The notion of debt often carries a heavy burden of negativity and caution as Benjamin Franklin said, “If you would know the value of money, go and try to borrow some; for [they] that go a borrowing go a sorrowing.”
For the South Agusan Multipurpose Cooperative (SAMPCO), the word “debt” did not conjure images of financial distress and burdensome obligations. Cooperative officials instead envisioned it as a potent instrument for financial growth and prosperity.
Extending loans to its members was one of the “treatment” plans that the cooperative implemented to revive the organization. When it became stable, the Coop borrowed money from government institutions to add up to their assets and business.
Entangled past
Like other groups that suffered from multiple pains, SAMPCO toiled day and night just to get to where they are today – a successful, fulfilled, and a united group of seed growers, whose hearts beat for the farmers.
If Mary Jane Ytac were to describe the status of their cooperative more than ten years ago, she would liken it to a critically ill person.
“It needed intensive care and medication, otherwise, it would fall,” the 43-year-old treasurer of SAMPCO said.
She was a new member then. If not for the trust given to her by one of their directors, Celedonio Demegillo, she would not have stayed.
Yul Plaza, also new at that time, learned of the Coop’s history.
“We heard of discrepancies, anomalies, and poor management. Good thing there was a new pool of officers when I enlisted as a member,” the 59-year-old seed grower said.
With their diagnosis in mind, Mary Jane and the rest of the SAMPCO officers took the challenge to execute “treatment” plans and avoid burying this group based in Trento, Agusan del Sur that had existed since 1993.
Curing broken ties
SAMPCO was joined by seed growers from other provinces in Caraga. From 25, their membership grew to 65 around the year 2010. It was also during those years that they faced hurdles. As a result, several of their affiliates lost trust, so that only a few of them remained active.
The officers and board of directors then committed to reviving the group. They went to the members’ households one by one.
“We asked them to return. We gradually paid what the Coop owed them,” Mary Jane said. They also encouraged the members to sell their rice seeds to the Coop and patronize their palay-buying business. The officers dispatched the only truck they owned to fetch the rice seeds from their associates’ warehouses. They made sure to pay the members first and quickly, hoping their trust would be restored.
“We also fixed our transaction records. We signed letters of agreement, and we took note of clients’ purchases, so we could show them to our members who sold their palay to us,” Mary Jane recalled.
After two cropping seasons, the officers’ hard work and sincerity grew well among their members. The mutual trust had crept back.
Support loans, support groups
While their ties have been getting stronger, the SAMPCO officers also took a shot at availing of loans to grow their assets and business activities.
From 2017 to 2021, they received a yearly loan of P5M through the Agrarian Production Credit Program, a tie-up among the LandBank of the Philippines, Departments of Agriculture (DA) and Agrarian Reform (DAR), and the Department of Environment and Natural Resources (DENR). Every six months, they had to pay the bank P2.5 million.
After that, LandBank offered SAMPCO a P10M loan for their working capital, payable in one year.
“We never missed our dues for those loans,” Mary Jane smiled proudly. The Coop collected payments very strictly and their members found it positively annoying.
These loans helped them build capital, support their members, and engage in other forms of businesses. While the amount seemed enormous, the Coop did not hesitate availing of such because they knew it was the only way to grow.
“We didn’t have other sources of funds. We just made sure that the loans were safe and the interest was minimal,” Mary Jane rationalized.
They also received a rice mill machine from the ConVerge project of DAR and the International Funding for Agricultural Development. DAR also provided them trainings on business and marketing strategies.
Their local government unit was also supportive to the Coop and the other farmers in their community. They established farm-to-market roads to ease transportation activities.
The Philippine Center for Postharvest Development and Mechanization provided various farm machines to SAMPCO under the Rice Competitiveness Enhancement Fund (RCEF) Mechanization Program. These include a mobile dryer, rotovator, and combine harvester. Their rice processing system is also on its way.
Alive and kicking
Reviving their cooperative was not an easy feat for the SAMPCO officers. But their healing process was worth it.
“We grew, thankfully! From P3-6M in 2015, we already have P62M worth of assets! We are considered a medium cooperative, with 95 active members. If not for all kinds of support we received, we might not have achieved these,” Mary Jane relished the good news.
They now maintain various businesses including farm machine rentals, palay trading, and commercial rice selling. They are also one of the contracted seed growers’ cooperatives of PhilRice under the RCEF Seed Program, supplying around 25,000 sacks of certified seeds every cropping season.
As it should be, their group success also benefits their members. Mary Jane said they now see their fellows being able to buy motorcycles and other vehicles, Yul being one of them.
“We can avail of farm machine rentals at lower cost. My rice seeds also have had sure market for quite a time now because I am a member of the Coop. I purchased a four-wheel vehicle, and SAMPCO helped me with it. Our lives as farmers are truly easier now, thanks to our responsible officers,” Yul was grateful.
Meanwhile, SAMPCO gained another source of strength last year when they received an award from DAR for being one of the top five agrarian reform beneficiary organizations with huge marketing sales for their rice and ricebased by-products.
Today, Mary Jane, alongside her fellow officers Marilyn Buano, Mary Ann Bunalos, and Aimee Tulang, said they feel more than just healing.
“We are now the doctors, it seems. We graduated from the challenges with a doctorate degree,” Marilyn joked.
