The Ministry of Finance has set aside P563 million in the 2024/2025 budget to rejuvenate and oversee the transition of the National Development Bank (NDB) into an Agricultural Bank.
Finance Minister Peggy Serame made this announcement during her presentation of the 2024/2025 Recurrent and Development Budget proposals in parliament on Tuesday. Serame emphasised the government’s dedication to enhancing food security and fostering agricultural progress. She revealed that part of the transformation agenda includes revamping the Agricultural Credit Guarantee Scheme (ACGS).
Originally established in 1986, the ACGS aimed to aid dry-land farmers in alleviating debt burdens resulting from crop failure due to natural disasters like droughts, floods, frost, and hailstorms. The scheme encompasses three primary operations: Seasonal inputs (such as fertilizers, seeds, and crop production fuel), Farm/Field development (including de-stumping, land clearing, and labor for arable dry-land operations), and Farm Machinery and Equipment.
The revamped ACGS will integrate the Temo Letlotlo Weather-Based Crop Insurance (WBCI), designed to mitigate crop loss risks. In line with this initiative, a service provider was appointed in November 2023, and a budget of P100.98 million has been allocated for procuring services and managing the reformed scheme.
For the current financial year, the Ministry of Agriculture has secured an approved budget of P3.5 billion, comprising a recurrent budget of P1.5 billion and a development budget of P2 billion. The key components of the development budget include allocations for the Ministry’s Headquarters, the Temo Letlotlo Programme, which commands the largest share amounting to P500 million, the LIMID Programme, and the completion of the ISPAAD Programme. Meanwhile, the Recurrent Budget covers Personnel Emoluments for Ministry Staff, Subventions for State-Owned Enterprises, and other operating expenses for various Ministry Departments.
