{"id":86836,"date":"2023-07-07T12:22:12","date_gmt":"2023-07-07T09:22:12","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=86836"},"modified":"2023-07-07T12:22:12","modified_gmt":"2023-07-07T09:22:12","slug":"philippines-writes-off-1-bn-in-farmer-debt-to-boost-food-production","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2023\/07\/philippines-writes-off-1-bn-in-farmer-debt-to-boost-food-production\/","title":{"rendered":"Philippines writes off $1 bn in farmer debt to boost food production"},"content":{"rendered":"

MANILA, Philippines, July 7 –\u00a0Philippine President Ferdinand Marcos on Friday wrote off $1.04 billion in land-related debt owed by more than half a million farmers, a move aimed at boosting food production.<\/strong><\/p>\n

The “New Agrarian Emancipation Act” he signed into law waived all property-related debt owed by farmers who had been given land on 30-year payment terms under a 1988 land reform programme, but had been unable to pay.<\/p>\n

“We know these farmers do not have the means to pay this huge debt. So putting it under the government’s tab is the right thing to do,” Marcos said at a signing ceremony at the presidential palace.<\/p>\n

The writing off of the loans, which were issued by government banks, meant “we are doing everything in order to feed our people”, he added.<\/p>\n

Under a law passed about a year after Marcos’ father and namesake was toppled in a bloodless “People Power” revolt in 1986, about 4.8 million hectares (11.9 million acres) of plots were distributed to almost three million landless farmers.<\/p>\n

The total was equivalent to 16 percent of the country’s land area.<\/p>\n

Congress passed the new legislation because nearly 1.2 million hectares of redistributed farmland had gone unpaid for, with the farm sector’s contribution to the country’s economic output shrinking.<\/p>\n

The write-off will benefit more than 610,000 land reform beneficiaries but will cost the government 57.65 billion pesos ($1.04 billion), Marcos said.<\/p>\n

The government will spend another 206 million pesos to compensate landowners whose properties were transferred to tenants, he added.<\/p>\n

“We need to revitalise the agriculture sector,” said Marcos, who is also the agriculture minister.<\/p>\n

After his election last year, the archipelago nation was wracked with shortages and soaring prices of farm commodities, including onions and sugar, while imports of rice, a food staple, also surged.<\/p>\n","protected":false},"excerpt":{"rendered":"

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