mechanization Program
• Strengthening the access and
use of appropriate production
and postproduction
mechanization technologies.
Lead Agency: PHilMech

Mechanization Program
What does the program aim
to achieve?
• Access to rice production and
postharvest machinery and
equipment through to the farmer
cooperatives, associations (FCAs).
• Promote the use of efficient and
cost reducing rice mechanization
interventions.
• Strengthen local agricultural
machinery manufacturing industry
through aggressive technology
development, fabrication and
manufacturing.

Technologies available
• Agricultural Tractors
• Farm Tillers
• Rice Seeders
• Rice Transplanters
• Irrigation Pumps
• Small Solar Irrigation
• Rice Threshers
• Rice Harvesters
• Rice Reapers
• Mechanical Rice Dryers
• Ricemills

Beneficiaries
Eligible and registered rice-based farmer’s

cooperatives and associations (FCAs) with
existing and active members. FCA should be an
accredited organization of DA.

Technical requirements for the FCAs to qualify
as beneficiary
1. Should have at least 50 ha 3. Must have the capacity to

rice farm of regular operate and maintain the
members. machinery and equipment
2. Must have a minimum rice and willing to undergo
area of 300 ha within the training course/s.
peripheral barangays from 4. Must be willing to provide
the proposed location of the machinery shed as
agricultural machineries and counterpart for the
postharvest facilities. project.

Technical requirements for the FCAs to qualify
as beneficiary
5. Should be willing to operate the

project according to the prescribed 6. Should conform to
model. the set objectives and
• Follow the recommended suggested functions of the
service fee (SFF) project.
• Operate and manage the project using
an integrated and systems approach
of farm machinery and equipment
operation and management.
• Should be willing to undergo capability
building activities RICE COMPETITIVENESS ENHANCEMENT FUND
Minimum Requirements for the FCAs to submit
1. Letter of intent 2. Certificate of 3. With 4. Farmers’

and resolution accreditatio financial Association/Cooperatives’
from the farmer n from the statement Profiles
organization duly audited •
DA. List of farmer members
stating the need or Income
for the farm Tax Returns
with corresponding rice
machineries and for the past 2 farm area
postharvest years. • Machineries present and
facilities, other information related
willingness to to the coop’s/org
provide shed for operation.
the project.

How do we intend to distribute
the mechanization technologies to FCAs?
1. Technology Target Setting
Year 1: 1200-1600 FCAs

Succeeding years: Another batch of FCAs

How do we intend to distribute the
mechanization technologies to FCAs?
1. Technology Target Setting
• Concept of modernization development

process
• Urgency of need
• Need based system

2. Prioritization
Provincial and Municipal Level

• Rice producing provinces and municipalities
focusing and basing from the list of rice
producing provinces as provided for by PhilRice
• Machinery allotment and distribution will be
based from the initial analysis of
machinery/facility gaps and requirements
made by PHilMech.

2. Prioritization
Farmer Cooperative and Associations Level

• FCAs with high rice machinery gaps and
requirements will be given priority.
• Financial availability for initial revolving fund or
operating cost, and
• Organizational readiness to provide personnel to
operate and manage the machinery that will be
provided.

CREDIT PROGRAM

Lead Agency: LandBank and DBP
Eligible Borrowers
Individual rice farmers DA-accredited

cooperatives with rice
farmers as members

Eligibility Criteria for Individual Farmers
• Registered in the RSBSA

• No outstanding loan from formal
lending institutions and DA-ACPC
Individual rice farmers credit conduits for the same project
being applied for.
• Has undergone technical training
from a reputable farm
school/institution on rice-related
projects.
Farmers which have already availed of assistance in the seed and mechanization components
are ineligible to avail of RCEF loans unless the loan being applied shall be used to finance
another rice-related project

Eligibility Criteria for Cooperatives
• Duly registered with the CDA

• Accredited by the DA
• No adverse findings on the cooperatives
and its principals
• Should have strong back office support
DA-accredited
cooperatives with rice with defined Operational Structure
farmers as members • Must exhibit profitable operations and
sound financial condition
• Past Due Loan Ratio not exceeding 15%

Eligibility Criteria for Cooperatives
• With Certificate of Compliance from CDA,

if applicable;
• Has met the capital requirement of CDA
or not less than ₱30,000.00;
• With proven track record or familiarity on
the proposed project; and
DA-accredited
• Has undergone technical training from a
cooperatives with rice
reputable farm school/institution on rice-
farmers as members
related projects.
Cooperatives which have already availed of assistance in the seed and mechanization
components are ineligible to avail of RCEF loans unless the loan being applied shall be used
to finance another rice-related project

Eligibility Criteria for Member-Borrowers
(for relending/rediscounting)
• Registered in the RSBSA;

• Account has no history of default with
the Cooperative for three (3)
consecutive months;
• Account for rediscounting is not yet
fully paid; and
• Has undergone technical training from
a reputable farm school/institution on
rice-related projects.

Borrower Eligible Purpose Loanable Amount
Individual 1. Purchase of farm inputs Up to 90% of the total project cost

Farmers/ 2. Acquisition of machineries and (TPC) but not to exceed P1.0
Member equipment, including mechanical dryer Million
Borrowers
1. Purchase of farm inputs
2. Working capital
3. Acquisition of machineries and Up to 90 % of the TPC
Cooperatives
equipment, including mechanical dryer
4. Establishment of facilities
5. Relending to small rice farmers listed in Up to 90% of the total project cost
the RSBSA Rediscounting of existing
loans of small rice farmers listed in the Up to 90% of face value of the
RSBSA sub-PN or their outstanding
balance in current status,
whichever is lower

Schemes, Facilities and Interest Rates
Schemes Facilities Rates

Direct Lending Short Term Loan/Line, 2% p.a.
Term Loan
On-Lending Relending/Rediscounting 0% p.a. Effective pass-on rate to
end-borrowers shall not be more
than to 6 % p.a.
Project Cost Sharing
Component Cost Share

ERCA-RCEF Ninety Percent (90%)
Borrower’s Equity Ten Percent (10%)

Grace Period
Maybe granted, if applicable, based on the cash flow of the project.
Loan Maturity
Eligible Purpose Tenor

Production Two (2) years loan/line available via 180 days Promissory
Note (PN); roll-over may be allowed
Acquisition of Equipment Shall depend on the projected cash flow but no longer than
seven (7) years
Establishment of Facilities Shall depend on the projected cash flow but no longer than
ten (10) years
Relending/ Rediscounting Based on the maturity of sub-borrowers PN

Loan Security/Conditions
1. For production PCIC insurance proceeds on crops, if applicable;
2. For acquisition of • Chattel mortgage on subject of financing; and

fixed assets • Applicable insurance cover on the chattel financed, endorsed in
favor of the Bank
3. For establishment of Any or combination of the following, if applicable/case-to-case
facilities basis:
• Chattel mortgage on object of financing;
• Applicable insurance cover on the project financed, endorsed in
favor of the Bank;
• Real Estate Mortgage (REM)
4. For Conduits Assignment of sub-borrowers PNs including underlying collaterals,

if any;

Loan Security/Conditions
Any or combination of the following, if
applicable/case-to-case basis:
• Assignment of sub-borrowers PNs including underlying collaterals, if
any;
• REM;
• Chattel Mortgage; and
• Assignment of proceeds from insurance/guarantee claims, i.e. PCIC,
AGFP and CSF
• Applicable insurance cover on the chattel financed, endorsed in
favor of the Bank;

Documentary Requirements for Individual Farmers
1. Filled-out 2. Photocopy of 3. Sworn affidavit and/or 4. Certificate of Training

Loan Application one (1) valid Certification of no from a reputable farm
Form government- outstanding loans from any school/institution on
issued ID lending institution/DA-ACPC rice-related projects
for the same project
5. Certification from PhilRice and PHilMech that

applicant is not a beneficiary of the Mechanization and
Seed Components of RCEF, whichever is applicable, for the
project being applied for financing. If recipient, details of
assistance received shall be indicated in the certification.

Documentary Requirements for Coops
1. Loan Application 4. List of officers and 7. Audited Financial Statement

2. Certificate of employees in key (FS) for the last year; or,
Accreditation positions latest interim FS for start-
from DA 5. Bio-data of incumbent ups;
3. Photocopy of officers, employees in key 8. Business Plan/Consolidated
Certificate of positions and Board of Farm Plan and Budget, if
Registration from Directors with ID; applicable
the CDA 6. Board Resolution 9. Current year Business Permit
authorizing the Coop to
10. Certificate of training from a
borrow and designating
reputable farm
authorized signatories;
school/institution on rice-
related projects
Documentary Requirements for Coops
11. Certification from PhilRice and PHilMech that applicant is not a beneficiary of
the Mechanization and Seed Components of RCEF, whichever is applicable, for the
project being applied for financing. If recipient, details of assistance received shall
be indicated in the certification.

Other terms and conditions
Mode of release Approved loan amount may be released on lumpsum or

staggered basis
Pre- Release Requirement The Borrower shall open an ATM/Current/Savings Account with
DBP/LANDBANK
Conduct of Credit ∙ Required for Cooperatives

Information & Background ∙ May be waived for individual farmers, depending on loan
Investigation
amount
Standard Fees Waived, except for the Documentary Stamp Tax (DST)
applicable for coops to be charged against the Program Fund
Restructuring/ Refinancing May be allowed for loans affected by calamity as declared by

the concerned LGU or the National Government
Penalty 3% p.a. to start on the 61st day after due date of loan up to
the date of settlement
EXTENSION SERVICES
PROGRAM

Rice Competitiveness Challenge:
DEVELOPMENT
FRAMEWORK

Extension Services Program
Enhanced capability of Rice Fund beneficiaries on modernized
inbred rice and seed production and other relevant skills for
improved competitiveness and income
Components:
1. Design and delivery of training programs,
enterprise development assistance, and
communication support services
2. Developing farm schools and strengthening their
capacities on rice knowledge/technology transfer
3. Development and implementation of a scholarship
program
Implementing Agencies: ATI (lead), PhilRice, PHilMech, TESDA
Component 1: Training Programs, Enterprise Development Assistance,
and Communication Support Services
For SPECIALISTS PhilRice, PHilMech
 RFO, ATI, TESDA, P/M/CLGU, PhilRice, SUC, PHilMech,

PSABE etc
For TRAINERS ATI, PhilRice, PHilMech
 AEWs; Farmer-leaders, Farm School owners, TESDA

trainers; FCA machine operators, FCA farmer leaders
for FCAs operation and management staff
For FARMERS TESDA / ATI
 RSBSA-registered farmers
With scholarship grants and thru farm schools
• For Deputized and BPI • For Prospective Seed BPI/ATI

Designated Seed Growers
Inspectors • Refresher Course for
• For Seed Analysts Seed GrowersENHANCEMENT FUND
RICE COMPETITIVENESS
Training Programs
Training for SPECIALISTS

1. Rice Specialists’ Training Course (PhilRice)
2. Performance Testing and Evaluation of Rice Machinery
(PHilMech)
3. Seed testing &certification training for seed analysts.
• Operation and Maintenance of Rice Machinery
• Operation and Management of Agri-Machinery Pool
4. Resource Person Development - (PHilMech) for the ff:
5. Inbred rice seed production & certification for deputized
& designated seed inspectors (ATI, BPI-NSQCS)
TRAINING OF
FARMERS RICE COMPETITIVENESS ENHANCEMENT FUND
Training Programs
Training for TRAINERS

1. Modernized production of high quality inbred
rice/seeds (ATI, PhilRice, PHilMech,)
2. Refresher courses for rice extension workers
(PhilRice, PHilMech, ATI)
3. Operation and Maintenance of Rice Machinery
(PHilMech)
4. Operation and Management of Agri-machinery
Pool (PHilMech)

Training Programs
Training for FARMERS, SEEDGROWERS, COOPS/ ASSOCIATIONS

1. Farmers Field School on Modernized Production of High Quality
Inbred Rice and Seed Certification (TESDA, ATI)
2. Other rice-related trainings (TESDA, ATI)
• Rice Machinery Operation
• Drying and Milling
• Small Engine Servicing
3. Inbred seed production & certification for potential seed growers
(ATI, BPI-NSQCS)
4. Refresher course for seed growers (ATI, BPI-NSQCS)
5. Farm school certification & accreditation (ATI, TESDA)
Component 1: Training Programs, Enterprise
Development Assistance, and Communication
Support Services
Enterprise Development Assistance
● Feasibility study
● Preparation business plan
● Preparation preparation of
technical & management
operations manual

Component 1: Training Programs, Enterprise
Development Assistance, and Communication
Support Services
COMMUNICATION SUPPORT SERVICES
to Complement/Supplement the Training Programs
Technical IEC
School- Radio SMS
Briefings Materials &
on-Air programs Advisory
Campaigns

Component 2: Developing farm schools and
strengthening their capacities on rice
knowledge/technology transfer
• TESDA-registered farm schools,

technology institutions (TTI), ATI
learning sites, state colleges and
universities (SUCs), local colleges
and universities (LUCs) offering
agriculture qualifications, and
other training providers (e.g., ATI,
PhilRice, PHilMech, and RFOs)
with TESDA accredited
agriculture/rice-related training
programs under the Rice Fund.
Component 3: Scholarship Program
1. Farmers Field School on Modernized Production of High Quality

Inbred Rice and Seed Certification (TESDA, ATI)
2. Other rice-related trainings (TESDA, ATI)
• Rice Machinery Operation
• Drying and Milling
• Small Engine Servicing
Component 3: Scholarship Program
TESDA shall implement a scholarship program for farmers, farmworkers listed in
the RSBSA, including members of Farmers’ Coops and Associations recognized by
DA, to enrol in Farmers Field School to be conducted by farm schools
1 2 3
Scholarship
Registration Scholarship
Application
of FFS by Grant
by farmers thru
Farm Schools
the Farm
(3-11 days)
Schools
6 5 4
Post Competency Training
Implementation/ Assessment Implementation
(Billing of FS) (optional)
THANK YOU !!!
RICE COMPETITIVENESS ENHANCEMENT 51

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RICE COMPETITIVENESS

1) Rice farm machinery and

RICE COMPETITIVENESS ENHANCEMENT FUND

RICE COMPETITIVENESS ENHANCEMENT FUND

• Promoting and distributing

RICE COMPETITIVENESS ENHANCEMENT FUND

• Roughly translates to 1,010

Farmer organizations For farmer-recipients

• Must be accredited by DA or any • Must be included in the DA-updated

RICE COMPETITIVENESS ENHANCEMENT FUND

For Dry Season 2020, only a

Farmers may receive again in the next program

RICE COMPETITIVENESS ENHANCEMENT FUND

To-do during the distribution:

1. Go to the 2. Fall in line 3. Attend the 2. Present name tag,

For farmer-recipients Farmer organizations

A farmer must contact the CAO/MAO A farmer organization seeking accreditation

RICE COMPETITIVENESS ENHANCEMENT FUND

Lead Agency: PHilMech

RICE COMPETITIVENESS ENHANCEMENT FUND

RICE COMPETITIVENESS ENHANCEMENT FUND

RICE COMPETITIVENESS ENHANCEMENT FUND

Eligible and registered rice-based farmer’s

RICE COMPETITIVENESS ENHANCEMENT FUND

1. Should have at least 50 ha 3. Must have the capacity to

RICE COMPETITIVENESS ENHANCEMENT FUND

5. Should be willing to operate the

1. Letter of intent 2. Certificate of 3. With 4. Farmers’

RICE COMPETITIVENESS ENHANCEMENT FUND

Year 1: 1200-1600 FCAs

RICE COMPETITIVENESS ENHANCEMENT FUND

• Concept of modernization development

RICE COMPETITIVENESS ENHANCEMENT FUND

Provincial and Municipal Level

RICE COMPETITIVENESS ENHANCEMENT FUND

Farmer Cooperative and Associations Level

RICE COMPETITIVENESS ENHANCEMENT FUND

RICE COMPETITIVENESS ENHANCEMENT FUND

Individual rice farmers DA-accredited

RICE COMPETITIVENESS ENHANCEMENT FUND

• Registered in the RSBSA

RICE COMPETITIVENESS ENHANCEMENT FUND

• Duly registered with the CDA

RICE COMPETITIVENESS ENHANCEMENT FUND

• With Certificate of Compliance from CDA,

RICE COMPETITIVENESS ENHANCEMENT FUND

• Registered in the RSBSA;

RICE COMPETITIVENESS ENHANCEMENT FUND

Individual 1. Purchase of farm inputs Up to 90% of the total project cost

RICE COMPETITIVENESS ENHANCEMENT FUND

Schemes Facilities Rates

Project Cost Sharing

Component Cost Share

RICE COMPETITIVENESS ENHANCEMENT FUND

Eligible Purpose Tenor

RICE COMPETITIVENESS ENHANCEMENT FUND

1. For production PCIC insurance proceeds on crops, if applicable;