The Agricultural Guarantee Fund Pool (AGFP) is a Department of Agriculture-led program with Land Bank of the Philippines as it's Institutional Program Manager. AGFP was established by virtue of Administrative Order No. 225-A issued by the President on May 26, 2008. AO 225-A stipulates, among others, for the Government Financial Institutions (GFIs) and Government-Owned and -Controlled Corporations (GOCCs) to allocate and contribute five percent (5%) of their 2007 surplus for projects in palay and food production, and as contribution to the AGFP.
The program encourages Private Financial Institutions (PFIs) and other credit conduits to expand their outreach to small-scale cultivators by providing guarantee coverage to unsecured loans extended by the PFIs and other credit conduits to farmer borrowers engaged in palay and/or other food production projects/activities.
We shall implement a responsive and effective guarantee system to mitigate the risks of agricultural lending and promote financial inclusion of small farmers and fisherfolk.
By 2020, AGFP will be the GOCC providing a reliable and sustainable guarantee system to encourage PLIs towards the financial inclusion of small farmers and fisher folk.