IMPACT EVALUATION OF POLICY-BASED CREDIT FOR AGRICULTURE ON AGRARIAN ...

211 Pages·2006·2.69 MB·English

IMPACT EVALUATION
OF POLICY-BASED
CREDIT FOR
AGRICULTURE ON
AGRARIAN REFORM –
The Case of the
Philippines
(Evaluation of RASCP)
FINAL REPORT
Submitted by:
University of the Philippines
Los Baños Foundation, Inc.
Funded by:
Japan Bank for International
Cooperation (JBIC)
October 31, 2005
TABLE OF CONTENTS

PAGE

Executive Summary i

The TOR i
The RASCP ii
Research Methodology iii
Overall Evaluation of RASCP iv

Relevance iv
Efficiency iv
Effectiveness v

a. Of Consulting Services v
b. Of Technical Assistance to Cooperatives v
c. Of Financial Assistance to Cooperatives vi
d. Of Financial Assistance to Farmers vi

Impact vii

Of RASCP-TA vii

a. On DAR and LBP vii
b. On DAR vii
c. On LBP vii
d. On Cooperatives vii

Of RASCP-FA vii

a. On ARC Cooperatives with FA & TA vii
b. On ARC Cooperatives with FA from
LBP Other Lending Schemes viii
c. On Household Income viii

On the Community viii

Sustainability ix
The Consulting Service x
The RASCP-TA xi
The RASCP-FA xiii
PAGE

Conclusion, Recommendation and Lessons
Learned xiv

Recommendation xv
Lessons Learned xv

a. On RASCP Implementation xv
b. On the Conduct of Research xvi

1.0 Introduction 1

1.1 The Land Reform Program 1
1.2 Objectives of the Study 2

2.0 The RASCP 4

2.1 Background 4
2.2 Objectives 4
2.3 Scope 4

2.3.1 The Loan Assistance (L/A PH 168) 5

2.3.1.1 Components 4
2.3.1.2 Program Implementation 8
2.3.1.3 Implementing Structure 8
2.3.1.4 Implementation Schedule 10

2.3.2 The TA Component 11

2.3.2.1 Objectives 11
2.3.2.2 Aspects of TA 12

2.4 Project Cost 13

3.0 Research Methodology 15

3.1 Conceptual Framework of Analysis 15

3.1.1 Overall Evaluation of RASCP 15

3.1.1.1 On Relevance of RASCP 15
3.1.1.2 On Effectiveness of RASCP 17
3.1.1.3 On Efficiency of RASCP 17
PAGE

3.1.1.4 On Impact of RASCP 21
3.1.1.5 Sustainability of RASCP 21

3.1.2 Detailed Evaluation 22

3.1.2.1 Evaluation of Consulting Services & TA 22

3.1.2.2.1 Effectiveness of Consulting
Services 22
3.1.2.2.2 Effectiveness of RASCP-TA 23

3.1.2.2 Evaluation of the Loan Portion 23

3.1.2.2.1 Effectiveness of Loan Portion 23
3.1.2.2.2 Efficiency of Loan Portion 23
3.1.2.2.3 Impact of Loan Portion 23

3.1.3 Lessons Learned/Recommendations 25

3.2 Analysis and Data 25

3.2.1 Method of Analysis and Samples 25

3.2.1.1 Descriptive Method 25
3.2.1.2 WAWPA 25
3.2.1.3 BAPA 26

3.2.2 Data Gathering 29

3.2.2.1 Over-all Evaluation of RASCP 29
3.2.2.2 Evaluation of Consulting Service & TA 29
3.2.2.3 Evaluation of Loan Portion 31
3.2.2.4 Impact of RASCP FA 32

3.2.3 The Site Survey 34
3.2.4 Focused Group Discussion (FGD) 34

3.3 Limitations of Method of Analysis 35

4.0 Overall Evaluation of RASCP 37

4.1 Relevance of RASCP 38

4.1.1 Poverty Alleviation 38
4.1.2 Agricultural Development 40
4.1.3 Rural Credit and Role of LBP 43
PAGE

4.1.4 Agrarian Reform 45

4.2 Efficiency of RASCP 49

4.2.1 Project Cost Allocation and Use 49
4.2.2 Implementing Period 49
4.2.3 Cost of Loan 49
4.2.4 Loan Releases 50
4.2.5 Repayment 51
4.2.6 Beneficiaries 51
4.2.7 Efficiency of Lending Scheme 52

4.3 Effectiveness of RASCP 54

4.3.1 Reasons for Non-Receipt of RASCP Loan 54

4.4. Impact of RASCP 55

4.4.1 On Cooperatives and Farmer-Members 56
4.4.2 On ARC Community 56

4.4.2.1 Tenure Characteristics 56

a. Tenurial status 56
b. Tenural instruments 57
c. Status of payment of amortizing 58

4.4.2.2 On Access To Support Services 59

a. Awareness of availability of support
services and basic social services 59

b. Availment of support services and
Basic social services 59

4.2.2.3 On Income Distribution and Poverty
Incidence 60

4.5 Sustainability of RASCP 60
PAGE

5.0 Evaluation of Consulting Services 67

5.1 The Provision of Consultancy Services 67
5.2 Accomplishment, Assessment, and Problems
Encountered 68

5.2.1 On Improvement of the Credit
Delivery and Monitoring Systems 68
5.2.2 On Improvement of the Cooperative
Strengthening Program 74
5.2.3 On Monitoring and Evaluation 78
5.2.4 On Formulation of Integrated Rural
Support Credit Scheme 79

5.3 Performance of Consultants 80

5.4 Effectiveness of Consulting Services 81

5.4.1 Development of Skills of LBP Personnel 81
5.4.2 Usefulness of the Training Attended 81
5.4.3 Cascading of Training 85
5.4.4 Speed of Screening Loan Application and
Loan Release 86
5.4.5 Cost of Extending Loan 87
5.4.6 Feedbacks from Lending Centers 87
5.4.7 The Pilot Cooperatives 88

6.0 Detailed Evaluation of Technical Assistance 89

6.1 General Objectives 89
6.2 Components and Accomplishments 89

6.2.1 Training 89
6.2.2 Cooperative Development Advisory Services (CADS) 95
6.2.3 Institutional Strengthening of DAR and LBP 95
6.2.4 Acquisition of Equipment 96

6.3 Effectiveness of RASCP-TA on ARC Cooperatives 96

6.3.1 Maturity Classification of Cooperative 96
6.3.2 Increase in Cooperative Membership 97
6.3.3 Cooperative Business/Livelihood Operations 97
6.3.4 Credit Accessing 98
6.3.5 Training Conducted by PPMOs 103
6.3.6 Establishment of Livelihood Demonstration Projects 104
PAGE

6.3.7 General Training Course on Grains Post-Harvest
Technology and Enterprise Development
(GPHTED) 104
6.3.8 Training Program on Enterprise Development and
Management for DAR Assisted Cooperatives
(TPEDM-DAC) 104
6.3.9 Bayan-Anihan Para sa Magsasakang Siyentista
(BAMas) 104
6.3.10 Institutional Development Strengthening of DAR
and LBP Implementors 105
6.3.11 Program Monitoring and Evaluation 106

6.4 Effectiveness of RASCP-TA 107

7.0 Detailed Evaluation of Financial Assistance 117

7.1 Loan Releases 117
7.2 Effectiveness of RASCP-FA on Cooperatives 122

7.2.1 On ARC Cooperatives With RASCP-FA & TA 122
7.2.2 On Agricultural Cooperatives With RASCP-FA Only 124
7.2.3 Comparison of ARC Cooperatives With RASCP-FA
And TA Against With RASCP-TA Only 124

7.3 Effectiveness of RASCP-FA on Farmers 128

7.3.1 On Farmers Under ARC Cooperatives With
RASCP-FA and TA 128
7.3.2 On Farmers Under Agricultural Cooperatives
With RASCP-FA Only 132
7.3.3 Comparison of Farmers in ARC Cooperatives
With RASCP-FA & TA Against Cooperatives
With RASCP-TA Only 133

7.4 Efficiency of RASCP-FA 134
7.5 Impact of RASCP-FA 136

7.5.1 On Cooperatives 136
7.5.2 On Farmers 137

8.0 Conclusion, Recommendation and Lessons Learned 142

8.1 Conclusion 142
8.2 Recommendations 142
8.3 Lessons Learned 143
LIST OF ANNEXES

Annex 1 Revised Cooperative Accreditation Criteria
Land Bank of the Philippines

Annex 2 8-Point Agenda of President Gloria M. Arroyo

Annex 3 The Pilot Cooperatives
LIST OF APPENDICES

Appendix Table 1. Distribution of farm parcels by tenurial status of respondents,
before and after RASCP, selected RASCP sites, Philippines.

Appendix Table 2. Tenurial instrument held by respondents, before and after
RASCP, selected RASCP sites, Philippines.

Appendix Table 3. Awareness on availability of basic social services and facilities,
selected sites, Philippines, 2004.

Appendix Table 4. Availment of basic social services and facilities, selected site,
Philippines, 2004.

Appendix Table 5. Distribution of households by income classification.

Appendix Table 6. Poverty incidence among households of respondents, selected
RASCP sites, Philippines, 2004.

Appendix Table 7. Average membership of pilot cooperatives, RASCP, Philippines,
2005.

Appendix Table 8. Number of trainings received by pilot cooperatives, RASCP,
Philippines, 2005.

Appendix Table 9. Capital structure of pilot cooperatives, RASCP, Philippines, 2005.

Appendix Table 10. CBU programs of the pilot cooperatives and the number of years
implemented, RASCP, Philippines, 2005.

Appendix Table 11. Savings mobilization program implemented by the pilot
cooperatives, RASCP, Philippines, 2005.

Appendix Table 12. Number and average amount of grants/donations/gifts and loans
received by the pilot cooperatives by year, RASCP, Philippines.

Appendix Table 13. Business undertaken by pilot cooperatives, RASCP, Philippines,
2005.

Appendix Table 14. Financial condition of pilot cooperatives by period, RASCP,
Philippines, 1996 to 2003 RASCP.

Appendix Table 15. Statement of operation by period, pilot cooperatives, 1996 to
2003, RASCP, Philippines.

Appendix Table 16. Postharvest facilities owned and managed by pilot cooperatives
by time of RASCP, Philippines, 2005.
Appendix Table 17. Maintenance of postharvest facilities of pilot cooperatives,
RASCP, Philippines, 2005.

Appendix Table 18 General Assembly meetings by time period of pilot cooperatives,
RASCP, Philippines, 2005.

Appendix Table 19. Profile of Board of Directors and hired staff of pilot cooperatives,
RASCP, Philippines, 2004.

Appendix Table 20. Board of Directors and Committee meeting by time period of
RASCP, Philippines, 2005.

Appendix Table 21. Books maintained by the pilot cooperatives, RASCP, Philippines,
2005.

Appendix Table 22 Presence/maintenance of other recording and accounting
system of pilot cooperatives, RASCP, Philippines, 2005.

Appendix Table 23. Frequency of reporting and auditing of pilot cooperatives,
RASCP, Philippines, 2005.

Appendix Table 24. Frequency of internal audit of pilot cooperatives, RASCP,
Philippines, 2005.

Appendix Table 25. Disciplinary measures enforced by the pilot cooperatives,
RASCP, Philippines, 2005.

Appendix Table 26. Institutional linkages and nature of relationship of pilot
cooperatives, RASCP, Philippines, 2005.