Press Release
October 1, 2007

Angara proposes extension of ACEF

"Access to credit is the lifeline of agriculture."

In a sponsorship speech, Senator Edgardo Angara urged the extension of the Agricultural Competitiveness Enhancement Fund (ACEF), which will expire this year.

Enacted in 1996, the ACEF is a special purpose fund created by Republic Act No. 8178, which will come from the proceeds of the in-quota MAV importations.

"To help the agricultural sector become globally competitive viable, efficient, and sustainable, the ACEF finances irrigation, farm-to-market roads, post-harvest equipment and facilities, research and development, marketing infrastructure, provision of market information, re-training, extension services, and other forms of assistance to farmers and fisher folk," Senator Angara explained.

"What makes the ACEF special is that it provides credit to small farmers and fisher folk at zero-interest and without collateral," said the senator and co-chairman of the ACEF Committee.

"Without access to credit, small farmers will have a hard time surviving the period before harvest, and invest in more seeds or equipment," the Senator pointed out.

"If ACEF expires this year, its Php 1.9 billion worth of funds available to bankroll agricultural modernization projects will be reverted to the general fund. This can no longer be used to support agricultural competitiveness projects," said Senator Angara.

Four years after the fund was made fully available in 2000[1], ACEF was able to fund 93 sugar projects and 56 other projects on livestock, poultry and fruits and vegetable subsectors[2].

"As of 2006, ACEF still had a balance of Php5.81 billion, and funded 173 projects worth Php2.76 billion that year. An additional 55 projects worth 1.14 billion was approved by the ACEF committee this year, leaving a balance of Php1.9 billion," Senator Angara elucidated.

"The remaining Php1.9 billion could still fund sorely needed farming infrastructure and equipment, research and development, and the expansion of livestock, poultry, fruits and vegetable enterprises." Senator Angara said.

"This can cushion the farming sector from the impact of liberalized trade in the agriculture sector," said Senator Angara, who also chairs the Senate Committee on Agriculture and Food.


[1] ACEF was given a period of nine years to exist, but it was not utilized for its original purpose from 1996 to 1998, and was used instead for national budgetary support. It was only in 1999 that the government assigned a special account number for ACEF, i.e. Fund 183.

[2] Partial number of funded projects as of 2004 only

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