Managing Wealth for Sustainable Livelihoods: Financial Literacy for Farmers in Masumbang
October 2019
All smiles for the proud training participants! Zeth Antaran, WWF-Philippines’ Project Officer for Sustainable Food Systems, takes a group photo with smallholder farmers from Brgy. Masumbang, Merida, Leyte. Photograph © Zeth Antaran / WWF-Philippines
The capital generation is a continuing problem across the agricultural value chain. Lack of innovative production technology and improved farming skills has made it more vital for our Filipino smallholder farmers to know how to manage their wealth and how to master the habit of availing and paying loans, which in the long run will help in ensuring the sustainability and resiliency of their livelihoods.
Last October 11, 2019, The Sustainable Farm to Table Programme, in collaboration with the National Grid Corporation of the Philippines (NGCP) and the Federation of Multi-Sectoral Alliance for Development - Negros (MUAD-Negros), conducted its Capacity Development Workshop on Financial Literacy and Savings Mobilization in Brgy. Masumbang, Merida, Leyte. 63 residents of Brgy. Masumbang participated in the said training, with the support of the barangay council of Masumbang, led by Barangay Captain Rodrigo Pedra Jr., and the local government of Merida, Leyte, led by Mayor Rolando Villasencio.
The establishment of a Group and Savings Loan Association (GSLA) is a vital part of the process in the Financial Literacy and Savings Mobilization Training. The essence of a GSLA is democracy and transparency wherein small communities can voluntarily form their own GSLA - a platform where they can save and loan money to each other. The purpose of a GSLA is to provide a simple alternative venue for farmers to access financial assistance.
Reynic Alo, MUAD-Negros’ Executive Director, discussing the importance of GSLAs in ensuring financial security for smallholder farmer communities like Brgy. Masumbang. Photograph © Zeth Antaran / WWF-Philippines
“Financial Literacy must be taught in a way that can be easily understood by the typical Filipino smallholder farmer - and GSLA is the answer to that,” says Reynic Alo, MUAD-Negros’ Executive Director. “Even though the methods of GSLA are easy, the money of the farmers will always be secured and the system has always been proven to work.” Part of the process of creating the GSLA is for the community to co-write their guiding Constitution and by-laws, where they get to decide the terms by which they will operate the GSLA.
Lack of capital is a growing problem for Filipino farmers. Investing in a common smallholder Filipino farmer has always been viewed by private banks as risky because oftentimes, they do not have collaterals to use as counterparts. This reputation takes away a chance from farmers to actually start an enterprise, be bankable, and successful.
“We want to thank WWF-Philippines and NGCP for conducting these seminars and trainings in Brgy. Masumbang in order to help smallholder farmers in our barangay. The lack of capital is really a huge problem for smallholder farmers. This project helped teach us new ways in organizing ourselves and our finances, making us more disciplined and responsible when it comes to handling our money,” says Brgy. Capt. Rodrigo Pedra Jr.
Elizabeth Lace Viojan, WWF-Philippines’ Site Coordinator for Visayas, explaining the mechanics of the hands-on exercise on proper budgeting. Photograph © Zeth Antaran / WWF-Philippines
The Sustainable Farm to Table Programme started 3 years ago in 2017 and is currently on its third phase. While continuing to sustain 14 host communities accumulated in the past year, the project has added 6 more host communities for the current phase. The program aims to address food security and sustainable agriculture-based enterprises by training farmers on improved and innovative production technology, financial literacy, agro-enterprise development, organizational management, and enterprise development.
“There is a big gap that needs to be bridged in terms of financial assistance to our small rural farmers, and that is where GSLA comes in. The purpose of a GSLA is to make our farmers realize how important it is to manage their wealth and to teach them self-reliance and the proper habit of borrowing and paying debts responsibly,” says Zeth Antaran, WWF-Philippines’ Sustainable Food Systems Project Officer. “Climate change largely affects our agricultural sector and it is a challenge for us to help them adapt to and be resilient to its effects. The stability of food supply for the country relies so much on the sustainability of the livelihood of the farmers, and that is what we are trying to address in the project.”
21 GSLAs have been established under The Sustainable Farm to Table Programme since its inception in 2017. The Financial Literacy and Savings Mobilization Training was part of the interventions introduced for the additional new host communities last 2019.
For more information, please contact:
Mr. Muneer Hinay
Project Manager, Sustainable Farm to Table
mhinay@wwf.org.ph
For media arrangements, please contact:
Ms. Pam Luber
Integrated Communications Manager
pluber@wwf.org.ph
