A large group of corn producers are asking the Department of Agriculture (DA) to allocate the proceeds of the P1-billion PL 480 2001 corn commodity loan from the US to fund projects identified by the GMA Corn Program. 

Philippine Maize Federation Inc. (PMFI) Roderico R. Bioco said redi-recting the money to bankroll projects under the GMA Corn Program will help corn farmers recover from the slump in corn prices last year which resulted with the arrival of about 209,000 metric tons (MT) of corn from the US. 

"The arrival of the corn under the PL 480 program in the first quarter of 2002 created a long-term debilitating effect on rural communities and hampered corn production because the importation coincided with the local harvest season," said Bioco, adding that domestic prices fell by more than P1 per kilo. 

Bioco said corn farmers in Malaybalay City, Bukidnon lost heavily when corn prices fell P6.40 per kilo from P7.50 to P8.50. It was the first time that dry season prices fell below wet season prices. 

Bioco said the same situation befell other corn-producing regions. Corn financiers or lenders were forced to cut financing corn farmers in their areas, and as a result, corn production in the second semester of 2002 dropped significantly. 

"Government needs to acknowledge these issues and resolve the situation. The 2001 PL480 corn importation created serious injury to the livelihood of these corn farmers. The money is already on the table, perhaps the money can be used by the corn farmers to heal their wounds," said Bioco. 

PMFI suggested that the government should infuse the 2001 PL480 corn proceeds into the DA’s credit arm, the Quedan Rural and Credit Guarantee Corp. (Quedancor) which can relend the money, or it could build grain terminals and grain centers to improve corn farmers’ postharvest facilities. 

The PL 480 farm aid program is granted yearly to the Philippines. It is a lending program in which the US provides loans to developing nations in the form of surplus farm produce. 

Beneficiary governments then monetize these products and use the proceeds to fund farm projects. 

The loan carries a concessional rate of one percent annually and is payable in 30 years with a grace period of five years. 

This year country will be getting $40 million in soft commodity loans this year under the US Public Law 480 program which is 100 percent higher than the original yearly allotment of $20 million and this also accounts for 25 percent of total program allocation for the year.