Agritech firm aims to plug credit gap in rice farming

MANILA, Philippines —  Agritech startup Agrilever aims to bridge the credit gap in the rice sector by connecting farmers with financial institutions through the use of technology.

Agrilever said it serves as an intermediary that manages the relationship between banks or credit providers and rice farmers.

The firm added that it helps ensure that farmers can pay their loans by providing them with the technology, on-the-ground help and fertilizers that they need to have a more productive harvest.

“By bridging the gap between farmers and financial institutions, we are not only empowering them with better resources but also ensuring a more resilient and productive agricultural sector,” said Ruel Amparo, CEO of Agrilever.

Agrilever emphasized that every farmer deserves access to technological resources and farming essentials, such as fertilizers and financing, that can help them thrive, improve their livelihood and secure their family’s future.

“We hope to reach rice farmers nationwide and provide them with the financial tools, fertilizers and weather analytics they need to navigate climate challenges and boost their yields,” Amparo said.

“The more farmers we empower, the stronger our entire agricultural economy becomes,” he added.

Citing the World Bank, Agrilever noted that two out of three Filipino farmers are currently uninsured.

Worse, the country’s agriculture sector received only 2.6 percent of the total outstanding loans of banks in 2022, Agrilever added, despite farming contributing at least nine percent of the country’s gross domestic product.

At present, Agrilever said it partnered with banks and government-run institutions that provide loans to rice farmers, such as the Department of Agriculture-Agricultural Credit Policy Council and New Rural Bank of San Leonardo.

Last year, BPI Direct BanKo Inc., the financial inclusion and microfinance arm of the Bank of the Philippine Islands, partnered with Agrilever to launch the Agri Negosyo Loan Program.

The program aims to help farmers strengthen their agricultural practices and improve their livelihoods, according to Agrilever.

By connecting farmers to formal financing channels, they avoid being charged with a hefty monthly interest that goes up to 10 percent that informal lenders impose on them, Agrilever noted.

The startup launched its own app that provides farmers with crop management protocols and advanced weather intelligence, allowing them to mitigate the ill effects of extreme weather conditions.

The app also allows farmers to gain insights into seasonal growing protocols, which are tailored by agronomists to the farmers and their farm fields, Agrilever added. For example, farmers will receive an alert on when to apply fertilizers or perform the second harrowing.

“By integrating advanced weather forecasting, digital credit scoring and real-time loan monitoring, we ensure that farmers have the resources to make informed decisions,” Amparo said.

“This not only helps them increase their harvest but also enables them to repay their loans on time – creating a win-win situation for farmers, financial institutions and the entire agricultural value chain,” he added.