Bongbong writes off P57b agrarian debt
Published on: Saturday, July 08, 2023
By: ABS CBN
President Ferdinand Marcos, Jr signs Republic Act No. 11953 or the New Agrarian Emancipation Act.
MANILA: President Ferdinand “Bongbong” Marcos, Jr. on Friday signed a law that would write off agrarian reform beneficiaries’ debt worth around P57.557 billion.The New Agrarian Emancipation Act, which was among Marcos’ promises in his first State of the Nation Address last year, condoned the amortisation of principal payments, interests, and penalties of 610,054 agrarian reform beneficiaries tilling 1.173 million hectares of land.ADVERTISEMENT
The President, who is concurrently the agriculture chief, said a “genuine agrarian emancipation” required more than the distribution of land, which he said was just the first step.
“Let us continue agrarian reform not just through land distribution, but by freeing farmers from the debt that hinders them from truly owning the land given to them by government,” Marcos said in his speech.
“Free land distribution must go hand in hand with broadening the provision of credit facilities and support services in the form of farm inputs, equipment, and facilities for our farmers as well as the construction of more farm-to-market roads,” he added.
Marcos said this would yield more sustainable farms and higher income for farmers.
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The new law covers farmers and farm workers who received lands under Presidential Decree No. 27 and “who have outstanding loan balances payable to the Land Bank of the Philippines and to private landowners.”
The measure condoned the principal loan of P14.5 billion, which includes interests, penalties, and surcharges, of 263,622 beneficiaries whose names were already submitted by the Land Bank of the Philippines to Congress.
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“However, the inclusion of the remaining P43.057 billion loan in this section shall take effect only upon submission by the Land Bank of the Philippines and the Department of Agrarian Reform (DAR) of the indebtedness to government of the 346,432 [beneficiaries],” the law stated.
“The land awarded to [beneficiaries] shall be excluded from his/her gross estate for purposes of estate tax,” it added.
Under current laws, agrarian reform beneficiaries are required to pay for the land awarded to them in annual instalments with 6 percent interest for a maximum period of 30 years.
Agrarian Reform Secretary Conrado Estrella III earlier described the New Agrarian Emancipation Act as a “huge step” to attain the President’s goal of food security in the Philippines.
The signing of the new law was followed by a ceremonial awarding of land titles to agrarian reform beneficiaries in Malacanang.
Among the beneficiaries of the land title was 76-year old Loreto Bautista from Calaca, Batangas, who was tilling their 1-hectare land for around 5 decades already.
Bautista said he would continue planting crops, now that his children already finished their studies.
“Masayang masaya,” Bautista told Palace reporters. “Malaking tulong ‘to, na sarili na ang sinasaka.”
In a media interview, Marcos said steady government support in terms of technical knowledge, cheaper sources of fertilizers, seeds, and other equipment could help prevent farmers from selling their lands.
“Those who were given titles sell their lands because they have no means of paying for inputs, taking loans, or getting seeds. If you only give titles and no other support, they will be forced to get loans from the former land owner and sell their products at a loss,” the President said.
DAR’s Estrella told beneficiaries that they could only sell their lands after 10 years.
“If we find out that they sold their lands in less than 10 years, we will take back the land and give it to other beneficiaries. As long as there is an information campaign for our farmers, there wouldn’t be any large-scale selling of lands,” he said.
Finance Secretary Benjamin Diokno said the P57-billion debt condonation would not have any impact to the country’s fiscal picture.
Diokno said the funds used for the law was “not part of government’s estimation of revenues.”
“We have planned the deficit target, the revenues for the next 5 years. This was not part of the computation, so this has no impact. If you are running the government, you are not just thinking of efficiency, but social justice, too,”.
Marcos in September last year issued an executive order setting a one-year moratorium on the amortisation of agrarian reform beneficiaries.
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