MANILA (UCAN): Catholic groups and farmers in the Philippines welcomed a one-year moratorium on land amortisation and interest payments for thousands of farmers to their landlords for farmland distributed under the country’s agrarian reform programme.
The country’s president, Ferdinand Marcos, Jr., signed an executive order on September 12 imposing the moratorium. The freezing of payments was expected to help farmers focus on productivity to increase their yield, cushioning the effects of the Covid-19 pandemic.
“The moratorium, contained in an executive order signed by the president, would unburden farmers of their debts and allow them to use their money to maximse their production capacity,” Agrarian Reform secretary, Conrado Estrella, told reporters on September 13.
Estrella said the moratorium was one of the promises of the president to farmers.
Under the Comprehensive Agrarian Reform Law, farmers awarded land were to pay their landlords in 30 annual amortisations at six per cent per annum. The moratorium would cover some 654,000 farmers with about 58.15 billion pesos [$8 million] in loans covering 1.18 million hectares of land.
The moratorium is just one part, it is a preparation of another commitment of the president for Congress to pass a law that would condone [lighter repayment terms] unpaid loans of agrarian reform beneficiaries
Estrella said Marcos would not only suspend the payment of loans and interests but would ask lawmakers to pass a law to condone all their debts.
“The moratorium is just one part, it is a preparation of another commitment of the president for Congress to pass a law that would condone [lighter repayment terms] unpaid loans of agrarian reform beneficiaries,” Estrella said.
The Catholic labour group Lakas [strength] said the move will ease the burden on local farmers.
“We laud the efforts of the president to address the loans of our farmers. The Philippines, as an agricultural country, needs reforms and support for farmers. Our [local] farmers are faced with the reality of competing with imported rice from Vietnam … they cannot compete with the price,” the group’s spokesperson Nica de Jesus said.
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De Jesus also said that if lawmakers pass the condonation bill, it would free farmers from the bondage of tilling the soil.
“By erasing unpaid debts, the farmers would receive their land without paying for their amortisations. They’ve worked long enough to pay their loans,” De Jesus added.
Yes, it is good to know about the condonation which remains a plan. But until it becomes a law, our farmers’ situation is still desperate … after all more than 30 million people voted for him [Marcos], he must not frustrate them
Father Edwin Gariquez
One farmer, Redentor Sevilla, recounted his struggles after Covid-19 hit in 2020, saying, “I couldn’t pay my loan because I really did not have any money. I did not have the capital to plant rice … even my children needed to stop going to school because we did not have money to buy electronic gadgets required in school.”
Another farmer said, “I was forced to sell my motorbike because my landlord is very strict. I am afraid my family would be evicted from the land. I have other loans with him [landlord],” another farmer, Kris Malinao, recounted.
Caritas, said that Marcos’ second promise to condone farmers’ loans must be a priority bill for Philippine lawmakers.
“Yes, it is good to know about the condonation which remains a plan. But until it becomes a law, our farmers’ situation is still desperate … after all more than 30 million people voted for him [Marcos], he must not frustrate them,” Caritas executive secretary, Father Edwin Gariquez, said.
In August, a senator, Lito Lapid, filed a bill seeking the condonation of all unpaid interest, penalties, and surcharges on loans and amortisations of lands awarded to agrarian reform beneficiaries.
Economist and professor, Gerard Lurenson, said lawmakers would not approve the upcoming bill as many of them come from families who own land and the bill won’t serve their interests.
“I hope the promise is not just pure politics because many of our lawmakers come from aristocratic families who own huge tracks of lands. Let us take the promise of the president in good faith. Without the condonation law, the moratorium is just delaying their suffering,” Lurenson said.
