August 29, 2007

A new strategy in combating poverty through farm-based economic activities will be started in the Province of North Cotabato this year.

The program, which I have personally designed is called "The Big Brother Concept In Poverty Alleviation Through Goat Raising."

The program involves four key players: 1) the poor farming family 2) a businessman benefactor/partner 3) the Braveheart Boer Goat Farm, and 4) the local government unit.

All these years, I have always thought of programs that would help poor farming families rise out of poverty, a problem that has hounded government  planners and policy makers.

Hundreds of million of pesos, maybe even billions, in government funds have been wasted through the years in pursuing programs aimed at improving the lives of the rural folks.

The programs vary from soft loans to start up small businesses to animal dispersal programs. Sadly though, these programs, except perhaps for a very few number, have all but failed.

Loans were left unpaid as the businesses they invested in did not really generate enough income to be able to save the beneficiary from the temptation of using up his capital. Farm machineries, corn seeds, fertilizers and livestock distributed have all been sold by the beneficiaries.

Just recently, a few goats distributed by the World Bank funded Mindanao Rural Development Program to a group of beneficiaries in Barangay Mapurok, Alamada town were sold to a goat trader for only P2000 when they were originally bought for P3000.

Carabaos distributed to tribal communities have been sold while corn seeds with fertilizers were sold back to the traders instead of being planted.

And these are all government funds used in the belief that the people would appreciate government support in the effort to improve their lives.

Why do government-funded poverty alleviation and loaning programs fail? On the other hand, why do the corn seeds and fertilizer financiers who charge farmers with exorbitant interest rates succeed in collecting back their investments?

I believe the reason could be found in the mindset of the people in relation to government programs. People have always been led to believe that since government funds are used, there is really no need to return the money.

The problem even becomes greater when these items are released shortly before the elections which happen every three years in the Philippines. It is during these times when government resources are squandered in the name of poverty alleviation efforts.

But the loans acquired from the traders, even if it would mean paying P1,500 for an P800 bag of fertilizer after harvest five months later or one sack of palay worth P800 for every P1,000 in cash borrowed, must be paid because the traders will file charges of estafa if they do not pay back.

It is mainly because of this experience that in the Province of North Cotabato, we did away with the carabao loaning program and instead acquired 25 brand new tractors for plowing under the Plow-Now-Pay-Later scheme.

We have also suspended the micro-lending program and instead concentrated on extending loans in the form of planting materials for rubber, oil palm, coconuts and fruit trees. Before the seedlings are released, government inspectors make sure that the farmer has undergone an orientation seminar, his planting area has been inspected and holes for planting have been prepared.

Judging from our experience, it is always good to have private sector participation in the livelihood programs.

Under the "Big Brother Concept in Poverty Alleviation Through Goat Raising," the first 100 farming families will be identified for the 4-party partnership. The first 100 Big Brothers will also be identified  while Boer bucklings will be selected and prepared by the Braveheart Boer Goat Farms for distribution to the beneficiaries.

The first 100 farmer-beneficiaries will be identified through a thorough evaluation of their backgrounds and reliability in handling the program and the Provincial Veterinarian's Office will start conducting the training of the beneficiaries on goat raising.

Here are the defined roles and responsibilities of each party:

1. Vice Governor Manny Pinol through the task group called People's Alliance of North Cotabato Towards Poverty Emancipation (PANCOPE) will identify the farming families and prepare the first 100 fullblood Boer bucks to be used in the program.

2. The Big Brothers, composed of businessmen from North Cotabato, golfer friends of VG Pinol and members of the Davao City Chamber of Commerce and Industry, will prepare P75,000 as their investment in the partnership which will be used in buying 20 heads of female goats, construction of a goat shed and feeds.

3. The farmer-beneficiaries, once identified, will have to undergo a goat raising training program, plant forage, build a goat house and take care of the goats.

4. The Office of the Provincial Veterinarian will provide the training and support services, supervise the project and conduct health management activities.

All the parties will sign and four-party agreement which will stipulate the following general understanding:

1. Braveheart Boer Goat Farm will provide the Boer bucks which will be paid in three years with 15 heads of the offspring of the Boer mated to the native goats. Five heads will be retrieved from the farm every year. Braveheart Farm will have the first choice.

2. The Big Brother will provide P75,000 which will be handled by the Provincial Veterinarian's Office and used in buying 20 heads of female goats, the construction of a goat house and support for goat feeds. He will receive a share of 10 heads from the offspring of the goats every year.

3. The farmer-beneficiary will manage the project and will get a share of whatever remains the goat's offsprings after the Big Brother and the Braveheart Boer Goat Farms have received their share.

4. The Office of the Provincial Veterinarian shall oversee the projects to ensure that the investments of the Big Brother and the Braveheart Boer Goat Farm are protected.

A four-party contract which shall stipulate criminal liabilities in the event of a violation of  the terms shall be signed and notarized.

It is my belief that if this program is managed and supervised well, this could prove to be the solution to the age-old problem on the failure of government-funded poverty alleviation programs.

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