Rising fuel costs are no longer just increasing prices. They are now driving up the cost of producing food and putting pressure on farmers and fisherfolk who depend on loans to keep operations running. The Department of Agriculture has rolled out a loan payment moratorium for qualified borrowers, allowing them to suspend repayments for up to one year as fuel and electricity costs continue to rise.
The relief covers farmers and fisherfolk with current and outstanding loans under the Survival and Recovery Program of the Agricultural Credit Policy Council. Applications will be reviewed and approved by partner lending conduits, including government financial institutions, rural banks, and cooperative banks. The measure targets borrowers facing temporary financial strain but remains active in production.
Agriculture Secretary Francisco Tiu Laurel Jr. said the moratorium forms part of a wider government response to rising costs affecting the sector. “The loan moratorium is not a standalone measure, but part of a coordinated government effort involving financing institutions, local lending partners, and Department of Agriculture agencies working on rural resilience,” he said.
He added that the program is designed to stabilize both livelihoods and output. “We are prioritizing immediate relief while strengthening long-term access to credit so our agricultural sector remains productive and stable despite external shocks, particularly rising fuel and fertilizer costs,” Tiu Laurel said.
For borrowers, the moratorium means a temporary pause in loan payments, giving them room to redirect funds toward fuel, inputs, and daily operations. ACPC Executive Director Rallen Verdadero said, “A one-year grace period on loan payments allows farmers and fishers to prioritize their families’ needs while regaining momentum in their agricultural activities and sustaining their livelihoods.”
Officials said the measure is intended to prevent loan defaults, support rural economic activity, and help sustain food production as rising energy costs continue to affect the supply chain.
