The Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) is a specialized credit facility created to empower Filipino rice farmers through affordable and accessible financing. Established under the Rice Tariffication Law (Republic Act No. 11203) in 2019, the program is funded by tariff revenues collected from imported rice, with the goal of enhancing the productivity and competitiveness of local rice farmers amid growing market liberalization. Administered by the Department of Agriculture (DA) in partnership with government financial institutions like LANDBANK and DBP, ERCA-RCEF aims to support rice farmers and cooperatives by providing low-interest loans for the purchase of inputs, equipment, and other essential farm needs to help them thrive in the increasingly competitive agricultural landscape.
The ERCA-RCEF was designed to not only support farmers’ livelihoods, but It also helps the public see how rice tariff revenues are being reinvested to benefit the agricultural sector, ensuring food security and supporting rural development—issues that affect every Filipino. So, if you are a rice farmer, this program can provide low-interest loans with minimal collateral for you. In this guide, you’ll learn what ERCA-RCEF is, who can apply, eligibility criteria, loan purposes, how much you can borrow, interest rates, covered provinces, and how to get started.
Program Overview
Under the Rice Tariffication Law, the Rice Competitiveness Enhancement Fund (RCEF) was established to support Filipino rice farmers and boost productivity. Each year, ₱10 billion is allocated to RCEF for six years, and 10% (or ₱1 billion annually) is allotted to ERCA-RCEF. This ₱1 billion is split between LANDBANK and DBP, each managing ₱500 million to offer financial assistance to qualified rice farmers.
ERCA-RCEF focuses on increasing farmers’ access to credit, particularly those involved in palay (unmilled rice) production, by providing loans with a 2% annual interest rate and low collateral requirements.
Features and Benefits
Here’s what you can get from applying for the ERCA-RCEF program:
For Individual Rice Farmers
- Financing for farm inputs
- Includes seeds, fertilizers, pesticides, and labor costs.
- Loan for farm equipment acquisition
- Example: mechanical dryers and other post-harvest machines.
- Low interest rate of 2% per annum
- One of the lowest in the agriculture loan sector.
- Minimal collateral requirements
- Flexible security options based on the type of loan.
- Loanable amount of up to 90% of the project cost
- Eligibility even without prior borrowing experience
- As long as registered in the RSBSA and meets basic requirements.
For Cooperatives
- Working capital loans
- Financing for purchase of inputs and equipment
- Funds for setting up rice production, post-harvest, processing, and trading facilities
- Relending to member-farmers who are registered in RSBSA
- Rediscounting of member-farmers’ existing palay production loans
- Interest-free loans from LANDBANK/DBP (0% on-lending interest)
- Final pass-on rate to members not to exceed 6% per annum.
- Up to 90% financing based on project cost or loan value
- Flexible collateral options
- Including Real Estate Mortgage, chattel mortgage, or assignment of sub-loans.
General Program Benefits
- Access to government-subsidized financing support
- Nationwide coverage via LANDBANK and DBP
- Opportunities to improve rice production and post-production systems
- Availability of technical training for rice-related projects
- Open to both individuals and cooperatives engaged in rice farming
Other loan features are as follows:
Loanable Amount and Terms
- Individual Farmers: Can borrow up to 90% of the total project cost
- Cooperatives:
- Relending: Up to 90% of the project cost
- Rediscounting: Up to 90% of the face value or current outstanding loan balance
- Project Financing: Up to 90% of project cost
Interest Rates
- Direct Lending: 2% per annum
- On-lending (through cooperatives): 0% from DBP, but total pass-on rate to end-users must not exceed 6% per annum
Collateral Requirements
Collateral is flexible and depends on loan type and use:
- Production Loans: Crop insurance proceeds (e.g., from PCIC)
- Fixed Asset Acquisition: Chattel mortgage, equipment insurance
- Facilities: Real estate mortgage, project insurance
- Relending/Rediscounting: Assignment of sub-borrowers’ promissory notes and existing collateral, insurance proceeds
Who Can Apply for ERCA-RCEF?
This program’s benefit is only available to the following, provided that they meet the eligibility criteria set by the DA:
1. Individual Rice Farmers
To qualify, a farmer must:
- Be listed in the Registry System for Basic Sectors in Agriculture (RSBSA)
- Have no existing loans from other formal lenders for the same project
- Have no negative credit findings
- Complete technical training related to rice farming
2. Cooperatives
Cooperatives must:
- Be registered with the Cooperative Development Authority (CDA) or Securities and Exchange Commission (SEC)
- Be accredited by the Department of Agriculture (DA)
- Have no negative records against the organization or its board
- Maintain a Past Due Loan Ratio of 25% or less
- Show strong operational capacity and sound finances
- Submit a Certificate of Compliance from the CDA (if required)
- Complete technical training relevant to rice projects
3. Cooperative Members (for Relending/Rediscounting)
Individual cooperative members borrowing through their cooperative must:
- Be listed in the RSBSA
- Have no history of payment delays in the last 3 months
- Have a current loan with the cooperative
- Have completed relevant rice-related training
What Can the Loan Be Used For?
ERCA-RCEF funds are available for various production-related and post-harvest purposes.
For Individual Farmers:
- Purchasing inputs like seeds, fertilizers, and labor
- Acquiring farm machinery and equipment (e.g., mechanical dryers)
For Cooperatives:
- Working capital
- Buying inputs and equipment
- Building rice processing and post-harvest facilities
- Relending and rediscounting loans for small farmers listed in RSBSA
For Sub-Borrowers (via relending/rediscounting):
- Buying farm inputs and equipment
- Funding post-harvest and processing needs
Required Documents
Before proceeding with the application, you will need the following:
For Individual Farmers:
- Accomplished loan application form
- Valid government-issued ID or barangay certificate
- Sworn affidavit or certification of no existing loans for the same project
- For loans above ₱3 million or businesses operating over 3 years:
- Latest Income Tax Return (ITR)
- Recent financial statements
For Cooperatives:
- Completed application form
- DA accreditation certificate
- CDA registration
- Articles of Cooperation and By-Laws
- Bio-data and IDs of officers
- Board resolution allowing the cooperative to borrow
- Audited financial statements or interim reports (for startups)
- Business permit and consolidated farm plan, if applicable
How to Apply for ERCA-RCEF
To apply for this program, simply follow these steps:
Step 1. Check Eligibility
Confirm that you or your cooperative is registered in the RSBSA and meets all other qualifications.
Step 2. Visit Your Lending Institution:
Go to the nearest LANDBANK or DBP branch based on your province’s assignment.
Step 3. Prepare Documents
Gather and complete all the required paperwork.
Step 4. Submit Application
File your application and wait for processing and approval.
Step 5. Loan Release and Use
Once approved, use the loan for your qualified agricultural activities.
Where Is ERCA-RCEF Available?
The program is nationwide, but coverage is split between LANDBANK and DBP depending on provincial presence. For example:
- LANDBANK covers areas where DBP has no physical presence, including most provinces in Luzon, Visayas, and Mindanao (like Pampanga, Palawan, Bukidnon, and many more).
- DBP handles provinces such as Bulacan, Albay, Cebu, Iloilo, South Cotabato, and Davao City.
If you’re unsure which bank covers your area, visit the nearest LANDBANK or DBP branch, or check with your local Agriculture Office.
What If You’re Not Registered in RSBSA?
If you’re not yet in the RSBSA database, you can still apply for other loan programs from LANDBANK such as:
- Sikat Saka Program (for rice and corn farmers)
- AFFORD-ARBs (for Agrarian Reform Beneficiaries)
- Agricultural Competitiveness Enhancement Fund (ACEF)
But if you’re interested in ERCA-RCEF, you can register through your local Agriculture Office (city, municipal, or provincial). Forms are also available at any LANDBANK Lending Center.
Video: Balitang Landbank: ERCA-RCEF Program
The Expanded Rice Credit Assistance Under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) is a significant opportunity for rice farmers and cooperatives to improve their farming operations. With its affordable financing offered through LANDBANK and DBP, the program promotes better productivity, lower costs, and improved incomes for palay farmers. If you’re engaged in rice production and meet the qualifications, don’t miss out on learning more about low-interest agricultural loans like ERCA-RCEF, so make sure to watch this video today:
Contact Information
For further inquiries, you may reach out to:
Program Development and Management II
- (02) 8818-9511 local 2330 / 2329