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LiveCor’s contribution to the government’s goal of a vigorous growth in agricultural productivity is in the form of equipment and facility leasing and to some extent credit assistance. This financing assistance is not however confined to farmers but also to government and private organizations which provide services to farmers and their beneficiaries and thus contribute to an increase in agricultural productivity. LiveCor is embarking in this venture equipped with control mechanisms to ensure reasonable collection rates resulting to sustainable operations.

What is the Agri-Aqua Equipment Leasing Program?

It is a flagship program of the Livelihood Corporation (LIVECOR) that involves leasing of agri-aqua equipment and machinery on a lease-to-own agreement without need of any collateral or down payment.

What are its objectives?

The program aims to improve rural economy by:

1. increasing agricultural productivity and farmer profitability
2. modernizing agriculture to help reduce the country’s food importation,

Specifically, it shall:

1. Provide farmers/fisherfolks, through a duly organized and recognized group/institution, the required machinery and equipment that shall adequately handle their produce;
2. Reduce losses in field level production, harvest, processing and post-harvest activities; and
3. Provide necessary values education and technical training to the farmers/fisherfolks for a sustainable cooperative endeavor.

What are the benefits of leasing?

• Reduces technology obsolescence
• Reduces initial capital outlay
• Promotes credit worthiness
• Improves financial viability of farms

What makes this program different from the leasing programs of other government institutions?

High quality, low-priced, modern farm equipment and machinery with guaranteed immediate servicing requirements are made easily available to lessees because of the program’s unique features, such as:

• No collateral
• No down-payment
• Seasonal payments

What equipment and machinery are available for lease?

All agricultural and aquamarine machinery and equipment related to field production, harvest, post-harvest and processing/packaging of agri-aqua produce such as, but not limited to, the following:

• harvester/cutter
• rice threshing machine
• corn sheller
• mechanical seeder
• mechanical drier
• farm tractor
• mill/grinder
• grader/sorter
• palletizing machine
• transport/hauling equipment
• reefer van/truck
• irrigation equipment
• aquamarine equipment and gadgets
• food processing and packaging equipment
• natural fiber processing equipment

Who may qualify as lessees?

Organized groups that meet the required criteria such as, but not limited to, the following:

Cooperatives and private enterprises:

• In cases of partnerships and corporations, manager is a major stockholder/ shareholder;
• Produce has a ready market and/or under contract with an institutional buyer;
• Possesses a positive business net worth;
• Must have an active bank account;
• Must have a business history of at least 3 years reflecting prudent financial management.

NGOs:

• Project beneficiary/end-users’ produce has a ready market and/or under contract with an institutional buyer;
• Possesses a positive net worth
• Must have an active bank account;
• Must have a business history of at least 5 years reflecting prudent financial management;
• Must be a member of a recognized umbrella organization; and,
• Acceptable credit rating as determined by LIVECOR.

LGUs:

• Project beneficiary/end-users’ produce has a ready market and/or under contract with an institutional buyer;
• Willing to assign project revenues as payment and IRA as guarantee; and,
• Acceptable credit rating as determined by LIVECOR.

How does an interested party apply?

Any interested party who meets the corresponding criteria may fill up an application form that can be secured from the following:

Livelihood Corporation (LIVECOR)
7F One Corporate Plaza
845 Arnaiz Ave., Makati City
Tel. Nos. 817-1531; 817-0437
Fax: (632) 817 0437
E-mail: info@livelihood.gov.ph
Web: www.livelihood.gov.ph

Department of Agriculture – Regional Field Units
Office of the Governor

Applicants must obtain an endorsement from either of the following: local government, a non-government organization or an institutional buyer. Applications to be forwarded to LIVECOR must be accompanied by documents found in the checklist at the last page of the application form.

Are there any other requirements prior to approval of an application? What are they?

Cooperatives, NGOs, private enterprises and other organized groups are required to give post-dated checks and a deposit equivalent to one (1) month lease payment prior to approval of an application.

For LGUs, the only security requirement is the Sanggunian Resolution committing the IRA and other assets as guarantee for lease payment.

A processing fee equivalent to 1% of total cost of equipment/machinery shall be charged for every approved application.

What is the schedule of payment?

A schedule of payment shall be drawn and agreed upon by the lessee and LIVECOR. It shall stipulate, among others, the amount and dates of remittances to LIVECOR.

A payment plan menu shall be made available to the lessee for payment flexibility and manageability. The lessee may choose a plan that best matches their organization’s cash flow such as, but not limited to, the following:

• Fixed regular payment
• Seasonal payment which allows the lessee to increase and decrease the payment in accordance with their business peaks and valleys

What are the bases for the computation of the lease payment?

The lease amount shall be computed based on the following:

• Cost of equipment/machinery;
• Interest rate (A fixed interest rate shall be charged during the lease term. It shall be based on the prevailing rate but shall not be below 15% and above 20%)
• Choice payment plan menu of lessee

How long is the term of lease?

The lease term shall be less than the economic useful life of the equipment/machinery. It shall commence on the delivery and acceptance date of the equipment/machinery and shall continue until all obligations, monetary or otherwise, had been settled.

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