2008-09-05 08:57:57 - MANILA. Lawmakers bat for the lifting of agrarian reform law restrictions

Four lawmakers are pushing for the immediate passage of the legislative measure that seeks to allow farmer-beneficiaries to use lands awarded to them under the Comprehensive Agrarian Reform Law (CARL) as collateral for banks and other financial institutions.

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Rep. Diosdado Macapagal Arroyo (1st district, Camarines Sur), vice chairman of the House Committee on Agriculture

and Food, said the approval of the bill 'is a step towards achieving genuine land reform.'

In filing the bill along with Reps. Ferdinand Martin Romualdez (1st district, Leyte), Arnulfo Go (2nd district, Sultan Kudarat) and Aurelio Gonzales Jr. (3rd district, Pampanga), Arroyo said the country's experience on the implementation of the agrarian reform law has shown that insufficient funding does not fully secure farmers' livelihood and productivity.

"Indeed, many of them have found it difficult, if not, nearly impossible to maximize their shares due to deficient funding and the unavailability of credit," he said.

The Camarines Sur solon said the government has tried to address the problem by making credit more accessible through micro financing and other schemes.

"However," he said, "it should be noted that credit extended to farmer-beneficiaries under these programs are short-term and limited and thus, unable to sustain the farm workers' pressing credit requirements."

He said that if the government truly wants to assist farm workers obtain useful credit, it should undertake steps to strengthen their capability to avail of long-term and commercial loans from banking and other financial institutions.

House Bill 2707 seeks to amend Section 27 and 71 of Republic Act 6675 by lifting the restriction on the rights of farmer-beneficiaries to mortgage the lands awarded to them and allowing them to submit the certificate of land ownership as sufficient collateral for bank loans.

Under the present CARP law, farm workers are prohibited from using the lands awarded to them as collateral for any loan transaction.

"This prohibition in effect impairs their right to avail of credit from different sources and therefore limits their options," he said.

He said lifting the restrictions in the Comprehensive Agrarian Reform Law would not only be a welcome reprieve to the farmers but also enhance their chances of gaining credit and equip them with the necessary tools to improve their living conditions.