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CORN DEVELOPMENT FUND CDF Accomplishments and Project Updates

For the Calendar Year 2016

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Developmental projects funded by the Corn Development Fund are being implemented continuously, geared toward the development of the corn industry. For 2016, the accomplishments/updates are as follows:

PROJECT UNDERTAKINGS

1. Mobile Soil Test Clinic to Enhance Farm Productivity (Mobile STK Project)

The project aims to provide soil testing services to marginal corn farmers especially in far-flung areas to help them increase production through precise fertilization. This would make corn farming profitable thru reduced cost and enhanced farm productivity. Ten (10) corn farmers cooperatives benefitted with the grant of 10 Mobile STK including the training of technicians on the use of said test kit (STK), with the P3,545,960.00 grant from CDF. The motorcycle component of the project will facilitate the cooperative’s rendering of soil testing services as this can be provided even to remote farm areas.

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The following corn cooperative-applicants from Regions I, II, X, XII, were approved as beneficiaries of the Mobile Soil Test Kit based on the criteria set by the BSWM and the CDF Committee

Region I 1. Mamarlao Multi-Purpose Cooperative - San Carlos City, Pangasinan

Region II 1. Kabisig Savings and Agri-Development Cooperative (Kasa-Kabisig) - Jones, Isabela 2. Esperanza Multipurpose Cooperative - East Aurora, Isabela 3. Sto. Domingo Multipurpose Cooperative - Baggao, Cagayan 4. Masisit-Dacal Livelihood Cooperative - Masisit, Sanchez Mira, Cagayan Region X 1. Extension Farmers Multipurpose Cooperative - Wao, Lanao Del Sur. 2. Salvacion Multipurpose Cooperative - Kadingilan, Bukidnon. 3. Kauyagan Savers Multipurpose Cooperative - Impasug-ong, Bukidnon. Region XII 1. Alamada Multipurpose Cooperative - Alamada, North Cotabato. 2. Lucky Modern Farmers Multipurpose Cooperative - Bagumbayan, Sultan Kudarat.

2. Modernization of Grains Moisture Content Determination at the Farm Level (Moisture Meter

Project)

The project aims to modernize and improve the farmers’ system of grains moisture content determination for more efficient marketing and storage of their produce. Fifty (50) units of digital type moisture meter were procured by the NFA Central Office Bids and Awards Committee with allocated budget of P4,350,000.00 for the procurement of the moisture meters and for the required training on the operation and maintenance of the equipment and other administrative expenses.

Digital Multi-grain Moisture Meters

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Thirty Three (33) moisture meters out of the 50 units earlier approved for grant allocation were already distributed/allocated to eligible CDF-approved corn farmers organization (FOs)/cooperatives located in the corn producing provinces of Regions I, II, X, and XII, based on the criteria set by NFA/CDF.

Region I Recipient 1. Burgos Sta. Maria Irrigators Multi-Purpose Cooperative - Sta. Maria, Ilocos Sur 2. Nasa Lukag Womens Multi-Purpose Cooperative – Solsona, Ilocos Norte 3. Balatong Multi-Purpose Cooperative – Laoag City, Ilocos Norte 4. Tambidao Multi-Purpose Cooperative – Bacarra, Ilocos Norte 5. San Pedro Apartado Multi-Purpose Cooperative – Alcala, Pangasinan 6. Mamarlao Multi-Purpose Cooperative – San Carlos City, Pangasinan 7. Symphatia Marketing Cooperative – San Carlos City, Pangasinan 8. Dorongan Punta Woman and Farmers Multi-Purpose Cooperative – Mangatarem, Pang.

Region II Recipient

1. Kabisig Savings and Agri-Development Cooperative – Jones, Isabela 2. Villa Luna Multi-Purpose Cooperative – Cauayan City, Isabela 3. Minanga Rice and Corn Producers – Naguilian, Isabela 4. Esperanza Multi-Purpose Cooperative - Aurora, Isabela 5. Sto. Domingo Multi-Purpose Cooperative – Centro Baggao, Cagayan 6. Buliwao Multi-Purpose Cooperative – Quezon, Nueva Vizcaya 7. Masisit-Dacal Livelihood Cooperative – Sanchez Mira, Cagayan

Region X Recipient

1. Misamis Farmers Multi-Purpose Cooperative – Aguada, Ozamis City 2. Salvacion Multi-Purpose Cooperative – Kadingilan, Bukidnon 3. Extension Farmers Multi-Purpose Cooperative – Wao, Lanao Del Sur 4. Bliss Lingaon Credit Cooperative – Manolo Fortich, Bukidnon 5. First Agrarian Reform Multi-Purpose Cooperative – Sumilao, Bukidnon 6. CPAR Farmer Partners Association – Cabanglasan, Bukidnon 7. Kauyagan Savers Multi-Purpose Cooperative – Impasug-Ong, Bukidnon

Region XII Recipient

1. Christian Evangelical Fellowship Farmers Asso. of Sultan Kudarat – Colombio, Sultan Kudarat 2. Central Tayugo Multi-Purpose Cooperative Inc. – Isulan, Sultan Kudarat 3. Notre Dame of Salaman College Farmers MPC – Lebak, Sultan Kudarat 4. Lebak Sustainable Organic Agriculture MPC (LESOA) MPC – Lebak, Sultan Kudarat 5. Lucky Modern Farmers MPC – Bagumbayan, Sultan Kudarat 6. Alamada MPC – Alamada, North Cotabato 7. Muslim Lumad Christian Marketing Cooperative – Pigcawayan, North Cotabato 8. Fareast Hybrid Cooperative – Koronadal City, South Cotabato 9. Topland Farmers Cooperative – Koronadal City, South Cotabato

10. Rang-ay Farmers MPC – Banga, South Cotabato 11. San Jose MPC – Banga, South Cotabato

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The first awardee in the MOA Signing and turn-over ceremony of the Moisture Meter and Mobile Soil Test Clinic Projects of the eight (8) corn farmer-cooperatives of Region I on December 6, 2016 at NFA Regional Office in San Juan, La Union.

3. Training on the Operation, Maintenance and Calibration/Verification of Moisture Meter

The Regional Calibrators of NFA Regions I, II, X and XII were trained on the operation, maintenance and calibration/verification of the moisture meter on October 7-9, 2016 in NFA Cagayan de Oro City. They, in turn, train the technicians (designated by the concerned cooperatives) on how to operate and maintain the moisture meter awarded to the cooperative. As stipulated in the MOA of NFA/CDF with the cooperative, the moisture meters given to them, will be subject to regular calibration by the concerned NFA Calibrators.

Awarding for the grant of Moisture Meter to the corn cooperative-beneficiaries of Region I

Awarding of the Mobile STK Project to Mamarlao MPC Pangasinan (Region I)

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4. Conduct of Training of Trainers (TOT) on Corn Post Production Technology, Entrepreneurial Development, Corn Development Fund and Skills Development

This is a specialized training which aims to support and further improve the level of knowledge, attitude and/or skills (KAS) of the participants and enable them to gain additional knowledge in corn post production technology, marketing and entrepreneurial development. The CDF completed the conduct of the TOT in four (4) batches with allocated budget of P476,300.00. The training was highlighted by skills development topics and micro-teaching demonstrations wherein the capability of the participants in technology transfer and other learning activities were enhanced.

Class Picture of the Corn TOT – Batch 1 NFA General Santos City Training Center

December 9-11, 2015

Class Picture of the Corn TOT - Batch 2 NFA Baguio City Training Center

January 26-28, 2016

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5. AgrIcultural Commodity Exchange System-Enhanced Electronic Trading System (ACES-EETS) For

Corn

NFA is working on the conceptualization and implementation of the Enhanced Electronic Trading System (EETS) for corn, where a matching mechanism between buyers and sellers is provided on-line on real-time.

There is a need to introduce improvements to provide a more suitable and responsive system in the corn industry. This prompted the on-going formulation of a Terms of Reference, in coordination with concerned NFA departments and stakeholders for the acquisition of software and hardware components.

Class Picture of the Corn TOT - Batch 3 NFA Iloilo Training Center

February 16-18, 2016

Class Picture of the Corn TOT – Batch 4 NFA Baguio City Training Center,

March 2-4, 2016

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Updates/Monitoring of Earlier Implemented/Completed CDF Projects

1. NFA Wao Corn Center Project, NFA Bukidnon (P5 Million Loan) The Wao Corn Center has been serving around 40 corn farmers in Bukidnon and Wao who

repeatedly avail of its shelling/drying services. In 2016, the Corn Center processed around 1,897

MT of corn on cobs with resulting dried corn grain output of 1,275 MT or a recovery of 67%. The

moisture content of the processed corn (input) ranged from 21-28%. A gross revenue of

P821,993.00 was generated by NFA Bukidnon with the operation of the Wao Corn Center during

the year.

2. NFA Alfonso Lista Corn Center Project, NFA Ifugao (P5 Million Loan)

The Corn Center remains available to Farmers Organizations interested to avail of custom drying services. Based on its 2016 operation record, the center dried only 144 bags of palay during the wet cropping season. This is due to the high ex-farm price of corn during the year.

Top of Corn-on-Cob Dryer Corn-on-Cob Dryer and Conveyor

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3. NFA NPGC Corn Center Project, NFA Isabela (P10 Million Loan)

The NPGC corn center which is being used in drying NFA stocks, remains open to Farmers Organizations interested to avail of custom processing services. For the year 2016, the Center processed a total input of 3,110 bags from third parties and NFA palay stocks.

4. Sultan Kudarat Corn Center Project (P10 Million Loan)

The Design and Build Committee (DBC) for Isulan Corn Center Project earlier created in accordance with the provisions of Section 6, Annex G of the Implementing Rules and Regulations of RA 9184, to NFA Region XII ( implementing region) has provided to NFA Region XII, as implementing region, the necessary documents (Concept Design, Terms of Reference, Result of Geotechnical Investigation on the project site, GANTT Chart and Time Line) to facilitate the implementation of the Isulan Corn Center project (please see attached Project Brief).

Like the other NFA Corn Center projects, it is designed to adopt a two-stage drying process. The Corn Center consists of the following components to be housed in a warehouse that would be put up as part of this project.

1. Corn-on-cob receiving hopper 6. Centralized control panel 2. 200 MT corn-on cob (COC) drying bin 7. Mechanical conveying system 3. Corn Sheller 8. Dust control system 4. Holding/Bagging bin 9. Corn cob storage 5. Biomass-fed Drying System

5. Masisit-Dacal Livelihood Cooperative, NFA Cagayan (P10 Million Loan)

On July 22, 2015, the CDF formally turned over to MASCOOP the facilities covered by the “Integrated Corn Mechanization and Trading Center Project” of the cooperative after having completed the payment of its loan from CDF amounting to P10 million loan which they used for

Corn on Cob Dryer with blower and reversible hot air ducting

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the construction of a warehouse and purchase of two tractors and its accessories including trailing harrow, pneumatic corn planter, dumping trailers, mechanical dryer. With the establishment of the integrated farm mechanization service and trading center, the cooperative is able to provide custom services for mechanized land preparation, planting, fertilizer application, drying, and other farm services to the farmers in the area.

Their ownership of two (2) tractors and other agricultural machineries and equipment has been a big relief to the members of the cooperative and to non-members as well, since they used to avail of tractor services from as far as Isabela which is about 200 kilometers from their farm lots.

Apparently, with their CDF-funded project, the MASCOOP farmers gained additional income due to increased farm productivity, reduced farm losses and better corn quality. They are empowered as they no longer live at the mercy of unscrupulous traders but now have control over their own resources. With its remarkable accomplishment, the cooperative was able to expand its operations to other areas.

One of the successful and decorated cooperative in the country, the MASCOOP celebrated its silver anniversary on March 2011 sporting the theme “Stability and Viability Tomorrow, a Commitment and Responsibility Today”. Their success, is a result of several values e.g. dedication, commitment, motivation, discipline and sense of belongingness among members, notwithstanding the enterprising vision of the Board of Directors which lay the policy guidelines for the officers to implement.

Warehouse Tractors

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6. Christian Multi-Purpose Cooperative of Northern Iloilo (P3.465 Million Loan)

The Grains Service and Marketing Center Project of Christian MPC of Northern Iloilo (consisting of warehouse and drying pavement) was turned over to the cooperative on March 9, 2016. The cooperative expressed its gratitude to the NFA/CDF for the trust and the opportunity given to the cooperative to help uplift the lives of the corn farmers in Sara, Iloilo.

The NFA’s Industry Services Department (ISD) is conducting an impact evaluation on the cooperative with an approved budget of One Hundred Forty Thousand Six Hundred Pesos (P140,600.00). The activity is in accordance with SOP-TS-ES22 which states that “after the termination of the project, ISD shall undertake impact evaluation to study and determine the effects and benefits of the CDF project on the socio-economic status of the beneficiaries as well as the community”.

Mascoop Training Center and Resort Mascoop Warehouse and Drying Center

CDF Committee with Mascoop BOD Deputy Administrator Ludovico J. Jarina & Admin. Renan B. Dalisay handling over the release papers of the project to Dr. Pepito George Sacramed, Chairperson MDLC during the Turn-Over Ceremony

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7. Biba-Diwa Multi-Purpose Cooperative, Inc. (BDMPCI), Malasiqui, Pangasinan (P8.5 Million)

BDMPCI is the first availee of the CDF. It went through difficulties for years, making it unable to repay its loan. Concerted efforts were undertaken in terms of technical assistance and NFA Support Programs to help the cooperative recover and rebuild its business. This is a gesture of maintaining goodwill and camaraderie between the NFA-CDF and the cooperative. However, the CDF was constrained to file a case against the cooperative in order to intensify collection efforts to make the fund available to other qualified beneficiaries. The case was filed by NFA at RTC Quezon City Branch 97. It involves the collection of sum of money docketed as Civil Case No. R-QZN-15-04084-CV.

CDF Committee Members and CDF-SG handed over the release papers of the project to Mr. Joseph Y. Aying and Mr. Isalio M. Jalandoni of CMPCNI

Drying Pavement Warehouse

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Based on the result of the court proceedings conducted, the court has favorably granted NFA’s claim, rendering judgment as follows: 1. ORDERING defendant to PAY the NFA the amount of

P4,336,859.75 as actual damages plus 2% interest thereon from the date of filing until fully paid. The case was filed on April 2015;

2. ORDERING defendant to PAY the NFA the amount of P100,000.00 as and by way of attorney’s fees;

3. ORDERING defendant to PAY the NFA exemplary damages in the amount of P100,000.00; 4. ORDERING defendant to PAY the costs of suit, (NFA was initially assessed by RTC to pay filing

fee of P100,000.00 but was only required to pay the sheriff fee of P1,000.00 after NFA claimed that it should be exempted from payment of filing fees).

8. Integrated Corn Feedstock Service Center (ICFC) North Cotabato Free Farmer’s Cooperative

(NCFFC) (P9.974 Million Loan)

The Provincial Support Group (PSG) is currently preparing the necessary documents for the sale/auction of the equipment (tractors and mechanical dryers) surrendered by NCFFC, having failed to comply with its payment obligation to CDF, due to the financial shortfall that beset the cooperative. The proceeds from the auction/sale shall be deducted from the outstanding CDF loan balance of NCFFC. The remaining balance of the loan is payable on a prescribed period through a Supplemental Loan Agreement. CDF has been trying its best to be attuned to the current situation of its beneficiaries and to balance the interest of both the cooperative and the government.

Warehouse Tractors

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The PSG has conducted three (3) public auctions but failed to dispose of the aforementioned equipment, since there are no takers at the set minimum bid price of P1,517,000 and P1,323,000 for the 2 tractors.

The CDF-SG endorsed for the approval of the CDF Committee, the recommendation of the NFA

North Cotabato-Provincial Support Group to adopt the COA appraisal of P609,768.88 as the

minimum bid price for the two units tractor, to obtain potential takers of the equipment.

9. Post-Harvest Processing and Trading Center for Corn (PHPTC) of Alamada Multi-Purpose

Cooperative (AMPC) (P9.5 Million Loan)

The project was implemented under Contractual Joint Venture Agreement with the National Agribusiness Corporation (NABCOR). Due to the abolition of NABCOR: 11 out of the 19 Post Harvest Processing and Trading Centers (PHPTCs) located nationwide were included in the “Grains Central Project” under the Public Private Partnership (PPP) program of the government which included the AMPC PHPTC. The warehouse component of AMPC-PHPTC Project was sold in the amount of P8 M to Biotech Farms Inc. as the winning bidder on June 8, 2015. On April 29, 2015, DA paid the amount of P2,145,154.11 to NFA-CDF, to complete payment of the loan of AMPC (balance from the P9.5 loan plus interest), in consideration of the sale of the PHPTC facilities to Biotech Farms, Inc.. NFA released the Real Estate Mortgage (REM) of AMPC on June 8, 2015 in favor of Biotech Farms Inc.. The Biotech Farms, Inc. in its private capacity, intends to continue to operate the corn processing and trading center catering to the post-harvest facility needs of the corn farmer cooperative/s in the area.

Tractors Biomass Grain Dryers with Shed

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Advocacy Project

1. Participation in the 12th Philippine National Corn Congress

As part of CDF’s advocacy, the CDF co-sponsored the 12th Philippine National Corn Congress at The Farm @ Carpenter’s Hills in Koronadal, South Cotabato on November 16-18, s with the theme “Sulong Maisan: Sapat na Pagkain ng Bayan” which aims to strengthen the on farming community as well as the country’s local corn industry. The event served as a venue for all the industry players to come together and forge stronger links for the advancement of the corn sector. The said assembly was a unified effort of the Philippine Maize Federation Inc. (Philmaize) and the Department of Agriculture (DA) through DA-RFU Region 12 and ATI Region 12. Around 1,600 corn farmers, LGUs and from private sector groups attended and participated the event. There were booths exhibits, technical sessions, field demonstrations as well as the awarding of the National Corn Quality Awards to selected provinces, municipalities and individuals. The CDF shared Three Hundred Thousand Pesos (P300,000.00) in support to the Corn Congress, subject for reimbursement to Philmaize. The request for reimbursement is already in progress.

PHPTC Warehouse Corn Processing Facilities

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CDF Governance and Transparency Efforts

1. COA Observations The CDF has been providing updates to the Commission on Audit (COA) on the status of projects which were highlighted in their Audit Observations.

2. Amendment to SOP TSES-22 The CDF approved the proposed initial amendments/addendum to SOP-TSES-22 on the Management and Utilization of Corn Development Fund (CDF) based on the following considerations:

Per Audit Observation Memorandum (AOM) conducted by NFA’s COA, it was recommended that CDF shall revisit the provisions in SOP TS-ES22 and to strictly implement the provisions of the SOP specifically in the terms and conditions of the Loan Agreement by NFA and debtor beneficiaries particularly on delayed/non-payment of loans on due dates and ensure that the procedures as well as the documentary reports provided in COA Circular No. 2012-001 and other existing laws, regulations, rules and regulations as applied with by the grantees;

Per OGCC opinion of April 6, 2015, CDF is covered by COA Circular No. 2012-001 and other circulars regarding the release of fund to NGOs/POs, and is supplemented by the CDF guidelines. While COA’s jurisdiction remains over disbursement of all government funds, the specific provisions of the CDF guidelines will be the basis or audit in a suppletory basis, in case the general rules are not sufficient and where specific rules are necessitated.

3. Consultation with BIR

The CDF has been consulting with the Bureau of Internal Revenue (BIR) on the query as to matters pertaining to the Enhanced Electronic Trading System (EETS) for Corn Project. This will ensure smooth implementation affecting both the farmers as sellers and the corn users, as buyers, specifically on the exemption from the payment of 1% creditable withholding tax (CWT) as seller of corn users and feedmillers.

Financial Management

For 18 years now with total funds of P190 Million (from the 1998 corn importation net proceeds of P124.1 M and 2007 corn importation service fees of P65.9 M) , the CDF has approved and implemented the following projects:

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The total number of farmers and end-users benefitting from CDF is estimated at 300,000. As of

October 31, 2016, the CornDev Fund has a balance of P166,200,409.44 M.

New CDF Loan Applicants The following cooperative applicants are being evaluated by the CDF-SG: 1. Abasto Multi-Purpose Cooperative of Alcala, Pangasinan, requesting for a P10 Million Loan

assistance for the purchase/installation of truckscale, purchase of trucks and trading capital. 2. Calaoan ATB Multi-Purpose Cooperative of Conner, Apayao, requesting for a P3 Milllion loan

assistance for the construction of a warehouse and training grant for capability building. 3. First Farmers Marketing Cooperative of Isulan, Sultan Kudarat, requesting for a P10 Million loan

assistance for the purchase/installation of truckscale, 2 units 10-wheeler cargo trucks and corn production and trading.

CDF Projects Lined Up for 2017

1. Implementation of Sultan Kudarat Corn Processing Center Project

2. Sourcing of Hardware Provider and Software Developer for the ACES-EETS Project

3. Expansion of Moisture Meter Grant Project

4. Expansion of Mobile Soil Test Kit Grant Project

5. CDF Briefing/Advocacy Project

6. 13th Philippine National Corn Congress

7. CDF Planning Conference

Particulars Number Amount (P)

Corn Post Harvest Facility Projects (6 regions) 92 26,816,870.13

Approved Loan Projects which were implemented 8 61,439,263.43

Approved Grant Projects which were implemented 115 36,744,474.80

Approved Loan Projects still to be implemented 4 22,150,000.00

Foreign Travel/Study Tours Undertaken 4 5,435,803.80

Advocacy Projects 13 3,900,000.00

TOTAL 235 156,486,412.14