Expanded Rice Credit Assistance (ERCA) is a credit facility which aims to help increase the productivity of rice farmers and their cooperatives by providing financial assistance for the increase in rice production, acquisition and establishment of agricultural production and processing facilities, and farm improvement. Ten percent (PhP 1,000,000,000,000.00) of the Rice Competitiveness Enhancement Fund (RCEF) or Rice Fund under RA 11203 the Quantitative Import Restriction on Rice and for Other Purposes, shall be used to fund the ERCA. The Credit Component of the program is being implemented by two banks, the Land Bank of the Philippines and Development Bank of the Philippines, in partnership with the Department of Agriculture. It aims to; (1) Provide a simplified lending program with streamlined requirements and shorter processing time; (2) Make financial services and literacy available to Filipinos in the agricultural and rural area through access to formal credit; and (3) Ensure food security and improve viability, efficiency and competitiveness of the agricultural sector and at the same time, uplift the lives of marginalized farmers. Both implementing agencies carry the same eligibility criteria which include the following:

Eligible Borrowers

  1. Individual rice farmers who are listed in the Registry System for Basic Sectors in Agriculture (RSBSA)
  2. Department of Agriculture (DA)-accredited cooperatives with rice farmers as its members

Eligible Loan Purposes

  1. Individual Farmers/Member-Borrowers
    – Purchase of farm inputs (materials and labor)
    – Acquisition of farm equipment for production and post-production phases, including mechanical dryers
  2. Cooperatives
    – Purchase of farm inputs (materials and labor)
    – Working capital
    – Acquisition of machinery and equipment, including mechanical dryers
    – Establishment of facilities for production and post-production phases, processing, and trading
    – Relending to small rice farmers listed in the RSBSA for palay production
    – Rediscounting of existing loans of small rice farmers listed in the RSBSA for palay production
  3.  Wholesale Sub-Borrowers (Relending/Rediscounting)
    – Purchase of farm inputs (materials and labor)|
    – Purchase of farm equipment for production and post-production phases, and processing

Eligibility Criteria

  1. Individual Farmers
    – Registered in the RSBSA
    – No outstanding loan from formal lending institutions and DA-ACPC credit conduits for the project being applied for
    – No adverse findings
    – Has undergone technical training on palay-related projects
  2. Cooperatives
    – Duly registered with the Cooperative Development Authority (CDA)/Securities and Exchange Commission (SEC)
    – Accredited by DA
    – No adverse findings on the cooperative and its principals
    – Should have strong back office support with a defined operational structure
    – Must exhibit profitable operations and sound financial condition (if start-up, must be able to demonstrate profitable operations based on the financial projections of the proposed project for financing)
    – Past Due Loan Ratio not exceeding 25%
    – With Certificate of Compliance from CDA, if applicable
    – Meets the capital requirement of CDA or not less than P30,000
    – With proven track record or familiarity on the proposed project
    – Has undergone technical training on rice-related projects
  3. Eligibility of Member-Borrowers
    – Registered with RSBSA
    – Account has no history of default with the Cooperative for three (3) consecutive months
    – Account for rediscounting is not yet fully paid
    – Has undergone technical training on palay-related projects