Starting this November 2022, the Cooperative Development Authority (CDA) will be implementing the activities under the Coconut Farmers and Industry Development Plan (CFIDP), in line with the Republic Act 11524 or the “Coconut Farmers and Industry Trust Fund Act”). This Act aims to consolidate the benefits due to coconut farmers, especially the poor and marginalized, under various statutes and to expedite the delivery of said benefits thereof to attain increased incomes for coconut farmers, alleviate poverty, and achieve social equality.
All agencies, including CDA, will collaborate for the successful and coordinated implementation of the programs/projects in accordance with the approved CFIDP, proper utilization of the allocations provided in RA 11524, and the submission of periodic accomplishment report of each implementing agency to the PCA Board.
RA 11524 stipulates that the CDA shall be responsible for organizing and empowerment of coconut farmer organizations and their cooperatives. The law provides that five (5%) of the annual budget allocation from the Trust Fund shall be utilized by the CDA for farmers’ cooperatives and LGUs for coconut farmers’ organizations. LGUs shall create local small farmers councils to provide mechanisms for consultation and participation.
For the 1st implementing year of the Plan, the Department of Budget and Management (DBM) already issued the Advice of NCA for the CDA in the amount of Two Hundred Fifty Million Pesos only (in figure: PhP 250,000,000.00) dated October 25, 2022.
As planned, the identification of specific programs or projects shall be consistent with and pursuant to the CFIDP wherein direct beneficiaries to these programs/projects are coconut farmers defined under Section 3 of RA 11524 and registered in the National Coconut Farmers Registry System (NCFRS).
The general objective of the Coconut Farmers Organization and Empowerment through Cooperatives program component is to organize strong and self-sufficient coconut farmers cooperatives operating viable agribusiness enterprise/s, providing tangible economic opportunities and benefits to its member-coconut farmers, and adhering to the principles of Cooperativism. The specific objectives of this program component are:
1. assist in increasing the productivity and income of coconut farmers cooperatives and its members through providing livelihood opportunities and integrate supply and value chain process in their business operation;
2. enhance the entrepreneurial skills, managerial expertise, and technical skills required for the efficient operation of their cooperatives;
3. to be a competent and responsive member of the cooperative and instill patriotism in every heart of the farmers to synergize in the mandate of the authority implying that their productivity to uplift the standards of their cooperative is mandated to sustain our overall integrity;
4. upgrade technical skills of coconut farmers on coconut production and processing;
5. encourage and assist coconut farmers groups/organizations to organize into cooperatives or join existing cooperatives; and
6. assist in marketing their produce through online market platforms and digital technologies.
Possible Interventions for qualified coconut farmer cooperatives and associations under the CFIDP of CDA
According to the approved CFIDP, the CDA shall have the various packages of intervention for existing coconut farmers’ cooperatives, a separate array for coconut farmers’ organizations and another set for autonomous individual coconut farmers.
For capability enhancement, the activities will entail the Cooperative Organizational training such as Cooperative Management and Governance, Fundamentals of Cooperatives, and Financial Management. Enterprise Development training consists of starting or improving the business operations and expanding the business from micro- to medium scale. Training on coconut production will involve the value chain of coconut, marketing strategies and feasibility study preparation.
Orientations will be given to unorganized farmers either to form their own organization or join an existing farmers’ organization or cooperative. For existing coconut farmers’ organizations and associations, social preparation will be undertaken through orientations on cooperatives, the conduct of pre-registration seminar and technical assistance on the preparation of registration requirement.
Other interventions pertain to support mechanisms, market matching, financial assistance, networking, establishment of processing plant cum training centers, project documentation and capability building for CDA personnel, among others. These interventions are intended to produce the desired outputs that will be continuously monitored by the implementing agencies to achieve the yearned outcomes. These outcomes entail cooperatives operating as viable agribusiness enterprises, farmers’ skills are enhanced, markets are established, common facilities are instituted and utilized as well as new products and strategies developed. In the long term, the program seeks to accomplish increased income for the small farmers, employment opportunities are generated and the coconut industry as well as the cooperatives become competitive in the local and international markets.
Qualified Beneficiaries (Sec. 2 of CDA MC No. 2022-29)
Beneficiaries of the program shall possess the following minimum qualifications:
- Duly registered cooperatives under RA 9520
- Accredited by PCA;
- Accredited by the CDA per Memorandum Circular No. 2022-20;
- With no unliquidated financial assistance with the CDA.
For other procedures and documents in line with the application as possible beneficiary of the program, please refer mainly to CDA MC No 2022-29 and CDA MC No.2022-20.
Purpose of the Fund Assistance (Sec. 3 of CDA MC No. 2022-29)
Once an NCFRS-registered beneficiary gets qualified based on CDA guidelines (referring to CDA MC No. 2022-29), the fund (referring to financial assistance/grant to coconut farmers’ cooperative in the implementation of the CFIDP) shall be utilized by the cooperative for any of the following purposes:
- Production of coconut and/or related products;
- Construction, restoration and/or repair of a cooperative’s office, business center, processing center or marketing center;
- Consumer inventories;
- Acquisition or replenishment of biological assets and inventory of agricultural produce;
- Purchase of equipment for productive purposes;
- Purchase of IT hardware and software;
- Start-up capital for newly registered cooperatives;
- Additional capital for relending purposes to its members;
- Additional capital for other business undertaking and logistical requirements; and
- 10. Other purposes as approved by the CDA Board.
Financial and other Assistance that may be availed through the CDA subject to Existing Rules and Regulations:
- Financial Assistance (per purpose provided above): P250,000 maximum
- Audit subsidy of P5,000.00 per cooperative
- 3. Registration subsidy of P20,000 per cooperative (newly registered only)
Based on Item 2.2. COA Circular No. 2012-001 – June 14, 2012, no portion of the fund granted shall be used for the following:
- Money market placement, time deposit, or other forms of investments;
- Cash advance of any official of the NGO/PO [here the cooperative], unless related to the implementation of the project;
- Payment of salaries, honoraria and any form of allowances of the personnel of the Government Office (GO) or the NGO/PO [here the cooperative] who are not connected with the project;
- Purchase of supplies, materials, equipment and motor vehicles of the GO; and
- 5. Acquisition of assets of the NGO/PO [here the cooperative], unless necessary for the prosecution of the project and specifically stipulated in the MOA.
You may download the briefer of the project below. For more information, please visit the CDA Philippines Facebook page, like and share the page to be updated on latest issuances, programs and activities of the CDA.
COA Circular No. 2012-001 – June 14, 2012
COA Circular No. 2012-003 – October 29, 2012
CDA MC 2022-29 | Guidelines on the Release of Financial Assistance/Grant to Coconut Farmer Cooperatives in the implementation of Coconut Farmers and Industry Development Plan (CFIDP)
CDA MC 2022-20 | Revised Guidelines on Accreditation of Cooperative Applying as Beneficiary of CDA-Administered Grants and Donations Involving Public Funds and Properties
Coconut Farmers and Industry Development Plan (CFIDP), on 6.2 COCONUT FARMERS ORGANIZATION AND EMPOWERMENT THROUGH COOPERATIVES, from page 87