Speaking at the Philippine Agricultural Journalists (PAJ) awarding ceremonies where he was guest speaker, Pinol said that a bond flotation was necessary to complete the agency’s network of FMRs before the end of President Duterte’s term.

He said the agency would need 140 billion pesos (Bt83.66 billion) to finish some 13,000 kilometres of FMRs all over the country, while another 60 billion pesos (Bt35.86 billion) would be required to finance the mechanisation of farms and fishing communities nationwide.

Pinol said the proposed bond issue was already welcomed by Finance Secretary Carlos Dominguez III and Bangko Sentral ng Pilipinas governor Nestor Espenilla, along with Eastern Samar representative Ben P Evardone, who chairs the House of Representatives’ bank and finance committee.

“Both [Dominguez and Espenilla] said that the measure would utilise the vast resources of private and commercial banks that are required by law to lend 25 per cent of their loan funds to the agriculture and fisheries sector,” Pinol said.

“Mechanisation will cut down post-harvest losses especially in rice and corn, and even in the fish catch.

“The country loses 16 per cent of its grains harvest because of the lack of post-harvest facilities while 40 per cent of the fishermen’s catch is spoiled because of the absence of ice-making plants and cold storage,” he added.

Evardone added that the proposed bond flotation would allow banks to comply with the agri-agra law that requires them to set aside 25 per cent of their loanable funds for agricultural and agrarian reform financing.

At present, banks lend little to the farm sector. To comply with the law, financial institutions simply invest in government securities that are eligible as substitutes for agricultural loans.

“I have discussed this concept of bond flotation with Secretary Dominguez and he believes floating bonds to finance the construction of this vital road network is a good investment in the future of our rural areas,” Evardone said.

For 2019, the DA is hoping to get a budget of more than 200 billion pesos. This is on top of the 1.5 billion pesos that will come from the US government as part of its overseas aid scheme known as the Public Law 480 fund.