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The slight
index level
4 which it
due to the
improvement in the index level under LTI, ECOPISS, and FPI. There was also a slight
increase in OM ratings.
Table 1. ALDA Rating of ALBAPA ARC by Key Result Area (KRA) from 2001 to 2007
Year
OM
ECO
FPI
Index
BSS
Level
GAD
2001
84.35
52.20
78.12
24.27
85.53
39.31
61.92
2002
76.87
49.08
78.61
41.91
85.52
35.64
63.07
2003
92.17
56.17
91.43
48.38
85.52
38.96
70.40
2004
89.83
56.19
91.43
53.60
84.83
38.96
70.93
2005
85.47
29.82
85.89
38.34
84.64
34.48
60.99
2006
72.19
53.52
92.32
81.23
90.88
47.44
75.72
2007
82.17
47.40
80.38
42.58
94.09
47.62
66.78
In 2007, the ALDA rating of ALBAPA ARC plunged to Level 3 which can be attributed
to FPI as its rating under this area fell from 81.23 percent in 2006 to as low as 42.58
percent in 2007. The low rating of FPI can be attributed to low production because
of the ARBs problem on insufficient supply of irrigation water to their farms due to
the ongoing rehabilitation at that time of the Bago River Irrigation System covering
four districts of Negros Occidental including the municipality of Valladolid and the
non-functionality of shallow tube wells that were provided to the farmers. Based on
the FGD with ARBs and interview with DAR key informants, the decrease in FPI
rating can also be attributed to the typhoon that hit the area, the non-adoption of
organic fertilizer by the ARBs, and the decrease in the non-farm income of the ARBs.
Likewise, ECOPISS contributed to the regressed level of development of ALBAPA
ARC from 2006 to 2007. In 2006, it obtained a high rating because of the
construction of an additional farm-to-market road and a bridge with the help of the
barangay council, local government units and other line agencies. However, its
ratings declined from 92.32 percent in 2006 to 80.32 in 2007 because of the ARBs
insufficient access to irrigation water due to the aforecited two contributory factors
of ongoing rehabilitation of the Bago River Irrigation System and the shallow tube
wells that were already non-functional and which concomitantly decreased the total
hectares serviced by the irrigation system. Moreover, ARBs lacked access to credit
services and on some pre- and post-harvest facilities such as thresher and solar
dryer.
Notably, OM has continuously affected the level of development of ALBAPA ARC
from 2001 to 2007 because of the weak and non-functional cooperatives. There are
five existing cooperatives in the ARC, four of which have been non-functional for
about six to 10 years. In lieu of these four non-functional cooperatives, DAR
organized the VARB MPC. However, despite its organization, OM did not obtain a
high rating because the progress of development of this cooperative has been very
slow.
Moreover, GAD has also negatively affected the level of development of ALBAPA ARC
due to its low ALDA ratings from 2001 to 2007 which were brought about by the low
ratings obtained on women ARBs, membership in organization and women holding
key positions in the organization. Likewise, these specific indicators were also cited
by the DAR key informants as factors for the low ratings.
An in depth analysis of specific KRA rating by year of ALBAPA ARC shows the
following findings:
1. Land Tenure Improvement (LTI)
There is a fluctuating trend in the ALDA ratings on LTI from 2001 to 2007 (Table 1).
Based on secondary data on ALDA obtained from the Bureau of Agrarian Reform
Beneficiaries Development (BARBD), the LTI ratings of ALBAPA ARC had decreased
from 84.35 percent in 2001 to 76.87 percent in 2002 due to the decrease in the
DAR-PSRS, January 2009
Year
% of Land
Distributed
% of
Actual
ARBs
% of ARB
Regularly
Paying
Amortization
% of ARB
Cultivating
Land
% of ARB
Maintaining
Land
Ownership
% of
Hectares
Covered by
Leasehold
Contracts
% of ARBs
w/ Reg.
Leasehold
Contracts
2001
80.00
76.61
100.00
95.81
100.00
2002
2003
61.80
67.48
38.61
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
2004
58.81
98.89
100.00
100.00
100.00
100.00
100.00
2005
60.76
100.00
100.00
98.89
98.89
2006
61.69326
61.20401
100
97.26776
97.26776
2007
63.34
64.21
100.00
92.71
92.71
100.00
100.00
development activities and projects for its members due to the cooperatives lack of
resources.
3. Economic and Physical Infrastructure Support Services (ECOPISS)
From 2001 to 2007, the ratings of ALBAPA ARC under ECOPISS were relatively high,
ranging from 78.12 to 92.32 percent (Table 1). Based on secondary data on ALDA
obtained from the BARBD, these high ratings can be attributed to the infrastructure
interventions provided under the CARP, specifically the construction of a farm-tomarket road (FMR) and a bridge (Table 3). According to the FGD participants from
the barangay officials and ARBs, the provision of farm-to-market road and a bridge
were of great help not only to the farmers but to the whole community because the
marketing of farm produce were facilitated and the transportation and hauling costs
were lessened. However, they need the full completion of the FMR as there are still
a few kilometers that are yet to be completed. In 2 0 0 5 , the ECOPISS rating
decreased. This was attributed to the decrease in hectarage of service areas
actually irrigated due to the ongoing rehabilitation of the Bago River Irrigation
System. In 2006, there is a significant increase in the ECOPISS rating at 92.32
percent due to the completion of additional kilometers of farm-to-farm road and a
bridge funded by the LGU. In 2007, there was a slight decrease in the rating
because of the declining hectarage of service areas actually irrigated brought about
by the ongoing rehabilitation of the Bago River Irrigation System and the nonfunctionality of the shallow tube wells. Likewise, the ARBs have no access to credit
particularly the production loans due to the non-functionality of the cooperatives in
the ARC. With regard to the pre-and post-harvest facilities (PPHF), these are mostly
available within the ARC but not all ARBs have access to these. According to the
ARB participants in the FGD, some of them still use their feet to thresh palay grains
out of rice straws rather than rent thresher, for purposes of cost saving.
Table 3. ALDA Rating of Specific Indicators under Economic and Physical Infrastructure Support
Services (ECOPISS) from 2001 to 2007
Bridges
Irrigation
PPHF
ARBs w/
access to
Irrigation
ARBs w/
access to
PPHF
ARBs w/
access to
Credit
Marketing
Services
Established
Year
FMR
2001
100.00
90.00
100.00
89.82
74.85
11.04
50.00
2002
2003
100.00
100.00
90.00
100.00
80.00
100.00
89.82
100.00
78.13
89.02
33.33
66.67
50.00
50.00
2004
100.00
100.00
100.00
100.00
89.02
66.67
50.00
2005
70.99
62.50
90.95
100.00
100.00
98.89
80.90
50.00
2006
84.87654
100.00
90.94567
100.00
100.00
100.00
84.26966
50.00
2007
83.73
100.00
48.29
100.00
100.00
94.33
50.00
50.00
Year
Adoption of
Appropriate
Farming
Technology
Average Yield
of Major
Crops
Increase in
Yield of
Major Crops
Annual HH
Income
Increase in Farm
Income
2001
13.69
25.00
25.00
25.00
25.00
2002
2003
14.38
22.55
37.50
75.00
31.25
62.50
75.00
25.00
50.00
25.00
2004
22.55
75.00
62.50
75.00
25.00
2005
17.56
66.67
25.00
50.00
25.00
2006
17.48634
75.00
75.00
100.00
100.00
2007
10.31
37.50
25.00
100.00
50.00
Notably, there is a significant drop in FPI rating to 42.58 in 2007. The sudden
decline in the FPI rating was caused by the decrease in the farm productivity due to
insufficient supply of irrigation water to the ARBs farms brought about by the
ongoing rehabilitation of the irrigation system in the municipality of Valladolid and
the non-functionality of shallow tube wells that were provided to the farmers.
According to the DAR key informants, farm production dropped due to typhoons that
damaged the area which resulted to a decrease in yield both in irrigated and nonirrigated areas. The decrease in FPI was also attributed to the non-adoption of
organic fertilizer because of its high cost.
Year
Availment of
Health
Services
Access to
Health
Services
Access to
Potable
Water
Supply
Access to
Power Supply
Elementary
Enrollment
Ratio
High School
Enrollment
Ratio
2001
100.00
100.00
81.47
85.00
55.91
75.00
2002
2003
75.00
75.00
100.00
100.00
100.00
100.00
81.47
81.47
85.00
85.00
55.91
55.91
2004
75.00
100.00
100.00
80.82
84.59
50.95
2005
75.00
100.00
100.00
80.84
84.55
49.33
2006
75.00
100.00
100.00
98.91304
84.49477
84.91803
2007
75.00
100.00
100.00
98.91
99.36
98.06
Year
% Women
ARBs
% Women
Membership in
Organization
% Women
Holding Key
Positions in
Organization
No. of Project
for Women
Women ARBs
able to access
credit services
2001
10.42
38.38
23.08
75.00
100.00
2002
2003
20.31
20.18
22.69
27.41
20.93
34.62
75.00
100.00
100.00
59.60
2004
20.18
27.41
34.62
100.00
59.60
2005
28.89
38.41
50.70
25.00
0.00
2006
28.96175
45.16129
52.05479
100
26.41509
2007
29.90
45.16
52.05
100.00
26.42
In 1991, DA organized Sitio Pacol MPC and Bayabas MPC and both were registered
with the CDA on the same year. Majority of the members of these cooperatives are
also ARBs (i.e., 34 ARBs out of 47 members in Sitio Pacol MPC while 65 ARBs out of
100 members in Bayabas MPC). These cooperatives were also organized for the
purpose of availing production loans from LBP.
VARB MPC was organized by DAR in 2005 and registered with the CDA on the same
year. Majority of the members of VARB MPC are ARBs (i.e., 28 ARBs out of 38
members) from the three ARC barangays covered by ALBAPA ARC. However, only
14.4 percent of the total ARBs in ALBAPA ARC are members of the VARB MPC. The
organization of VARB MPC was the result of a series of meetings amongst the DAR,
BARC, cooperative leaders and ARBs to organize a new cooperative that would
replace and consolidate the four non-functional cooperatives.
However, the
membership of VARB MPC is not exclusive to the farmers of ALBAPA ARC. It was
organized to cater to the all the farmers of the Municipality of Valladolid. The
formation of VARB MPC was also in response to the directive of the LGU for a one
town-one cooperative strategy. It is accredited with the Office of the Sangguniang
Panlalawigan of Negros Occidental.
2. Status and Activities of the Cooperatives
Of the five cooperatives in ALBAPA ARC, four of them are already non-functional.
Currently, there is only one active cooperative in ALBAPA ARC, i.e., the Valladolid
Multipurpose Cooperative (VARB MPC). Alijis MPC and Pacol MPC have been nonoperational since 1998; Bayabas MPC since 2000; and Sitio Pacol MPC since 2002.
Before these four cooperatives became non-functional, they were able to avail of
production loans from LBP and other financial institutions. The loans that were
extended by the LBP to the Bayabas MPC, Sitio Pacol MPC and Pacol MPC were
purely production loans. However, the loans provided to Alijis MPC were a
combination of production loan and working capital loan. The production loans
availed of by Bayabas MPC, Sitio Pacol MPC and Pacol MPC are collateral free loans.
On the other hand, since the working capital loan availed by Alijis MPC required
collateral, it used the EP titles of the eight ARB members as collateral to LBP.
According to an LBP staff that was interviewed, the ARB members of the four
cooperatives were able to regularly pay their loan amortizations for only two years.
After that, they began to default in the payment of their amortizations until such
time that they totally ceased paying their loans. To give the ARB-members the
chance to repay their loans, the LBP restructured their loans. However, the four
cooperatives were still unable to pay their loans. Since the production loans availed
by Bayabas MPC, Sitio Pacol MPC and Pacol MPC were collateral-free loans, the LBP
just wrote off their loans. But in the case of Alijis MPC which availed not only of
production loans but also working capital loans, the LBP foreclosed the EPs of the
eight ARBs which served as collateral for the working capital loans of the cooperative
members. Since the EPs were used as collateral, the ARBs are no longer in
possession of their EPs. However, the LBP admitted that the foreclosure and
DAR-PSRS, January 2009
10
takeover of the awarded lands from the ARBs would be difficult to implement. Thus,
the ARBs continue to cultivate these foreclosed lands.
Other banks/institutions/agencies that provided credit assistance to the four
cooperatives were: the Quedancor, DBP, Cooperative Bank of Negros, Care
Philippines, Office of the Provincial Agriculturist (OPA) and Philippine-Australian
Community Assistance Program (PACAP). Alijis MPC obtained loans from DBP for the
purchase of some of its pre- and post- harvest facilities. Pacol MPC availed of
production loans and for the purchase of some pre-and post-harvest facilities from
Quedancor, Cooperative Bank of Negros, PACAP, Care Philippines and OPA. On the
other hand, Bayabas MPC availed of loans from Quedancor for the purchase of its
pre- and post- harvest facilities. The Quedancor foreclosed the warehouse and the
solar dryers of Alijis MPC and Bayabas MPC due to failure of the two cooperatives to
pay their respective loans. Based on records, the four cooperatives have total
liabilities in the amount of PhP14,180,000.
The activities that the four cooperatives engaged in before they became nonfunctional are: relending, hog and swine dispersal, palay trading, and renting out of
pre-and-post harvest facilities (i.e., power tiller, thresher, shallow tube wells, water
pump, warehouse and solar dryer).
VARB MPC, the only active cooperative in the ARC, limits its service to micro lending
due to insufficient funds to implement economic activities and other projects.
However, its leaders/officers continuously seek the assistance of DAR, LGU,
Provincial Government, and other agencies to implement their projects. In line with
this, the officers have already submitted project proposals for the following projects:
enterprise development (capital for palay trading and trucking); income-generating
projects (swine/carabao dispersal, duck raising and egg production); and pre-andpost harvest facilities (shallow tube well, thresher and mechanical dryer).
3. Problems and Issues of the Cooperatives
The main problem of the VARB is the inadequacy of funds to implement their
projects, thus it limits its service to its members, particularly in the area of micro
lending. Other problems cited are the lack of capability training for the leaders,
delayed payment of loans by the members, no permanent office, and lack of
financial support and assistance from other agencies.
As regards the four non-functional cooperatives in ALBAPA ARC, the common
problem cited which led to the cessation of the cooperatives activities was the nonrepayment of their production and other loans obtained by their members which
resulted in the cooperatives non-payment of their loans from different financial
institutions. Other factors that led to the non-functionality of these cooperatives are:
mismanagement of the cooperatives by their officers/leaders; lack of regular
monitoring of the cooperatives projects; lack of management and capability training
11
for leaders and officers; and lack of interest of leaders and members to attend
meetings.
Notably, the four non-functional cooperatives in ALBAPA ARC have been
continuously subjected to ALDA despite their non-functional status. The
cooperatives officers and even DAR field offices had sought the dissolution of the
cooperatives but they were unable to meet the conditions and requirements set for
delisting of organizations in the ARCs. The CDA registration of one non-functional
cooperative was already cancelled in 2005 but this cooperative was not yet delisted
by the National Agrarian Reform Community Task Force because of the several
requirements for delisting which were not met. One of the requirements for the
delisting of organization which these non-functional cooperatives cannot comply
with is the payment of their financial obligations to their government creditors.
12
funding of which came from the CDF of a former Senator. Likewise, through the
Office of the Provincial Agriculturist (OPA), the LGU also provided shallow tube wells
(STWs) and a small water impounding dam to supplement the irrigation needs of the
farmers. According to the MPDO of Valladolid, continuous concreting and
maintenance of the barangay, municipal
and provincial roads are being
implemented by the LGU as part of its regular activities.
Currently, the NIA is implementing the rehabilitation of the Bago River Irrigation
System which also covers the municipality of Valladolid. This project, amounting to
PhP1.8 billion, is funded by the Japan Bank for International Cooperation (JBIC).
According to the key informant f r o m t h e NIA, the farmers are experiencing
insufficient supply of irrigation water because of the ongoing rehabilitation of the
irrigation system.
As part of its regular activities, the LGU though the DA, provides training programs
o n f a r m ing technology, integrated pest management and livelihood projects.
Farmers are also trained to adopt organic farming. DA also assists the farmers on
the application of proper farming technology because in every barangay there is an
extension worker or technologist assigned. It also provides subsidized seeds under
the 50-50 Scheme Program to the farmers of Valladolid. However, according to the
key informant (Municipal Agriculturist), only 10 percent of the farmers in Valladolid
benefited from this project due to lack of funds allocated for the project. Likewise,
the DA also undertakes animal dispersal projects (swine and carabao) in different
barangays of the municipality. The Office of the Provincial Agriculturist also
conducts a farmers field school once a year, focused on the adoption of appropriate
farming technology to increase farmers production and income.
The support interventions provided in the ALBAPA ARC b y t h e municipal and
provincial LGUs through the DOH, DSWD and DECS are part of their regular
functions and services to the community. Infrastructure projects are part of the
Barangay and LGUs development plan. The implementation of these projects
depend on the funds available. Prior to the launching of the ARC, basic social
services already existed in the community. Currently, most (80%) of the households
have access to Level I and II potable water, while almost 100 percent of the
household have access to electricity. There are two elementary schools within the
A R C . The provision of these basic social services also depends on the financial
capacity of the LGU and provincial government.
With regard to health services, the LGU through DOH, provides medical assistance
through the health centers located in the barangay. The following services are
provided by the midwife and barangay health workers who manage the health
centers: free medicine, child and maternal health care, immunization/vaccine, and
pre and post-natal check up. Generally, the services provided and implemented by
these agencies are focused on the whole community. According to the Rural Health
Physician, the budget allocated by the LGU for the provision of medical services is
13
PhP4.9 million per year for the whole Municipality of Valladolid. Additional medicines
and vaccines are requested at the DOH National Office.
14
According to the FGD participants, the ARBs farm productivity and household
income have improved due to seminars/training programs attended and adoption of
farming technology i.e., through the farmers field school of the Office of the
Provincial Agriculturist conducted once a year, and additional income derived from
swine and livestock production. Although there is an improvement in the household
income of the ARBs, the results of the FGDs with the ARBs and some cooperative
leaders and barangay officials show that majority of the ARBs do not have the
capacity to finance their own farm operations, hence most of them (80%) are
dependent on local financiers or private rice millers for production loans at an
interest rate of 10 percent per month. Loans obtained from the financiers are paid
in kind at a price dictated by them. Before the start of land preparation, they usually
obtain loans from these financiers to finance their farm operations. When
harvesting comes, these financiers automatically get an equivalent amount of their
produce as payment for their loans.
As regards employment in the ARC, the FGD participants (composed of ARBs,
cooperative leaders and barangay officials) generally perceive that there is not much
employment opportunities within the ARC. The ARBs still rely on their farm as their
main source of income while their children are working outside the barangay and a
few work as overseas Filipino workers (OFW). On the other hand, they unanimously
claim that there is an improvement in terms of access to health services, education,
source of power supply, and source of potable water as these are regularly funded
by the LGU. The FGD participants also observe an increase in the number of public
transportation plying the ARC because of the improvement in the capacity to
purchase by some residents who have children working abroad.
Overall, majority of the FGD participants in ALBAPA ARC cited the improvement in
farm-to-market roads through the funding support provided by the DAR and LGU.
On the other hand, one of the Barangay officials who attended the FGD complained
that his barangay, which is also covered by the ARC, did not receive any support
interventions in terms of road improvement from the DAR.
15
The DAR key informants cited the following weaknesses in the conduct of the ALDA:
1) the allotted time for the conduct of ALDA is not enough to completely gather all
the required data and information; and 2 ) t he inactive or non-functional
organizations are still included in the conduct of ALDA.
To further improve the conduct of ALDA, the DAR key informants suggested the
following: increase the period allotted for the conduct of ALDA per ARC to capture all
the required data and information from the target participants; inactive or nonfunctional organizations should not be subjected to ALDA so that these will not pull
down the overall ALDA rating; and download the STATISTICA program to the
DARPO to facilitate the data processing and analysis of ALDA results.
H. Summary of Findings
1.
The KRAs that contributed to the regressed ALDA ratings in 2007 are FPI,
ECOPISS and OM. Specifically, the ARBs low farm production, the limited
access of the ARBs to irrigation system and credit services negatively affected
the ECOPISS and FPI ratings which contributed to the regressed level of
development of ALBAPA ARC in 2007. From 2001 to 2007, OM has continuously
affected the levels of development in ALBAPA ARC because of the continuous
inclusion in the ALDA of the four cooperatives/organizations despite their being
non-functional for about six to 10 years. GAD has also negatively affected the
development of ALBAPA ARC due to the low ratings obtained on specific
indicators such as women ARBs, women membership in organization, and
women holding key positions in the organization.
2.
3.
One of the stringent requirements for the delisting of organizations which the
non-functional cooperatives cannot comply with is the payment of their
outstanding loans with the government creditors. Considering the non-functional
status of these cooperatives, the settling of their financial obligations is remote
hence, the delisting of non-functional cooperatives will tend to be a perennial
problem in the conduct of ALDA.
4.
16
5.
The foremost reason which led to the non-functionality of the cooperatives was
the failure of members to pay their production loans. They attributed the nonpayment of loans to their low farm and household income. Because of the nonfunctional status of the cooperatives, the credit needs of the ARB-members were
not addressed.
6.
DAR organized a cooperative for the purpose of replacing and consolidating the
membership of non-functional cooperatives in three barangays covered by the
ARC to enable the ARBs to have access to support interventions through a
cooperative. However, this cooperative does not exclusively cater to the needs
of the ARBs in the ARC as its membership is open to all sectors in all the
barangays in the municipality. Only 14.4 percent of the total ARBs in ALBAPA
ARC are members of the cooperative. Moreover, the progress of development
of this cooperative is very slow because of limited financial capability to
implement their projects.
7.
A non-functional cooperative in one sample ARC used the EPs of eight ARB
members as collateral to avail of working capital loans from LBP that resulted to
the foreclosure of these EPs. Despite the foreclosure by the LBP of the lands
awarded to eight ARBs, no physical takeover of the awarded lands has yet been
made by the LBP. Thus, the ARBs continue to cultivate these foreclosed lands.
Concomitantly, these ARBs have lost their tenurial rights over their lands
because they are no longer in possession of their EPs.
8.
9.
The LGUs and other government agencies have implemented their programs
and projects not as part of their being ARCs but based on their own respective
development plans and programs and the availability of funds. They perform
their regular functions, not focusing on any particular sector or area regardless
of whether or not they are part of the ARC.
10. The support interventions provided in ALBAPA ARC by the LGU, provincial
government and other line agencies are part of their regular functions and
services to the community.
11. Based on the information provided by the FGD participants, the ARBs farm
productivity and household income have improved due to seminars and training
programs attended on farming technologies and the additional income derived
from swine and livestock production. Likewise, secondary data shows that the
average household income of the ARB households in 2007 has exceeded the
PhP60,000 target average household income for the ARB households in the ARC
and the national poverty threshold (NPT) of PhP70,165. However, majority of
the ARBs perceive that they still have no capacity to finance their own farm
DAR-PSRS, January 2009
17
18